A Two-Sector Growth Model with Credit Market Imperfections and Production Externalities

Description

A two-sector dynamic general equilibrium model with financial constraints and production externalities is studied. Agents face idiosyncratic productivity shocks in each period. Agents who draw high productivity borrow resources in the financial market and become capital producers, whereas agents who draw low productivity become lenders. We analyze how the interaction between the extent of financial constraints and sector-specific production externalities affects the characterization of equilibria in a two-sector economy.

Journal

References(21)*help

See more

Related Projects

See more

Details 詳細情報について

Report a problem

Back to top