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This is a Literature Review study.

Financial Frictions for Firms and Households: Implications for Economic Development and Government Policies—An Introduction to the Special Issue

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Financial frictions significantly influence economic development through their impact on firms and households.
Understanding these frictions is critical for formulating effective government policies and interventions.
The implications of financial frictions extend beyond individual firms, affecting broader economic growth and stability.
Addressing financial frictions may lead to improved economic outcomes for both households and businesses.

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Introduction to how financial frictions affect firms and households, highlighting implications for development.

Dirk Krueger (2025) studied this question.

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