Liquidity needs and vulnerability to financial underdevelopment

• 成果类型: Article
• 署名作者: Raddatz, Claudio
• 署名单位: The World Bank
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2005.03.012
• 发表日期: 2006
• 页码: 677-722
• 关键词: financial development; economic volatility; liquidity needs

摘要

This paper provides evidence that financial development has a large causal effect in the reduction of macroeconomic volatility resulting from the role of the financial system in liquidity provision. In particular, financial system development leads to a comparatively larger reduction in the volatility of output in sectors with high liquidity needs. Most of this decline results from the stabilization of the output of existing firms, although the volatility of the number of firms also drops significantly. Among different aspects of the financial system, the depth of financial intermediaries plays the main role in the reduction of volatility. (c) 2005 Elsevier B.V. All rights reserved.