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The Political Economy of Financial Innovation:Evidence from Local Governments
Financial Innovation Political Elections Financing and Loans Innovation and Invention
2015/4/29
We examine the toxic loans sold by investment banks to local governments. Using proprietary data, we show that politicians strategically use these products to increase chances of being re-elected. Con...
I illustrate the effect of financial innovation on portfolio risks by using an example with risk-sharing needs and belief disagreements. I consider two types of innovation: product innovation, formali...
Technological Change, Financial Innovation, and Diffusion in Banking
banking financial innovation technological change
2011/9/26
This paper discusses the technological change and financial innovation that commercial banking has experienced during the past twenty-five years. The paper first describes the role of the financial sy...
Three Facets of Liquidity Illusion: Financial Innovation and the Credit Crunch
Three Facets Liquidity Illusion Financial Innovation the Credit Crunch
2009/9/29
This article identifies the phenomenon of liquidity illusion as the key element that has disguised the systemic fragilities which have precipitated the global credit crunch. At the core of phenomenon ...
FINANCIAL INNOVATION AND DEPOSIT INSURANCE:THE 100 PERCENT CROSS-GUARANTEE CONCEPT
FINANCIAL INNOVATION DEPOSIT INSURANCE CROSS-GUARANTEE CONCEPT
2008/11/22
Dramatic changes in recent decades in the economics of the financial
services industry, due largely to the computer revolution, have
destroyed the efficacy of traditional financial services regulati...