Financial Intermediation, Variability and the Development Process

Luis Carranza () and José E. Galdón-Sánchez ()
Additional contact information
José E. Galdón-Sánchez: Public University of Navarra
Authors registered in the RePEc Author Service: 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)
Pages: 45 pages
Date: 2002-06-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

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

Downloads: (external link)
http://www.unav.edu/documents/10174/6546776/1132240299_wp0402.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.unav.edu/documents/10174/6546776/1132240299_wp0402.pdf [301 Moved Permanently]--> https://www.unav.edu/documents/10174/6546776/1132240299_wp0402.pdf)

Related works:
Journal Article: Financial intermediation, variability and the development process (2004)
Working Paper: Financial Intermediation, Variability and the Development Process (2000)
Working Paper: Financial intermediation, variability and the development process (2000)
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:una:unccee:wp0402

Access Statistics for this paper

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