Loans, risks, and growth: The role of government and public banking in Paraguay
In Paraguay, banks are the center of the financial sector and provide the main source of external financing for corporations and small companies. Therefore, their behavior as credit providers has important effects on business investments. This paper presents a model that illustrates this fact and explains how it can be applied to any less-developed economy with a similar financial sector. In this model, the financial sector (bank loans) affects the long-run growth of the economy through the changes in the probability of loans repayment and other risks. In addition it is shown that governments have an important double role in the financial sector, providing adequate regulation and reducing specific identified market failures.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hannan, Timothy H, 1991. "Foundations of the Structure-Conduct-Performance Paradigm in Banking," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 23(1), pages 68-84, February.
- Waller, Christopher J. & Lewarne, Stephen, 1994. "An expository model of credit rationing," Journal of Macroeconomics, Elsevier, vol. 16(3), pages 539-545.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Richard Startz, .
"Competition and Interest Rate Ceilings in Commerical Banking,"
Rodney L. White Center for Financial Research Working Papers
12-79, Wharton School Rodney L. White Center for Financial Research.
- Richard Startz, 1983. "Competition and Interest Rate Ceilings in Commercial Banking," The Quarterly Journal of Economics, Oxford University Press, vol. 98(2), pages 255-265.
- Santomero, Anthony M, 1984. "Modeling the Banking Firm: A Survey," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 16(4), pages 576-602, November.
- Robert J. Barro, 1995.
"Inflation and Economic Growth,"
NBER Working Papers
5326, National Bureau of Economic Research, Inc.
- Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
- Pagano, Marco, 1993. "Financial markets and growth: An overview," European Economic Review, Elsevier, vol. 37(2-3), pages 613-622, April.
- Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
When requesting a correction, please mention this item's handle: RePEc:eee:quaeco:v:48:y:2008:i:2:p:307-319. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.