Rural Economic Performance and U.S. Federal Credit Programs


  • Sherrill Shaffer University of Wyoming
  • Robert B. Collender U.S. Office of Federal Housing Enterprise Oversight


Several theories of externalities and asymmetric information suggest a potential role for government programs to assist credit markets. We examine empirical associations between funding by several U.S. government programs and six measures of subsequent economic outcomes, for nonmetropolitan U.S. counties during the 1990s. Significant differences emerge across programs and performance measures. The results suggest a need to compare policy objectives with acceptable costs in some cases. Overall, the results are consistent with theoretical predictions and with several standard policy objectives. Keywords: federal credit programs; growth; volatility; employment; rural economic performance

Author Biography

Sherrill Shaffer, University of Wyoming

Sherrill Shaffer, John A. Guthrie Sr. Distinguished Professor of Banking and Financial Services Dept of Economics and Finances, University of Wyoming PhD, Stanford University BA, Rice University Research Interests: Banking, Financial Markets and Regulation Teaching: Banking, Financial Markets, and Financial Economics