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Agrarian Structure and Endogenous Financial System Development

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  • Vollrath, Dietrich

Abstract

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.

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  • Vollrath, Dietrich, 2008. "Agrarian Structure and Endogenous Financial System Development," MPRA Paper 12430, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:12430
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    References listed on IDEAS

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    More about this item

    Keywords

    Land Distribution; financial development; overlapping generations; financial institutions;
    All these keywords.

    JEL classification:

    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • N2 - Economic History - - Financial Markets and Institutions
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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