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The causal effect of credit guarantees for SMEs: evidence from Italy


We evaluate the effectiveness of a partial credit guarantee program implemented in a large Italian region using unique microdata from a broad set of firms. Our results show that the policy was effective to the extent that it resulted in an improved financial condition for the beneficiary firms. While the total amount of bank debt was unaffected, firms showed a significant increase in the long-term component. Furthermore, targeted firms benefited from a substantial decrease in interest rates. On the other hand, there is some evidence that the probability of default increases as a consequence of the treatment, although the effect is only marginally significant. There are, instead, no effects on the real outcomes.

Carlo Menon
Short bio: 

Carlo Menon is an Economist within the Structural Policy Division of the Science, Technology and Industry Directorate at OECD, where he contributes to a wide array of empirical research and policy advising on innovation, entrepreneurship, and firm dynamics. He is also an active researcher in the field of in urban and regional economics and in policy evaluation. Some of its latest contributions on these topics are being published in leading academic journals, including the World Bank Economic Review and the Journal of Banking & Finance. Occasionally his studies have also captured the attention of influential Italian media. Carlo holds a PhD from the London School of Economics, UK (2010), and a M.Res. (2005) and a B.Sc. (2003) in Economics from the University of Venice, Italy.

14 June 2013 - 11:00

IRVAPP/Fondazione Bruno Kessler - Via Santa Croce 77 - Trento


The presentation will be in English.