Finocchiaro, Daria; Weil, Philippe - 2024
We investigate the growth-finance nexus in an endogenous growth model with search frictions and congestion effects in … and growth. Financial development eases the financing of innovation but can exacerbate bottlenecks in R&D. In a … calibration close to the U.S. economy, finance has a negative impact on growth. This effect is quantitatively small- consistent …