Macroeconomic Evolution after a Production Shock: the Role for Financial Intermediation

Arbeitspapier

Financial intermediaries may increase economic efficiency through intertemporal risk smoothing. However without an adequate regulation, intermediation may fail to do this. This paper studies the effects of a production shock in a closed economy and compares abilities of market-based and bank-based financial systems in processing the shock. Unregulated banking system may collapse in absence of a proper regulation. The paper studies several types of regulatory interventions, which may improve the performance of the banking system.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper Series ; No. 430

Classification and Topics

• Classification: Wirtschaft ; General Equilibrium and Disequilibrium: General ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Financial Institutions and Services: Government Policy and Regulation ; Financial Markets and the Macroeconomy ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
• Subject: Financial intermediation ; overlapping generations ; general equilibrium ; intertemporal smoothing ; Finanzintermediation ; Wirkungsanalyse ; Schock ; Wirtschaftliche Anpassung ; Allgemeines Gleichgewicht ; Overlapping Generations ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Vinogradov, Dmitri V.
• Event: Veröffentlichung
• (who): University of Heidelberg, Department of Economics
• (where): Heidelberg
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/127254
• Last update: 10.03.2025, 11:42 AM CET