haku: @journal_id 109 / yhteensä: 867
viite: 157 / 867
| Tekijä: | Jungblut, S. |
| Otsikko: | Financial instability, oligopolistic banking, and monetary growth |
| Lehti: | Oxford Economic Papers
2004 : JUL, VOL. 56:3, p. 513-538 |
| Asiasana: | Finance Banking Oligopoly Growth Models |
| Kieli: | eng |
| Tiivistelmä: | The paper analyzes the dynamics of a monetary economy which is characterized by increasing returns to scale (hereafter as: r-to-s.) in financial intermediation (here as: int.). The int. technology is linear in deposits, but its operation requires a fixed verification cost to overcome the asymmetric information (here as: info.) about a borrower's investment outcome. Intermediaries, termed banks, can avoid the costly duplication of info. disclosure. Due to the non–convexity in int. activities (here as: act. / acts.), two stationary monetary equilibria (here as: equil.) exist. The first is a saddle with high economic act. and high competition in banking. In the second equil., competition btw. banks and economic act. are low. Under adverse economic conditions, the low act. equil. can bifurcate into a sink and the economy may experience periods of financial instability and banking crises. |
SCIMA