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Rural Economic Performance And Federal Credit Programs

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  • Sherrill Shaffer
  • Robert N. Collender

Abstract

Several theories of externalities and asymmetric information suggest a positive role for government programs to assist credit markets, though potential distortions by special interests carry attendant dangers. We examine the empirical association between funding by several federal government programs and subsequent economic performance, measured six ways, for nonmetropolitan U.S. counties during the 1990s. Significant differences are found across programs, performance measures, and market types. Observed tradeoffs suggest a need to compare policy objectives with acceptable costs in many cases. Overall, the results are consistent with theoretical predictions and with some standard policy objectives.

Suggested Citation

  • Sherrill Shaffer & Robert N. Collender, 2008. "Rural Economic Performance And Federal Credit Programs," CAMA Working Papers 2008-26, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:camaaa:2008-26
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    File URL: https://cama.crawford.anu.edu.au/sites/default/files/publication/cama_crawford_anu_edu_au/2021-06/26_shaffer_collender_2008.pdf
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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