Aghion, Philippe; Banerjee, Abhijit V.; Angeletos, … - 2021
volatility and growth. We first develop a simple growth model where firms engage in two types of investment: a short-term one and … financial development predicts a higher sensitivity of both the composition of investment and mean growth to exogenous shocks …We examine how credit constraints affect the cyclical behavior of productivity-enhancing investment and thereby …
