We develop a model of bank lending that allows for credit rationing in equilibrium. Recognizing that small firms incur … a higher percentage cost of monitoring than large firms, the model shows that the incidence of bank credit rationing … consistent with a pattern of a differentially greater degree of rationing of credit to small borrowers during the Great Recession …

In this paper, we find that reduced credit supply reduces firm investments in our sample of small private firms. The … that is linked with financial, bank account and ownership data, and take advantage of the financial crisis in 2008-9 as a … firms hedge against potential future credit supply shocks? (ii) did they have better access to shareholder funding? or (iii …

In this study, we aim to assess the relevance of credit composition to entrepreneurship empirically in light of the …-called neutrality principle or undertake an active credit policy. We employ a panel data model to quantify the effect of credit … composition on entrepreneurship in 54 high- and middle-income economies from 2001 to 2016. To capture credit composition, we …