Question on the model setting

Dear Professor Pfeifer,

I’ve learned the BGG’s model with financial accelerater, which contains only one type of capital in the production function and balance sheet. While I wonder if I could contain two types of heterogeneous capital in production function and balance sheet. It might be so complex that I have no idea whether it could make any sense. Is there any paper that has considered about this case before?

Thank you for your time on this.

Sorry, I don’t know the answers. You have to do a literature search. Whether something makes sense is for you to decide. I guess you want to answer a particular question and should have some leeway on which model to use.