(Non-Monotonic) Effects of Productivity and Credit Constraints on Equilibrium Aggregate Production in General Equilibrium Models with Heterogeneous Producers
Fiche du document
21 janvier 2025
- ISIDORE Id: 10670/1.c3f19d...
- hal: hal-04901381
http://hal.archives-ouvertes.fr/licences/copyright/ , info:eu-repo/semantics/OpenAccess
Mots-clés
financial shock credit constraint heterogeneity productivity dispersion distributional effects efficiency general equilibrium C - Mathematical and Quantitative Methods/C.C6 - Mathematical Methods • Programming Models • Mathematical and Simulation Modeling D - Microeconomics/D.D5 - General Equilibrium and Disequilibrium E - Macroeconomics and Monetary Economics/E.E3 - Prices, Business Fluctuations, and Cycles G - Financial Economics/G.G1 - General Financial Markets O - Economic Development, Innovation, Technological Change, and Growth/O.O4 - Economic Growth and Aggregate Productivity -fin]/Computational Finance [q-fin.CP]Sujets proches
Balancing (Physics) Balance (Physics) Balance BorrowingCiter ce document
Ngoc-Sang Pham, « (Non-Monotonic) Effects of Productivity and Credit Constraints on Equilibrium Aggregate Production in General Equilibrium Models with Heterogeneous Producers », HAL SHS (Sciences de l’Homme et de la Société), ID : 10670/1.c3f19d...
Métriques
Partage / Export
Résumé
In a market economy, the aggregate production level depends not only on the aggregate variables but also on the distribution of individual characteristics (e.g., productivity, credit limit, ...). We point out that, due to financial frictions, the equilibrium aggregate production may be non-monotonic in both individual productivity and credit limit. We provide conditions under which this phenomenon happens. By consequence, improving productivity or relaxing credit limit of firms may not necessarily be beneficial to economic development.
