This paper studies interactions between access to finance, product innovation, and labor supply in a two-period overlapping generations model with an endogenous skill distribution and credit market frictions. In the model lack of access to finance (induced by high monitoring costs) has an adverse effect on innovation activity not only directly but also indirectly, because too few individuals may choose to invest in skills. If monitoring costs fall...
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详细
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2014/02/01
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政策研究报告
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WPS6767
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1
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1
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2014/02/01
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Disclosed
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Access to finance, product innovation and middle-income traps
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monitoring cost