Financial frictions, occupational choice and economic inequality
نویسندگان
چکیده
منابع مشابه
Financial Contracts and Occupational Choice
Financial constraints and entrepreneurship are among the key factors affecting economic performance in developing countries. Emphasizing the link between the theory microfoundations and the data, the paper considers a heterogeneous agents model of occupational choice with moral hazard under three Þnancial contract regimes differing in their degree of market incompleteness: savings only, borrowi...
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This paper analyzes Pareto optimal non-linear taxation of profits and labor income in a private information economywith endogenous firm formation. Individuals differ in both their skill and their cost of setting up a firm, and choose between becoming workers and entrepreneurs. I show that a tax system in which entrepreneurial profits and labor income must be subject to the same non-linear tax s...
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Financial constraints and differences in entrepreneurial ability are among the key factors affecting economic performance in developing countries. Emphasizing the link between the theory microfoundations and the data, the paper considers a heterogeneous agents model of occupational choice with moral hazard under three financial contract regimes differing in their degree of financial intermediat...
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This paper aims to quantify the extent to which sources of economic uctuations generate in the nancial markets. First, a novel identi cation method is introduced into a Bayesian VAR model in order to identify a nancial type shock which we refer to as a `risk news' shock. We identify the risk news shock in macroeconomic time series for the US, while simultaneously identifying other standard macr...
متن کاملThe High Sensitivity of Economic Activity to Financial Frictions
A financial friction is a wedge between the return received by providers of financial capital—ultimately, consumers—and the cost of capital paid by businesses and consumers who use capital. I study two frictions. One raises the rental cost of capital to firms and the other raises the rental cost of housing and durable goods to consumers. My focus is on the effects of financial frictions—I take ...
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ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 2019
ISSN: 0304-3932
DOI: 10.1016/j.jmoneco.2018.12.003