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Firm Heterogeneity, Credit Constraints, and Endogenous Growth

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Abstract

This paper is concerned with the role of firm heterogeneity under credit constraints for economic growth. We focus on firm size, innovativeness and credit constraints in a semi-endogenous growth model reflecting recent empirical findings on firm heterogeneity. It allows for an explicit solution for transitional growth and balanced growth path productivity as well as the growth maximizing firm heterogeneity. This enables us to draw inference about the impact of key policy parameters of the model on these quantities and to draw conclusions about firm and capital market related policies.

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Bibliographic Info

Paper provided by Universitaet Augsburg, Institute for Economics in its series Discussion Paper Series with number 311.

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Length: pages
Date of creation: Apr 2010
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Handle: RePEc:aug:augsbe:0311

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Keywords: firm heterogeneity; credit constraints; firm size; SME; economic growth;

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Cited by:
  1. Torben Klarl, 2011. "A Spatial related Note on Entrepreneurship and Economic Growth," ERSA conference papers ersa11p278, European Regional Science Association.
  2. Klarl, Torben, 2013. "Consumer's Environmental Awareness and the Role of (Green) Entrepreneurship: Lessons from Environmental Quality Competition and R&D Activities for Environmental Policy," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79729, Verein für Socialpolitik / German Economic Association.
  3. Torben Klarl, 2013. "Consumer's Environmental Awareness and the Role of (Green) Entrepreneurship: Lessons from Environmental Quality Competition and R&D Activities for Environmental Policy," Discussion Paper Series 321, Universitaet Augsburg, Institute for Economics.

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