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Support for small businesses amid COVID-19

Goodhart, C. A. E., Tsomocos, Dimitrios P. and Wang, Xuan (2020) Support for small businesses amid COVID-19. VoxEU.

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A sizeable proportion of enterprises, especially SMEs, in receipt of financial assistance from the government will fail to repay. This column asks whether, and to what extent, it may be beneficial to apply a screening mechanism to deter those mostly likely to fail to repay from seeking financial assistance in the first place. The answer largely turns on the relative weights attached for the objectives of stabilisation as compared with allocative efficiency.

Item Type: Article
Official URL:
Additional Information: © 2020 The Authors
Divisions: Financial Markets Group
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HJ Public Finance
J Political Science > JF Political institutions (General)
Date Deposited: 11 Aug 2020 12:18
Last Modified: 24 Sep 2021 23:13

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