Economics, Econometrics and Finance
6 years ago

Boosting public credit guarantees with Machine Learning for better targeting

Journal of Economic Behavior & Organization
Machine learning in the service of policy targeting: The case of public credit guarantees
Monica Andini, Michela Boldrini, ‪Emanuele Ciani, Guido de Blasio, Alessio D’Ignazio, Andrea Paladini

Paper Summary

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Public credit guarantees in Italy can be improved using Machine Learning tools. By analyzing data, the program can better help creditworthy but credit-constrained firms. This approach increases the effectiveness of the Guarantee Fund. However, using algorithms for public policies can have issues like transparency and manipulation.