کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
969263 1479466 2012 8 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
The politician and his banker — How to efficiently grant state aid
کلمات کلیدی
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
The politician and his banker — How to efficiently grant state aid
چکیده انگلیسی

Politicians should spend money as efficiently as possible. But what is the best method of granting state aid to firms? We use a theoretical model with firms that differ in their success probabilities and compare different types of direct subsidies with indirect subsidies through bank loans. We find that, for a large range of parameters, subsidies through banks entail higher social welfare than direct subsidies, avoiding windfall gains to entrepreneurs and economizing on screening costs. For selfish politicians, subsidizing a bank has the additional advantage that part of the screening costs are born by private banks. Consequently, from a welfare perspective, politicians use subsidized banks inefficiently often.


► When firms generate positive externalities, politicians want to subsidize.
► Under hidden information, politicians cannot distinguish who needs the subsidy.
► Bankers have the ability to assess firm quality, at a cost. They can generate information that politicians lack.
► The efficient form of intervention is often an indirect subsidy to firms through bank loans.
► From a welfare perspective, politicians use subsidized loans too often.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Journal of Public Economics - Volume 96, Issues 1–2, February 2012, Pages 218–225
نویسندگان
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