THE COMPARISON OF CREDIT SUBSIDIES AND GUARANTEES IN TRANSITION AND POST-TRANSITION ECONOMIES

• Authors: Janda Karel
• Languages of publication: EN

Abstracts

EN

We compare the welfare effects of government credit subsidies and guarantees in transition and post-transition economies in the conditions of asymmetric information. 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 improve welfare. 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.

Keywords

EN

CREDIT; GUARANTEES; SUBSIDIES; TRANSITION

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2005
• Volume: 53
• Issue: 4
• Pages: 383-398
• Document type: ARTICLE

Contributors

author

Janda Karel

• K. Janda, Ustav slovenskej a svetovej ekonomiky SAV, Sancová 56, 811 05 Bratislava 1, Slovak Republic

Identifiers

CEJSH db identifier

06SKAAAA00882116