TY - JOUR
T1 - Technological choice, financial markets and economic development
AU - Saint-Paul, Gilles
PY - 1992/5
Y1 - 1992/5
N2 - Capital markets make possible the spreading of risk through financial diversification. Without such markets, agents can limit risk only by choosing less specialized and less productive technologies (technological diversification). This interaction may lead to multiple equilibria. In the 'low' one, financial services are underdeveloped, and technology is unspecialized. The opposite is true in the 'high' equilibrium. The model is extended to account for multiple growth paths and divergence across identical countries.
AB - Capital markets make possible the spreading of risk through financial diversification. Without such markets, agents can limit risk only by choosing less specialized and less productive technologies (technological diversification). This interaction may lead to multiple equilibria. In the 'low' one, financial services are underdeveloped, and technology is unspecialized. The opposite is true in the 'high' equilibrium. The model is extended to account for multiple growth paths and divergence across identical countries.
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U2 - 10.1016/0014-2921(92)90056-3
DO - 10.1016/0014-2921(92)90056-3
M3 - Article
AN - SCOPUS:44049118879
SN - 0014-2921
VL - 36
SP - 763
EP - 781
JO - European Economic Review
JF - European Economic Review
IS - 4
ER -