Chiu, Jonathan; Meh, Césaire Assah; Wright, Randall D. - 2011
"The generation and implementation of ideas, or knowledge, is crucial for economic performance. We study this process … in a model of endogenous growth with frictions. Productivity increases with knowledge, which advances via innovation, and … innovation. First, intermediation allows us to finance more transactions with fewer assets. Second, it ameliorates certain …