Azariadis, Costas; Kaas, Leo - Centro de Estudios Andaluces, Government of Andalusia - 2004
The paper analyzes a linear growth model with idiosyncratic productivity shocks and self-enforcing loan contracts. Agents cannot commit to repay their loans because of insuficient collateral, but the threat of credit market exclusion prevents agents from default. Credit repayment is enforced by...