Valerie R. Bencivenga

TL;DR: In this paper, an endogenous growth model with multiple assets is developed, and the effects of introducing financial intermediation into this environment are considered, and conditions are provided under which the introduction of intermediaries shifts the composition of savings toward capital, causing intermediation to be growth promoting.

TL;DR: In this article, the authors analyze how the costs of financial market transactions affect the set of technologies in use and the equilibrium growth rate of a set of industrial technologies and show that transactions cost reductions may, depending on the capital structure, enhance or reduce growth.

TL;DR: In this article, an endogenous growth model is developed where all investment is financed via credit extension, and the equilibrium levels of credit rationing and real growth rates are jointly determined, in the context of several changes in the environment can have unusual consequences.

TL;DR: In this paper, the authors analyze savings, investment, and consumption decisions by using an overlapping generation’s model with two-period-lived agents, and the analysis allows for several technologies for converting current output into future capital that varies by productivity and maturity.

TL;DR: It is often argued that a well-functioning system of financial markets has beneficial effects for countries in the early stages of industrialization (Gerschenkron (1962), Cameron (1967), McKinnon (1973), Shaw (1973) and Fry (1988) as mentioned in this paper. But while some moves in the direction of financial liberalization have taken place (for example, in Chile and Argentina), financial repression associated with high reserve requirements and/or deposit interest rate ceilings is still widespread in developing countries.