The efficiency of credit markets with screening

Author(s): Zephirin, Mary G (1992)

Created 20 Jul, 1992
Categories Working Papers
Views: 1983
Print
Share
This article examines the welfare implications of screening contracts, arguing that intervention can accomplish a Pareto improvement. It describes the partial equilibrium model and its symmetric information outcome. It divides the optimal contract between bank and client when there is adverse selection. It also describes the general equilibrium framework and derives the policy implications of screening within this framework and offers conclusions at the end of the paper.

WP1992-05.PDF (0 Bytes)
Copyright 2020 by Central Bank of Barbados