6533b7d1fe1ef96bd125c10b

RESEARCH PRODUCT

Entrepreneurship and Credit Rationing: How to Screen Successful Projects in this Current Crisis Period

Irene ComeigMatilde O. Fernández-blancoC. Monica Capra

subject

FinanceEntrepreneurshipMoral hazardbusiness.industryCredit rationingeducationContext (language use)businesshumanitieshealth care economics and organizationsPeriod (music)Test (assessment)

description

The current credit rationing heavily influences entrepreneurship and, more dramatically, the viability of innovation projects. In this context, mechanisms to screen successful projects are of paramount importance for both lenders and entrepreneurs. We present an experiment to test the collateral-interest mechanism of credit screening. Our results confirm that incentive-compatible pairs of collateral-interest rate can distinguish between projects of different success probability, even in moral hazard settings.

yearjournalcountryeditionlanguage
2013-09-23
https://doi.org/10.1007/978-3-319-02384-7_15