The role of credit rationing in Czech agriculture – the case of large agricultural enterprises
L. Čechurahttps://doi.org/10.17221/5054-AGRICECONCitation:Čechura L. (2006): The role of credit rationing in Czech agriculture – the case of large agricultural enterprises . Agric. Econ. – Czech, 52: 477-488.
The article is concerned with the analysis of the role of credit rationing in Czech agriculture on the case of large agricultural enterprises. The part of results, first presents the author’s derivation of the theoretical model (model CR-AS), which represents a good tool (approach) for the analysis of credit rationing on sector level. Second, the focus on large agricultural enterprises and relevant characteristic of agriculture ask for a small adjustment of the derived model CR-AS in the part of model application. Third, the adjusted model is expressed numerically by the employment of econometric methodology. The estimation of the model is made per partes. The co-integration is used for fitting the Cobb-Douglas production function, which embodies the long run production characteristics of large agricultural enterprises. The CRDcurve is derived based on the stability assumption of the production function that is essential considering the recursive nature of the model. Finally, the specified model is employed in the ex-post analysis of the impact of credit rationing on production level of large agricultural enterprises. The outputs of the analysis suggest that, in average, the group of large agricultural enterprises might not be directly influenced by possible presence of credit rationing on the agricultural loan market. Nevertheless, that might not be the case of small and middle enterprises. The analysis continues with the investigation of possible meeting of credit rationing within both the group of large agricultural enterprises and the group of small and middle enterprises and stresses his implications. Furthermore, the role of the PGRLF (Support and Guarantee Farm and Forestry Fund) is analysed and discussed on the subject of reduction of credit rationing phenomena on the agricultural loan market.Keywords:
loan, credit rationing, large agricultural enterprise, production function, PGRLF (Support and Guarantee Farm and Forestry Fund)