We analyze state-sponsored credit guarantees in a setting where entrepreneurs are capital-constrained and subject to moral hazard. In our model, guar-antees can raise welfare because they reduce the cost of capital faced by entrepreneurs, and so potentially enhance entrepreneurial effort incentives. Overly generous guarantees have perverse incentive effects, however: they induce lenders to reduce lending standards and to lower their collateral re-quirements. Co-funding schemes do not suffer from the put option feature inherent in guarantees, but they may encourage entry by unproductive en-trepreneurs who plan simply to consume subsidies, without investing. This limits the guarantee fund’s ability to support productive entrepreneurs, and the...
Starting a business being a risky activity, we analyze two channels through which the financing part...
Governments often support private credit with guarantee schemes, compensating lenders for borrower d...
Understanding the extent to which interventions in financial markets can reduce liquidity constraint...
We analyze state-sponsored credit guarantees in a setting where entrepreneurs are capital-constraine...
We analyze financial support for the entrepreneurial sector. State support can raise welfare by rela...
We investigate the effect of state subsidy on the behavior of entrepreneur and venture capitalist in...
This paper investigates the impact of state subsidy on the behavior of the entrepreneur under asymme...
We analyze in this paper how various forms of State intervention can impact the microcredit market i...
We analyze in this paper how various forms of State intervention can impact the microcredit market i...
ACL-2International audienceWe analyze in this paper how various forms of state intervention can impa...
Credit contracting between a lender with a market power and a small start-up entrepreneur may lead t...
This paper uses a French loan guarantee program targeting new ventures to explore the link between c...
In this chapter, we provide empirical evidence that the underwriting of private sector loans through...
We explore the role of government initiatives fostering entrepreneurship—in the form of tax advantag...
Public credit guarantee schemes have gained popularity as a tool to try to increase access to credit...
Starting a business being a risky activity, we analyze two channels through which the financing part...
Governments often support private credit with guarantee schemes, compensating lenders for borrower d...
Understanding the extent to which interventions in financial markets can reduce liquidity constraint...
We analyze state-sponsored credit guarantees in a setting where entrepreneurs are capital-constraine...
We analyze financial support for the entrepreneurial sector. State support can raise welfare by rela...
We investigate the effect of state subsidy on the behavior of entrepreneur and venture capitalist in...
This paper investigates the impact of state subsidy on the behavior of the entrepreneur under asymme...
We analyze in this paper how various forms of State intervention can impact the microcredit market i...
We analyze in this paper how various forms of State intervention can impact the microcredit market i...
ACL-2International audienceWe analyze in this paper how various forms of state intervention can impa...
Credit contracting between a lender with a market power and a small start-up entrepreneur may lead t...
This paper uses a French loan guarantee program targeting new ventures to explore the link between c...
In this chapter, we provide empirical evidence that the underwriting of private sector loans through...
We explore the role of government initiatives fostering entrepreneurship—in the form of tax advantag...
Public credit guarantee schemes have gained popularity as a tool to try to increase access to credit...
Starting a business being a risky activity, we analyze two channels through which the financing part...
Governments often support private credit with guarantee schemes, compensating lenders for borrower d...
Understanding the extent to which interventions in financial markets can reduce liquidity constraint...