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Impacts of (individual and aggregate) productivity and credit shocks on equilibrium aggregate production

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  • Ngoc-Sang Pham

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie, EM Normandie - École de Management de Normandie)

Abstract

In a market economy, the aggregate production level depends not only on the aggregate variables but also on the distribution of individual characteristics (e.g., productivity, credit limit, ...). We point out that, due to financial frictions the equilibrium aggregate production may be non-monotonic in both individual productivity and credit limit. By consequence, the emergence of some firms (for example, improving productivity or relaxing credit limit) may not necessarily be beneficial to economic development.

Suggested Citation

  • Ngoc-Sang Pham, 2022. "Impacts of (individual and aggregate) productivity and credit shocks on equilibrium aggregate production," Working Papers halshs-03686284, HAL.
    • Handle: RePEc:hal:wpaper:halshs-03686284
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03686284
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    References listed on IDEAS

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    Cited by:

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    Keywords

    Productivity shock; Financial shock; Credit constraint; Heterogeneity; Productivity dispersion; Distributional effects; Efficiency; General equilibrium;
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