We develop a theoretical model that explains the relationship between credit constraints and economic growth in the context of a three-sector economy, including an “extractive” sector. The model belongs in the structuralist tradition and it is inspired by the Colombian economy. In contrast...

The fall of labor’s share of GDP many countriesin recent decades is well documented. Existing empirical studies are focusing predominantly on advanced economies and the decrease in the relative cost of capital, which conceals a heterogeneous evolution across developing economies.By exploiting...

This paper analytically characterizes an infinite-horizon open economy under a stock collateral constraint, whereby borrowing is limited by the value of capital assets available. The model that is considered allows for general subjective discounting and fully variable productivity. Four main...

This study fills an important gap in the literature by providing causal evidence of the impact of relaxing financial constraints on corporate social responsibility (CSR). To isolate this causal link, we examine the enactment of antirecharacterization laws in some U.S. states, an exogenous shock...

I study decentralization of optimal allocations in an endowment OLG economy where private agents face endogenous borrowing constraints. Lenders constrain credit because of limited commitment of borrowers: they can declare bankruptcy and only lose the ability to make savings for retirement in the...

This paper analyzes the impact of financial development on export concentration. I incorporate credit constraints into a trade model with heterogeneous exporters and endogenous quality choice. The model predicts that financial development increases innovation activity and export shares of larger...

We study the effect of borrowing constraints in an assignment model of the housing market. When constraints apply symmetrically to all households, these lead to lower prices but unchanged housing consumption. When households can invest their own wealth and may differ in tastes, borrowing...

We explore how personality traits are related to household borrowing behavior. Using survey data representative for the Netherlands, we consider the Big Five personality traits (openness, conscientiousness, agreeableness, extraversion and neuroticism), as well as the belief that one is master of...