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Persistent link: https://www.econbiz.de/10000802250
This paper establishes the existence of a stationary equilibrium and a procedure to compute solutions to a class of dynamic general equilibrium models that are useful for studying entrepreneurship. The models have two important features. First, occupational choice (entrepreneur or worker) is...
Persistent link: https://www.econbiz.de/10014058453
The authors present a theoretical model in which a profit-maximizing lender may ration credit to businesses by restricting loan size. Such credit rationing occurs despite the absence of differences across borrowers in default risk or loan administration costs. Moreover, the model predicts an...
Persistent link: https://www.econbiz.de/10013102545
Persistent link: https://www.econbiz.de/10003391440
Persistent link: https://www.econbiz.de/10003743322
This paper presents a simple general equilibrium model of the commercial loan market in which liquidity constraints arise endogenously because of imperfect information and imperfect competition. The information and market structure generate a discriminatory interest rate schedule and loan size...
Persistent link: https://www.econbiz.de/10013102630