The Effect of Financial Enforcement on Entrepreneurship and Growth in the Korean Economy

106 p.Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 2009.In chapter 3, we apply the model used in chapter 1 to the Chinese economy with some variation. The private sector in China is growing rapidly -- though unevenly -- across regions, while the state sector is retreating. This paper studies the effect of institutional and policy differences across cities on China's economic development. In order to investigate the effects of these differences on the macroeconomy, we construct and solve a general equilibrium model with heterogeneous agents, occupational choice and financial frictions. Occupational choice and the size of private and state firms are determined endogenously; each depends on agent "type" (manager ability and resources), a credit market friction, and differences in institutions. Differences in institutions across cities generate differences in occupational choice, firm size and output per capita.U of I OnlyRestricted to the U of I community idenfinitely during batch ingest of legacy ETD