Sweat equity is investment in a business that is financed by owner-workers being compensated at less than their market rate. Taking into account the hours spent building sweat equity while ignoring the output introduces an error in measured productivity and distorts the picture of what is...

The neoclassical growth model is extended to include costly intermediated borrowing and lending between households. This is an important extension as substantial resources are used in intermediating the large amount of borrowing and lending between households. In 2007, in the United States, the...