Detail publikace

The Comparative Statics of the Effects of Credit Guarantees and Subsidies in the Competitive Lending Market

Autor: prof. Ing. Karel Janda M.A., Dr., Ph.D., Karel Janda
Typ: IES Working Papers
Rok: 2005
Číslo: 82
Publikováno v: IES WP 2005/82
Místo vydání: Prague
Klíčová slova: credit, guarantees, subsidies, transition
JEL kódy: D82, G28, P31
Abstrakt: We compare the effects of government credit subsidies and guarantees on decreasing inefficiencies caused by principal-agent problems in the credit market in transition and post-transition economies. We show that the guarantees and subsidies targeted to low risk borrowers decrease efficiency while those targeted to high risk borrowers increase efficiency both in transition and post-transition economies. The uniform non-targeted guarantees decrease the credit rationing or dead-weight loss caused by the collateral transfer. The uniform subsidies may be used to improve welfare in the economy subjected to credit rationing, but they do not have any effect on the size of collateral required in post-transition economy.
Ke stažení: WP 82_Janda


McKinsey & Company
Moneta Money Bank