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. …

where capital is in exogenously fixed supply and the case with endogenous capital accumulation. Using these conditions, they … show that (i) indeterminacy is more likely to occur with a greater share of payment to capital in value-added production … cost; (ii) indeterminacy can be more or less likely to occur with constant capital than with variable capital; (iii …

The authors investigate the extent to which monetary policy can enhance the functioning of the private credit system …. Specifically, they characterize the optimal return on money in the presence of credit arrangements. There is a dual role for credit … traders have access to credit. As a result, there is a social role for fiat money because it allows agents to self …

In the data, most consumer defaults on unsecured credit are informal and the lending industry devotes significant … resources to debt collection. We develop a new theory of credit card lending that takes these two features into account. The two …. We show that the model gives rise to a novel channel through which IT progress can affect outcomes in the credit markets …