Differential Effects of Partial Credit Guarantee Schemes: A Dose-Response Function Approach

Foto A parziale garanzia. Per quale livello di copertura le garanzie offerte dal Fondo centrale per le PMI si sono dimostrate più efficaci?

Credit Guarantee Schemes issue partial guarantees, i.e. they cover up to a certain share of the loan borrowed by firms, in order to mitigate financial stability and moral hazard problems on the part of the guaranteed firms.

Although guarantees play a key role in relaxing financial constraints, existing studies have largely focused on firms having received a guarantee, and ignored the magnitude of the partial guarantee.

This article takes this issue into account and estimates a dose-response function, namely a different treatment effect for each value of the coverage ratio. For Italy, an inverse-U shaped relationship is found with the maximum of the effectiveness around 70% and no effects below and above 50% and 80%, respectively. This approach is quite informative as allows the policy makers to tailor the policy according to the specific value of the ratio.


vai a inizio pagina