Financial Structure and Economic Welfare: Applied General Equilibrium Development Economics
Name
FinancialStructure2011.pdf
Description
Final author's manuscript
Size
250.31 KB
Format
Adobe PDF
Checksum (MD5)
fbe791a5e4ffbbef994a0f9593c7675b
Author(s)
Townsend, Robert
Date Issued
June 2010
Journal
Annual Review of Economics
Publisher
Annual Reviews
Citation
Townsend, Robert. “Financial Structure and Economic Welfare: Applied General Equilibrium Development Economics.” Annual Review of Economics 2.1 (2010) : 507-546. Copyright © 2010 by Annual Reviews
Version
Author's final manuscript
Abstract
This review provides a common framework for researchers thinking about the next generation of micro-founded macro models of growth, inequality, and financial deepening, as well as direction for policy makers targeting microfinance programs to alleviate poverty. Topics include treatment of financial structure general equilibrium models: testing for as-if-complete markets or other financial underpinnings; examining dual-sector models with both a perfectly intermediated sector and a sector in financial autarky, as well as a second generation of these models that embeds information problems and other obstacles to trade; designing surveys to capture measures of income, investment/savings, and flow of funds; and aggregating individuals and households to the level of network, village, or national economy. The review concludes with new directions that overcome conceptual and computational limitations.
MIT Department
Massachusetts Institute of Technology. Department of Economics
Terms of Use
Creative Commons Attribution-Noncommercial-Share Alike 3.0
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1146/annurev.economics.102308.124427
