The effect of financial repression and enforcement on entrepreneurship and economic development

Journal of Monetary Economics

Volumn 55, Issue 2, 2008, Pages 278-297

  Antunes, António ^a   Cavalcanti, Tiago ^b   Villamil, Anne ^c  

^a Banco de Portugal ^*  (Portugal)

^b UNIVERSITY OF CAMBRIDGE   (United Kingdom)

^c UNIVERSITY OF ILLINOIS AT URBANA CHAMPAIGN   (United States)

Author keywords

Contract enforcement; Development; Entrepreneurship; Financial frictions; Occupational choice

Indexed keywords

EID: 44249100897     PISSN: 03043932     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jmoneco.2007.10.006     Document Type: Article

References (48)

1. Acemoglu D., and Ventura J. The world income distribution. Quarterly Journal of Economics 117 2 (2002) 659-694
2. Aghion P., and Bolton P. A theory of trickle-down growth and development. Review of Economic Studies 64 2 (1997) 151-172
3. Amaral, P., Quintin, E., 2007. Financial intermediation and economic development: a quantitative assessment. Working paper, Federal Reserve Bank of Dallas.
4. Antunes A., and Cavalcanti T. Start up costs, limited enforcement, and the hidden economy. European Economic Review 51 1 (2007) 203-224
5. Antunes, A., Cavalcanti, T., Villamil, A., 2008. Computing general equilibrium models with occupational choice and financial frictions. Journal of Mathematical Economics, in press. doi:10.1016/j.jmateco.2006.03.004.
6. Antunes, A., Cavalcanti, T., Villamil, A., 2007. The effect of financial repression and enforcement on entrepreneurship and economic development. Working paper, University of Illinois at Urbana-Champaign, available at 〈http://docentes.fe.unl.pt/∼ara/Submissions/IntCostsProtect_RR_May07.pdf〉.
7. Araujo A., and Funchal B. Bankruptcy law in Latin America: past and future. Economia 6 1 (2005) 146-216
8. Ayyagari, M., Beck, T., Demirgüç-Kunt, A., 2003. Small and medium enterprises across the globe: a new database. Working Paper 3127, World Bank.
9. Banerjee A.V., and Newman A.F. Occupational choice and the process of development. Journal of Political Economy 101 2 (1993) 274-298
10. Bencivenga V.R., and Smith B.D. Financial intermediation and endogenous growth. Review of Economic Studies 58 2 (1991) 195-290
11. Boyd J., and Smith B. The evolution of debt and equity markets in economic development. Economic Theory 12 (1998) 519-560
12. Cagetti M., and De Nardi M. Entrepreneurship, frictions and wealth. Journal of Political Economy 114 5 (2006) 835-870
13. Calomiris C.W., and Beim D.O. Emerging Financial Markets (2000), McGraw-Hill, New York
14. Castro R., Clementi G.L., and MacDonald G. Investor protection, optimal incentives, and economic growth. Quarterly Journal of Economics 119 3 (2004) 1131-1175
15. Chatterjee S., Corbae D., Nakajima M., and Ríos-Rull J.-V. A quantitative theory of unsecured consumer credit with risk of default. Econometrica 75 6 (2002) 1525-1590
16. Demirgüç-Kunt A., and Huizinga H. Determinants of commercial bank interest margins and profitability: some international evidence. World Bank Economic Review 13 (1999) 379-408
17. Demirgüç-Kunt A., Leaven L., and Levine R. Regulations, market structure, institutions, and the cost of financial intermediation. Journal of Money, Credit and Banking 36 3 (2004) 593-622
18. Djankov, S., McLiesh, C., Shleifer, A., 2005. Private credit in 129 countries. Mimeo, Department of Economics, Harvard University.
19. Dubey P., Geanakoplos J., and Shubik M. Default and punishment in general equilibrium. Econometrica 73 1 (2005) 1-37
