Credit Rationing, Profit Accumulation and Economic Growth
AbstractThis paper studies how credit rationing affects endogenous growth when capital and debt are related to the firm's internal net worth, taken as collateral. The accumulation of firm's net worth determines the growth rate of capital and the growth rate of the economy. The relation between growth and interest rate is then negative without requiring convex adjustment costs on investment.
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Bibliographic InfoPaper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2002 with number 5.
Date of creation: 29 Aug 2002
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Other versions of this item:
- Amable, Bruno & Chatelain, Jean-Bernard & Ralf, Kirsten, 2004. "Credit rationing, profit accumulation and economic growth," Economics Letters, Elsevier, vol. 85(3), pages 301-307, December.
- Jean-Bernard Chatelain & Bruno Amable & Kirsten Ralf, 2004. "Credit rationing, profit accumulation and economic growth," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00112521, HAL.
- NEP-ALL-2002-07-08 (All new papers)
- NEP-CBA-2002-07-08 (Central Banking)
- NEP-DGE-2002-07-08 (Dynamic General Equilibrium)
- NEP-MFD-2002-07-08 (Microfinance)
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