• DOI:10.1086/261851
Corpus ID: 53067012

Some Evidence on the Empirical Significance of Credit Rationing

@article{Berger1992SomeEO,
  title={Some Evidence on the Empirical Significance of Credit Rationing},
  author={Allen N. Berger and Gregory F. Udell},
  journal={Journal of Political Economy},
  year={1992},
  volume={100},
  pages={1047 - 1077}
}

• Allen N. Berger, Gregory F. Udell
• Published 1992
• Economics
• Journal of Political Economy

This paper examines the credit rationing debate using detailed contract information on over one million commercial bank loans from 1977 to 1988. While commercial loan rates are "sticky," consistent with rationing, this stickiness varies with loan contract terms in ways that are not predicted by equilibrium credit rationing theory. In addition, the proportion of new loans issued under commitment does not increase significantly when credit markets are tight, despite the fact that borrowers… Expand

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