Machine learning in the service of policy targeting: The case of public credit guarantees

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2022
Volume: 198
Issue: C
Pages: 434-475

Authors (6)

Andini, Monica (Banca d'Italia) Boldrini, Michela (not in RePEc) Ciani, Emanuele (not in RePEc) de Blasio, Guido (not in RePEc) D'Ignazio, Alessio (not in RePEc) Paladini, Andrea (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 6 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Public credit guarantees should be provided to firms that are both creditworthy and credit constrained. We use Machine Learning (ML) predictive tools to propose a targeting rule that includes both objectives. The study elaborates on the case of Italy's Guarantee Fund and demonstrates, by means of ex-post evaluation methods, that the program effectiveness can be increased by ML targeting. We discuss some of the problems in using algorithms for the implementation of public policies, such as transparency and manipulation.

Technical Details

RePEc Handle
repec:eee:jeborg:v:198:y:2022:i:c:p:434-475
Journal Field
Theory
Author Count
6
Added to Database
2026-01-24