Journal article
The effect of financial repression and enforcement on entrepreneurship and economic development
Journal of monetary economics, Vol.55(2), pp.278-297
2008
DOI: 10.1016/j.jmoneco.2007.10.006
Abstract
A general equilibrium model with heterogeneous agents (with respect to wealth and ability) shows that differences across countries in intermediation costs and enforcement generate differences in occupational choice, firm size, credit, output and income inequality. Counterfactual experiments are performed for Latin American, European, transition and high growth Asian countries, with empirical estimates of each country's financial frictions and United States values for all other parameters. The results isolate the quantitative effect of these financial frictions in explaining the performance gap between each country and the United States, and depend critically on whether a general equilibrium factor price effect is operative.
Details
- Title: Subtitle
- The effect of financial repression and enforcement on entrepreneurship and economic development
- Creators
- António Antunes - Banco de Portugal, PortugalTiago Cavalcanti - Faculty of Economics, University of Cambridge, UKAnne Villamil - Department of Economics, University of Illinois at Urbana-Champaign, USA
- Resource Type
- Journal article
- Publication Details
- Journal of monetary economics, Vol.55(2), pp.278-297
- Publisher
- Elsevier B.V
- DOI
- 10.1016/j.jmoneco.2007.10.006
- ISSN
- 0304-3932
- eISSN
- 1873-1295
- Language
- English
- Date published
- 2008
- Academic Unit
- Economics
- Record Identifier
- 9984083237702771
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