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Uncertainty, market power and credit rationing

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  • Ramskogler, Paul

Abstract

This paper explores the nexus between uncertainty and credit restrictions. A Post Keynesian approach to an explanation of access rationing to credit is developed and contrasted with the dominant relationship lending school. It is argued that access rationing to credit has be understood in terms of uncertainty and power. Differences in systemic uncertainty to which hetrogenous market participants are exposed can explain the reluctance of banks to lend to certain applicants. Monopsonistic power and uncertainty further help to understand why banks of a different size show differences in their lending behavior. (author's abstract)

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  • Ramskogler, Paul, 2007. "Uncertainty, market power and credit rationing," Department of Economics Working Paper Series 105, WU Vienna University of Economics and Business.
    • Handle: RePEc:wiw:wus005:312
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    File URL: https://epub.wu.ac.at/312/
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    2. Guglielmo Forges Davanzati, 2015. "Nicholas Kaldor on endogenous money and increasing returns," Working Papers PKWP1505, Post Keynesian Economics Society (PKES).
    3. Benedikt Barthelmess & Jean Langlois-Berthelot, 2019. "SME Financing in MENA," Post-Print hal-03700216, HAL.

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    More about this item

    Keywords

    fundamental uncertainty; credit restrictions; power; Geldangebot; Entscheidung bei Unsicherheit; Kreditgewährung; Restriktion; Klein- und Mittelbetrieb; Neokeynesianismus;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D89 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Other

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