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  • Credit contracting between a lender with market power and a small start-up entrepreneur may lead to the rejection of projects whose expected benefits are higher than their total costs when adverse selection is present. This inefficiency may be eliminated by government support in the form of credit guarantees or interest-rate subsidies. The principal agent model of this paper compares different forms of government support and concludes that credit guarantees and interest-rate subsidies have an unambiguous positive effect on social efficiency, since they enable the funding of socially efficient projects that would not be financed otherwise.
  • Credit contracting between a lender with market power and a small start-up entrepreneur may lead to the rejection of projects whose expected benefits are higher than their total costs when adverse selection is present. This inefficiency may be eliminated by government support in the form of credit guarantees or interest-rate subsidies. The principal agent model of this paper compares different forms of government support and concludes that credit guarantees and interest-rate subsidies have an unambiguous positive effect on social efficiency, since they enable the funding of socially efficient projects that would not be financed otherwise. (en)
Title
  • Inefficient credit rationing and public support of commercial credit provision
  • Inefficient credit rationing and public support of commercial credit provision (en)
skos:prefLabel
  • Inefficient credit rationing and public support of commercial credit provision
  • Inefficient credit rationing and public support of commercial credit provision (en)
skos:notation
  • RIV/00216208:11230/11:10100257!RIV12-GA0-11230___
http://linked.open...avai/predkladatel
http://linked.open...avai/riv/aktivita
http://linked.open...avai/riv/aktivity
  • P(GA402/09/0380), P(GAP402/11/0948), P(GAP403/10/1235)
http://linked.open...iv/cisloPeriodika
  • 2
http://linked.open...vai/riv/dodaniDat
http://linked.open...aciTvurceVysledku
http://linked.open.../riv/druhVysledku
http://linked.open...iv/duvernostUdaju
http://linked.open...titaPredkladatele
http://linked.open...dnocenehoVysledku
  • 204266
http://linked.open...ai/riv/idVysledku
  • RIV/00216208:11230/11:10100257
http://linked.open...riv/jazykVysledku
http://linked.open.../riv/klicovaSlova
  • investment; markets; imperfect information; asymmetric information (en)
http://linked.open.../riv/klicoveSlovo
http://linked.open...odStatuVydavatele
  • DE - Spolková republika Německo
http://linked.open...ontrolniKodProRIV
  • [4ACDC0EC6C9C]
http://linked.open...i/riv/nazevZdroje
  • Journal of Institutional and Theoretical Economics
http://linked.open...in/vavai/riv/obor
http://linked.open...ichTvurcuVysledku
http://linked.open...cetTvurcuVysledku
http://linked.open...vavai/riv/projekt
http://linked.open...UplatneniVysledku
http://linked.open...v/svazekPeriodika
  • 167
http://linked.open...iv/tvurceVysledku
  • Janda, Karel
http://linked.open...ain/vavai/riv/wos
  • 000292618200012
issn
  • 0932-4569
number of pages
http://localhost/t...ganizacniJednotka
  • 11230
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