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dc.contributor.authorLin, Justin Yifuen_US
dc.contributor.authorMiao, Jianjunen_US
dc.contributor.authorWang, Pengfeien_US
dc.date.accessioned2019-12-19T16:50:34Z
dc.date.available2019-12-19T16:50:34Z
dc.date.issued2019
dc.identifier.citationLin, J.Y., Miao, J. & Wang, P. 2019. "Convergence, Financial Development, and Policy Analysis." Economic Theory, https://doi.org/10.1007/s00199-019-01181-z
dc.identifier.urihttps://hdl.handle.net/2144/39021
dc.description.abstractWe study the relationship among inflation, economic growth, and financial development in a Schumpeterian overlapping generations model with credit constraints. In the baseline case, money is super-neutral. When the financial development exceeds some critical level, the economy catches up and then converges to the growth rate of the world technology frontier. Otherwise, the economy converges to a poverty trap with a growth rate lower than the frontier and with inflation decreasing with the level of financial development. We then study efficient allocation and identify the sources of inefficiency in a market equilibrium. We show that a particular combination of monetary and fiscal policies can make a market equilibrium attain the efficient allocation.en_US
dc.relation.ispartofEconomic Theory
dc.subjectEconomic theoryen_US
dc.titleConvergence, financial development, and policy analysisen_US
dc.typeArticleen_US
dc.description.versionFirst author draften_US
dc.identifier.doi10.1007/s00199-019-01181-z
pubs.elements-sourcemanual-entryen_US
pubs.notesEmbargo: Not knownen_US
pubs.organisational-groupBoston Universityen_US
pubs.organisational-groupBoston University, College of Arts & Sciencesen_US
pubs.organisational-groupBoston University, College of Arts & Sciences, Department of Economicsen_US
pubs.publication-statusPublisheden_US
dc.identifier.mycv422730


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