The paper presents a general equilibrium model of a developing economy, in which the wealth distribution, the interest rate and the wage are endogenous and interact dynamically. A credit market imperfection due to limited enforcement results in credit rationing and occupational choice constraints, leading to inefficiency. Credit rationing is shown to persist as the economy develops. We also arg...

Reinforcement learning (RL) algorithms attempt to assign the credit for rewards to the actions that contributed to the reward. Thus far, credit assignment has been done in one of two ways: uniformly, or using a discounting model that assigns exponentially more credit to recent actions. This paper demonstrates an alternative approach to temporal credit assignment, taking advantage of exact or ap...

Credit transfer protocols are being designed and implemented in market-based resource allocation infrastructures. The design details of these protocols determine the accesscontrol policies that can be expressed and the trading patterns that can be supported. A protocol that enables fine grained manipulation of ownership authorities can support a wider range of access policies and trading patter...

Transaction costs in financial intermediation are a measure of the 'friction' existing in the functioning of financial markets. The higher the costs of intermediation, the less efficient the performance of the financial sector in resource allocation and distribution. Transaction costs frequently increase as a result of regulations imposed on financial markets, such as interest-rate restrictions...

Some economists have pointed to credit constraints as possible explanations for two phenomena. First, credit constraints could explain violations of Ricardian equivalence. Second, constraints could also provide a mechanism through which monetary policy could affect the real economy independent of effects on interest rates. Hayashi (1986) shows that some types of credit constraints do not necess...

The paper examines the impact of selected structural adjustment policies on food production in Zambia. Using a four year panel of post-harvest data, a system of six crops, two variable inputs and three fixed inputs is estimated. The resulting supply responses suggest a negatively slopped supply curve for sorghum and millet and this has been attributed to the presence of credit constraints. Simu...

The use of trade credit as a short-term financing is increasing in the last years; large firms use more days to pay small firms than they need, which causes financial fatal consequences to suppliers. These financial problems are not new, but with the credit crunch they are coming up because the massive use of the trade credit impacts negatively on suppliers whose insolvency and bankruptcy risks...