Endogenous capital market imperfections, human capital, and intergenerational mobility

• 成果类型: Article
• 署名作者: Hidalgo Cabrillana, Ana
• 署名单位: Universidad Carlos III de Madrid
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2008.09.004
• 发表日期: 2009
• 页码: 285-298
• 关键词: capital market imperfections; adverse selection; intergenerational mobility

摘要

In this paper, capital market imperfections are endogenized considering an adverse selection problem between banks and borrowers. We develop a growth model with linear OLG wealth dynamics, where agents are heterogeneous in terms of observable wealth and ability, which is private information. We show that banks react to this informational asymmetry by granting higher loans to talented borrowers. This, in turn, helps poor and talented agents to become educated and catch up with the rich agents. Furthermore, the credit market friction leads to greater human capital accumulation. (C) 2008 Elsevier B.V. All rights reserved.