@techreport{Graff2003What,
abstract = {An endogenous growth model with a financial sector is formulated, and empirical analyses are conducted. The model exhibits structural shifts and breaks caused by institutional change, suggesting that a linear approach is inadequate. To address this point empirically, we fit data for 90 countries from 19602000 to a standard growth equation with a proxy for financial activity. Firstly, it is shown that a growth enhancing outcome of financial activity is contingent on a sound institutional framework. Then, we order the sample by control variables which follow from the model as potential causes of breaks in the adjustment process. Threshold regressions reveal non-linearity that is consistent with the model. Most importantly, we find signs for excessive financial activity.},
address = {Dresden},
author = {Michael Graff and Alexander Karmann},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {O16; O42; O57; 330; Financial Development; Endogenous Growth; Institutions; Non-linearities; Finanzsektor; Entwicklung; Institutionalismus; Neue Wachstumstheorie; Sch\"{a}tzung; Theorie; Welt},
language = {eng},
number = {15/03},
publisher = {Techn. Univ., Fak. Wirtschaftswiss.},
title = {What determines the finance-growth nexus? An endogenous growth model and empirical evidence},
type = {Dresden discussion paper in economics},
url = {http://hdl.handle.net/10419/48136},
year = {2003}
}
