Journal of Economics

, Volume 105, Issue 3, pp 199–224 | Cite as

Firm heterogeneity, credit constraints, and endogenous growth

  • Jürgen AntonyEmail author
  • Torben Klarl
  • Alfred Maußner


This paper is in general concerned with the role of firm heterogeneity for economic growth. We focus on heterogeneous productivity in innovation and credit constraints of firms within a semi-endogenous growth model reflecting recent empirical findings on firm heterogeneity. Our model allows for an explicit solution for transitional growth and for the balanced growth path level of innovations or ideas. The model predicts an optimal degree of heterogeneity in the presence of an endogenous firm distribution. This enables us to draw inference about the impact of key policy parameters of the model on these quantities and to draw conclusions about firm and capital market related policies.


Firm heterogeneity Credit constraints Firm size SME Economic growth 

JEL Classification

E5 O31 O38 


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Copyright information

© Springer-Verlag 2011

Authors and Affiliations

  1. 1.CPB Netherlands Bureau for Economic Policy AnalysisThe HagueThe Netherlands
  2. 2.University of AugsburgAugsburgGermany

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