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Trade, Growth, and Convergence in a Dynamic Heckscher-Ohlin Model

Bajona, Claustre; Kehoe, Timothy - In: Review of Economic Dynamics 13 (2010) 3, pp. 487-513

In models in which convergence in income levels across closed countries is driven by faster accumulation of a … productive factor in the poorer countries, opening these countries to trade can stop convergence and even cause divergence. We …. Divergence can occur for parameter values that would imply convergence in a world of closed economies and vice versa. Second …

Persistent link: https://www.econbiz.de/10008504403

Human Capital Investment and Debt Constraints

Andolfatto, David; Gervais, Martin - In: Review of Economic Dynamics 9 (2006) 1, pp. 52-67

When young individuals face binding debt constraints, their human capital investments will be insufficiently financed by private creditors. If generations overlap, then a well-designed fiscal policy may be able to improve human capital investments by replacing missing capital markets with an...

Persistent link: https://www.econbiz.de/10005090996

Credit Crunches and Credit Allocation in a Model of Entrepreneurship

Bassetto, Marco; Cagetti, Marco; Nardi, Mariacristina De - In: Review of Economic Dynamics 18 (2015) 1, pp. 53-76

We study the effects of credit shocks in a model with heterogeneous entrepreneurs, financing constraints, and a realistic firm-size distribution. As entrepreneurial firms can grow only slowly and rely heavily on retained earnings to expand the size of their business, we show that, by reducing...

Persistent link: https://www.econbiz.de/10011160658