01733cas a2200253 a 4500 AALejournalIMF004395 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451972962 1018-5941 BD-DhAAL BD-DhAAL De Gregorio, Jose. Credit Markets with Differences in Abilities : Education, Distribution, and Growth / Jose De Gregorio, Se-Jik Kim. Washington, D.C. : International Monetary Fund, 1994. 1 online resource (36 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 addresses the growth, welfare, and distributional effects of credit markets. We construct a general equilibrium model where human capital is the engine of growth and individuals differ in their education abilities. We argue that the existence of credit markets encourages specialization, by which individuals choose during their youth to work or to receive formal education. This specialization unambiguously increases growth and welfare. The model also shows that in economies with high (low) average level of education abilities, the opening of credit markets induces a more disperse (equal) income distribution. Mode of access: Internet Kim, Se-Jik. IMF Working Papers; Working Paper ; No. 1994/047 Full text available on IMF http://elibrary.imf.org/view/journals/001/1994/047/001.1994.issue-047-en.xml IMF e-Library