TY  - JOUR
AU  - Chesnokova,Tatyana
AU  - Krishna,Kala
TI  - Skill Acquisition, Credit Constraints, and Trade
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12411
PY  - 2006
Y2  - August 2006
UR  - http://www.nber.org/papers/w12411
L1  - http://www.nber.org/papers/w12411.pdf
N1  - Author contact info:
Kala Krishna
Department of Economics
523 Kern Graduate Building
The Pennsylvania State University
University Park, PA 16802
Tel: 814/865-1106
Fax: 814/863-4775
E-Mail: kmk4@psu.edu
M2  - featured in NBER digest on 2006-08-07
AB  - This paper looks at the effect of credit constraints on skill acquisition when agents have heterogeneous abilities and wealth. We use a two factor general equilibrium model and assume credit markets are absent. We explore the effects of trade on factor earnings as well as the evolution of the distribution of income in small and large economies. Our work suggests that developed countries need to ensure access to education when liberalizing trade to ensure they reap the potential gains from trade.
ER  -