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Bank Deposit Contracts Versus Financial Market Participation in Emerging Economies

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  • Alexander Zimper

Abstract

The financial sector of emerging economies in Africa is characterized by a non-competitive banking sector which dominates any direct participation of agents in asset markets. Based on a variant of Diamond and Dybvig’s (1983) model of financial inter-mediation, we formally explain both stylized facts through market inexperience”of agents in emerging economies. While experienced agents correctly […]

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  • Alexander Zimper, 2013. "Bank Deposit Contracts Versus Financial Market Participation in Emerging Economies," Working Papers 354, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:354
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    More about this item

    Keywords

    capital market; Consumer Behavior; Emerging economies; Financial Markets; Market Structure;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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