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Working Paper

The Role of Banks in Influencing Regional Flows of Funds

A presentation of a theoretical model of regional banking using plausible information asymmetries to explain how local bank capital may affect the funding of regional investments, concluding that regional banking conditions can affect the efficiency of investment and the level of future aggregate output.

Suggested Citation

Samolyk, Katherine. 1989. “The Role of Banks in Influencing Regional Flows of Funds.” Federal Reserve Bank of Cleveland, Working Paper No. 89-14.