Publication detail

Analysis of the Budgetary Costs of the Supporting and Guarantee Agricultural and Forestry Fund

Author(s): prof. Ing. Karel Janda M.A., Dr., Ph.D.,
Type: Articles in journals with impact factor
Year: 2006
Number: 0
ISSN / ISBN: 0015-1920
Published in: Czech Journal of Economics and Finance, 56(9-10), 416-434
Publishing place: Prague
JEL codes:
Suggested Citation:
Grants: 402/05/2123 (2005-2007) Efficiency of Financial Markets and New Basel Capital Accord (NBCA)
Abstract: The paper analyzes the cost to the Czech state budget of the Supporting and Guarantee
Agricultural and Forestry Fund (SGAFF). In the empirical part of the paper,
the author shows that the SGAFF portfolio has sufficient value to cover the expected
costs of the credit guarantees and subsidies offered by the fund. The theoretical
model looks at government interventions designed to decrease the credit rationing
of farmers with high probability of success. The theoretical model shows that,
with uniform non-targeted supports, the Czech government unambiguously prefers
lump-sum guarantees to interest-rate subsidies. With support targeted wholly to disadvantaged
farmers, the cost of lump-sum guarantees, proportional guarantees, and
interest-rates subsidies are all equal.
Downloadable: Analysis of the Budgetary Costs


Česká Spořitelna


Patria Finance