Financing development: the role of information costs
How does technological progress in financial intermediation affect the economy? To address this question a costly-state verification framework is embedded into a standard growth model. In particular, financial intermediaries can invest resources to monitor the returns earned by firms. The inability...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Book |
| Language: | English |
| Published: |
Cambridge, Mass.
National Bureau of Economic Research
2007
|
| Series: | Working paper series / National Bureau of Economic Research
13104 |
| Links: | http://papers.nber.org/papers/w13104.pdf |
| Summary: | How does technological progress in financial intermediation affect the economy? To address this question a costly-state verification framework is embedded into a standard growth model. In particular, financial intermediaries can invest resources to monitor the returns earned by firms. The inability to monitor perfectly leads to firms earning rents. Undeserving firms are financed, while deserving ones are under funded. A more efficient monitoring technology squeezes the rents earned by firms. With technological advance in the financial sector, the economy moves continuously from a credit-rationing equilibrium to a perfectly efficient competitive equilibrium. A numerical example suggests that finance is important for growth. |
| Item Description: | Literaturverz. S. 46 - 49 |
| Physical Description: | 61 S. graph. Darst. 22 cm |
Staff View
MARC
| LEADER | 00000nam a2200000zcb4500 | ||
|---|---|---|---|
| 001 | BV023593015 | ||
| 003 | DE-604 | ||
| 005 | 20080327000000.0 | ||
| 007 | t| | ||
| 008 | 070907s2007 xxud||| |||| 00||| eng d | ||
| 035 | |a (OCoLC)255915389 | ||
| 035 | |a (DE-599)GBV530586614 | ||
| 040 | |a DE-604 |b ger | ||
| 041 | 0 | |a eng | |
| 044 | |a xxu |c XD-US | ||
| 049 | |a DE-521 | ||
| 050 | 0 | |a HB1 | |
| 100 | 1 | |a Greenwood, Jeremy |d 1953- |e Verfasser |0 (DE-588)129696463 |4 aut | |
| 245 | 1 | 0 | |a Financing development |b the role of information costs |c Jeremy Greenwood ; Juan M. Sanchez ; Cheng Wang |
| 264 | 1 | |a Cambridge, Mass. |b National Bureau of Economic Research |c 2007 | |
| 300 | |a 61 S. |b graph. Darst. |c 22 cm | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b n |2 rdamedia | ||
| 338 | |b nc |2 rdacarrier | ||
| 490 | 1 | |a Working paper series / National Bureau of Economic Research |v 13104 | |
| 500 | |a Literaturverz. S. 46 - 49 | ||
| 520 | 8 | |a How does technological progress in financial intermediation affect the economy? To address this question a costly-state verification framework is embedded into a standard growth model. In particular, financial intermediaries can invest resources to monitor the returns earned by firms. The inability to monitor perfectly leads to firms earning rents. Undeserving firms are financed, while deserving ones are under funded. A more efficient monitoring technology squeezes the rents earned by firms. With technological advance in the financial sector, the economy moves continuously from a credit-rationing equilibrium to a perfectly efficient competitive equilibrium. A numerical example suggests that finance is important for growth. | |
| 700 | 1 | |a Sanchez, Juan M. |d 1978- |e Verfasser |0 (DE-588)133406849 |4 aut | |
| 700 | 1 | |a Wang, Cheng |d 1965- |e Verfasser |0 (DE-588)133407047 |4 aut | |
| 776 | 0 | 8 | |i Erscheint auch als |n Online-Ausgabe |
| 810 | 2 | |a National Bureau of Economic Research <Cambridge, Mass.> |t NBER working paper series |v 13104 |w (DE-604)BV002801238 |9 13104 | |
| 856 | 4 | 1 | |u http://papers.nber.org/papers/w13104.pdf |z kostenfrei |3 Volltext |
| 943 | 1 | |a oai:aleph.bib-bvb.de:BVB01-016908345 | |
Record in the Search Index
| _version_ | 1818965835662753792 |
|---|---|
| any_adam_object | |
| author | Greenwood, Jeremy 1953- Sanchez, Juan M. 1978- Wang, Cheng 1965- |
| author_GND | (DE-588)129696463 (DE-588)133406849 (DE-588)133407047 |
| author_facet | Greenwood, Jeremy 1953- Sanchez, Juan M. 1978- Wang, Cheng 1965- |
| author_role | aut aut aut |
