Credit Rationing in Italy

  • Mariarosaria Agostino
  • Damiano B. Silipo
  • Francesco Trivieri


This work presents new evidence on the determinants of credit rationing, seeking to discriminate between different theories by nesting them within a general empirical model. We consider determinants related to the demand for loans, the supply side, and institutional and environmental aspects affecting borrowers’ and banks’ behaviour in local credit markets. Another generalization of our approach is to consider both consumer and business credit constraints. Using direct measures of credit rationing provided by surveys carried out by the Bank of Italy and by Capitalia for the period 1995–2003, we estimate the impact of the main determinants of credit rationing in the Italian local credit markets. Our chief finding is that most of the regressors capturing the determinants from the demand side are significant and with the expected sign. By contrast, supply side determinants and local market conditions are not significant, save for the measure of banking competition and branch density.


Credit Rationing Credit Market Credit Constraint Underground Economy Main Bank 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.



We are grateful to Dr. Giovanni Butera of Moody’s KMV for kindly providing data on firms’ riskiness


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Copyright information

© Springer Physica-Verlag Berlin Heidelberg 2009

Authors and Affiliations

  • Mariarosaria Agostino
    • 1
  • Damiano B. Silipo
    • 1
  • Francesco Trivieri
    • 1
  1. 1.Dipartimento di Economia e StatisticaUniversità della CalabriaBucciItaly

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