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This survey reviews the literature on the political economy of financial structure, broadly defined to include the size of capital markets and banking systems as well as the distribution of access to external finance across firms.The theoretical literature on the institutional basis for...
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Countries differ on the extent to which their financial system relies on banks or on the financial market. We offer a … advantage. Countries specialising in bank dependent sectors favour the development of the banking sector. Simultaneously …. To empirically investigate our model's predictions, we construct a measure of sector bank dependence and establish a …
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This paper assesses how the financial system influences the strength of the liquidity effect in a calibrated limited participation model of the monetary transmission mechanism. The model suggests that bankbased systems should be characterized by smaller liquidity effects since monetary...
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