Collateral and development

This paper presents a model economy with endogenous credit constraints à la Kiyotaki-Moore and endogenous growth à la Uzawa-Lucas, in which agents face a trade-off between investing resources to improve the pledgeability of collateral assets and the accumulation of human capital. The model generates...

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Bibliographic Details
Published in:The B.E. journal of macroeconomics 2020-01, Vol.20 (1)
Main Authors: Amendola, Nicola, Carbonari, Lorenzo, Ferraris, Leo
Format: Article
Language:English
Subjects:
Accumulation
Collateral
credit
development
Economic models
Endogenous
growth
Human capital
Macroeconomics
O40
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Summary:This paper presents a model economy with endogenous credit constraints à la Kiyotaki-Moore and endogenous growth à la Uzawa-Lucas, in which agents face a trade-off between investing resources to improve the pledgeability of collateral assets and the accumulation of human capital. The model generates both growth miracles and stagnant economies.
ISSN:2194-6116
1935-1690
DOI:10.1515/bejm-2019-0033