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- W2076861796 abstract "This paper analyzes the role that asymmetric information played in the build-up of a new capital stock during the transition in Eastern Germany. It formally derives the conditions for underinvestment and overinvestment to occur. It identifies characteristics of an economy typically facing these inefficiencies and compares these characteristics with stylized facts of the East German economy. The result indicates that both under- and overinvestment severely impeded the transition. The paper states that although the functioning of credit markets in a transition economy such as Eastern Germany is significantly handicapped by asymmetric information, they cannot serve as a justification for subsidizing corporate investment." @default.
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- W2076861796 date "2004-03-01" @default.
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- W2076861796 title "Asymmetric information in credit markets—implications for the transition in Eastern Germany" @default.
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- W2076861796 doi "https://doi.org/10.1016/j.ecosys.2003.11.004" @default.
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