Learning in a credit economy
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| Publication date | 2008 |
| Series | Centre for Growth & Business Cycle Research discussion paper series, 100 |
| Number of pages | 18 |
| Publisher | Manchester: University of Manchester |
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| Abstract | In this work we analyze a credit economy à la Kiyotaki and Moore (JPE, 1997) enriched with learning dynamics. Both borrowers and lenders need to make expectations about the future price of the collateral, and under heterogeneous learning this can have interesting con- sequences for the economy when the possibility of bankruptcy is taken into consideration. |
| Document type | Working paper |
| Published at | http://www.socialsciences.manchester.ac.uk/cgbcr/dpcgbcr/dpcgbcr100.pdf |
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