Purpose – The purpose of this paper is to present a discussion on the idea of “policy rationing”. Policy rationing refers to constraining impacts on farm credit through policy action or inaction. To present the ideas the author discusses ten themes in policy rationing, ranging from...

Purpose – The purpose of this paper is to present a discussion on the idea of “policy rationing”. Policy rationing refers to constraining impacts on farm credit through policy action or inaction. To present the ideas the author discusses ten themes in policy rationing, ranging from...

Purpose –The purpose of this paper is to determine the extent of risk rationing among potential rural borrowers in Mexico and China. Design/methodology/approach –Using primary survey data from 730 farm households in the Shaanxi province of China and from 372 farmers in northeastern Mexico,...

India and China have the largest farm-household populations in the world and in many areas also the poorest. Among the many factors that affect farm livelihoods access to credit has been identified as a significant barrier. While there has been a significant literature on credit constraints in...

Incentive mechanisms are important attributes to financial decision-making. A framed field experiment was conducted to test loan decision behaviors. It showed that lenders' risk-aversion and behavioral responses resulted in credit rationing under certain incentive schemes. In the experiment,...

Purpose – The purpose of this paper is to determine the extent of risk rationing among potential rural borrowers in Mexico and China. Design/methodology/approach – Using primary survey data from 730 farm households in the Shaanxi province of China and from 372 farmers in northeastern Mexico,...