Investment composition and productivity with heterogeneous entrepreneurs

Burak Uras

Journal of Macroeconomics, 2013, vol. 35, issue C, 104-116

Abstract: This paper develops an overlapping generations model of entrepreneurship to analyze the effects of financier patience on aggregate productivity of capital and macroeconomic development. The purpose of the enquiry is to show that while limited financier patience constrains the supply of investable funds allocated at productive long-term entrepreneurial projects and aggregate productivity, financial markets that favor short-term lending do not necessarily retard steady state output. I show that this potential non-linear effect of financier patience exists if entrepreneurial sector of the society consists of economic agents with heterogeneous interests in adopting long-term investment projects.

Keywords: Financier patience; Capital deepening and productivity (search for similar items in EconPapers)
JEL-codes: E44 G2 O16 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0164070412001048
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Investment composition and productivity with heterogeneous entrepreneurs (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:35:y:2013:i:c:p:104-116

DOI: 10.1016/j.jmacro.2012.09.004

Access Statistics for this article

Journal of Macroeconomics is currently edited by Douglas McMillin and Theodore Palivos

More articles in Journal of Macroeconomics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().