Financial Structure: An Investigation of Sectoral Balance Sheets in the G-7

Front Cover
Differences in overall financial structure underlie important contrasts in financing and economic behaviour. In this context, this book aims to confront theory and extant empirical work with aggregate financial data across the G7, between 1970 and 2000. It explores the contrasting patterns and development of financial structures in the light of the main theoretical and empirical results in the economic literature. It uses as raw material sectoral balance sheet data published by national statistical authorities acoross the corporate, household, general government, foreign, financial, banking and institutional-investor sectors. Such a cross-country confrontation of theory and evidence across the full range of sectors fills an important gap in the literature on financial development and comparative financial systems. By using data from 1970 to 2000, the analysis traces portfolios over a turbulent period characterised by considerable economic and financial instability, marked financial liberalisation, far-reaching technical change and volatile asset prices.
 

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Contents

Introduction
1
The key differences between the balance sheets
37
Other assets
51
Corporate finance
62
The household sector
89
The general government sector
114
The foreign sector
125
The financial sector
143
The banking sector
151
Insurance companies pension funds and mutual funds
161
Confronting theoretical paradigms with the data
177
Conclusion
199
Author Index
217
Copyright

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Page 206 - In: Dornbusch R and Draghi M, Eds. Public Debt Management: Theory and History.
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Page 203 - Corbett, J. and Jenkinson, T. (1997) 'How is investment financed? A study of Germany, Japan, the United Kingdom and the United States', Papers in Money, Macroeconomics and Finance, The Manchester School Supplement LXV: 69-93.
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About the author (2003)

Joseph P. Byrne graduated with a PhD from the University of Strathclyde in 2000 and since then has been employed by NIESR, where he is at present a Senior Research Officer. His research is mainly concerned with applied economics and he has forthcoming publications in Economic Modelling. In addition to balance sheets and financial structure, he has recently worked on consumption, investment, exchange rates and price determination.

E. Phillip Davis is Professor of Economics and Finance, Brunel University, West London and a Visiting Fellow at NIESR. He is also an Associate Member of the Financial Markets Group at LSE, Associate Fellow of the Royal Institute of International Affairs and Research Fellow of the Pensions Institute at Birkbeck College, London. Prior to taking up his Chair at Brunel, Davis studied at Oxford during 1975-80, before spending the period from 1980-2000 as a central banker at the Bank of England, BIS and European Monetary Institute. Davis's research interests cover the broad field of applied economic analysis of financial institutions and markets. Besides numerous articles, he has published the following books: Debt, Financial Fragility, and Systemic Risk (Oxford, 1995), Pension Funds (Oxford, 1995) and Institutional Investors (MIT Press, with Benn Steil, 2001).

E. Phillip Davis is Professor of Economics and Finance, Brunel University, West London and a Visiting Fellow at NIESR. He is also an Associate Member of the Financial Markets Group at LSE, Associate Fellow of the Royal Institute of International Affairs and Research Fellow of the Pensions Institute at Birkbeck College, London. Prior to taking up his Chair at Brunel, Davis studied at Oxford during 1975-80, before spending the period from 1980-2000 as a central banker at the Bank of England, BIS and European Monetary Institute. Davis's research interests cover the broad field of applied economic analysis of financial institutions and markets. Besides numerous articles, he has published the following books: Debt, Financial Fragility, and Systemic Risk (Oxford, 1995), Pension Funds (Oxford, 1995) and Institutional Investors (MIT Press, with Benn Steil, 2001).