Juan M. Sánchez

TL;DR: In this article, a costly state verification model of financial intermediation is presented to address the question of how important financial development for economic development, and the analysis suggests a country like Uganda could increase its output by 116 percent if it could adopt the world's best practice in the financial sector.

TL;DR: In this article, a costly state verifier framework is embedded into the standard growth model to address how technological progress in …nancial intermediation aects the economy, and the framework has two novel ingredients.

TL;DR: In this article, all Matlab and C++ programs necessary to produce the results of the article were described and a spreadsheet with Mexican data was also provided, along with a spreadsheet containing Mexican data.

TL;DR: In this paper, the authors developed a quantitative dynamic stochastic small open economy model with incomplete markets, endogenous fiscal policy and sovereign default where public expenditures and tax rates are optimally procyclical.

TL;DR: In this article, a costly state verification model of financial intermediation is presented to address the question of how important financial development for economic development, and the model is calibrated to match facts about the U.S. economy, such as the intermediation spreads and the firm-size distributions for 1974 and 2004.