European Parliament Library

Banks As Coordinators of Economic Growth, Kenichi Ueda

Abstract
This paper formally identifies an important role of banks: Banks competitively internalize production externalities and facilitate economic growth. I formulate a canonical growth model with externalities as a game among consumers, firms, and banks. Banks compete for deposits to seek monopoly profits, including externalities. Using loan contracts that specify price and quantity, banks control firms' investments. Each bank forms a firm group endogenously and internalizes externalities directly within a firm group and indirectly across firm groups. This unique equilibrium requires a condition that separates competition for sources and uses of funds. I present a realistic institution that satisfies this condition
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. MODEL SETTING AND CHARACTERISTICS""; ""III. UNIQUE EQUILIBRIUM CANDIDATE WITH STRATEGIC INTERMEDIATION""; ""IV. EXISTENCE OF AN EQUILIBRIUM WITH FREE RECONTRACTING OPPORTUNITY""; ""V. DISCUSSION""; ""VI. CONCLUDING REMARKS""; ""REFERENCES""; ""APPENDIX I. PROOFS""; ""APPENDIX II. EXISTENCE OF AN OPTIMAL PLAN""; ""APPENDIX III. PARETO- OPTIMAL ALLOCATION AND WALRASIAN EQUILIBRIUM""; ""APPENDIX IV. ALLOCATIONS UNDER OTHER PRODUCTION FUNCTIONS""; ""APPENDIX V. ECONOMY WITH PRIVATE DIRECT FINANCE""
Language
eng
Literary Form
non fiction
Note
"November 2006."
Physical Description
1 online resource (77 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9786613830494

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