A welfare comparison of intermediaries and financial markets in Germany and the US
Year: 1995
Type: article
Abstract: There is wide variation in the structures of financial systems in different countries. We compare two polar extremes. In one, which we refer to as the ‘German model’, intermediaries predominate. In the second, which we refer to as the ‘U.S. model’, financial markets play the major role. Our objective is to contribute to a theoretical framework for the welfare analysis of comparative financial systems. The study is divided into two parts, which focus on financial services provided to households and firms, respectively. On the household side, we consider issues such as cross-sectional and intertemporal risk sharing, noise suppression and the provision of services. On the firm side, we consider information, financing, the market for corporate control, and diversity of opinion.
Source: European Economic Review
Authors: Franklin Allen, Douglas Gale
Institutions: University of Pennsylvania, Boston University
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,690
OpenAlex ID: W2051268623