Financial intermediaries, markets and growth

Arbeitspapier

We build a model in which financial intermediaries provide insurance to households against a liquidity shock. Households can also invest directly on a financial market if they pay a cost. In equilibrium, the ability of intermediaries to share risk is constrained by the market. This can be beneficial because intermediaries invest less in the productive technology when they provide more risk-sharing. Our model predicts that bank-oriented economies should grow slower than more market-oriented economies, which is consistent with some recent empirical evidence. We show that the mix of intermediaries and market that maximizes welfare under a given level of financial development depends on economic fundamentals. We also show the optimal mix of two structurally very similar economies can be very different.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Discussion Paper Series 1 ; No. 2005,03

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Financial Markets and the Macroeconomy ; Financial Institutions and Services: General ; General Financial Markets: General (includes Measurement and Data)
• Thema: Financial Intermediaries ; Risk Sharing ; Finance and Growth ; Comparing Financial Systems ; Finanzintermediär ; Finanzmarkt ; Investition ; Allokation ; Wirtschaftswachstum ; Overlapping Generations

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Fecht, Falko ; Huang, Kevin ; Martin, Antoine
• Ereignis: Veröffentlichung
• (wer): Deutsche Bundesbank
• (wo): Frankfurt a. M.
• (wann): 2005

Weitere Informationen

• Handle: http://hdl.handle.net/10419/19511
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