Financial Deepening, Inequality, and Growth: A Model-Based Quantitative Evaluation

By Robert M. Townsend, Kenichi Ueda. Social Science Research Network, 2003

214 citations recorded by the source corpus.

We propose a coherent unified approach to the study of the linkages among economic growth, financial structure, and inequality, bringing together disparate theoretical and empirical literature. That is, we show how to conduct model-based quantitative research on transitional paths. With analytical and numerical methods, we calibrate and make tractable a prototype canonical model and take it to an application, namely, Thailand 1976-1996, an emerging economy in a phase of economic expansion with uneven financial deepening and increasing inequality. We broadly replicate the actual data, test the model formally, and identify anomalies.

Subfields: Accounting, Economics and Econometrics, Information Systems

View Paper: https://www.semanticscholar.org/paper/665c3f20d02ac11f2a10d301e66bda4c263881f9

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Citations in the corpus

Growth Theory through the Lens of Development Economics (2004, unknown): “Townsend and Ueda (2003) illustrate very clearly that this diversity of results is likely to come from the functional form and identification problems we just discussed. They simulate the 30 year evolution for 1,000 economies based on a model similar to the ones we describe in this section, with non”
ACHIEVING THE SUSTAINABLE DEVELOPMENT GOALS (2016, background): “Similarly, Townsend and Ueda (2003) showed that an increase in financial services among all levels of society boosted economic growth in Thailand between 1976 and 1990.”
Identifying Constraints to Financial Inclusion and Their Impact on GDP and Inequality: A Structural Framework for Policy (2015, background): “However, following Greenwood and Jovanovic (1990) and Townsend and Ueda (2006), agents need to pay a fixed credit participation cost, ψ, to obtain a borrowing contract from financial institutions.”
The Measurement of Green Finance Development Index and Its Poverty Reduction Effect: Dynamic Panel Analysis Based on Improved Entropy Method (2020, background): “…representative view is a nonlinear relationship between finance development and poverty alleviation [32–34], such as Greenwood and Jovanovic (1990), Townsend and Ueda (2006), and Zahonogo (2017).2e fourth representative view is that finance development may be detrimental to poverty alleviation…”
Has Digital Financial Inclusion Narrowed the Urban-Rural Income Gap: The Role of Entrepreneurship in China (2021, unknown): “Based on the special structure of urban and rural dual ﬁnancial development in China, scholars also hold three different views.”
Financial Frictions and the Persistence of History: A Quantitative Exploration (2010, background): “focuses on models with exogenous or myopic savings (Gin´e and Townsend, 2004; Jeong and Townsend, 2005a,b) or abstracts from occupational choice ( Townsend and Ueda, 2006 ).”
Financial Intermediation and Economic Development: A Quantitative Assessment ⁄ (2007, unknown): “4 Townsend and Ueda (2005) and Jeong and Townsend (2004) apply methods similar to ours to study the connection between financial deepening, inequality, and growth, and the relationship between financial deepening and TFP growth, respectively.”