Economic development, flow of funds, and the equilibrium interaction of financial frictions
We use a variety of different datasets from Thailand to study not only the extremes of micro and macro variables but also withincountry flow of funds and labor migration. We develop a general equilibrium model that encompasses regional variation in the type of financial friction and calibrate it to...
| Main Authors: | , , |
|---|---|
| Other Authors: | |
| Format: | Article |
| Published: |
Proceedings of the National Academy of Sciences
2018
|
| Online Access: | http://hdl.handle.net/1721.1/114279 |
| _version_ | 1826214785422721024 |
|---|---|
| author | Moll, Benjamin Townsend, Robert M. Zhorin, Victor |
| author2 | Massachusetts Institute of Technology. Department of Economics |
| author_facet | Massachusetts Institute of Technology. Department of Economics Moll, Benjamin Townsend, Robert M. Zhorin, Victor |
| author_sort | Moll, Benjamin |
| collection | MIT |
| description | We use a variety of different datasets from Thailand to study not only the extremes of micro and macro variables but also withincountry flow of funds and labor migration. We develop a general equilibrium model that encompasses regional variation in the type of financial friction and calibrate it to measured variation in regional aggregates. The model predicts substantial capital and labor flows fromrural to urban areas even though these differ only in the underlying financial regime. Predictions for micro variables not used directly provide a model validation. Finally, we estimate the impact of a policy of counterfactual, regional isolationism. |
| first_indexed | 2024-09-23T16:11:06Z |
| format | Article |
| id | mit-1721.1/114279 |
| institution | Massachusetts Institute of Technology |
| last_indexed | 2024-09-23T16:11:06Z |
| publishDate | 2018 |
| publisher | Proceedings of the National Academy of Sciences |
| record_format | dspace |
| spelling | mit-1721.1/1142792024-07-19T19:39:51Z Economic development, flow of funds, and the equilibrium interaction of financial frictions Moll, Benjamin Townsend, Robert M. Zhorin, Victor Massachusetts Institute of Technology. Department of Economics Townsend, Robert We use a variety of different datasets from Thailand to study not only the extremes of micro and macro variables but also withincountry flow of funds and labor migration. We develop a general equilibrium model that encompasses regional variation in the type of financial friction and calibrate it to measured variation in regional aggregates. The model predicts substantial capital and labor flows fromrural to urban areas even though these differ only in the underlying financial regime. Predictions for micro variables not used directly provide a model validation. Finally, we estimate the impact of a policy of counterfactual, regional isolationism. 2018-03-23T21:23:07Z 2018-03-23T21:23:07Z 2018-03-23 2018-03-01T17:12:13Z Article http://purl.org/eprint/type/JournalArticle 0027-8424 1091-6490 http://hdl.handle.net/1721.1/114279 Moll, Benjamin, Robert M. Townsend, and Victor Zhorin. “Economic Development, Flow of Funds, and the Equilibrium Interaction of Financial Frictions.” Proceedings of the National Academy of Sciences 114, no. 24 (June 7, 2017): 6176–6184. http://dx.doi.org/10.1073/PNAS.1707055114 Proceedings of the National Academy of Sciences Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. application/pdf Proceedings of the National Academy of Sciences PNAS |
| spellingShingle | Moll, Benjamin Townsend, Robert M. Zhorin, Victor Economic development, flow of funds, and the equilibrium interaction of financial frictions |
| title | Economic development, flow of funds, and the equilibrium interaction of financial frictions |
| title_full | Economic development, flow of funds, and the equilibrium interaction of financial frictions |
| title_fullStr | Economic development, flow of funds, and the equilibrium interaction of financial frictions |
| title_full_unstemmed | Economic development, flow of funds, and the equilibrium interaction of financial frictions |
| title_short | Economic development, flow of funds, and the equilibrium interaction of financial frictions |
| title_sort | economic development flow of funds and the equilibrium interaction of financial frictions |
| url | http://hdl.handle.net/1721.1/114279 |
| work_keys_str_mv | AT mollbenjamin economicdevelopmentflowoffundsandtheequilibriuminteractionoffinancialfrictions AT townsendrobertm economicdevelopmentflowoffundsandtheequilibriuminteractionoffinancialfrictions AT zhorinvictor economicdevelopmentflowoffundsandtheequilibriuminteractionoffinancialfrictions |