Structural breaks in financial share, savings and growth in OECD: 1960-92
Indivisibilities in extending financial markets imply level shifts in the financial cost share. This could induce growth and savings slumps. We search for structural breaks in the financial sector share of seven OECD countries and relate these to changes in GDP growth and the savings share. The event patterns of these macro series are classified and weighted by typicities. Financial structural breaks are associated with decreased savings but ambiguous with respect to growth. We conjecture that most of the period is a successive transition to increasing financial shares accompanied by lower savings and more sluggish growth.