@article{Petrick:14872,
      recid = {14872},
      author = {Petrick, Martin},
      title = {FARM INVESTMENT, CREDIT RATIONING, AND PUBLIC CREDIT  POLICY IN POLAND: A MICROECONOMETRIC ANALYSIS},
      address = {2002},
      number = {918-2016-72729},
      series = {IAMO Discussion Paper No. 43},
      pages = {18},
      year = {2002},
      abstract = {The aim of this paper is to empirically analyse the  effects of governmentally promoted credit access on the  investment behaviour of credit rationed farmers. This is  done by specifying an empirical investment equation which  is estimated on a cross-sectional sample of Polish farm  household data. In contrast to conventional neo-classical  investment models, the investment equation contains the  financial variable long-term credit access, which plays the  central role in this study. The econometric analysis is  used to analyse the determinants of credit access and  estimate the marginal effect of credit on investment, which  in turn provides the key information for policy evaluation.  The results suggest that access to subsidised credit has a  significant role in determining investment behaviour of  farmers who self-classified as being exogenously credit  constrained. This classification applies to 45 percent of  all respondents. Major determinants of credit rationing are  the reputation of the borrower and the demographic  household composition. In various specifications of the  credit investment relationship, including a cubic Tobit  model, the average marginal effect of credit on investment  was smaller than one. This implies that credit is partly  used for other purposes than productive investment. Every  second borrower invests less in productive assets than  borrowed. However, over a commonly observed range, the  marginal effect increases with an increasing credit volume.   Even so, the investment volume is negatively related to  farm size. A government policy aiming at the promotion of  productive investment should hence emphasise lending in  larger amounts without discriminating small farms.},
      url = {http://ageconsearch.umn.edu/record/14872},
      doi = {https://doi.org/10.22004/ag.econ.14872},
}