Disintermediation Revisited

Philip A Horvath

The Financial Review, 1988, vol. 23, issue 3, 301-12

Abstract: The passage of financial institution reform legislation, such as the Depository Institution Deregulation and Monetary Control Act of 1980, is thought to reduce disintermediation. This paper shows that the prevailing "mean difference" explanation for disintermediation is insufficient. Furthermore, this paper shows that two-moment expected utility explains depositors' mixing behavior, but does not fully explain disintermediation. Maximization of expected utility in the form of a power function is used to show that skewness in expectations explains the shifts from thrift deposits that characterize disintermediation. Copyright 1988 by MIT Press.

Date: 1988
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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: https://EconPapers.repec.org/RePEc:bla:finrev:v:23:y:1988:i:3:p:301-12

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0732-8516

Access Statistics for this article

The Financial Review is currently edited by Cynthia J. Campbell and Arnold R. Cowan

More articles in The Financial Review from Eastern Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().