There is a large amount of intermediated borrowing and lending between households. Some of it is intergenerational, but most is between older households. The average difference in borrowing and lending rates is over 2 percent. In this paper, we develop a model economy that displays these facts...

Sweat equity is investment in a business that is financed by owner-workers being compensated at less than their market rate. Taking into account the hours spent building sweat equity while ignoring the output introduces an error in measured productivity and distorts the picture of what is...