The Quantile Treatment Effect of Credit Constraint on the Welfare Loss of Rural Households

Using recent survey data of rural households,we estimate the average effect of credit constraint on the welfare level of all sample rural households,and the impact on rural households where are in the various quantiles of the welfare level. The results reveal that the credit constraint have statistically significant impact on the welfare level; the depth of credit constraint increase by the quantiles,while its relative impact presents an "inverted U shape"relationship along with the increase of the quantile of welfare.