Abstract
This paper examines bank market structure to draw inferences concerning the role of discrimination in credit markets for small businesses. The authors analyze credit application and denial rates, loans outstanding, and interest rates across demographic groups. This set of variables, in combination with information on local bank market structure, helps them distinguish among borrower preferences, lender tastes, and inadequate lender information as likely causes of differences in credit market experiences of small business operators from distinct demographic groups. The authors find that white men and women can expect similar treatment in credit markets, with some benefits to female-owned firms located in concentrated banking markets. Minorities, by contrast, fare worse than whites. Moreover, by appealing to Becker's (1957) classic theories, we find some clear evidence to support the view that prejudicial discrimination is at least partly to blame.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
