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

Robert Townsend and Kenichi Ueda

No 2003/193, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; growth rate; financial system; Financial deepening; inequality; growth; transitional dynamics; saving rate; value function; Thai baht; benchmark economy; parameter value; portfolio choice; population shift; Income inequality; Income distribution; Personal income; Agroindustries; Asia and Pacific (search for similar items in EconPapers)
Pages: 64
Date: 2003-09-01
References: Add references at CitEc
Citations: View citations in EconPapers (51)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=16846 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2003/193

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().