From the lower part of Table 3 , we notice that, in all the specifications, the standard deviations of the individual effects are highly significant and cross-equation correlation between η i and α i is significant and negative, hinting at the presence of time-invariant unobservable factors that jointly affect credit demand and rationing probabilities. 13 Accordingly, correlation between the idiosyncratic error terms (and consequently total error correlation) is negative and statistically significant.
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