Entrepreneurs, Moral Hazard, and Endogenous Growth

Autor/innen

  • J. Philipp Reiß
  • Lutz Weinert

Schlagworte:

Endogemous Growth, Inequality, Moral Hazard, Limited Liability

Abstract

We analyze an endogenous growth model with agents differing in their endowments. Poor entrepreneurs with limited liability need to borrow in financial markets to participate in aggregate output production. We show that the first best solution can either be achieved by decentralized financial contracting or by employing a case-sensitive subsidy policy.

Veröffentlicht

2018-10-17

Ausgabe

Rubrik

Artikel