working paper – microfoundations.org https://microfoundations.org Sun, 12 Dec 2021 21:37:33 +0000 en-US hourly 1 https://microfoundations.org/wp-content/uploads/2020/12/cropped-cover-crop-32x32.jpg working paper – microfoundations.org https://microfoundations.org 32 32 Climate Protection versus Economic Convergence? https://microfoundations.org/climate-protection-versus-economic-convergence/ https://microfoundations.org/climate-protection-versus-economic-convergence/#respond Sat, 04 Dec 2021 11:00:06 +0000 https://microfoundations.org/?p=29425 Read More »Climate Protection versus Economic Convergence?]]> Yvan Lengwiler (2021). WWZ Working Paper No. 2021-12. Global economic convergence and protection of the climate are both worthwhile goals. Yet, there is an inherent tension between them. Greenhouse gases are a waste product that is often emitted in the production process. Limiting such emissions therefore hampers the accumulation of income and capital. I expand Solow’s growth model to…

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]]> https://microfoundations.org/climate-protection-versus-economic-convergence/feed/ 0 Credit from the monopoly bank https://microfoundations.org/credit-from-the-monopoly-bank/ https://microfoundations.org/credit-from-the-monopoly-bank/#respond Wed, 02 Aug 2017 06:00:57 +0000 https://microfoundations.org/?p=28968 Read More »Credit from the monopoly bank]]> Yvan Lengwiler and Kumar Rishabh (2017). WWZ Working Paper No. 2017/15. We establish that a monopoly bank never uses collateral as a screening device. A pooling equilibrium always exists in which all borrowers pay the same interest rate and put zero collateral. Absence of screening leads to socially inefficient lending in the sense that some socially productive firms are denied credit due to…

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