Credit rationing not a significant macroeconomic phenomenon, new study finds.
The study looked at over a million bank loans from 1977 to 1988 to understand credit rationing. They found that loan rates stayed the same, suggesting rationing, but this varied unexpectedly based on loan terms. Surprisingly, tight credit markets didn't lead to more commitment loans, which protect borrowers from rationing. Overall, the data show that credit rationing isn't a big deal in the economy.