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Self-Fulfilling Expectations in a model of Banking and Economic Growth

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  • Futamura, H.

Abstract

In this paper, I analyze a quality ladder model in which innovation activities in improving the quality of intermediate inputs are financed by bank loans. It will be shown that the multiple equilibria may emerge depending on the functional form of the probability of success in innovation activities.

Suggested Citation

  • Futamura, H., 1998. "Self-Fulfilling Expectations in a model of Banking and Economic Growth," Papers 9807, Southern California - Department of Economics.
    • Handle: RePEc:fth:socaec:9807
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    More about this item

    Keywords

    ECONOMIC GROWTH;

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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