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Financial Regimes, Capital Structure, and Growth

Arnold, Lutz G. ; Walz, Uwe



Abstract

We develop a growth model with endogenous technological progress in which the previous termfinancialnext term sector plays an explicit role. This allows us to consider the role of different previous termfinancial regimesnext term in the growth process. We contrast a bank-dominated previous termfinancialnext term system with a market-dominated system. In the former a previous termfinancialnext ...

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