; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Costly Financial Intermediation in Neoclassical Growth Theory"; ; "batchuser@example.com"; "Prescott, Edward C.", "Piguillem, Facundo", "Mehra, Rajnish"; "Federal Reserve Bank of Minneapolis"; "Government debt", "Lending", "Aggregate intermediation", "Equity premium", "Borrowing", "Life cycle savings", "Retirement"; "G23 - Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors", "D31 - Personal Income, Wealth, and Their Distributions", "G11 - Portfolio Choice; Investment Decisions", "H62 - National Deficit; Surplus", "G10 - General Financial Markets: General (includes Measurement and Data)", "H00 - Public Economics: General", "E21 - Macroeconomics: Consumption; Saving; Wealth", "E44 - Financial Markets and the Macroeconomy", "E20 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy: General (includes Measurement and Data)", "G12 - Asset Pricing; Trading Volume; Bond Interest Rates"; """The neoclassical growth model is extended to include costly intermediated borrowing and lending between households. This is an important extension as substantial resources are used in intermediating the large amount of borrowing and lending between households. In 2007, in the United States, the amount intermediated was 1.7 times GNP, and the resources used in this intermediation amounted to at least 3.4 percent of GNP. The theory implies that financial intermediation services are an intermediate good and that the spread between borrowing and lending rates measures the efficiency of the financial sector. """^^; "2011-04-04"; "2019-06-24T18:45:24.074990982+00:00"^^; "https://doi.org/10.21034/wp.685"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "Wed Oct 23 17:56:03 2019"; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "611", "512", "628"; "Working paper (Federal Reserve Bank of Minneapolis. Research Department)"; "685"; "Aggregate intermediation", "Government debt", "Equity premium", "Borrowing", "Lending", "Life cycle savings", "Retirement"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; "Published in: _Quantitative Economics_ (Vol. 2, No. 1, March 2011, pp. 1-36), https://doi.org/10.3982/QE40."^^, "This paper was previously published as [Working Paper 655](https://doi.org/10.21034/wp.655 \"Working Paper 655\") and [Staff Report 405](https://doi.org/10.21034/sr.405 \"Staff Report 405\") under the title \"Intermediated Quantities and Returns.\" "^^; ; "Publication" . ; .