| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5059490 | Economics Letters | 2013 | 4 Pages |
Abstract
In a dynamic stochastic general equilibrium model with heterogeneous agents, this note shows that beyond a certain low level, financial development is associated with higher relative consumption-income volatility in the presence of a working capital constraint. Informality on the other hand lowers relative consumption volatility by weakening the working capital requirement channel of financial development.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Shalini Mitra,