Credit constraints and productivity in Peruvian agriculture

Catherine Guirkinger, Stephen R. Boucher

Résultats de recherche: Contribution à un journal/une revueArticleRevue par des pairs


This article evaluates the performance of a rural credit market in Peru. We develop a model that shows that collateral requirements imposed by lenders in response to asymmetric information can lead not just to quantity rationing but also to transaction cost rationing and risk rationing. Just like quantity rationing, these two additional forms of nonprice rationing adversely affect farm resource allocation and productivity. We test the insights of the model using a panel data set from Northern Peru. We estimate the returns to productive endowments for constrained and unconstrained households using a switching regression model. We find that, consistent with the theory, productivity is independent of endowments for unconstrained households but is tightly linked to endowments for constrained households. We estimate that credit constraints lower the value of agricultural output in the study region by 26%. © 2008 International Association of Agricultural Economists.

langue originaleAnglais
Pages (de - à)295-308
Nombre de pages14
journalAgricultural Economics
Numéro de publication3
Les DOIs
Etat de la publicationPublié - nov. 2008

Empreinte digitale

Examiner les sujets de recherche de « Credit constraints and productivity in Peruvian agriculture ». Ensemble, ils forment une empreinte digitale unique.

Contient cette citation