Gaytan, Alejandro; Rancière, Romain - Department of Economics and Business, Universitat … - 2001
How do the liquidity functions of banks affect investment and growth at different stages of economic development? How … issues using an overlapping generations growth model where agents, who experience idiosyncratic liquidity shocks, can invest … in a liquid storage technology or in a partially illiquid Cobb Douglas technology. By pooling liquidity risk, banks play …