Vollrath, Dietrich (2008): Agrarian Structure and Endogenous Financial System Development.
Download (721kB) | Preview
The development of the financial system is shown, both historically and in contemporary data, to be adversely affected by inequality in the distribution of land. To accommodate these empirical findings, a theory is developed that highlights the incentives of landowners to oppose competition in the financial sector. The theory provides an explanation for the co-incident development of the financial sector and overall economy.
|Item Type:||MPRA Paper|
|Original Title:||Agrarian Structure and Endogenous Financial System Development|
|Keywords:||Land Distribution, financial development, overlapping generations, financial institutions|
|Subjects:||E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E25 - Aggregate Factor Income Distribution
G - Financial Economics > G1 - General Financial Markets > G18 - Government Policy and Regulation
N - Economic History > N2 - Financial Markets and Institutions
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity
|Depositing User:||Dietrich Vollrath|
|Date Deposited:||31. Dec 2008 06:27|
|Last Modified:||13. Feb 2013 07:34|
Acemoglu, Daron and James A. Robinson. 2006. "Economic Backwardness in Political Perspective." American Political Science Review 100:115-131.
Acemoglu, Daron, Simon Johnson and James A. Robinson. 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation." American Economic Review 91:1369-1401.
Aghion, Phillipe and Patrick Bolton. 1997. "A Trickle-down Theory of Growth and Development with Debt Overhand." Review of Economic Studies 64:151-72.
Alesina, Alberto, Arnaud Devleeschauwer, William Easterly, Sergio Kurlat, and RomainWacziarg. 2003. "Fractionalization." Journal of Economic Growth 8:155-194.
Banerjee, Abhijit and Andrew Newman. 1993. "Occupational Choice and the Process of Development." Journal of Political Economy 101:274-98.
Beck, Thorsten, Asli Demirguc-Kunt, and Ross Levine. 2001. "The Financial Structure Database." in Financial Structure and Economic Growth: A Cross-Country Comparison of Banks, Markets, and Development, ed. Asli Demirguc-Kunt and Ross Levine. Cambridge: MIT Press.
Beck, Thorsten, Ross Levine, and Norman Loayza. 2000. "Finance and the Sources of Growth." Journal of Financial Economics 58:26-300.
Binswanger, Hans P., Klaus Deininger and Gershon Feder. 1995. "Power, Distortions, Revolt and Reform in Agricultural Land Relations." in Handbook of Development Economics, Volume III, ed. Jere Behrman and T.N. Srinivasan. Amsterdam:Elsevier.
Bodenhorn, Howard. 2000. A History of Banking in Antebellum America. Cambridge: Cambridge University Press.
Bulmer-Thomas, Victor. 2003. The Economic History of Latin America since Independence. Cambridge: Cambridge University Press.
Chakraborty, Shankha and Tridip Ray. 2007. "The Development and Structure of Financial Systems." Journal of Economic Dynamics and Control 31:2920-2956.
Deininger, Klaus and Lyn Squire. 1998. "New Ways of Looking at Old Issues: Inequality and Growth." Journal of Development Economics 57:259-287.
Dickson, P. G. M. 1967. The Financial Revolution in England: A Study in the Development of Public Credit, 1688-1756. New York: MacMillan.
Easterly, William. 2001. "The Middle Class Consensus and Economic Development." Journal of Eco- nomic Growth 6:317-336.
Easterly, William. 2007. "Inequality Does Cause Underdevelopment." Journal of Development Eco- nomics 84:755-776.
Easterly, William and Ross Levine. 2003. "Tropics, Germs, and Crops: The Role of Endowments in Economics Development." Journal of Monetary Economics 50:.
Engerman, Stanley L. and Kenneth L. Sokolo. 1997. "Factor Endowments, Institutions, and Dierential Paths of Growth among NewWorld Economics: A View from Economic Historians of the United States." in How Latin America Fell Behind: Essays on the Economic History of Brazil and Mexico, 1800-1914, ed. Stephen Haber. Stanford, CA: Stanford University Press.
Food and Agricultural Organization of the United Nations (FAO). 1960, 1970, 1980, 1990, 2000. Report of the World Census of Agriculture.
Ferguson, E. James. 1961. The Power of the Purse. Chapel Hill, NC: University of North Carolina Press.
Galor, Oded. 2005. "Unied Growth Theory: From Stagnation to Growth." in Handbook of Economic Growth, ed. Phillipe Aghion and Steven N. Durlauf. North-Holland.
Galor, Oded and Omer Moav. 2006. "Das Human Kapital: A Theory of the Demise of the Class Structure." Review of Economic Studies 73:85-117.
Galor, Oded and Omer Moav and Dietrich Vollrath. 2009. "Inequality in Land Ownership, the Emergence of Human Capital Promoting Institutions and the Great Divergence." Review of Economic Studies forthcoming.
Galor, Oded and David Weil. 2000. "Population, Technology, and Growth: From the Malthusian Regime to the Demographic Transition." American Economic Review 90:806-828.
