caa a22 4500 397559208 CHVBK 20180308164812.0 cr unu---uuuuu 161202e199605 xx s 000 0 eng 10.1093/wber/10.2.241 doi (NATIONALLICENCE)oxford-10.1093/wber/10.2.241 Equity Markets, Transactions Costs, and Capital Accumulation: An Illustration [Elektronische Daten] [Valerie R. Bencivenga, Bruce D. Smith, Ross M. Starr] Poorly developed equity markets inhibit the transfer of capital ownership. Moreover, the costs of transacting in equity markets affect not just the level of investment, but the kinds of investments that are undertaken. Once equity markets allow the ownership of capital to be transferred economically, reductions in costs tend to favor the use of longer-maturity investments. When there is a relationship between the maturity of an investment and its productivity, transactions cost reductions are conducive to observing certain kinds of increases in productive efficiency. This article analyzes savings, investment, and consumption decisions by using an overlapping generations model with two-period-lived agents. The analysis allows for several technologies for converting current output into future capital that vary by productivity and maturity, and it makes ownership of capital costly to transfer. A reduction in transactions costs will typically alter the composition of savings and investment, and have potentially complicated consequences for capital accumulation and steady-state output. © 1996 The International Bank for Reconstruction and Development / THE WORLD BANK A SYMPOSIUM ISSUE ON STOCK MARKETS AND ECONOMIC DEVELOPMENT nationallicence Bencivenga Valerie R. aut Smith Bruce D. aut Starr Ross M. aut The World Bank Economic Review Oxford University Press 10/2(1996-05), 241-265 0258-6770 10:2<241 1996 10 wber https://doi.org/10.1093/wber/10.2.241 text/html Onlinezugriff via DOI 1 other jats NATIONALLICENCE 856 40 https://doi.org/10.1093/wber/10.2.241 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Bencivenga Valerie R. aut NATIONALLICENCE 700 1- Smith Bruce D. aut NATIONALLICENCE 700 1- Starr Ross M. aut NATIONALLICENCE 773 0- The World Bank Economic Review Oxford University Press 10/2(1996-05), 241-265 0258-6770 10:2<241 1996 10 wber Metadata rights reserved CC BY-NC-4.0 http://creativecommons.org/licenses/by-nc/4.0 nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-oxford