IDEAS home Printed from https://ideas.repec.org/a/taf/applec/44y2012i22p2841-2850.html
   My bibliography  Save this article

A decomposition approach to analysing racial and gender biases in Farm Service Agency's lending decisions

Author

Listed:
  • Ya Wu
  • Cesar L. Escalante
  • Lewell F. Gunter
  • James E. Epperson

Abstract

This study provides a different perspective in revisiting the racial and gender discrimination issue at the Farm Service Agency (FSA). Employing the Oaxaca--Blinder decomposition method, this study analyses disparities in approved loan amounts among racial and gender classes of borrowers. This study's results indicate substantial differentials in approved loan amount gaps between racial and gender classes, favouring white and female borrowers, respectively. Further scrutiny of the borrowers’ comparative financial conditions presented to FSA to support their loan applications, however, indicate that these borrower groups significantly dominate their peers in a number of measures that indicate their financial strengths and relatively greater capability to repay their future lending obligations. Hence, this study's results can hardly be construed as evidence of biased lending decisions as these borrower groups should rightfully be offered more favourable loan terms, such as larger loan amounts, by the FSA.

Suggested Citation

  • Ya Wu & Cesar L. Escalante & Lewell F. Gunter & James E. Epperson, 2012. "A decomposition approach to analysing racial and gender biases in Farm Service Agency's lending decisions," Applied Economics, Taylor & Francis Journals, vol. 44(22), pages 2841-2850, August.
    • Handle: RePEc:taf:applec:44:y:2012:i:22:p:2841-2850
    DOI: 10.1080/00036846.2011.566210
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2011.566210
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2011.566210?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Ashok K. Mishra & Gianna Short & Charles B. Dodson, 2024. "Racial disparities in farm loan application processing: Are Black farmers disadvantaged?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(1), pages 111-136, March.
    2. Waymon R. Hinson, 2018. "Land Gains, Land Losses: The Odyssey of African Americans Since Reconstruction," American Journal of Economics and Sociology, Wiley Blackwell, vol. 77(3-4), pages 893-939, May.
    3. Jennifer A. Ball, 2020. "Women farmers in developed countries: a literature review," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 37(1), pages 147-160, March.

    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:taf:applec:44:y:2012:i:22:p:2841-2850. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    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.