Endogenous growth and fluctuations in an overlapping generations economy with credit market imperfections

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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  • Takuma Kunieda
  • Akihisa Shibata

Related Research Unit(s)


Original languageEnglish
Pages (from-to)333-358
Journal / PublicationAsia-Pacific Journal of Accounting and Economics
Issue number3
Publication statusPublished - Dec 2011


We study the dynamic properties of growth rates in an overlapping generation's economy with credit market imperfections. The analysis demonstrates that in early stages of financial development where credit constraints are severe, growth rates evolve monotonically. At the intermediate level of financial development, as the degree of credit market imperfections diminishes, growth rates exhibit endogenous fluctuations for some parameter values. However, as the financial sector matures, fluctuations disappear and the growth rates evolve once again monotonically.

Research Area(s)

  • Credit market imperfections, Endogenous business fluctuations, Endogenous growth, Heterogeneous agents