TY  - GEN
AU  - Támola, Alejandro
AU  - Fernández Díez, María Carmen
AU  - Joachín, Arturo
TI  - Credit Rationing: The Relative Importance of Internal and External Factors
PY  - 2024
Y1  - 2024/11/04
DO  - 10.18235/0013229
AB  - Both internal and external factors can contribute to the informational frictions that drive credit rationing among firms. This study uses data from enterprise surveys and other sources to evaluate the relative contribution of internal and external variables in determining the likelihood of credit rationing. The results indicate that external factors are more important than internal ones in their association with the marginal probability of experiencing credit rationing. From these key results, we derive two policy recommendations. First, policy interventions promoting reforms to reduce inflation, decrease informality, improve firm transparency, and make judicial processes more effective are likely to reduce credit rationing. Second, while credit support programs are likely to be effective in reducing credit rationing, it is advisable to design such programs with mechanisms aimed at improving formalization and transparency.
UR  - https://doi.org/10.18235/0013229
ER  -