search query: @indexterm Financial theory / total: 142
reference: 27 / 142
| Author: | Meza, D. de |
| Title: | Overlending |
| Journal: | Economic Journal
2002 : FEB, VOL. 112:477, p. F17-F31 |
| Index terms: | Loans Bank lending Entrepreneurship Capital markets Financial theory |
| Language: | eng |
| Abstract: | A mass of evidence suggests that aspiring entrepreneurs with low net worth or from disadvantaged social groups are excluded from capital markets. Asymmetric information potentially explains these findings, though whether aggregate lending is raised or lowered relative to the full information outcome is ambigious. Whichever case occurs, subsidising credit may decrease efficiency. Potential entrepreneurs are prone to unrealistic optimism. |
SCIMA