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Firm Heterogeneity, Credit Constraints, and Endogenous Growth

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  • Jürgen Antony
  • Torben Klarl
  • Alfred Maußner

Abstract

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.

Suggested Citation

  • Jürgen Antony & Torben Klarl & Alfred Maußner, 2010. "Firm Heterogeneity, Credit Constraints, and Endogenous Growth," DEGIT Conference Papers c015_045, DEGIT, Dynamics, Economic Growth, and International Trade.
    • Handle: RePEc:deg:conpap:c015_045
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    Cited by:

    1. Miravitlles, Paloma & Mora, Toni & Achcaoucaou, Fariza, 2016. "The role of corporate financial structure in the export propensity of manufacturing firms," Economics Discussion Papers 2016-16, Kiel Institute for the World Economy (IfW Kiel).
    2. Torben Klarl, 2011. "A Spatial related Note on Entrepreneurship and Economic Growth," ERSA conference papers ersa11p278, European Regional Science Association.
    3. Paolo Giordani, 2015. "Entrepreneurial finance and economic growth," Journal of Economics, Springer, vol. 115(2), pages 153-174, June.
    4. Torben Klarl, 2013. "Consumer's Environmental Awareness and the Role of (Green) Entrepreneurship: Lessons from Environmental Quality Competition and R&D Activities for Environmental Policy," Discussion Paper Series 321, Universitaet Augsburg, Institute for Economics.

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    More about this item

    Keywords

    Firm heterogeneity; credit constraints; firm size; SME; economic growth;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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