Subjective Perceptions of Financing Constraints: How Well Do They Reflect Credit Market Conditions?

Many cross-country enterprise surveys have recently become widely available. They are the basis of rankings of dimensions of the business environment in emerging markets and developing economies. Although the literature is concerned about "perception bias", there has been little effort at analyzing whether subjective appraisals of credit market constraints correspond to objectively measurable indicators. This note assesses a predominantly used subjective measure of "access to finance" and relates it to indicators of financial development and credit availability and costs. It finds a significant relationship between subjective and objective indexes of financing constraint but the relationship varies substantially across indicators.

Bibliographic Details

Main Authors:	Bouton, Lawrence, Tiongson, Erwin R.
Format:	Journal Article biblioteca
Language:	EN
Published:	2010
Subjects:	Banks, Other Depository Institutions, Micro Finance Institutions, Mortgages G210, Financing Policy, Financial Risk and Risk Management, Capital and Ownership Structure G320, Economic Development: Financial Markets, Saving and Capital Investment, Corporate Finance and Governance O160, Socialist Institutions and Their Transitions: Financial Economics P340,
Online Access:	http://hdl.handle.net/10986/5440
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