The A MARKOV SWITCHING MODEL TO FINANCIAL MARKET DEVELOPMENT AND ECONOMIC GROWTH
Main Article Content
Abstract
As we show, there were a number of regime adjustments in the relationship between the financial sector's share, private saving,
and growth in the United States between 1948 and 1996. On the basis of vector auto regressions on quarterly data, which allow
for Markov switching regimes, the discovery was made. The data supports the premise that the relationship between financial
development and economic growth unfolds in a progressive manner. Stepwise patterns can be seen in theoretical models when
structural financial developments need fixed expenses. Although our data does not allow us to draw firm conclusions, our
estimates of the relationships between variables are consistent with those predicted from such models. The adjustments are
occurring at the same time as regulatory and market structural changes.Keywords: growth, Markov switching, saving,
structural financial development, vector autoregression
Downloads
Metrics
Article Details
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
