Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
967982 | Journal of Monetary Economics | 2007 | 16 Pages |
Abstract
We describe a dynamic model of financial intermediation in which fundamental characteristics of the economy imply a unique equilibrium path of bank and financial market lending. Yet we also show that economies whose fundamental characteristics have converged may continue to have very different financial structures. Because setting up financial markets is costly in our model, economies that emphasize bank lending are more likely to continue doing so in the future, all else equal.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Cyril Monnet, Erwan Quintin,