| author_sort | Greenwood, Jeremy 1953- |
| author_variant | j g jg j m s jm jms c w cw |
| building | Verbundindex |
| bvnumber | BV023593015 |
| callnumber-first | H - Social Science |
| callnumber-label | HB1 |
| callnumber-raw | HB1 |
| callnumber-search | HB1 |
| callnumber-sort | HB 11 |
| callnumber-subject | HB - Economic Theory and Demography |
| ctrlnum | (OCoLC)255915389 (DE-599)GBV530586614 |
| format | Book |
| fullrecord | <?xml version="1.0" encoding="UTF-8"?><collection xmlns="http://www.loc.gov/MARC21/slim"><record><leader>02096nam a2200361zcb4500</leader><controlfield tag="001">BV023593015</controlfield><controlfield tag="003">DE-604</controlfield><controlfield tag="005">20080327000000.0</controlfield><controlfield tag="007">t|</controlfield><controlfield tag="008">070907s2007 xxud||| |||| 00||| eng d</controlfield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(OCoLC)255915389</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(DE-599)GBV530586614</subfield></datafield><datafield tag="040" ind1=" " ind2=" "><subfield code="a">DE-604</subfield><subfield code="b">ger</subfield></datafield><datafield tag="041" ind1="0" ind2=" "><subfield code="a">eng</subfield></datafield><datafield tag="044" ind1=" " ind2=" "><subfield code="a">xxu</subfield><subfield code="c">XD-US</subfield></datafield><datafield tag="049" ind1=" " ind2=" "><subfield code="a">DE-521</subfield></datafield><datafield tag="050" ind1=" " ind2="0"><subfield code="a">HB1</subfield></datafield><datafield tag="100" ind1="1" ind2=" "><subfield code="a">Greenwood, Jeremy</subfield><subfield code="d">1953-</subfield><subfield code="e">Verfasser</subfield><subfield code="0">(DE-588)129696463</subfield><subfield code="4">aut</subfield></datafield><datafield tag="245" ind1="1" ind2="0"><subfield code="a">Financing development</subfield><subfield code="b">the role of information costs</subfield><subfield code="c">Jeremy Greenwood ; Juan M. Sanchez ; Cheng Wang</subfield></datafield><datafield tag="264" ind1=" " ind2="1"><subfield code="a">Cambridge, Mass.</subfield><subfield code="b">National Bureau of Economic Research</subfield><subfield code="c">2007</subfield></datafield><datafield tag="300" ind1=" " ind2=" "><subfield code="a">61 S.</subfield><subfield code="b">graph. Darst.</subfield><subfield code="c">22 cm</subfield></datafield><datafield tag="336" ind1=" " ind2=" "><subfield code="b">txt</subfield><subfield code="2">rdacontent</subfield></datafield><datafield tag="337" ind1=" " ind2=" "><subfield code="b">n</subfield><subfield code="2">rdamedia</subfield></datafield><datafield tag="338" ind1=" " ind2=" "><subfield code="b">nc</subfield><subfield code="2">rdacarrier</subfield></datafield><datafield tag="490" ind1="1" ind2=" "><subfield code="a">Working paper series / National Bureau of Economic Research</subfield><subfield code="v">13104</subfield></datafield><datafield tag="500" ind1=" " ind2=" "><subfield code="a">Literaturverz. S. 46 - 49</subfield></datafield><datafield tag="520" ind1="8" ind2=" "><subfield code="a">How does technological progress in financial intermediation affect the economy? To address this question a costly-state verification framework is embedded into a standard growth model. In particular, financial intermediaries can invest resources to monitor the returns earned by firms. The inability to monitor perfectly leads to firms earning rents. Undeserving firms are financed, while deserving ones are under funded. A more efficient monitoring technology squeezes the rents earned by firms. With technological advance in the financial sector, the economy moves continuously from a credit-rationing equilibrium to a perfectly efficient competitive equilibrium. A numerical example suggests that finance is important for growth.</subfield></datafield><datafield tag="700" ind1="1" ind2=" "><subfield code="a">Sanchez, Juan M.