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A general equilibrium model featuring multiple realistic sources of financial frictions is developed to study how different constraints interact in equilibrium. We highlight, distinguish, and evaluate their differential impacts and rich interactions. The economic impact of financial inclusion...
Persistent link: https://www.econbiz.de/10013030631
The cost of financial intermediation has declined in recent years thanks to technological progress and increased competition. I document this fact and I analyze two features of new financial technologies that have stirred controversy: returns to scale, and the use of big data and machine...
Persistent link: https://www.econbiz.de/10012831538
Is inequality harmful for economic growth? Is the underdevelopment of Latin America related to its unequal distribution … of wealth? A recently emerging consensus claims not only that economic inequality has detrimental effects on economic … growth in general, but also that differences in economic inequality across the American continent during the 19th century are …
Persistent link: https://www.econbiz.de/10012759965
We define aggregate productivity growth as the change in aggregate final demand minus the change in the aggregate cost of primary inputs. We show how to aggregate plant-level data to this measure and how to use plant-level data to decompose our measure into technical efficiency and reallocation...
Persistent link: https://www.econbiz.de/10013222069
Because of their more limited inequality and more comprehensive social welfare systems, many perceive average welfare … entrepreneurs (thus greater inequality) increases entrepreneurial effort and hence a country's contribution to the world technology … "cutthroat capitalism" that generates greater inequality and more innovation and will become the technology leaders, while others …
Persistent link: https://www.econbiz.de/10013099537
education characteristic of the pre-reform era has given rise to substantial inequality in access to higher levels of education …
Persistent link: https://www.econbiz.de/10013106083
We develop online survey experiments to analyze how information about inequality and taxes affects preferences for ….S. income inequality, the link between top income tax rates and economic growth, and the estate tax. An additional 6 … large effects on whether respondents view inequality as a problem. By contrast, it only slightly moves policy preferences (e …
Persistent link: https://www.econbiz.de/10013085497
We treat rising inequality is an equilibrium outcome in which human capital investment fails to keep pace with rising … each other, magnifying inequality. When skill-biased technical change drives economic growth, greater inequality reduces …
Persistent link: https://www.econbiz.de/10013001789
The problems involved in estimating real output that I discuss in this paper cause the official government statistics to underestimate of the rates of growth of real GDP, real personal income, and productivity. That underestimation is important not just to economists trying to understand where...
Persistent link: https://www.econbiz.de/10012959380
Income disparity across countries has been large and widening over time. We develop a tractable model where factor requirements in production technology do not necessarily match a country's factor input profile. Appropriate assimilation of frontier technologies balances such multi-dimensional...
Persistent link: https://www.econbiz.de/10012911691