Galor, Oded and Joseph Zeira. 1993. "Income Distribution and Macroeconomics." Review of Economic Studies 60:35-52.
Garner, Paul. 2001. Porrio Diaz. London: Longman.
Greenwood, Jeremy and Boyan Jovanovic. 1990. "Financial Development, Growth, and the Distribution of Income." Journal of Political Economy 98(5):1076-1107.
Haber, Stephen. 1997. "Financial Markets and Industrial Development: A Comparative Study of Governmental Regulation, Financial Innovation, and Industrial Structure in Brazil and Mexico, 1840-1930." in How Latin America Fell Behind: Essays on the Economic Histories of Brazil and Mexico, 1800-1914, ed. Stephen Haber. Stanford, CA: Stanford University Press.
Haber, Stephen. 1998. "The Efficiency Consequences of Institutional Change: Financial Market Regulation and Industrial Productivity Growth in Brazil, 1866-1934." in Latin America and the World Economy since 1800, ed. John H. Coatsworth and Alan M. Taylor. Cambridge: Harvard University Press.
Haber, Stephen. 1991. "Industrial Concentration and the Capital Markets: A Comparative Study of Brazil, Mexico, and the United States, 1830-1930." Journal of Economic History 51(3):559-580.
Hammond, Bray. 1957. Banks and Politics in America from the Revolution to the Civil War. Princeton, NJ: Princeton University Press.
Hanley, Anne. 1998. "Business Finance and the Sao Paulo Bolsa, 1886-1917." in Latin America and the World Economy since 1800, ed. John H. Coatsworth and Alan M. Taylor. Cambridge: Harvard University Press.
James, John A. 1978. Money and Capital Markets in Postbellum America. Princeton, NJ: Princeton University Press.
Kaufman, D. and A. Kraay and P. Zoido. 1999. "Aggregating Governance Indicators." World Bank Research Working Paper No. 2195. Washington: World Bank.
King, R. G. and Ross Levine. 1993. "Finance and Growth: Schumpeter Might Be Right." Quarterly Journal of Economics 108:717-738.
La Porta, R., F. Lopez-de-Silanes, A. Shleifer and R. W. Vishny. 1997. "Legal Determinants of External Finance." Journal of Finance 52:1131-1150.
La Porta, R., F. Lopez-de-Silanes, A. Shleifer and R. W. Vishny. 1998. "Law and Finance." Journal of Political Economy 106:1113-1155.
Levine, Ross. 2005. "Finance and Growth: Theory and Evidence." in Handbook of Economic Growth, ed. Phillipe Aghion and Stephen N. Durlauf. North-Holland.
Levine, Ross, Thorsten Beck and Norman Loayza. 2000. "Financial Intermediation and Growth: Causality and Causes." Journal of Monetary Economics 46:31-77.
Levine, Ross and S. Zervos. 1998. "Stock Markets, Banks, and Economic Growth." American Economic Review 88:537-558.
Marichal, Carlos. 1997. "Obstacles to the Development of Capital Markets in Nineteenth-Century Mexico." in How Latin America Fell Behind: Essays on the Economic Histories of Brazil and Mexico, 1800-1914, ed. Stephen Haber. Stanford, CA: Stanford University Press.
McKinnon, R. I. 1973. Money and Capital in Economic Development. Washington, DC: Brookings Institution.
Musacchio, Aldo. 2008. "Can Civil Law Countries Get Good Institutions? Lessons from the History of Creditor Rights and Bond Markets in Brazil." Journal of Economic History 68(1):80-108.
Neal, Larry. 1990. The Rise of Financial Capitalism: International Capital Markets in the Age of Reason. Cambridge: Cambridge University Press.
North, Douglass C. 1981. Structure and Change in Economic History. W.W. Norton and Company: New York.
Parente, Stephen and Edward C. Prescott. 2000. Barriers to Riches. Cambridge:MIT Press.
Rajan, Raghuram and Rodney Ramcharan. 2008. "Landed Interests and Financial Underdevelopment in the United States." Chicago GSB Research Paper No. 08-12.
Rajan, Raghuram and Luigi Zingales. 2003. "The Great Reversals: The Politics of Financial Development in the 20th Century." Journal of Financial Economics 69:5-50.
Ramcharan, Rodney. 2007. "Inequality and Redistribution: Evidence from U.S. Counties and States, 1890-1930." Working paper.
Shaw, E. S. 1973. Financial Deepening in Economic Development. New York: Oxford University Press.
Tomich, Thomas P., Peter Kilby and Bruce F. Johnston. 1995. Transforming Agrarian Economies. Ithaca, NY: Cornell University Press.
Vollrath, Dietrich. 2008. "Wealth Distribution and the Provision of Public Goods." Working paper.
Vollrath, Dietrich and Lennart Erickson. 2007. "Land Distribution and Financial System Development." IMF Working Paper 07/83.