Financial Intermediation, Variability and the Development Process

Luis Carranza and Jose Enrique Galdon-Sanchez ()

No 04/02, Faculty Working Papers from School of Economics and Business Administration, University of Navarra

Abstract: In this paper we build a model of financial intermediation that explains the GDP variability pattern of an economy during the development process. We find evidence that per capita output is more volatile in middle-income economies than in both low and high-income economies. We show that, if the model economy is in the early or in the mature stages of development, there is a unique equilibrium. However, in the middle stages of development, multi-ple equilibria arise. Moreover, we find that in economies with imperfect credit markets, per capita output volatility tends to be higher than in economies with perfect or non-existent credit markets.

JEL-codes: E00 O11 O16 O40 (search for similar items in EconPapers)
Date: 2002-06
View list of references

Published, Journal of Development Economics, 2004, vol. 73 (1), pp. 27-54

Downloads: (external link)
http://www.unav.es/econom/files/workingpapersmodul ... 132240299_wp0402.pdf (application/pdf)

Related works:
Working Paper: Financial Intermediation, Variability and the Development Process (2000)
Journal Article: Financial intermediation, variability and the development process (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:una:unccee:wp0402

Access Statistics for this paper

More papers in Faculty Working Papers from School of Economics and Business Administration, University of Navarra
Series data maintained by ().