Abstract
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.
| Lingua originale | English |
|---|---|
| Numero di pagine | 20 |
| Rivista | Journal of Public Economic Theory |
| Volume | 2009-06 |
| Stato di pubblicazione | Published - 2009 |
All Science Journal Classification (ASJC) codes
- Finance
- Sociology and Political Science
- Economics and Econometrics