IDEAS home Printed from https://ideas.repec.org/a/sae/entthe/v5y1980i1p6-12.html
   My bibliography  Save this article

The Effect of U.S. Economic Policies on the Rate of Business Failure

Author

Listed:
  • Ronald C. Clute
  • George B. Garman

Abstract

Using 92 quarters of data, the authors attempt to determine if federal government economic policies are the cause of unexplained variations in the rate of business failure. The three policy variables, money supply, volume of bank loans, and interest rates are investigated with a Cochran-Orcutt regression model utilizing lagged explanatory variables. The authors conclude that variations in the money supply and the volume of bank loans have an inverse, lagged effect on the rate of business failure. A statistically significant relationship was not established for interest rates.

Suggested Citation

  • Ronald C. Clute & George B. Garman, 1980. "The Effect of U.S. Economic Policies on the Rate of Business Failure," Entrepreneurship Theory and Practice, , vol. 5(1), pages 6-12, July.
    • Handle: RePEc:sae:entthe:v:5:y:1980:i:1:p:6-12
    DOI: 10.1177/104225878000500103
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/104225878000500103
    Download Restriction: no
    File URL: https://libkey.io/10.1177/104225878000500103?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Donald R. Hodgman, 1960. "Credit Risk and Credit Rationing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 74(2), pages 258-278.
    2. Tanner, J. Ernest, 1979. "Are the lags in the effects of monetary policy variable?," Journal of Monetary Economics, Elsevier, vol. 5(1), pages 105-121, January.
    3. C. F. Charles, 1979. "Effects of Tight Money Policy on the Availability of Bank Loans to Small Businesses," Entrepreneurship Theory and Practice, , vol. 4(1), pages 22-30, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Philip D. Olson, 1985. "Entrepreneurship: Process and Abilities," Entrepreneurship Theory and Practice, , vol. 10(1), pages 25-31, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. LaDue, Eddy L. & Allen, Sandra, 1993. "Regulatory, Efficiency, and Management Issues Affecting Rural Financial Markets," Staff Papers 121348, Cornell University, Department of Applied Economics and Management.
    2. Pancrazi, Roberto & Pietrunti, Mario, 2019. "Natural expectations and home equity extraction," Journal of Housing Economics, Elsevier, vol. 46(C).
    3. Anne Villamil & Stefan Krasa & Tridib Sharma, 2004. "Enforcement and Firm Finance," 2004 Meeting Papers 868, Society for Economic Dynamics.
    4. Basu, Santonu, 1997. "Why institutional credit agencies are reluctant to lend to the rural poor: A theoretical analysis of the Indian rural credit market," World Development, Elsevier, vol. 25(2), pages 267-280, February.
    5. Pasquale Lucio Scandizzo, 2004. "Financing Technology: An Assessment of Theory and Practice," CEIS Research Paper 43, Tor Vergata University, CEIS.
    6. J.M. Berk, 1998. "Monetary transmission: what do we know and how can we use it?," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 51(205), pages 145-170.
    7. Arvind Ashta & Laurence Attuel-Mendès & Zaka Ratsimalahelo, 2015. "Another “French paradox”: explaining why interest rates to microenterprises did not increase with the change in French usury legislation," European Journal of Law and Economics, Springer, vol. 40(3), pages 479-509, December.
    8. Manel Mazioud Chaabouni & Nadia Selmi, 2016. "The Determinants of Credit Rationing in Tunisia: A Survey among Credit Managers," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(5), pages 151-168, May.
    9. Alberto Manelli, 2014. "New Paradigms for a Sustainable Well-Being," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 2014(2), pages 11-30.
    10. Parker, Simon C, 2002. "Do Banks Ration Credit to New Enterprises? And Should Governments Intervene? President's Lecture Delivered at the Annual General Meeting of the Scottish Economic Society 4-5 September 2001," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(2), pages 162-195, May.
    11. David Nickerson & Robert Jones, 2017. "Collateral Risk and Demographic Discrimination in Mortgage Market Equilibria," Review of Economics & Finance, Better Advances Press, Canada, vol. 9, pages 13-28, August.
    12. David Nickerson, 2016. "Asset Price Volatility, Credit Rationing and Rational Lending Discrimination," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(10), pages 140-158, October.
    13. Aguilera, Nelson A. & Graham, Douglas H., 1990. "Measuring Credit Rationing In Rural Financial Markets: A Portuguese Case Study," 1990 Annual meeting, August 5-8, Vancouver, Canada 270732, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Hany Guirguis & Martin B. Schmidt, 2005. "Output Variability and the Money-Output Relationship," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 4(1), pages 53-66, April.
    15. Cheng, Chao & Yang, Liu, 2022. "What drives the credit constraints faced by Chinese small and micro enterprises?," Economic Modelling, Elsevier, vol. 113(C).
    16. Saltari, E. & Travaglini, G., 2012. "A note on optimal capital stock and financing constraints," Economic Modelling, Elsevier, vol. 29(4), pages 1177-1180.
    17. J.M. Berk, 1998. "Monetary transmission: what do we know and how can we use it?," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 51(205), pages 145-170.
    18. George A. Akerlof, 2003. "Behavioral Macroeconomics and Macroeconomic Behavior," The American Economist, Sage Publications, vol. 47(1), pages 25-47, March.
    19. Lojak, Benjamin & Makarewicz, Tomasz & Proaño, Christian R., 2023. "Low interest rates, bank’s search-for-yield behavior and financial portfolio management," The North American Journal of Economics and Finance, Elsevier, vol. 64(C).
    20. John Lintner, 1972. "Finance and Capital Markets," NBER Chapters, in: Economic Research. Retrospect and Prospect: Finance and Capital Markets, Fiftieth Anniversary Colloquium II, pages 1-53, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:entthe:v:5:y:1980:i:1:p:6-12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.