@techreport{Bose2005Explaining,
abstract = {In an overlapping generations economy, lenders fund risky investment projects of firms
by drawing up loan contracts in the presence of an informational asymmetry. An
optimal contract entails the issue of only debt, only equity, or a mix of the two. The
equilibrium choice of contract depends on the state of the economy, which in turn
depends on the contracting regime. Based on this analysis, the paper provides a theory
of the joint determination of real and financial development. The paper is able to
explain both the endogenous emergence of the stock market along the path of economic
development and the diversity in the mode of financing that is commonly observed in
the intermediate stage of development.},
author = {Niloy Bose and Rebecca Neumann},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {G60; E50; O16; E44; E13; 330; Finanzsektor; Entwicklung; Finanzierung; Overlapping Generations; Kapitalstruktur; Anreizvertrag; Aktienmarkt; Theorie},
language = {eng},
number = {47},
title = {Explaining the Trend and the Diversity in the Evolution of the Stock Market},
type = {CeGE discussion paper},
url = {http://hdl.handle.net/10419/22174},
year = {2005}
}