</subfield><subfield code="d">1978-</subfield><subfield code="e">Verfasser</subfield><subfield code="0">(DE-588)133406849</subfield><subfield code="4">aut</subfield></datafield><datafield tag="700" ind1="1" ind2=" "><subfield code="a">Wang, Cheng</subfield><subfield code="d">1965-</subfield><subfield code="e">Verfasser</subfield><subfield code="0">(DE-588)133407047</subfield><subfield code="4">aut</subfield></datafield><datafield tag="776" ind1="0" ind2="8"><subfield code="i">Erscheint auch als</subfield><subfield code="n">Online-Ausgabe</subfield></datafield><datafield tag="810" ind1="2" ind2=" "><subfield code="a">National Bureau of Economic Research <Cambridge, Mass.></subfield><subfield code="t">NBER working paper series</subfield><subfield code="v">13104</subfield><subfield code="w">(DE-604)BV002801238</subfield><subfield code="9">13104</subfield></datafield><datafield tag="856" ind1="4" ind2="1"><subfield code="u">http://papers.nber.org/papers/w13104.pdf</subfield><subfield code="z">kostenfrei</subfield><subfield code="3">Volltext</subfield></datafield><datafield tag="943" ind1="1" ind2=" "><subfield code="a">oai:aleph.bib-bvb.de:BVB01-016908345</subfield></datafield></record></collection> |
| id | DE-604.BV023593015 |
| illustrated | Illustrated |
| indexdate | 2024-12-20T13:23:19Z |
| institution | BVB |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-016908345 |
| oclc_num | 255915389 |
| open_access_boolean | 1 |
| owner | DE-521 |
| owner_facet | DE-521 |
| physical | 61 S. graph. Darst. 22 cm |
| publishDate | 2007 |
| publishDateSearch | 2007 |
| publishDateSort | 2007 |
| publisher | National Bureau of Economic Research |
| record_format | marc |
| series2 | Working paper series / National Bureau of Economic Research |
| spelling | Greenwood, Jeremy 1953- Verfasser (DE-588)129696463 aut Financing development the role of information costs Jeremy Greenwood ; Juan M. Sanchez ; Cheng Wang Cambridge, Mass. National Bureau of Economic Research 2007 61 S. graph. Darst. 22 cm txt rdacontent n rdamedia nc rdacarrier Working paper series / National Bureau of Economic Research 13104 Literaturverz. S. 46 - 49 How does technological progress in financial intermediation affect the economy? To address this question a costly-state verification framework is embedded into a standard growth model. In particular, financial intermediaries can invest resources to monitor the returns earned by firms. The inability to monitor perfectly leads to firms earning rents. Undeserving firms are financed, while deserving ones are under funded. A more efficient monitoring technology squeezes the rents earned by firms. With technological advance in the financial sector, the economy moves continuously from a credit-rationing equilibrium to a perfectly efficient competitive equilibrium. A numerical example suggests that finance is important for growth. Sanchez, Juan M. 1978- Verfasser (DE-588)133406849 aut Wang, Cheng 1965- Verfasser (DE-588)133407047 aut Erscheint auch als Online-Ausgabe National Bureau of Economic Research <Cambridge, Mass.> NBER working paper series 13104 (DE-604)BV002801238 13104 http://papers.nber.org/papers/w13104.pdf kostenfrei Volltext |
| spellingShingle | Greenwood, Jeremy 1953- Sanchez, Juan M. 1978- Wang, Cheng 1965- Financing development the role of information costs |
| title | Financing development the role of information costs |
| title_auth | Financing development the role of information costs |
| title_exact_search | Financing development the role of information costs |
| title_full | Financing development the role of information costs Jeremy Greenwood ; Juan M. Sanchez ; Cheng Wang |
| title_fullStr | Financing development the role of information costs Jeremy Greenwood ; Juan M. Sanchez ; Cheng Wang |
| title_full_unstemmed | Financing development the role of information costs Jeremy Greenwood ; Juan M. Sanchez ; Cheng Wang |
| title_short | Financing development |
| title_sort | financing development the role of information costs |
| title_sub | the role of information costs |
| url | http://papers.nber.org/papers/w13104.pdf |
| volume_link | (DE-604)BV002801238 |
| work_keys_str_mv | AT greenwoodjeremy financingdevelopmenttheroleofinformationcosts AT sanchezjuanm financingdevelopmenttheroleofinformationcosts AT wangcheng financingdevelopmenttheroleofinformationcosts |