Financial Structure An Investigation of Sectoral Balance Sheets in the G-7

Differences in overall financial structure underlie important contrasts in financing and economic behaviour. In this context, this book aims to confront theory and extant empirical work with aggregate financial data across the G7, between 1970 and 2000. It explores the contrasting patterns and development of financial structures in the light of the main theoretical and empirical results in the economic literature. It uses as raw material sectoral balance sheet data published by national statistical authorities acoross the corporate, household, general government, foreign, financial, banking and institutional-investor sectors. Such a cross-country confrontation of theory and evidence across the full range of sectors fills an important gap in the literature on financial development and comparative financial systems. By using data from 1970 to 2000, the analysis traces portfolios over a turbulent period characterised by considerable economic and financial instability, marked financial liberalisation, far-reaching technical change and volatile asset prices.