Financial Inefficiency and Real Business Cycle in Colombia

Number: 
127
Published: 
Classification JEL: 
E32, E37, E22, G14
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy

In a dynamic, stochastic, general equilibrium model, we explore the optimal response of the inhabitants of a closed economy to an inefficient ad hoc financial system that in its intermediation duty looses a fraction of agrégate savings which otherwise wou