The increase in the U.S. public debt over the past twelve years raises questions about its implications for investment …

This paper shows that the behavior of entrepreneurs facing incomplete financial markets and risky investment can … open up entrepreneurs increase saving to finance the investment that produces growth. The key insight is that saving has to … rise more than investment to allow also for the accumulation of precautionary assets. Plausibly calibrated simulations show …

result of low investment. Latin America is poorer because of lower human capital levels and lower TFP-not because of a lower … business climate indicators converge rapidly. Poor countries without those attributes do not. We show that low investment is …