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This paper examines the effects of credit market imperfections and idiosyncratic risks on occupational choice, capital accumulation, as well as on the income and wealth distribution in a two sector heterogeneous agent general equilibrium model. Workers and firm owners are subject to...
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investment must be externally financed, and external finance is subject to a standard costly state verification (CSV) problem. In … of their own investment projects. However some external finance is also required. This is provided by quot …
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