Skill acquisition, credit constraints, and trade

Tatyana Chesnokova, Kala Krishna

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

In this paper we develop a general equilibrium model where credit constraints limit the ability of agents with heterogeneous abilities and wealth to acquire skills. We identify a new effect, the induced Rybczynski effect, that works in the opposite direction from the normal supply response and may result in relative supply being downward-sloping. We analyze the effects of trade and show that under some conditions trade may reduce welfare. Finally, we study the effects of trade on income distribution and inequality.

Original languageEnglish
Pages (from-to)227-238
Number of pages12
JournalInternational Review of Economics and Finance
Volume18
Issue number2
DOIs
Publication statusPublished - 2009 Mar
Externally publishedYes

Fingerprint

Skill acquisition
Credit constraints
Wealth
Supply response
Income inequality
Income distribution
General equilibrium model

Keywords

  • Credit constraint
  • Skill formation

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

Skill acquisition, credit constraints, and trade. / Chesnokova, Tatyana; Krishna, Kala.

In: International Review of Economics and Finance, Vol. 18, No. 2, 03.2009, p. 227-238.

Research output: Contribution to journalArticle

@article{c1d39fcfafd640c3862e60e2d1390989,
title = "Skill acquisition, credit constraints, and trade",
abstract = "In this paper we develop a general equilibrium model where credit constraints limit the ability of agents with heterogeneous abilities and wealth to acquire skills. We identify a new effect, the induced Rybczynski effect, that works in the opposite direction from the normal supply response and may result in relative supply being downward-sloping. We analyze the effects of trade and show that under some conditions trade may reduce welfare. Finally, we study the effects of trade on income distribution and inequality.",
keywords = "Credit constraint, Skill formation",
author = "Tatyana Chesnokova and Kala Krishna",
year = "2009",
month = "3",
doi = "10.1016/j.iref.2008.06.005",
language = "English",
volume = "18",
pages = "227--238",
journal = "International Review of Economics and Finance",
issn = "1059-0560",
publisher = "Elsevier Inc.",
number = "2",

}

TY - JOUR

T1 - Skill acquisition, credit constraints, and trade

AU - Chesnokova, Tatyana

AU - Krishna, Kala

PY - 2009/3

Y1 - 2009/3

N2 - In this paper we develop a general equilibrium model where credit constraints limit the ability of agents with heterogeneous abilities and wealth to acquire skills. We identify a new effect, the induced Rybczynski effect, that works in the opposite direction from the normal supply response and may result in relative supply being downward-sloping. We analyze the effects of trade and show that under some conditions trade may reduce welfare. Finally, we study the effects of trade on income distribution and inequality.

AB - In this paper we develop a general equilibrium model where credit constraints limit the ability of agents with heterogeneous abilities and wealth to acquire skills. We identify a new effect, the induced Rybczynski effect, that works in the opposite direction from the normal supply response and may result in relative supply being downward-sloping. We analyze the effects of trade and show that under some conditions trade may reduce welfare. Finally, we study the effects of trade on income distribution and inequality.

KW - Credit constraint

KW - Skill formation

UR - http://www.scopus.com/inward/record.url?scp=61349156101&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=61349156101&partnerID=8YFLogxK

U2 - 10.1016/j.iref.2008.06.005

DO - 10.1016/j.iref.2008.06.005

M3 - Article

VL - 18

SP - 227

EP - 238

JO - International Review of Economics and Finance

JF - International Review of Economics and Finance

SN - 1059-0560

IS - 2

ER -