ANNULÉ / SÉMINAIRE DE RECHERCHE EN ÉCONOMIE - GATE LYON SAINT-ÉTIENNE : David Gomtsyan
Le 24 mars 2022
10h45 - 12h00
Salle du Conseil 202 (2ème étage)
77 rue Michelet
42023 Saint Etienne
Campus Tréfilerie - GATE Lyon Saint-Étienne
Le séminaire de David Gomtsyan intitulé : Financial Frictions and the Development of the City, est annulé.
Résumé / abstract : In African cities the construction process of many small and medium-sized buildings proceeds very slowly and may take decades. To explain this phenomenon and understand its consequences, this paper introduces endogenous house construction into a heterogenous agent model with idiosyncratic risk and borrowing constraints. Investments in construction serve as a means for asset accumulation and income generation. The model is calibrated to match key characteristics of the housing market in Nairobi. Counterfactual simulations show that improvements in credit provision can substantially speed up the expansion of the housing stock of the city and increase the average number of floors in newly constructed buildings.