Malchow-Møller, Nikolaj; Thorsen, Bo - In: Contributions to Macroeconomics 5 (2005) 1, pp. 1108-1108
Credit-constrained households must use savings both to smooth consumption and to finance productive investments. This non-separability between consumption and production decisions is ignored in the standard intertemporal buffer-stock consumption model where income growth is exogenous. This paper...