In a simplified version of the Stiglitz–Weiss (1981)model of the credit market we characterize optimal policies to cor-rect market failures. Widely applied policies, notably interest–ratesubsidies and investment subsidies, are compared to the theoreticaloptimum. Some comments on the trade-off between credit subsidyand infrastructural investment are added in the conclusions.
|Numero di pagine||20|
|Rivista||Journal of Public Economic Theory|
|Stato di pubblicazione||Published - 2009|
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