model institutional quality as the degree to which obligations associated with exchanging capital can be enforced …. Establishing a positive level of enforcement requires an aggregate investment of capital that is no longer available for production …. When capital endowments are more unequally distributed, the bigger dispersion in marginal products makes it optimal to …

current Basel I capital framework does not require banks to hold sufficient amounts of capital to support their mortgage … lending activities. The new Basel II capital rules are intended to correct this problem. However, Basel II models could become … default and loss estimated and, thus, could affect the amount of capital that banks are required to hold. This paper finds …

baby boom is modeled as a high realization of a random birth rate, and the price of capital is determined endogenously by a … capital. The price of capital is meanreverting so the initial increase in the price of capital is followed by a decrease … of capital. …