Unlocking Wealth: How Financial Markets Impact Intertemporal Decisions
The article explores how different types of people and companies make decisions about saving, investing, and spending money over time. It looks at how these decisions change when financial markets are not perfect, and some face restrictions on borrowing money. The researchers found that the optimal paths for these decisions vary depending on whether individuals or firms have access to credit. This information can help us understand how economic policies affect wealth and income distribution in developing economies.