This paper surveys the theoretical and empirical relationship between economic growth and financial systems. Firstly, the existence of financial systems has a positive effect on growth because it increases the insurance against the illiquidity of real investment, the diversification of...

This paper investigates the relevance of the No-Ponzi game condition for public debt (i.e. the public debt growth rates has to be lower than the real interest rate, a necessary assumption for Ricardian equivalence) and of the transversality condition for the GDP growth rate (i.e. the GDP growth...

Dans cet article, les infrastructures financières augmentent l'efficacité du secteur bancaire: elles diminuent le pouvoir de marché des intermédiaires financiers (provenant de coûts de transactions et d'une différentiation spatiale horizontale), elles diminuent le coût du capital,...

This review of the book "The Challenge of Financial Stability: A New Model and its Applications" by Goodhart C.A.E. and Tsomocos D.P. highlights the potential of the framework of strategic partial default of banks with credit chain on the interbank market for further theoretical and applied...

This article presents a particular case of spurious regression, when a dependent variable has a coefficient of simple correlation close to zero with two other variables, which are, on the contrary, highly correlated with each other. In these spurious regressions, the parameters measuring the...

[eng] Investment and consolidation of firms financial structure.. . This paper stresses the difference between an external finance rationing regime caracterized by a maximal debt/capital ratio and a « consolidation » regime where a debt/capital ratio fall is preferred to investment. This last...

[eng] This paper presents a model of endogenous growth with an imperfectly com­petitive financial intermediation sector. A concentrated banking sector implies a higher level of intermediation margin, which exerts a depressive influence on savings and investment. This prediction alone would...

[eng] Financial systems and growth : the effects of 'short-termism. . This article compares two types of financial systems in the framework of an innovation-based endogenous growth model. In one case, the financial system is represented by a very large numer of small lenders. In another case,...

This paper analyzes the effect of financial constraints on the investment behaviour of French industrial firms testing Euler equations on various sub-samples over the period 1993-1996. More precisely, we test the model with an increasing cost of borrowing as leverage increases including an...