Finance, growth and quantile parameter heterogeneity

Monica Andini and Corrado Andini

Journal of Macroeconomics, 2014, vol. 40, issue C, 308-322

Abstract: This paper argues that the effect of a financial stimulus on growth can vary along quantiles of the conditional growth distribution. We support this argument by presenting a theoretical finance–growth model, mainly inspired by Pagano (1993) and Canarella and Pollard (2004), where quantile parameter heterogeneity plays a role. In addition, controlling for a set of observed country characteristics and for all time-invariant characteristics, through the panel dataset of Levine et al. (2000), we present evidence that countries in the upper tail of the conditional growth distribution react more than countries in the lower tail to the same financial stimulus.

Keywords: Financial development; Economic growth; Quantile regression; Panel data (search for similar items in EconPapers)
JEL-codes: C21 C23 G10 O16 O40 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0164070414000123
Full text for ScienceDirect subscribers only

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:eee:jmacro:v:40:y:2014:i:c:p:308-322

DOI: 10.1016/j.jmacro.2014.01.008

Access Statistics for this article

Journal of Macroeconomics is currently edited by Douglas McMillin and Theodore Palivos

More articles in Journal of Macroeconomics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().