Download or read book Endogenous Growth and Endogenous Business Cycles in an Overlapping Generations Economy With Credit Market Imperfections written by Takuma Kunieda and published by . This book was released on 2007 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the dynamic properties of growth rates in an overlapping generations economy with credit market imperfections, constructing a Schumpeterian growth model. The analysis demonstrates that: (i) two steady-state equilibria arise as is usual in overlapping generations models with outside money and the growth rate of each increases as credit market imperfections are resolved; (ii) if credit market imperfections are severe or soft and if sunspots do not appear, the economy converges monotonically to a stable steady state; and (iii) if credit market imperfections are moderate, deterministic cycles or chaos would arise in equilibrium.