Excessive Financial Intermediation in a Model with Endogenous Liquidity
Does an unregulated financial system absorb too many productive inputs? This paper studies this question in the context of a dynamic model with heterogeneous producers. In the absence of a financial system, the only way to purchase inputs is using internal funds. Producers are subject to idiosyncrat...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2012/05/16255088/excessive-financial-intermediation-model-endogenous-liquidity http://hdl.handle.net/10986/9358 |