@article{Development:1629,
      recid = {1629},
      author = {Pinheiro, Tiago and Rivadeneyra, Francisco and Teignier,  Marc},
      title = {Financial Development and the Volatility of Income},
      address = {2013},
      pages = {1 online resource (iii, 33 pages)},
      abstract = {This paper presents a general equilibrium model with  endogenous collateral constraints to study the relationship  between financial development and business cycle  fluctuations in a cross-section of economies with different  sizes of their financial sector. The financial sector can  amplify or dampen the volatility of income by increasing or  reducing the business cycle effects of technological  shocks. We find a non-monotonic relationship between the  volatility of income and financial development measured by  total borrowing and lending. A more developed financial  system unambiguously increases the income level however the  volatility can rise or fall depending on the degree of  financial development.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/1629},
      doi = {https://doi.org/10.34989/swp-2013-4},
}