The central idea is that instruments must be deployed in ways that maximize their development impact. Thus, the EIB, like all public development banks has a double mandate. Its main aim should be to maximize sustainable and inclusive development impacts (including economic, environmental and social impacts) while maintaining some financial profits or avoiding financial losses.
Patrick Rey
Principal-agent models take outside options, determining participation and incentive constraints, as given.
- 07/24/2024
- Working Paper