Matsuyama, Kiminori - In: Theoretical economics : TE ; an open access journal in … 8 (2013) 3, pp. 623-651
This paper builds models of nonlinear dynamics in the aggregate investment and borrower net worth to study the causes and nature of endogenous credit cycles. The basic model has two types of projects: the Good and the Bad. The Good projects rely on the inputs supplied by others who could...
