This paper empirically estimates individual household credit demand elasticities based on 897 farm households surveyed in Shaanxi and Gansu provinces in the People's Republic of China (PRC) in October 2009. We used survey-based experimental techniques to extract individual household credit...

Purpose – The purpose of this paper is to provide an overview of the farm and rural credit system in China. To do this the authors use the so-called “7 Cs” of credit (these include: Credit, Character, Capacity, Capital, Condition, Capability, and Collateral) and for each “C” provide...

Purpose – China frequently suffers from weather-related natural disasters and weather risk is recognized as a source of wide-spread systemic risk throughout large swaths of China. During these periods farmers' crops are at risk and for a largely poor population few can afford the turmoil to...

Incentive mechanisms are important attributes to financial decision-making. A framed field experiment was conducted to test loan decision behaviors. It showed that lenders' risk-aversion and behavioral responses resulted in credit rationing under certain incentive schemes. In the experiment,...