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Collateral and Development

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Abstract

This paper presents a model economy with endogenous credit constraints and endogenous growth, 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

  • Nicola Amendola & Lorenzo Carbonari & Leo Ferraris, 2018. "Collateral and Development," CEIS Research Paper 424, Tor Vergata University, CEIS, revised 20 Feb 2018.
    • Handle: RePEc:rtv:ceisrp:424
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    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Lance J. Lochner & Alexander Monge-Naranjo, 2011. "The Nature of Credit Constraints and Human Capital," American Economic Review, American Economic Association, vol. 101(6), pages 2487-2529, October.
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    More about this item

    Keywords

    Credit; Collateral; Human Capital; Growth.;
    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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