We investigate how banks’ boundedly rational learning influences their views about default risks over the business cycle. Our analysis details the direction and the magnitude of these effects assuming that banks update probability in a Bayesian way. With a limited experience span lenders are...

We study the historical trends in the coverage of the related topics growth and stability in the field of macroeconomics. It is argued that over the past 25 years research on growth has quantitatively dominated research on output variability. The article seeks to make a contribution to an...

Purpose – This paper aims to study the importance of initial resource endowments, the savings rate, and financing opportunities for growth and the distribution of income. Design/methodology/approach – The analysis is based on a theoretical model of accumulation and applies simulations. The...