Antunes, António; Cavalcanti, Tiago; Villamil, Anne - In: Economic Theory 58 (2015) 1, pp. 1-30
Under credit market imperfections, the marginal product of capital may not be equalized, resulting in misallocation and lower output. Preferential interest rate policies are often used to remedy the problem. This paper constructs a general equilibrium model with heterogeneous agents, imperfect...
