Credit Markets with Differences in Abilities: Education, Distribution, and Growth

This file is part of IDEAS, which uses RePEc data

Credit Markets with Differences in Abilities: Education, Distribution, and Growth

Author Info

José De Gregorio ()
Se-Jik Kim

Additional information is available for the following registered author(s):

Jose De Gregorio

Abstract

An endogenous growth model is presented in which the existence of credit markets affects time allocation of individuals who differ in education abilities. Credit markets allow the more able to specialize in studying and the less able in working. This specialization can increase growth and welfare by accelerating an economy's human capital accumulation. This paper also shows that in economies with high (low) average level of education abilities, the opening of credit markets will induce a more disperse (equal) income distribution. The role of intergenerational transfers within a family in overcoming the absence of credit markets is also discussed. Finally, we discuss the growth effect of credit markets in the case of imperfect credit markets, where people can save using storage but cannot borrow.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

Publisher Info
Paper provided by Centro de Economía Aplicada, Universidad de Chile in its series Documentos de Trabajo with number 42.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 1998
Date of revision:
Handle: RePEc:edj:ceauch:42

Contact details of provider:

For technical questions regarding this item, or to correct its listing, contact: () The email address of this maintainer does not seem to be valid anymore. Please ask to update the entry or send us the correct address..

Related research
Keywords:

Other versions of this item:

Article
- De Gregorio, Jose & Kim, Se-Jik, 2000. "Credit Markets with Differences in Abilities: Education, Distribution, and Growth," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(3), pages 579-607, August.
Paper
- Se-Jik Kim & Jose De Gregorio, 1994. "Credit Markets with Differences in Abilities - Education, Distribution, and Growth," IMF Working Papers 94/47, International Monetary Fund.

This paper has been announced in the following NEP Reports:

NEP-ALL-2002-05-03 (All new papers)
NEP-DEV-2002-05-03 (Development)

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Alex William Trew, 2005. " Finance and Growth: A Critical Survey," CDMA Working Paper Series 0507, Centre for Dynamic Macroeconomic Analysis, revised Apr 2006. [Downloadable!]
Other versions:
- Alex Trew, 2006. "Finance and Growth: A Critical Survey," The Economic Record, The Economic Society of Australia, vol. 82(259), pages 481-490, December. [Downloadable!] (restricted)
DE LA CROIX, David & MICHEL, Philippe, 2004. "Education and growth with endogenous debt constraints," CORE Discussion Papers 2004074, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
Other versions:
- David, DE LA CROIX, 2004. "Education and Growth with Endogenous Debt Constraints," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2004020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
- David Croix & Philippe Michel, 2007. "Education and growth with endogenous debt constraints," Economic Theory, Springer, vol. 33(3), pages 509-530, December. [Downloadable!] (restricted)
Simone Valente, 2005. "Tax Policy and Human Capital Formation with Public Investment in Education," Macroeconomics 0507002, EconWPA. [Downloadable!]
Other versions:
- Simone Valente, 2005. "Tax policy and human capital formation with public investment in education," Economics working paper series 05/41, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich. [Downloadable!]
- Simone Valente, 2005. "Tax Policy and Human Capital Formation with Public Investment in Education," Journal of Economics, Springer, vol. 86(3), pages 229-258, December. [Downloadable!] (restricted)
Erasmo Papagni, 2008. "The Long-run Effects of Household Liquidity Constraints and Taxation on Fertility, Education, Saving, and Growth," Discussion Papers 11_2008, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy. [Downloadable!]
Conceição Pereira, 2003. "The Effects of Households’ and Firms’ Borrowing Constraints on Economic Growth," GEMF Working Papers 2003-04, GEMF - Faculdade de Economia, Universidade de Coimbra. [Downloadable!]
Theodore Palivos & Dimitrios Varvarigos, 2009. "Intergenerational Complementarities in Education and the Relationship between Growth and Volatility," Discussion Paper Series 2009_05, Department of Economics, University of Macedonia, revised Mar 2009. [Downloadable!]
Other versions:
- Theodore Palivos & Dimitrios Varvarigos, 2009. "Intergenerational Complementarities in Education and the Relationship between Growth and Volatility," Discussion Papers in Economics 09/8, Department of Economics, University of Leicester. [Downloadable!]
Thomas Gries & Manfred Kraft & Daniel Meierrieks, 2008. "Linkages between Financial Deepening,Trade Openness and Economic Development: Causality Evidence from Sub-Saharan Africa," Working Papers 15, University of Paderborn, CIE Center for International Economics. [Downloadable!]
Ryo Horii & Akiomi Kitagawa & Koichi Futagami, 2005. "Availability of Higher Education and Long-Term Economic Growth," Development and Comp Systems 0504005, EconWPA, revised 08 Sep 2005. [Downloadable!]
Other versions:
- Akiomi Kitagawa & Ryo Horii & Koichi Futagami, 2003. "Availability of Higher Education and Long-Term Economic Growth," Discussion Papers in Economics and Business 03-14, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
- Ryo Horii & Akiomi Kitagawa & Koichi Futagami, 2003. "Availability of Higher Education and Long-Term Economic Growth," Discussion Papers in Economics and Business 03-14-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Sep 2005. [Downloadable!]
- Ryo Horii & Akiomi Kitagawa & Koichi Futagami, 2008. "Availability Of Higher Education And Long-Term Economic Growth," The Japanese Economic Review, Japanese Economic Association, vol. 59(2), pages 156-177. [Downloadable!] (restricted)
David De La Croix & Michel Lubrano, 2009. "The Tradeoff Between Growth and Redistribution: ELIE in an Overlapping Generations Model," Working Papers halshs-00382513_v1, HAL. [Downloadable!]
Other versions:
- David DE LA CROIX & Michel LUBRANO, 2009. "The Tradeoff Between Growth and Redistribution: ELIE in an Overlapping Generations Model," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2009011, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
José De Gregorio & Jong-Wha Lee, 1999. "Education and Income Distribution: New Evidence from Cross-country Data," Documentos de Trabajo 55, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
Costas AZARIADIS & David DE LA CROIX, 2002. "Growth or equality ? Losers and gainers from financial reform," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2002036, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
Other versions:
- AZARIADIS, Costas & de la CROIX, David, 2002. "Growth or equality ? Losers and gainers from financial reform," CORE Discussion Papers 2002058, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
Neville N. Jiang & Ping Wang & Haibin Wu, 2002. "Finance Thy Growth: The Role of Occupational Choice By Ability-Heterogeneous Agents," Working Papers 0228, Department of Economics, Vanderbilt University, revised Oct 2003. [Downloadable!]

Statistics

Access and download statistics

Did you know? IDEAS also computes impact factors for journals and working paper series.

This page was last updated on 2009-11-10.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.