We study the impact that financial intermediation can have on productivity through the alleviation of credit constraints in occupation choice and/or an improved allocation of risk, using both static and dynamic structural models as well as reduced-form OLS and IV regressions. Our goal in this paper is to bring these two strands of the literature together.
Measuring the Impact of Financial Intermediation: Linking Contract Theory to Econometric Policy EvaluationR. Townsend and Sergio Urzua ,
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Measuring the Impact of Financial Intermediation: Linking Contract Theory to Econometric Policy Evaluation.