Who benefits from government guarantees: Evidence from Saitdol loans

Meeroo Kim

KDI Journal of Economic Policy, 2025, vol. 47, issue 2, 37-80

Abstract: This study investigates whether Saitdol loans, a type of governmentguaranteed loan, were allocated to groups that would otherwise be unable to access the loan market without such a guarantee. To assess this, both non-parametric and parametric estimation methods, as proposed by Hendren (2013), were employed to examine the severity of information asymmetry between Saitdol loan borrowers and financial institutions, a potential cause of a market failure. The analysis results indicate that the information asymmetry between borrowers holding Saitdol loans and financial institutions was not severe enough to cause a market failure. This suggests that a significant number of Saitdol loans were allocated to borrowers who could have obtained loans from the private sector without government guarantees.

Keywords: Government Loan Guarantees; Household Loan; Mid-rate Loan; Asymmetric Information Pension (search for similar items in EconPapers)
JEL-codes: D82 G14 G51 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:kdijep:320443

DOI: 10.23895/kdijep.2025.47.2.37

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