Bank-deposit contracts versus financial-market participation in emerging economies

dc.contributor.authorZimper, Alexander
dc.contributor.emailalexander.zimper@up.ac.zaen_ZA
dc.date.accessioned2015-07-21T07:48:28Z
dc.date.available2015-07-21T07:48:28Z
dc.date.issued2015-05
dc.description.abstractThe financial sector of emerging economies in Africa is characterized by a noncompetitive banking sector that dominates any direct participation of agents in asset markets. We formally identify “market inexperience” as an explanation for agents’ willingness to pay high banking fees rather than to participate in asset markets. Whereas experienced agents choose ex ante investments that result, through trading on the future asset market, in the optimal (second-best) allocation, inexperienced agents are ignorant about the possibility that future market equilibria can improve welfare upon an autarkic investment. As a consequence, a monopolistic banking sector can exploit these agents because their only outside option is an autarkic investment project.en_ZA
dc.description.embargo2016-11-30en_ZA
dc.description.librarianhb2015en_ZA
dc.description.sponsorshipERSA (Economic Research Southern Africa)en_ZA
dc.description.urihttp://www.tandfonline.com/loi/mree20en_ZA
dc.identifier.citationAlexander Zimper (2015) Bank-Deposit Contracts Versus Financial-Market Participation in Emerging Economies, Emerging Markets Finance and Trade, 51:3, 525-536, DOI:10.1080/1540496X.2015.1025669en_ZA
dc.identifier.issn1540-496X (print)
dc.identifier.issn1558-0938 (online)
dc.identifier.other10.1080/1540496X.2015.1025669
dc.identifier.urihttp://hdl.handle.net/2263/49131
dc.language.isoenen_ZA
dc.publisherRoutledgeen_ZA
dc.rights© Taylor & Francis Group, LLC. This is an electronic version of an article published in Emerging Markets Finance and Trade, vol. 51, no. 3, pp. 525-536, 2015. doi : 10.1080/1540496X.2015.1025669. Emerging Markets Finance and Trade is available online at : http://www.tandfonline.com/loi/mree20en_ZA
dc.subjectAsset marketen_ZA
dc.subjectAsymmetric informationen_ZA
dc.subjectBounded rationalityen_ZA
dc.subjectDemand deposit contracten_ZA
dc.subjectEmerging economiesen_ZA
dc.titleBank-deposit contracts versus financial-market participation in emerging economiesen_ZA
dc.typePostprint Articleen_ZA

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