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Collateral and Development
1 : Università degli Studi di Roma Tor Vergata [Roma]
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Website
Via Orazio Raimondo,18 - 00173 Roma -
Italy
This paper presents a model economy with endogenous credit constraints and
endogenous growth, in which agents face a trade-o between investing resources
to improve the pledgeability of collateral assets and the accumulation of human
capital. The model generates both growth miracles and stagnant economies.
