Comparative Research on Float Return Government Guarantee in Infrastructure Finance

Float return guarantee is an effective way for infrastructure finance in China.In dynamic content,float return guarantee can be applied to infrastructure finance,and also can cause market failure.The paper models the float return guarantees and the optimal float return guarantees are analyzed based on the model.The paper also points out that high risk and market failure are the two main reasons for government guarantees in infrastructure finance.Overqualified government support does not benefit the project,but causes distortion in infrastructure industry further.