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Banks as coordinators of economic growth /
This paper formally identifies an important role of banks: Banks competitively internalize production externalities and facilitate economic growth. I formulate a canonical growth model with externalities as a game among consumers, firms, and banks. Banks compete for deposits to seek monopoly profits...
| Clasificación: | Libro Electrónico |
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| Autor principal: | |
| Formato: | Electrónico eBook |
| Idioma: | Inglés |
| Publicado: |
[Washington, D.C.] :
International Monetary Fund,
2006.
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| Colección: | IMF working paper ;
WP/06/264. |
| Temas: | |
| Acceso en línea: | Texto completo |
| Sumario: | This paper formally identifies an important role of banks: Banks competitively internalize production externalities and facilitate economic growth. I formulate a canonical growth model with externalities as a game among consumers, firms, and banks. Banks compete for deposits to seek monopoly profits, including externalities. Using loan contracts that specify price and quantity, banks control firms' investments. Each bank forms a firm group endogenously and internalizes externalities directly within a firm group and indirectly across firm groups. This unique equilibrium requires a condition that separates competition for sources and uses of funds. I present a realistic institution that satisfies this condition. |
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| Descripción Física: | 1 online resource (75 pages) : illustrations |
| Bibliografía: | Includes bibliographical references (pages 38-40). |
| ISBN: | 128351804X 9781283518048 9781451909777 1451909772 1462396208 9781462396207 1452725918 9781452725918 9786613830494 6613830496 |
| ISSN: | 2227-8885 ; |