COMPENSATION OF HIGHER INTEREST RATES BY THE GOVERNMENT SUPPORT MECHANISM
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COMPENSATION OF HIGHER INTEREST RATES BY THE GOVERNMENT SUPPORT MECHANISM
Annotation
PII
S042473880000616-6-1
Publication type
Article
Status
Published
Authors
Vadim Arkin 
Alexander Slastnikov
Pages
104-111
Abstract

We study the problem of compensating higher interest rates on loan with the help of non-tax government support mechanisms: co-financing of investment projects and subsidizing interest rates on loan. As a criterion for compensation it is considered optimal expected NPV of implemented project. We received the boundary within which the loan interest rate can be compensated by using the above mechanisms of government support. Moreover, we set a number of conditions under which compensation provides non-negative budgetary effect (i.e. the expected tax revenue from the implemented project will exceed the costs of supporting the project).

Keywords
investment project, loan, subsidizing interest rates, co-financing, compensation, budgetary effect.
Date of publication
01.10.2014
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0
Views
83
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Additional sources and materials

Arkin V.I., Slastnikov A.D. (2007). Investitsionnye ozhidaniya, stimulirovanie investitsij i nalogovye reformy // Ehkonomika i matematicheskie metody. T. 43. Vyp. 2. S. 76–100.

Arkin V.I., Slastnikov A.D. (2010). Kompensatsiya kreditnoj nagruzki novykh predpriyatij s pomosch'yu mekhanizma nalogovykh kanikul // Obozrenie prikladnoj i promyshlennoj matematiki. T. 17. Vyp. 6. S. 834–837.

Arkin V.I., Slastnikov A.D. (2011). Kompensatsiya protsentnykh stavok po kreditu s pomosch'yu mekhanizma amortizatsii // Obozrenie prikladnoj i promyshlennoj matematiki. T. 18. Vyp. 4. S. 617–620.

Slastnikov A.D. (2010). Optimizatsiya uchastiya gosudarstva v sofinansirovanii proektov v usloviyakh gosudarstvenno-chastnogo partnerstva // Ehkonomika i matematicheskie metody. T. 46. Vyp. 4. S. 69–81.

Dixit A.K., Pindyck R.S. (1994). Investment under Uncertainty. Princeton: Princeton University Press.