AZARIADIS, COSTAS; Kaas, Leo - London School of Economics and Political Science - 2008
We consider a linear growth model with idiosyncratic productivity shocks in whichproducers cannot commit to repay their … productivity differentials canmake the efficient growth path nonenforceable and lead to an inefficient equilibrium withbinding … borrowing constraints. For some economies, multiple balanced growth pathscoexist.[...] …