Financial intermediary development and growth volatility: Do intermediaries dampen or magnify shocks?

Journal of International Money and Finance

Volumn 25, Issue 7, 2006, Pages 1146-1167

  Beck, Thorsten ^a   Lundberg, Mattias ^a   Majnoni, Giovanni ^a  

^a WORLD BANK   (United States)

Author keywords

E44; E51; G21; O16

Indexed keywords

EID: 33750956188     PISSN: 02615606     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jimonfin.2006.08.004     Document Type: Article

References (51)

1. Acemoglu D., and Zilibotti F. Was Prometheus unbound by chance? Risk, diversification, and growth. Journal of Political Economy 105 4 (1997) 709-751
2. Aizenman J., and Powell A. Volatility and financial intermediation. Journal of International Money and Finance 22 5 (2003) 657-679
3. Bacchetta, P., Caminal, R., 1996. Do capital market imperfections exacerbate output fluctuations? CEPR Discussion Paper No. 1422.
4. Bacchetta P., and Caminal R. Do capital market imperfections exacerbate output fluctuations?. European Economic Review 44 3 (2000) 449-468
5. Beck N., and Katz J. What to do (and not to do) with time-series cross-section data. American Political Science Review 89 3 (1995) 634-647
6. Beck T., and Levine R. Industry growth and capital allocation: does having a market- or bank-based system matter?. Journal of Financial Economics 64 2 (2002) 147-180
7. Beck T., and Levine R. Stock markets, banks, and economic growth: panel evidence. Journal of Banking and Finance 28 3 (2004) 423-442
8. Beck T., Demirgüç-Kunt A., and Levine R. A new database on financial development and structure. World Bank Economic Review 14 3 (2000) 597-605
9. Beck T., Levine R., and Loayza N. Finance and the sources of growth. Journal of Financial Economics 58 1-2 (2000) 261-300
10. Beck T., Demirgüç-Kunt A., and Levine R. Law, finance and endowments. Journal of Financial Economics 70 2 (2003) 137-181
11. Bekaert G., Harvey C.R., and Lundblad C. Growth volatility and financial market liberalization. Journal of International Money and Finance 25 3 (2006) 370-403
12. Bernanke B.S., and Blinder A.S. The federal funds rate and the channels of monetary transmission. American Economic Review 82 4 (1992) 901-921
13. Bernanke B.S., and Gertler M. Agency costs, net worth, and business fluctuations. American Economic Review 79 1 (1989) 14-31
14. Bernanke B.S., and Gertler M. Inside the black box: the credit channel of monetary policy transmission. Journal of Economic Perspectives 9 4 (1995) 27-48
15. Bernanke B.S., Gertler M., and Gilchrist S. The financial accelerator and the flight of quality. Review of Economics and Statistics 78 1 (1996) 1-15
16. Caprio, G., Honohan, P., 2001. Banking policy and macroeconomic stability: an exploration. Mimeo, World Bank.
17. Cecchetti S.G. Legal structure, financial structure and the monetary policy transmission mechanism. In: Deutsche Bundesbank (Ed). The Monetary Transmission Process. Recent Developments and Lessons for Europe (2001), Palgrave, New York 170-194
18. Crystal, J., Dages, G., Goldberg, L., 2001. Does foreign ownership contribute to sounder banks in emerging markets? The Latin American experience. Mimeo, Federal Reserve Bank of New York.
19. Davidson R., and MacKinnon J. Estimation and Inference in Econometrics (1993), Oxford University Press, New York, NY
20. Demirgüç-Kunt A., and Maksimovic V. Law, finance, and firm growth. Journal of Finance 53 6 (1998) 2107-2137
21. Denizer, C., Iyigun, M.F., Owen, A.L., 2002. Finance and macroeconomic volatility. Contributions to Macroeconomics 2 (1), Article 7.
22. Easterly, W., Islam, R., Stiglitz, J., 2000. Shaken and stirred: explaining growth volatility. In: Annual World Bank Conference on Development Economics 2000, 191-211.
23. Easterly W., and Levine R. Tropics, germs and crops: how endowments influence economic development. Journal of Monetary Economics 50 1 (2003) 3-39
24. Goodfriend M. The impact of monetary policy on bank balance sheets. A comment. Carnegie-Rochester Conference Series on Public Policy 42 (1995) 197-202
