Agrarian Structure and Endogenous Financial System Development

Vollrath, Dietrich (2008): Agrarian Structure and Endogenous Financial System Development.

Abstract

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
• Language: English
• Keywords: Land distribution, financial development, overlapping generations, financial institutions
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > 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, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity

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