Credit Market Failures and Policy
In a simplified version of the Stiglitz–Weiss (1981) model of the credit market we characterize optimal policies to correct market failures. Widely applied policies, notably interest–rate subsidies and investment subsidies, are compared to the theoretical optimum. Some comments on the trade-off between credit subsidy and infrastructural investment are added in the conclusions.
|Date of creation:||2006|
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Web page: http://www.unibs.it/atp/page.1019.0.0.0.atp?node=224
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