01575cas a2200241 a 4500 AALejournalIMF003597 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451959086 1018-5941 BD-DhAAL BD-DhAAL De Gregorio, Jose. Credit Markets and Stagnation in an Endogenous Growth Model / Jose De Gregorio. Washington, D.C. : International Monetary Fund, 1993. 1 online resource (22 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper studies the effects that the inability of individuals to borrow against future income has on economic growth. The model assumes that human capital, which is accumulated through education, is the only factor of production. It is shown that liquidity constraints reduce growth. Further, in the presence of externalities that may induce two equilibria, it is shown that liquidity constraints not only reduce the rate of growth in the high-growth equilibrium, but can also make the low-growth equilibrium more likely to occur. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1993/072 Full text available on IMF http://elibrary.imf.org/view/journals/001/1993/072/001.1993.issue-072-en.xml IMF e-Library