Study Of Credit Rationing Problems In China's Economic Transition

Credit rationing is one of important subjects in economics, which Adam Smith and Keynes had both discussed. After WW II, Credit rationing was attached importance to as one part of "availability doctrine" in the United States. However, until some outstanding economists such as Stiglitz and Weiss introduced incomplete information into the research for credit rationing in 1970' and 1980', the microeconomic mechanism of credit rationing was really illustrated, and strict credit rationing theory began to establish, which also is regarded as one of important parts of New Keynesian economics.Credit rationing theory suggests that adverse selection, moral hazard and monitoring cost caused by incomplete information which is inherent in the credit market make expected return of lender is not monotonous function of interest rate. When interest rate exceeds certain level, expected return of lender will decline with the increase of nominal interest rate. At this time, although there are some borrowers are willing to apply for loan at higher interest rate, lender will control the interest rate and make it not exceed the interest rate in which expected return of lender begins to decline. At the same time, lender rations credit according to excessive loan demand. In other words, incomplete information inherent in the credit market decides interest rate mechanism and rationing mechanism work at the same time during the allocation of credit resource.Credit rationing theory makes us understand better to real operating mechanism of credit market, and provides a start to study credit rationing in China. However, compared to the mechanism described in credit rationing theory, credit rationing is more complicated, because the credit market in transition economy in China suffers from not only common information incompleteness, but also various institutional constraints based on government's financial control. So credit rationing in the credit market in China may be equilibrium credit rationing or disequilibrium credit rationing. In fact, the study on credit rationing in China in this dissertation really devotes to discuss roundly institutional backgrounds and microeconomic mechanism of credit rationing in transition economy in China through exploring disequilibrium credit rationing owing to exogenously institutional constraint and equilibrium credit rationing owing to endogenous facts in credit market, and then base on it to further analyze some relative important problems in the credit market, such as efficiency ofIVallocation of credit resource in China, financing plight of Small and Medium-sized Enterprises, and transmission mechanism of monetary policy. In detail, this dissertation firstly sums up the frame of credit rationing theory, which can provide a start to the research for credit rationing in China; Secondly, microeconomic mechanism of credit rationing in transition economy in China is studied, through respectively analysis of mechanism of disequilibrium credit rationing and equilibrium credit rationing based on the behavior of market agents in given institutional environment, moreover, the operating mechanism of "double credit rationing" and its implications for efficiency of allocation of credit resource are illustrated; thirdly, the frame of "double credit rationing" is used to analyze the serious problem about the financing plight of Small and Medium-sized Enterprises; finally, macroeconomic implication of credit rationing in the transition economy in China is analyzed, which focuses on credit channel of transmission mechanism of monetary policy and its implication on effectiveness of monetary policy.The dissertation falls into seven chapters. Chapter 1 serves as a brief introduction to research meanings, relative concepts, structure, main conclusion and creativeness of the dissertation. Chapter 2 sums up the frame of credit rationing theory and discusses its applicability to special conditions in China. Chapter 3 discusses institutional backgrounds and microeconomic mechanism of disequilibrium credit rationing i...