This paper studies the distributional implications of intermediation costs. We built a "Bewley" model economy where individuals experience uninsurable idiosyncratic shocks on labor productivity and financial intermediation is costly. Individuals smooth consumption by making deposits to a...

Over the recent decades researchers in academia and central banks have developed early warning systems (EWS) designed to warn policy makers of potential future economic and financial crises. These EWS are based on diverse approaches and empirical models. In this paper we compare the performance...

Under credit market imperfections, the marginal productivity of capital will not necessarily be equalized, resulting in misallocation and lower output. Preferential interest rate policies are often used to remedy the problem. This paper constructs a general equilibrium model with heterogeneous...

This paper studies the effect of financial repression and contract enforcement on en-trepreneurship and economic development. We construct and solve a general equilibrium model with heterogeneous agents, occupational choice and two financial frictions : intermediation costs and financial...

The impact of transportation networks on the location of human activities is a surprisingly neglected topic in economic geography. Using the simple plant location problem, this paper investigates such an impact in the case of a few idealized networks. It is seen that a grid network tends to...