سیاست های توسعه بهینه با اصطکاک مالی
1- INTRODUCTION
2- AN ECONOMY WITH FINANCIAL FRICTIONS
3- OPTIMAL POLICY IN A ONE-SECTOR ECONOMY
4- QUANTITATIVE EXPLORATION
5- OPTIMAL POLICY IN A MULTI-SECTOR ECONOMY
6- CONCLUSION
REFRENCES
INTRODUCTION
IS THERE A ROLE for governments in emerging countries to accelerate economic development by intervening in product and factor markets? If so, which policies should they adopt? To answer these questions, we study optimal policy interventions in a standard growth model with financial frictions. In our framework, forward-looking heterogeneous producers face borrowing (collateral) constraints that result in capital misallocation and depressed productivity. This framework is, therefore, similar to the one commonly adopted in the macro-development literature to study the relationship between financial development and aggregate productivity (see, e.g., Banerjee and Duflo (2005), Song, Storesletten, and Zilibotti (2011), Buera and Shin (2013)). Our paper is the first to study the optimal Ramsey policies in such an environment along with their implications for a country’s development dynamics. Our main result is that the optimal policy involves interventions in both product and factor markets, yet the direction of these interventions is different for developing and developed countries, defined in terms of the level of their financial wealth relative to the steady state. In particular, in the initial phase of transition, when entrepreneurs are undercapitalized, optimal policies are pro-business in the sense of shifting resources to wards entrepreneurs. Once the economy comes close enough to the steady state, where entrepreneurs are well capitalized, optimal policy switches to being pro-worker. Hence, optimal policy is stage-dependent. 1 In the case of the labor market, it is optimal to increase labor supply and suppress equilibrium wages in early stages of development, and restrict labor supply later on.2 Greater labor supply and suppressed wages increase entrepreneurial profits and accelerate wealth accumulation. This, in turn, makes future financial constraints less binding, resulting in greater labor productivity and higher wages. From a more positive perspective, we are motivated by the observation that many successful emerging economies pursue active development and industrial policies, and in particular, policies that appear to favor businesses. A widespread example of such policies is the suppression or subsidization of factor prices.