Banks, financial markets, and social welfare
Marini, François (2005), Banks, financial markets, and social welfare, Journal of Banking and Finance, 29, 10, p. 2557-2575. http://dx.doi.org/10.1016/j.jbankfin.2004.09.006
TypeArticle accepté pour publication ou publié
Journal nameJournal of Banking and Finance
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Abstract (EN)This paper constructs a general equilibrium model of banking and financial markets. The model allows to compare financial systems in which banks have access to financial markets with financial systems in which banks do not have access to financial markets. Allen and Gale [A welfare comparison of intermediaries and financial markets in Germany and the US. European Economic Review 39 (1995) 179–209] find that the Anglo-Saxon model of financial intermediation in which financial markets play a dominant role does not necessarily improve social welfare in comparison with the German model in which banks dominate. Our model provides a theoretical foundation for this view.
Subjects / KeywordsComparative financial systems; Banks; Financial markets; Welfare analysis
JELG10 - General
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