25. Gertler M., and Gilchrist S. Monetary policy, business cycles, and the behavior of small manufacturing firms. Quarterly Journal of Economics 109 2 (1994) 309-340
26. Gertler M., and Hubbard M.G. Financial factors in business fluctuations. Financial Market Volatility. Causes, Consequences and Policy Recommendations (1989), Federal Reserve Bank of Kansas City, Kansas City, MO
27. Greene W.H. Econometric Analysis (1993), Prentice Hall Inc., Englewood Cliffs, NJ
28. Grubb D., and Magee L. A variance composition of OLS and feasible GLS estimators. Econometric Theory 4 (1988) 329-335
29. Hausmann, R., Gavin, M., 1996. Securing stability and growth in a shock prone region: the policy challenge for Latin America. Inter-American Development Bank, Office of the Chief Economist, Working Paper 315.
30. Jayaratne J., and Morgan D.P. Capital market frictions and deposit constraints at banks. Journal of Money, Credit, and Banking 32 1 (2000) 74-92
31. Kashyap A.K., and Stein J.C. Monetary policy and bank lending. In: Mankiw N.G. (Ed). Monetary Policy (1994), University of Chicago Press for NBER, Chicago 221-256
32. Kashyap A.K., and Stein J.C. The impact of monetary policy on bank balance sheets. Carnegie-Rochester Conference Series on Public Policy 42 (1995) 151-195
33. Kashyap A.K., Lamont O., and Stein J.C. Credit conditions and the cyclical behavior of inventories. Quarterly Journal of Economics 109 3 (1994) 565-592
34. King R.G., and Levine R. Finance and growth: Schumpeter might be right. Quarterly Journal of Economics 108 3 (1993) 717-738
35. King R.G., and Levine R. Finance, entrepreneurship, and growth: theory and evidence. Journal of Monetary Economics 32 3 (1993) 513-542
36. Kishan R.P., and Opiela T.P. Bank size, bank capital, and the bank lending channel. Journal of Money, Credit, and Banking 32 1 (2000) 121-141
37. Kiyotaki N., and Moore J. Credit cycles. Journal of Political Economy 105 2 (1997) 211-248
38. La Porta R., Lopez-de-Silanes F., Shleifer A., and Vishny R. Legal determinants of external finance. Journal of Finance 52 3 (1997) 1131-1150
39. La Porta R., Lopez-de-Silanes F., Shleifer A., and Vishny R. Law and finance. Journal of Political Economy 106 6 (1998) 1113-1155
40. La Porta R., Lopez-de-Silanes F., Shleifer A., and Vishny R. The quality of government. Journal of Law, Economics, and Organization 15 1 (1999) 222-279
41. La Porta R., Lopez-de-Silanes F., and Shleifer A. Government ownership of commercial banks. Journal of Finance 57 1 (2002) 265-301
42. Levine R. Financial development and economic growth: views and agenda. Journal of Economic Literature 35 2 (1997) 688-726
43. Levine R., Loayza N., and Beck T. Financial intermediation and growth: causality and causes. Journal of Monetary Economics 46 1 (2000) 31-77
44. Levine R., and Zervos S. Stock markets, banks, and economic growth. American Economic Review 88 3 (1998) 537-558
45. Morgan D.P. The credit effects of monetary policy: evidence using loan commitments. Journal of Money, Credit, and Banking 30 1 (1998) 102-118
46. Neusser K., and Kugler M. Manufacturing growth and financial development: evidence from OECD countries. Review of Economics and Statistics 80 4 (1998) 636-646
47. Oliner S., and Rudebusch G. Is there a broad credit channel for monetary policy?. Economic Review (1996) 3-13 Federal Reserve Bank of San Francisco
48. Peek J., and Rosengren E. Collateral damage: effects of the Japanese bank crisis on real activity in the United States. American Economic Review 90 1 (2000) 30-45
49. Raddatz C. Liquidity needs and vulnerability to financial underdevelopment. Journal of Financial Economics 80 3 (2006) 677-722
50. Rajan R.G., and Zingales L. Financial dependence and growth. American Economic Review 88 3 (1998) 559-586
51. Rousseau P.L., and Wachtel P. Equity markets and growth: cross-country evidence on timing and outcomes, 1980-1995. Journal of Banking and Finance 24 12 (2000) 1933-1957