IDEAS home Printed from https://ideas.repec.org/p/pur/prukra/1153.html
   My bibliography  Save this paper

Relationships and Rationing in Consumer Loans: Evidence from the Nineties

Author

Listed:
  • Chakravarty, Sugato

Abstract

Using a national survey data where the event of individual households being refused loans (credit rationed) by financial institutions as well as the specific loans for which they were turned down is observed directly, this study investigates both the role of relationships on credit rationing in the nineties and the differential role of relationships across credit rationing in various consumer loan types, like mortgage loans, auto loans, installment loans, credit card loans, and lines of credit. We find that even though relationship variables continue to be very important determinants of credit rationing in the consumer loan market in the nineties, their relative impact may have, in fact, declined compared to the eighties. We also find that relationships appear to be most important in decreasing the probability of rationing in mortgage loans, and play a relatively less important role in the rationing of car loans and installment loans. Credit cards and Lines of credit appear to be immune to relationship effects. Our work highlights the uniqueness of relationships in secured consumer loans like mortgage loans and its difference with secured loans in small business lending.

Suggested Citation

  • Chakravarty, Sugato, 2002. "Relationships and Rationing in Consumer Loans: Evidence from the Nineties," Purdue University Economics Working Papers 1153, Purdue University, Department of Economics.
    • Handle: RePEc:pur:prukra:1153
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

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


    Cited by:

    1. Christian Weller, 2009. "Credit Access, the Costs of Credit and Credit Market Discrimination," The Review of Black Political Economy, Springer;National Economic Association, vol. 36(1), pages 7-28, March.
    2. Christian Weller, 2010. "Have Differences in Credit Access Diminished in an Era of Financial Market Deregulation?," Review of Social Economy, Taylor & Francis Journals, vol. 68(1), pages 1-34.

    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:pur:prukra:1153. 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: Business PHD (email available below). General contact details of provider: https://edirc.repec.org/data/kspurus.html .

    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.