Vollrath, Dietrich (2008): Agrarian Structure and Endogenous Financial System Development.
Download (696kB) | 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 - 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
|Depositing User:||Dietrich Vollrath|
|Date Deposited:||13. Nov 2008 04:30|
|Last Modified:||11. Feb 2013 10:21|
 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 Abhijit Banerjee. 2005. Volatility and Growth. Oxford: Oxford University Press.
 Alesina, Alberto, Arnaud Devleeschauwer, William Easterly, Sergio Kurlat, and Romain Wacziarg. 2003. “Fractionalization.” Journal of Economic Growth 8:155-194.
 Aoki, Kosuke, Gianluca Benigno and Nobuhiro Kiyotaki. 2006. “Adjusting to Capital Account Liberalization.” Working paper.
 Banerjee, Abhijit and Lakshmi Iyer. 2005. “History, Institutions, and Economic Performance: The Legacy of Colonial Land Tenure Systems in India.” American Economic Review 95:1190- 1213.
 Beck, Thorsten, Asli Demirg¨u¸c-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 Demirg¨u¸c-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.
 Bell, Clive. 1988. “Credit Markets and Interlinked Transactions.” in Handbook of Development Economics, Vol I., ed. Hollis Chenery and T. N. Srinivasan. North-Holland.
 Berry, R. A. and W. R. Cline. 1979. Agrarian Structure and Productivity in Developing Countries. Baltimore: Johns Hopkins University Press.
 Besley, Timothy J. 1998. “How Do Market Failures Justify Interventions in Rural Credit Markets?” in International Agricultural Development, ed. C. K. Fisher and J. M. Staatz. Baltimore: Johns Hopkins University Press.
 Besley, Timothy J. and Robin Burgess. 2000. “Land Reform, Poverty Reduction and Growth: Evidence from India.” Quarterly Journal of Economics 115:389-430.
 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.
 de Janvry, Alain and Elisabeth Sadoulet. 1989. “A Study in Resistance to Institutional Change: The Lost Game of Latin American Land Reform.” World Development 17:1397-1407.
 de Janvry, Alain, J. Platteau, G. Gordillo, and E. Sadoulet. 2001. “Access to Land and Land Policy Reforms.” in Access to Land, Rural Poverty, and Public Action, ed. A. de Janvry, G. Gordillo, J. Platteua, and E. Sadoulet. Oxford: Oxford University Press.
 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 Economic Growth 6:317-336.
 Easterly, William. 2007. “Inequality Does Cause Underdevelopment.” Journal of Development Economics 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. Sokoloff. 1997. “Factor Endowments, Institutions, and Differential Paths of Growth among New World 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. “Unified Growth Theory: From Stagnation to Growth.” in Handbook of Economic Growth, ed. Phillipe Aghion and Steven N. Durlauf. North-Holland.
 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 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. 2008. “Inequality in Land Ownership, the Emergence of Human Capital Promoting Institutions and the Great Divergence.” Review of Economic Studies forthcoming.
 Garner, Paul. 2001. Porfirio Diaz. London: Longman.
 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.
 Jeon, Y. and Y. Kim. 2000. “Land Reform, Income Redistribution, and Agricultural Production in Korea.” Economic Development and Cultural Change 48:253-268.
 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. 1997. “Financial Development and Economic Growth: Views and Agenda.” Journal of Economic Literature 35:688-726.
 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.
 Mariscal, Elisa and Kenneth Sokoloff. 2000. “Schooling, Suffrage and the Persistence of Inequality in the Americas, 1800-1945.” in Political Institutions and Economic Growth in Latin America: Essays in Policy, History, and Political Economy, ed. Stephen Haber. Stanford, CA: Hoover Institution Press.
 McKinnon, R. I. 1973. Money and Capital in Economic Development. Washington, DC: Brookings Institution.
 Mokyr, Joel. 1990. The Lever of Riches: Technological Creativity and Economic Progress. New York: Oxford University Press.
 Neal, Larry. 1990. The Rise of Financial Capitalism: International Capital Markets in the Age of Reason. Cambridge: Cambridge University Press.
 Olson, Mancur. 1982. The Rise and Decline of Nations. New Haven, CT: Yale University Press.
 Otsuka, K. 1991. “Determinants and Consequences of Land Reform Implementation in the Philippines.” Journal of Development Economics 35:339-355.
 Parente, Stephen and Edward C. Prescott. 2000. Barriers to Riches. Cambridge:MIT Press.
 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. 2007. “Land Distribution and International Agricultural Productivity.” American Journal of Agricultural Economics 89:202-216.
 Vollrath, Dietrich. 2008. “Wealth Distribution and the Provision of Public Goods.” Working paper.