Endogenous Growth and Fluctuations in an Overlapping Generations Economy with Credit Market Imperfections

Takuma Kunieda and Akihisa Shibata

MPRA Paper from University Library of Munich, Germany

Abstract: We study the dynamic properties of growth rates in an overlapping generations economy with credit market imperfections. The analysis demonstrates that in early stages of financial development where credit constraints are severe, growth rates evolve monotonically. At the intermediate level of financial development, as the degree of credit market imperfections diminishes, growth rates exhibit endogenous fluctuations for some parameter values. However, as the financial sector matures, fluctuations disappear and the growth rates evolve once again monotonically.

Keywords: Credit market imperfections; Endogenous business fluctuations; Endogenous growth; Heterogeneous agents (search for similar items in EconPapers)
JEL-codes: O41 (search for similar items in EconPapers)
Date: 2011-12
New Economics Papers: this item is included in nep-dge and nep-fdg
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Citations: View citations in EconPapers (8)

Published in Asia-Pacific Journal of Accounting and Economics No.3.Vol.18(2011): pp. 333-357

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Journal Article: Endogenous Growth and Fluctuations in an Overlapping Generations Economy with Credit Market Imperfections (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:35698

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