Minimum Investment Requirement, Financial Integration and Economic (In)stability: A Refinement to Matsuyama (2004)

ResearchSpace/Manakin Repository

Show simple item record

dc.contributor.author Zhang, Haiping en
dc.date.accessioned 2018-10-04T22:38:18Z en
dc.date.issued 2013-12-10 en
dc.identifier.uri http://hdl.handle.net/2292/38950 en
dc.description.abstract This note proposes a simple, more precise, necessary condition for symmetry breaking in Matsuyama (Financial Market Globalization, Symmetry-Breaking, and Endogenous Inequality of Nations, Econometrica, 2004 ), i.e., the positive interest rate response to income changes, which essentially arises from the assumptions of financial frictions and minimum investment size requirement of individual projects. This condition also holds under the more general settings. Thus, this note offers an empirically testable hypothesis, i.e., Matsuyama's symmetry breaking is more likely, if the interest rate response to income changes is positive and sufficiently large. en
dc.publisher Singapore Management University en
dc.relation.ispartofseries SMU Economics & Statistics Working Paper Series en
dc.relation.uri https://creativecommons.org/licenses/by-nc-nd/4.0/ en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights.uri https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm en
dc.title Minimum Investment Requirement, Financial Integration and Economic (In)stability: A Refinement to Matsuyama (2004) en
dc.type Report en
dc.rights.holder Copyright: The author en
pubs.author-url http://ink.library.smu.edu.sg/soe_research/1519/ en
pubs.place-of-publication Singapore en
dc.rights.accessrights http://purl.org/eprint/accessRights/OpenAccess en
pubs.subtype Working Paper en
pubs.elements-id 707500 en
pubs.org-id Business and Economics en
pubs.org-id Economics en
pubs.number 09-2013 en
pubs.record-created-at-source-date 2017-11-07 en


Full text options

Find Full text

This item appears in the following Collection(s)

Show simple item record

Share

Search ResearchSpace


Advanced Search

Browse