Working Paper Series DO FIRMS WANT TO BORROW MORE ? TESTING CREDIT CONSTRAINTS USING A DIRECTED LENDING PROGRAM

@inproceedings{Abhijit2011WorkingPS,
  title={Working Paper Series DO FIRMS WANT TO BORROW MORE ? TESTING CREDIT CONSTRAINTS USING A DIRECTED LENDING PROGRAM},
  author={Abhijit and Banerjee Esther and Duflo},
  year={2011}
}
This paper uses variation in access to a targeted lending program to estimate whether firms are credit constrained. The basic idea is that while both constrained and unconstrained firms may be willing to absorb all the directed credit that they can get (because it may be cheaper than other sources of credit), constrained firms will use it to expand… CONTINUE READING