Constraints on credit, consumer behaviour and the dynamics of wealth
AbstractThis note develops a simple macro model where the pattern of wealth accumulation is determined by a credit multiplier and by the way households react to short run fluctuations. In this setup, long term wealth dynamics are eventually characterized by the presence of endogenous cycles.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 2886.
Date of creation: Jan 2007
Date of revision:
Credit constraints; Financial development; Consumer confidence; Endogenous business cycles; Nonlinear dynamics;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-04-28 (All new papers)
- NEP-DGE-2007-04-28 (Dynamic General Equilibrium)
- NEP-MAC-2007-04-28 (Macroeconomics)
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4554209, Harvard University Department of Economics.
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