In recent years a lot of work has been done on the dynamics of personal distribution of wealth and income in a macro economy (e.g. Das (1993), Benabou (1996)). Similarities in the relative wages and personal distribution across countries have also been noted. While the issue of trade and...

We develop a two-period model with endogenous investment and credit flows. Credit is subject to quantitative restrictions. With an exogenous restriction, we analyze the welfare effects of temporary tariffs. We then consider three scenarios under which a monopoly lender optimally decides the...