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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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Bibliographic Details
Main Author: Eden, Maya
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
AGGREGATE SUPPLY
ALLOCATION OF CAPITAL
ALLOCATION OF RESOURCES
AMOUNT OF CAPITAL
ARBITRAGE
ARBITRAGE OPPORTUNITY
ASSET PRICE
BAILOUTS
BANKING INDUSTRY
BENCHMARK
BIDS
BINDING CONSTRAINT
BORROWING
BUDGET CONSTRAINT
CAPITAL ACCUMULATION
CAPITAL ALLOCATION
CAPITAL COSTS
CAPITAL MARKET
CAPITAL PURCHASE
CAPITAL PURCHASES
CAPITAL STOCK
COLLATERAL
COMMERCIAL BANKS
CONSUMERS
CONSUMPTION SMOOTHING
COORDINATION FAILURE
COUNTERFEIT MONEY
DEBT
DEMAND FOR CAPITAL
DEMAND FOR SAVINGS
DERIVATIVE
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DISTRIBUTIONAL IMPLICATIONS
ECONOMIC DEVELOPMENT
ECONOMIC EFFICIENCY
ECONOMIC GROWTH
ECONOMIC THEORY
ECONOMICS RESEARCH
EFFICIENT ALLOCATION
EMERGING MARKET
ENDOWMENTS
ENTREPRENEURS
EQUILIBRIUM
EQUILIBRIUM PRICES
EXPECTED RETURNS
EXTERNAL FUNDS
EXTERNALITIES
FEDERAL RESERVE
FEDERAL RESERVE BANK
FINANCIAL CRISES
FINANCIAL CRISIS
FINANCIAL EXPERTISE
FINANCIAL FRAGILITY
FINANCIAL INSTRUMENTS
FINANCIAL INTERMEDIATION
FINANCIAL MARKETS
FINANCIAL REGULATION
FINANCIAL SECTOR
FINANCIAL SERVICES
FINANCIAL SHOCK
FINANCIAL SYSTEM
FIXED COST
FULL EMPLOYMENT
GDP
GROWTH THEORY
HOLDING
HOLDINGS
HOUSEHOLD WEALTH
IMPLICIT SUBSIDY
INCOME
INCOME SHOCKS
INDUSTRIAL LOANS
INEFFICIENCY
INEQUALITY
INFLATION
INPUT PRICES
INSURANCE
INTERNAL FUNDS
INTERNATIONAL BANK
LENDER
LENDERS
LEVIES
LIQUIDITY
LIQUIDITY CONSTRAINT
LIQUIDITY CONSTRAINTS
LOAN
LOAN SIZE
LOANABLE FUNDS
M1
MACROECONOMIC MODELS
MACROECONOMICS
MARGINAL COST
MARGINAL COSTS
MARGINAL UTILITY
MARKET FAILURES
MARKET PRICE
MATHEMATICAL ECONOMICS
MAXIMUM AMOUNT
MICRO STRUCTURE
MONETARY EQUILIBRIUM
MONEY SUPPLIES
MONEY SUPPLY
MONITORING COST
MORAL HAZARD
MORAL HAZARD PROBLEM
OPTIMIZATION
PARTIAL EQUILIBRIUM ANALYSIS
PHYSICAL CAPITAL
POLITICAL ECONOMY
PORTFOLIO
PRICE LEVEL
PRODUCTION INPUTS
PRODUCTION OUTPUT
PRODUCTIVE INVESTMENT
PRODUCTIVE RESOURCES
PRODUCTIVE USE
PRODUCTIVITY
PROFITABILITY
RATE OF RETURN
REAL INCOME
RESERVE
RESERVE RATIO
RESERVE REQUIREMENT
RESERVE REQUIREMENTS
RESERVES
RETURN
SALES REVENUES
SAVINGS
SELF-FINANCE
SELF-FINANCING
SOCIAL WELFARE
STRUCTURAL CHANGE
TITHE
TRANSITION ECONOMIES
USE OF DERIVATIVES
UTILITY FUNCTION
VALUE ADDED
VALUE OF MONEY
WEALTH
Online Access:http://documents.worldbank.org/curated/en/2012/05/16255088/excessive-financial-intermediation-model-endogenous-liquidity
http://hdl.handle.net/10986/9358

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