The Analysis of Credit Using and Rationing Under Farmer's Risk Attitudes Difference

This paper conducts a survey of 237 rural households in Zhangjiagang City, identifies farmers’ risk attitude through ELCE method and problem design and empirically studies the relationship between risk attitudes and credit rationing by utilizing Probit and Logit model. The results show that farmers’ risk attitude and credit rationing are in a significant positive correlation. The stronger farmers’ risk aversion is, the more serious the demanded credit rationing becomes. Such risk attitude determines the risk cost and risk premium, thus affecting the credit behavior and credit rationing degree. In addition, distance between farmers’ residence far the city and their land amount have a positive significant influence on credit rationing, while farmers’ education level, income, family labor force have a negative significant effect on credit rationing. Based on these findings, the paper further analyzes the relationship between farmers’ credit using and credit rationing as to farmers with different risk attitudes. Measures to relieve the farmer’s credit rationing must be taken from government, financial institutions and farmers, respectively.

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07, 04
Asian Agricultural Research
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 Record created 2017-04-01, last modified 2020-10-28

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