Financial Frictions and Agricultural Productivity Differences
Wei Wang and
Additional contact information
Wei Wang: Washington University in St. Louis
Junmin Liao: Washington University in St. Louis
No 1314, 2013 Meeting Papers from Society for Economic Dynamics
This paper explores the role of financial frictions in accounting for agricultural productivity differences. A two-sector general equilibrium model with a subsistence consumption requirement and financial frictions is constructed to explain and quantify the importance of financial frictions in agricultural labor productivity differences. Severer financial frictions decrease the use of intermediate inputs while increase the use of labor inputs. Consequently, labor productivity in agricultural sector is lower and hence, due to a larger employment share in agricultural sector, aggregate labor productivity is also lower. The quantitative results show that a substantial part of observed agricultural employment share and labor productivity differences can be accounted for by financial frictions.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:red:sed013:1314
Access Statistics for this paper
More papers in 2013 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().