Front Matter
Author:
Mr. Mohsin S. Khan
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Mr. Abdelhak S Senhadji
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Mr. Bruce D. Smith https://isni.org/isni/0000000404811396 International Monetary Fund

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Front Matter Page

IMF Institute

Contents

  • I. Introduction

  • II. Inflation and Financial Depth: Some Theoretical Considerations

    • A. Adverse Selection or Moral Hazard Problems in Credit Markets

    • B. Costly State Verification Frictions in Credit Markets

    • C. Some Empirical Evidence

  • III. Data Issues

  • IV. Model Specification and Estimation

    • A. Estimation Method

    • B. Inference

  • V. Estimation and Inference Results

    • A. Test for the Existence of Threshold Effects

    • B. Estimation Results

    • C. Correcting for the Potential Endogeneity of Inflation

    • D. The Stock Market

  • VI. Conclusions

  • Tables

  • 1. Test Results of Threshold Effects

  • 2. NLLS

  • 3. NLLS with Instrumental Variables

  • 4. Stock Market (NLLS)

  • Figures

  • 1. Averaged Relationship Between Inflation and Financial Depth

  • 2. Scatter Plot of Inflation and Financial Depth

  • 3. Residual Sum of Squares as a Function of the Threshold Level

  • 4. Effect of Inflation on Financial Depth

  • 5. Residual Sum of Squares as a Function of the Threshold Level for the Stock Market

  • 6. Effect of Inflation on Financial Depth for the Stock Market

  • References

  • Collapse
  • Expand
Inflation and Financial Depth
Author:
Mr. Mohsin S. Khan
,
Mr. Abdelhak S Senhadji
, and
Mr. Bruce D. Smith