On the allocation of credit and aggregate fluctuations

Revista Brasileira de Economia

Orlando Gomes¹ 

[1] ,Instituto Superior de Contabilidade e Administração de Lisboa

关键词: Financial development;    Credit to consumption;    Endogenous growth;    Endogenous cycles;    Nonlinear dynamics;   

DOI  :  10.1590/S0034-71402010000400003

来源: SciELO

【 摘 要 】

Recent literature on financial development and growth has highlighted the possibility of endogenous business cycles arising for particular levels of a given credit multiplier. These studies concentrate on loans directed to the productive activity and neglect the role of credit to consumption. In this paper, we consider an endogenous growth model, where a representative agent must choose how to allocate credit; basically, the agent considers a simple rule where the share of credit to consumption reacts to deviations of the consumption - wealth ratio relatively to the corresponding steady state level. The setup generates nonlinear dynamics, which are analyzed both locally and globally.

【 授权许可】

CC BY   
 All the contents of this journal, except where otherwise noted, is licensed under a Creative Commons Attribution License