This paper examines a much overlooked link between credit markets and formalization: since access to bank credit … bank credit is more widely available at lower cost; if so, well-functioning credit markets help foster formal employment at … the expense of informal jobs. We gauge the relevance of this credit channel using the Rajan-Zingales measure of financial …

that well-functioning credit markets would reflect a bank channel for monetary policy at work, we test whether a change in … and the associated change in interest rate does not affect change in bank credit, change in total debt and the proportion … of bank credit in total debt for any of the firms. We discuss the policy implications of the findings. …

Labor market frictions are not the only possible factor responsible for high unemployment. Credit market imperfections …. This paper shows that labor and credit market imperfections interact in a complementary way - which may explain why … develop this idea, we build a search model that treats credit and labor market imperfections in a symmetrical way. We …

The evidence suggests that relational contracting and legal rules play an important role in credit markets but on the … relational incentives are a powerful causal determinant for the existence and performance of credit markets. In fact, in the … absence of legal enforcement and reputation formation opportunities the credit market breaks down almost completely while if …

limited role in the growth process. A metamorphosis in these perspectives has taken place in the past two decades. Theory and …, in the presence of credit constraints, has stimulated human capital formation and growth. Moreover, unequal distribution … ; credit market imperfections …

Building a model with three imperfect markets - goods, labor and credit - representing a product's life-cycle, we find … calibrated model leads to a significant reduction in the gap with the data, both in terms of persistence and volatility while …