Nabi, Mahmoud Sami; Suliman, Mohamed Osman - In: Economic Modelling 28 (2011) 6, pp. 2719-2729
A simple endogenous growth model is developed to characterize credit rationing through the capital accumulation process. The model shows that credit rationing on investment loans decreases as capital accumulates and the enforcement cost decreases. We find that the evolution of the interest rate...
