IDEAS home Printed from https://ideas.repec.org/a/ucp/jpolec/doi10.1086-724112.html
   My bibliography  Save this article

Dynamic Bank Expansion: Spatial Growth, Financial Access, and Inequality

Author

Listed:
  • Yan Ji
  • Songyuan Teng
  • Robert M. Townsend

Abstract

We propose a model with local spatial markets and heterogeneous agents to understand and evaluate the geographic expansion of bank branches after banking deregulation in Thailand. The model features heterogeneity in financial frictions across regions, with the costs of accessing credit and deposits depending on the distance from the nearest branch. Disciplined by micro estimates of the effects of branch openings, the model reproduces salient regional and aggregate patterns concerning occupational choice, financial access, and inequality. We apply the model to study two counterfactual financial sector policies in distant markets, one subsidizing branches and the other subsidizing household deposits.

Suggested Citation

  • Yan Ji & Songyuan Teng & Robert M. Townsend, 2023. "Dynamic Bank Expansion: Spatial Growth, Financial Access, and Inequality," Journal of Political Economy, University of Chicago Press, vol. 131(8), pages 2209-2275.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/724112
    DOI: 10.1086/724112
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/724112
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/724112
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/724112?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Schult, Christoph, 2024. "Is risk the fuel of the business cycle? Financial frictions and oil market disturbances," IWH Discussion Papers 4/2024, Halle Institute for Economic Research (IWH).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jpolec:doi:10.1086/724112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JPE .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.