If households have finite lives, the effect of imperfect competition in the financial sector on economic growth depends also on how its profits are returned. The return may be exogenous though fiscal transfers to the young and/or the old or endogenous through dividend payments to a subset of old...

The goal of this study is to identify empirically how country-level development, taking into account the financial and macroeconomic environment, affect the risk profiles of the banking sector in Europe. Through a dataset that covers 3,399 European banks spanning the period 1996-2011, and the...

In this paper we explore empirically a long-standing question in the literature on finance for growth, namely whether the financial structure -in terms of the size of the banking system relative to the capital market- matters for economic growth. We build upon the existing literature by...