Non-Uniform Wealth Distribution in a Simple Spatial Banking Model

Gabriel Montes-Rojas ()

Journal of Applied Economics, 2008, vol. 11, issue 1, 145-165

Abstract: This paper uses a static spatial banking model with a non-uniform wealth distribution to provide theoretical assessments for differences in banks' prices and locations across regions. It assumes imperfect information, where banks know more about individuals if they are “near” the bank and individuals incur in a cost proportional to this distance to show the viability of their projects to the bank. A free entry model is constructed to account for banks' tendency to concentrate in rich regions and to charge lower prices. Comparative statics exercises show the effect of changes in the monitoring technology and wealth dispersion.

Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/15140326.2008.12040502 (text/html)
Access to full text is restricted to subscribers.

Related works:
Journal Article: Non-uniform wealth distribution in a simple spatial banking model (2008)
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:taf:recsxx:v:11:y:2008:i:1:p:145-165

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/recs20

DOI: 10.1080/15140326.2008.12040502

Access Statistics for this article

Journal of Applied Economics is currently edited by Jorge M. Streb

More articles in Journal of Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().