publication . Other literature type . Preprint . 2017

No title available

Cheng, Wenli;
Open Access
  • Published: 07 Jun 2017
Abstract
This paper presents a simple general equilibrium model of financial intermediation, entrepreneurship and economic growth. In this model, the role of financial intermediation is to pool savings and to lend the pooled funds to an entrepreneur, who in turn invests the funds in a new production technology. The adoption of the new production technology improves individual real income. Thus financial intermediation promotes economic growth through affecting individuals’ saving behaviour and enabling the adoption of a new production technology.
Subjects
free text keywords: financial intermediation, entrepreneurship, economic growth, Uncategorized, jel:G21, jel:D90, jel:O40

Entrepreneur mc1,ac2x U = c1 +θ c2

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