dc.contributor.author | Fecht, Falko | |
dc.contributor.author | Huang, Kevin X.D. | |
dc.contributor.author | Martin, Antoine | |
dc.date.accessioned | 2020-09-14T01:08:14Z | |
dc.date.available | 2020-09-14T01:08:14Z | |
dc.date.issued | 2007 | |
dc.identifier.uri | http://hdl.handle.net/1803/15852 | |
dc.description.abstract | We build a model in which financial intermediaries provide insurance to households against idiosyncratic liquidity shocks. Households can invest in financial markets directly if they pay a cost. In equilibrium, the ability of intermediaries to share risk is constrained by the market. From a growth perspective, 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 can grow more slowly than more market-oriented economies, which is consistent with some recent empirical evidence. We show that the mix of intermediaries and markets that maximizes welfare under a given level of financial development depends on economic fundamentals. | |
dc.language.iso | en_US | |
dc.publisher | Vanderbilt University | en |
dc.subject | Financial intermediaries | |
dc.subject | financial markets | |
dc.subject | risk-sharing | |
dc.subject | Growth | |
dc.subject | JEL Classification Number: E44 | |
dc.subject | JEL Classification Number: G10 | |
dc.subject | JEL Classification Number: G20 | |
dc.subject.other | | |
dc.title | Financial Intermediaries, Markets, and Growth' | |
dc.type | Working Paper | en |
dc.description.department | Economics | |