BEI Information 1-2007 (n°126)

A comprehensive evaluation of the EIB Group's debt support to small and medium-sized firms.

Resources for development finance are limited. Find out how EIB Global works with 12 trust funds to increase amounts available, support a wide variety of projects and make a positive impact.

This paper shows evidence that investment decisions depend on firms’ ability to pass higher costs onto consumers (the so-called pass-through rate). A high pass-through of costs lowers the immediate negative impact on profitability and internal sources are less affected.