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Firm Heterogeneity, Credit Constraints, and Endogenous Growth

  • Jürgen Antony
  • Torben Klarl
  • Alfred Maußner

This paper is concerned with the role of firm heterogeneity under credit constraints for economic growth. We focus on firm size, innovativeness and credit constraints in a semi-endogenous growth model reflecting recent empirical findings on firm heterogeneity. It allows for an explicit solution for transitional growth and balanced growth path productivity as well as the growth maximizing firm heterogeneity. This enables us to draw inference about the impact of key policy parameters of the model on these quantities and to draw conclusions about firm and capital market related policies.

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File URL: http://degit.sam.sdu.dk/papers/degit_15/c015_045.pdf
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Paper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c015_045.

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Length: 23 pages JEL Classification: E5, O31
Date of creation: Sep 2010
Date of revision:
Handle: RePEc:deg:conpap:c015_045
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