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Collateral and development

Author

Listed:
  • Amendola Nicola
  • Carbonari Lorenzo
  • Ferraris Leo

    (Università di Roma “Tor Vergata”, Roma, Italy)

Abstract

This paper presents a model economy with endogenous credit constraints à la Kiyotaki-Moore and endogenous growth à la Uzawa-Lucas, in which agents face a trade-off between investing resources to improve the pledgeability of collateral assets and the accumulation of human capital. The model generates both growth miracles and stagnant economies.

Suggested Citation

  • Amendola Nicola & Carbonari Lorenzo & Ferraris Leo, 2020. "Collateral and development," The B.E. Journal of Macroeconomics, De Gruyter, vol. 20(1), pages 1-17, January.
    • Handle: RePEc:bpj:bejmac:v:20:y:2020:i:1:p:17:n:22
    DOI: 10.1515/bejm-2019-0033
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    References listed on IDEAS

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    More about this item

    Keywords

    collateral; credit; development; growth; human capital;
    All these keywords.

    JEL classification:

    • G0 - Financial Economics - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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