Langfield, Sam, Pagano, Marco, (2016), “Financial structure and growth revisited”, Voxeu, 1 February
Why is growth in Europe so low? Among the contributing factors, this column highlights the role of financial structure. Intermediation in Europe is heavily bank-based, and the authors’ novel empirical findings indicate that such a structure exerts a negative effect on long-run economic growth and exacerbates its response to sharp drops in real estate prices. The findings support policymakers’ efforts to rebalance financial structure towards securities markets.
Relevant Posts
- F. Campos, Nauro, B Nugent, Jeffrey, (2016), “Labour market reforms, growth and inequality: Evidence from a new dataset”, Voxeu, 28 January
- Papadimitriou, Dimitri B., Nikiforos, Michalis, Zezza, Gennaro, (2016), “How long before growth and employment are restored in Greece?”, Levy Economics Institute of Bard College, Strategic Analysis, January.