A Dynamic Model with Vertical Specialization, Credit Chains, and Incomplete Enforcement |
Common terms and phrases
20 cars accumulate more capital bad enforcement Bank of Atlanta borrow and lend borrowing constraint Business Cycle capital distribution capital markets car manufacturer credit-worthiness different capital levels economies with bad economy with perfect enforcement of intra-period enforcement parameter enforcement problems Euler condition Federal Reserve Bank final goods producers final goods sector firms operate function h ƒ k h k½ h k2 implicit TFP relative incomplete enforcement increasing in q inefficiency intermediate goods price intra-period credit intra-period debt k₁ khigh kink point klow linear low marginal product lower in economies marginal profit market clearing multiple steady neoclassical growth model output Peachtree Street price for engines price for intermediate produce in sector promissory notes relative to perfect sector 2 firms Sector 2 producers share of firms steady state capital steel producer total factor productivity unique steady values of q Veksels Vertical Specialization