Financial Deepening, Inequality, and Growth: A Model-Based Quantitative Evaluation

Author/Editor:

Robert M. Townsend ; Kenichi Ueda

Publication Date:

September 1, 2003

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

We propose a coherent unified approach to the study of the linkages among economic growth, financial structure, and inequality, bringing together disparate theoretical and empirical literature. That is, we show how to conduct model-based quantitative research on transitional paths. With analytical and numerical methods, we calibrate and make tractable a prototype canonical model and take it to an application, namely, Thailand 1976-1996, an emerging economy in a phase of economic expansion with uneven financial deepening and increasing inequality. We broadly replicate the actual data, test the model formally, and identify anomalies.

Series:

Working Paper No. 2003/193

Subject:

Agroindustries Banking Economic sectors Income distribution Income inequality National accounts Personal income Population and demographics

English

Publication Date:

September 1, 2003

ISBN/ISSN:

9781451859836/1018-5941

Stock No:

WPIEA1932003

Pages:

64

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