Gender Bias Claims in Farm Service Agencyâ€™s Lending Decisions
This study analyzes the courtsâ€™ denial of women farmersâ€™ motion for class-action certification of their lawsuits alleging gender discrimination in Farm Service Agency (FSA) lending decisions. The plaintiffsâ€™ claim of â€œcommonalityâ€ of circumstances in women farmersâ€™ dealings with FSA is tested using a four-year sampling of Georgia FSA loan applications. The econometric framework has been developed after accounting for the separability of loan approval and amount decisions, as well as endogeneity issues through instrumental variable estimation. This studyâ€™s results do not produce overwhelming evidence of gender bias in FSA loan approval decisions and in favor of the â€œcommonalityâ€ argument among Georgia FSA farm loan applicants.
Volume (Year): 34 (2009)
Issue (Month): 2 (August)
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