Mehra, Rajnish; Piguillem, Facundo; Prescott, Edward C. - In: Quantitative economics : QE ; journal of the … 2 (2011) 1, pp. 1-36
The neoclassical growth model is extended to include costly intermediated borrowing and lending between households. This is an important extension as substantial resources are used to intermediate the large amount of borrowing and lending between households. In 2007, in the United States, the...
