Public support to firms has been a traditional and important industrial policy measure in many countries for several decades. One of the reasons for public intervention is the existence of market failures or imperfections. Informational asymmetries between borrowers and lenders of funds in...

This paper investigates empirically the role of real assets in credit rationing. When loans are collateralized, the amount borrowed is determined by the value of collateral. This happens because in a context of asymmetric information banks use real assets as a guarantee in the case of project's...