“…Dymski and Mohanty, 1999) or on particular categories of lending such as mortgages (see inter alia Goering and Glennon, 1996;Munnell et al, 1996;Ladd, 1998). Credit rationing is also widely investigated in the context of the borrower-lender relationship where the empirical focus is on investigating the effects of such relationships on the firm's value or on its strength (James, 1987;Lummer and McConnell, 1989;Hoshi et al, 1991;Slovin et al, 1993;Peterson and Rajan, 1994;Billett et al, 1995;Berger and Udell, 1995;Blackwell and Winters, 1997;Cole, 1998, etc.). 4 Specifically, Stiglitz and Weiss (1981) show that asymmetric information between borrowers and banks might lead to refusal of loans to some of the observationally identical borrowers.…”