Suntsova A. Financial development' impact on economic growth: theoretical evidence

Was published a new article by Suntsova Alesia " Financial development' impact on economic growth: theoretical evidence".
The equilibrium choice of contract depends on the state of the economy which, in turn, depends on the contracting regime. Based on this analysis, the paper provides a theory of the joint determination of real and financial development, with the ability to explain both the endogenous emergence of stock markets and the complementarity between debt finance and equity finance.