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Credit Constraints: Their Existence, Determinants, and Implications for U.S. Farm and Nonfarm Sole Proprietorships
- Abstract::
- The objective of this study is to determine the effect of credit constraints on production for farm and nonfarm sole proprietorships. A propensity score-matching estimator is employed to provide unbiased estimates of the production impacts of being denied credit. The empirical results demonstrate that the value of production is significantly lower for credit-constrained sole proprietorships. If this drop in the value of production is aggregated to a national level, it constitutes only 3% and 13% of total value of production for farm and nonfarm sole proprietorships, respectively.
- Author(s):
-
Briggeman, Brian C. , Towe, Charles A. , Morehart, Mitchell J.
- Subject(s):
-
farm credit , farms , business enterprises , sole proprietorship , econometric models , production economics , production functions , economic impact , data analysis , United States
- Description:
- Includes references
- Source:
- American journal of agricultural economics 2009 Feb., v. 91, no. 1
- Language:
- English
- Year:
- 2009
- Publisher:
- Blackwell Publishing Inc
- Collection:
-
Journal Articles, USDA Authors, Peer-Reviewed
- File:
-
Download [PDF]
- Rights:
- Works produced by employees of the U.S. Government as part of their official duties are not copyrighted within the U.S. The content of this document is not copyrighted.