20. Erosa, A., Hidalgo-Cabrillana, A., 2007. On finance as a theory of TFP, cross-industry productivity differences, and economic rents. International Economic Review, forthcoming.
21. Gokhale, J., Kotlikoff, L., 2000. The baby boomers' mega-inheritance-myth or reality?. Economic Commentary, Federal Reserve Bank of Cleveland.
22. Gollin D. Getting income shares right. Journal of Political Economy 110 2 (2002) 458-474
23. Grant, C., 2003. Evidence on the effects of us consumer bankruptcy exemptions. Working paper, European University Institute.
24. Greenwood J., and Jovanovic B. Financial development, growth, and distribution of income. Journal of Political Economy 98 5 (1990) 1076-1107
25. Guner, N., Ventura, G., Yi, X., 2006. Macroeconomic implications of size-dependent policies. Mimeo.
26. Hall R., and Jones C. Why do some countries produce so much more output per worker than others?. Quarterly Journal of Economics 114 1 (1999) 83-116
27. Jeong H., and Townsend R.M. Sources of TFP growth: occupational choice and financial deepening. Economic Theory 32 1 (2007) 179-221
28. Kaufmann, D., Kraay, A., Mastruzzi, M., 2003. Governance matters III: updated governance indicators for 1996-02. Policy Research Working Paper 3106, World Bank.
29. Kehoe T., and Levine D. Debt-constrained asset markets. Review of Economic Studies 60 (1993) 865-888
30. King R.G., and Levine R. Finance, entrepreneurship, and growth. Journal of Monetary Economics 32 (1993) 513-542
31. Krasa S., and Villamil A.P. Optimal contracts when enforcement is a decision variable. Econometrica 68 (2000) 119-134
32. Krasa, S., Sharma, T., Villamil, A.P., 2007. Bankruptcy and firm finance. Economic Theory, forthcoming, doi:10.1007/s00199-007-0267-y.
33. La Porta R., Lopes-de-Silanes F., Shleifer A., and Vishny R. Law and finance. Journal of Political Economy 106 6 (1998) 1113-1155
34. Levine R. Financial development and economic growth: views and agenda. Journal of Economic Literature XXXV 2 (1997) 688-726
35. Lloyd-Ellis H., and Bernhardt D. Inequality and economic development. Review of Economic Studies 67 1 (2000) 147-168
36. Lucas Jr. R.E. On the size distribution of business firms. Bell Journal of Economics 9 2 (1978) 508-523
37. Maddison A. Monitoring the World Economy (1995), Organization for Economic Cooperation and Development, Paris
38. Parente S.L., and Prescott E.C. Monopoly rights: a barrier to riches. American Economic Review 89 5 (1999) 1216-1233
39. Parente S.L., and Prescott E.C. Barriers to Riches (2000), MIT Press, Cambridge, MA
40. Prescott E.C. Needed: a theory of total factor productivity. International Economic Review 39 3 (1998) 525-551
41. Quadrini V. The importance of entrepreneurship for wealth concentration and mobility. Review of Income and Wealth 45 (1999)
42. Quadrini V. Entrepreneurship, saving, and social mobility. Review of Economic Dynamics 3 1 (2000) 1-40
43. Quintin, E., 2007. Contract enforcement and the size of the unofficial economy. Economic Theory, forthcoming, doi:10.1007/s00199-007-0295-7.
44. Rajan R.G., and Zingales L. Financial dependence and growth. American Economic Review 88 3 (1998) 559-586
45. Shleifer A., and Wolfenzon D. Investor protection and equity markets. Journal of Financial Economics 66 1 (2002) 3-27
46. The World Bank, 2005a. Doing Business in 2005: Removing Obstacles to Growth. World Bank, Washington, DC.
47. The World Bank, 2005b. World Development Indicators. World Bank, Washington, DC.
48. Wynne J. Wealth as a determinant of comparative advantage. American Economic Review 95 1 (2005) 226-254