Economic development, flow of funds, and the equilibrium interaction of financial frictions.
other · Level V
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- Record sourced from PubMed, PMID 28592655.
- Also identified by DOI 10.1073/pnas.1707055114 and PMC identifier 5474799.
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Abstract
We use a variety of different datasets from Thailand to study not only the extremes of micro and macro variables but also within-country 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 from rural 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.
Medical subject headings
- Economic Development
- Financial Management
- Rural Population
- Urban Population