Boyd, John H.; Smith, Bruce D. The evolution of debt and equity markets in economic development. (English) Zbl 0909.90019 Econ. Theory 12, No. 3, 519-560 (1998). Summary: As noted by Gurley and Shaw (1955), there is a typical pattern of economic development in which the evolution of the financial system is an essential aspect of the growth process. We focus on one component of this evolution: the increasing importance of equity markets as an economy grows. We develop a growth model where capital accumulation is financed externally through a combination of debt and equity. We illustrate why equity market activity might grow – often very rapidly – as an economy develops. We also illustrate why access to equity markets may not be needed in the early stages of economic development. Cited in 3 Documents MSC: 91B28 Finance etc. (MSC2000) 91B62 Economic growth models Keywords:finance; development; evolution of the financial system; growth process; capital accumulation PDFBibTeX XMLCite \textit{J. H. Boyd} and \textit{B. D. Smith}, Econ. Theory 12, No. 3, 519--560 (1998; Zbl 0909.90019) Full Text: DOI DOI