Credit limits and heterogeneity in general equilibrium models with a finite number of agents

We introduce two-period general equilibrium models with heterogeneous producers and financial frictions. Any agent can borrow to realize their productive project but the debt repayment does not exceed a fraction (so-called credit limit) of the project's value. Our framework allows us to investigate the aggregate and distributional effects of credit limits and heterogeneity of agents. The connection between credit limits, welfare, and efficiency is also explored.

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Year of publication:	2018-08-29
Authors:	Pham, Ngoc-Sang

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Type of publication:	Book / Working Paper
Language:	English
Notes:	Pham, Ngoc-Sang (2018): Credit limits and heterogeneity in general equilibrium models with a finite number of agents.
Classification:	D3 - Distribution ; D5 - General Equilibrium and Disequilibrium ; D6 - Welfare Economics ; E44 - Financial Markets and the Macroeconomy ; G1 - General Financial Markets
Source:	BASE

Persistent link: https://www.econbiz.de/10015261452