Collateral and Development
41 Pages Posted: 22 Mar 2018
Date Written: December 11, 2017
This paper presents a model economy with endogenous credit constraints and endogenous growth, 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.
Keywords: Credit, Collateral, Human Capital, Growth
JEL Classification: G0,O1,O40
Suggested Citation: Suggested Citation