Credit Crunches and Credit Allocation in a Model of Entrepreneurship

We study the effects of credit shocks in a model with heterogeneous entrepreneurs, financing constraints, and a realistic firm size distribution. As entrepreneurial firms can grow only slowly in this set-up, we show that, by reducing entrepreneurial firm size, negative shocks have a very persistent effect on real activity.

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Year of publication:	2011
Authors:	Nardi, Mariacristina De ; Cagetti, Marco ; Bassetto, Marco
Institutions:	Society for Economic Dynamics - SED

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Series:	2011 Meeting Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 2011 SED Meeting Papers Number 262
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010571563