This paper presents an overlapping generations model with technology choice and credit market imperfections, in order to investigate a possible source of underdevelopment. The model shows that a better financial infrastructure that provides stronger enforcement of contracts facilitates the...

Distribution and Development -- Distribution and Development A NewLookatthe Developing World -- Contents -- Preface -- The Distributional Effects of Economic Growth -- The Meaning and Measurement of Income Inequality -- Economic Growth and Inequality: A Review of the Empirical Evidence -- The...