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Code and data files for "Quantifying the Impact of Financial Development on Economic Development"

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TLDR
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.
Abstract
How important is financial development for economic development? A costly state verification model of financial intermediation is presented to address this question. 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. It is then used to study the international data using cross-country interest-rate spreads and per-capita GDPs. 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. Still, this amounts to only 29 percent of the gap between Uganda’s potential and actual output.

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References
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Journal ArticleDOI

Finance and Growth: Schumpeter Might Be Right

TL;DR: In this paper, the authors examined a cross-section of about 80 countries for the period 1960-89 and found that various measures of financial development are strongly associated with both current and later rates of economic growth.
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Financial Intermediation and Delegated Monitoring

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International Data on Educational Attainment Updates and Implications

TL;DR: In this paper, the authors presented a data set that improves the measurement of educational attainment for a broad group of countries, and extended their previous estimates for the population over age 15 and over age 25 up to 1995 and provided projections for 2000.
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Governance matters VII : aggregate and individual governance indicators 1996-2007

TL;DR: The 2009 update of the Worldwide Governance Indicators (WGI) research project, covering 212 countries and territories and measuring six dimensions of governance between 1996 and 2008: Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption as discussed by the authors.