EconPapers    
Economics at your fingertips  
 

Financial Intermediation, Variability and the Development Process

Luis Carranza () and Jose Galdon-Sanchez ()

STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers from Suntory and Toyota International Centres for Economics and Related Disciplines, LSE

Abstract: In this paper we have built a model of financial intermediation that explains the GDP variability pattern of an economy during the development process. In our model, per capita is more volatile in the 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 multiple 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.

Keywords: Externalities; market imperfections; growth; multiple equilibria; sunspot equilibria (search for similar items in EconPapers)
Date: 2000-03
References: Add references at CitEc
Citations:

Downloads: (external link)
https://sticerd.lse.ac.uk/dps/de/dedps21.pdf (application/pdf)

Related works:
Journal Article: Financial intermediation, variability and the development process (2004) Downloads
Working Paper: Financial intermediation, variability and the development process (2000) Downloads
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:cep:stidep:21

Access Statistics for this paper

More papers in STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers from Suntory and Toyota International Centres for Economics and Related Disciplines, LSE
Bibliographic data for series maintained by ().

 
Page updated 2025-03-19
Handle: RePEc:cep:stidep:21