scholarly journals Has the U.S. Finance Industry Become Less Efficient? On the Theory and Measurement of Financial Intermediation

2012 ◽  
Author(s):  
Thomas Philippon
Keyword(s):  
Financial Intermediation ◽  
Finance Industry ◽  
The U.S

scholarly journals Has the US Finance Industry Become Less Efficient? On the Theory and Measurement of Financial Intermediation

2015 ◽  
Vol 105 (4) ◽  
pp. 1408-1438 ◽  
Author(s):  
Thomas Philippon
Keyword(s):  
Financial Intermediation ◽  
Returns To Scale ◽  
The United States ◽  
Quantitative Investigation ◽  
Secular Changes ◽  
Finance Industry ◽  
The Past ◽  
The Us ◽  
The 1960S ◽  
Constant Returns To Scale

A quantitative investigation of financial intermediation in the United States over the past 130 years yields the following results: (i) the finance industry's share of gross domestic product (GDP) is high in the 1920s, low in the 1960s, and high again after 1980; (ii) most of these variations can be explained by corresponding changes in the quantity of intermediated assets (equity, household and corporate debt, liquidity); (iii) intermediation has constant returns to scale and an annual cost of 1.5–2 percent of intermediated assets; (iv) secular changes in the characteristics of firms and households are quantitatively important. (JEL D24, E44, G21, G32, N22)

scholarly journals The effect of experts’ and laypeople’s forecasts on others’ stock market forecasts

2019 ◽  
Author(s):  
Christoph Huber ◽  
Juergen Huber ◽  
Laura Hueber
Keyword(s):  
General Population ◽  
Stock Market ◽  
Future Development ◽  
Large Scale ◽  
Home Bias ◽  
Forecast Errors ◽  
Online Experiment ◽  
Finance Industry ◽  
Two Indices ◽  
The U.S

With a large-scale online experiment with 1593 participants from the U.S. andthe U.K. we explore whether and how people working in the finance industry andlaypeople from the general population are influenced by information on other people’sforecasts when making forecasts on the future development of two indices andtwo stocks. We find that (i) laypeople’s forecasts are strongly influenced by informationthey get on other subjects’ forecasts, while financial professionals are much lessinfluenced by information signals; (ii) signals by financial professionals influence allsubject groups more than forecasts by laypeople; (iii) we observe a home bias in allsubject groups, which can be mitigated by information signals; (iv) all subject groupsexpect lower forecast errors for financial professionals than for laypeople, hence wefind evidence for trust in experts.

The FinTech Opportunity

2019 ◽  
pp. 190-218 ◽  
Author(s):  
Thomas Philippon
Keyword(s):  
Political Economy ◽  
Structural Change ◽  
Business Model ◽  
Financial Services ◽  
Financial Stability ◽  
Finance Industry ◽  
Coordination Costs ◽  
Regulatory Approach ◽  
Industry Structures ◽  
The U.S

FinTech covers digital innovations and technology-enabled business model innovations in the financial sector. Such innovations can disrupt existing industry structures and blur industry boundaries, facilitate strategic disintermediation, revolutionize how existing firms create and deliver products and services, provide new gateways for entrepreneurship, democratize access to financial services, but also create significant privacy, regulatory and law-enforcement challenges. This chapter assesses potential impacts of FinTech on the finance industry. First we show that financial services remain surprisingly expensive in the U.S., which helps explain the emergence of new entrants. We then argue that the current regulatory approach is subject to significant political economy and coordination costs, and therefore it is unlikely to deliver much structural change. FinTech can improve both financial stability and access to services, but this will require important changes in the focus of regulations.

MULTILATERAL LOANS, BANKING FINANCE, AND THE MARTÍNEZ DE HOZ PLAN IN ARGENTINA, 1976-1981

2018 ◽  
Vol 36 (2) ◽  
pp. 215-240 ◽  
Author(s):  
Raúl García Heras
Keyword(s):  
Foreign Exchange ◽  
International Institutions ◽  
Financial Intermediation ◽  
Military Dictatorship ◽  
Cross Country ◽  
The Military ◽  
The U.S

AbstractThis article examines Argentine relations with multilateral agencies and bankers during the first years of the last military dictatorship. It begins with an overview of relations and the external situation before the rise of the military and why a new economic team sought and restored Argentine credit standing. There follows a review of how links with the U.S. Treasury and international institutions lost significance and how cross-country financial intermediation, carried out mainly by leading state banks, gave foreign bankers a key role in the financing of Argentina’s foreign exchange needs. It also emphasises explicit and underlying motivations in the behaviour and policies of all actors involved and offers an evaluation of former Minister Martínez de Hoz’s efforts to justify these policies in the early 1980s.

Wages and Human Capital in the U.S. Finance Industry: 1909–2006*

2012 ◽  
Vol 127 (4) ◽  
pp. 1551-1609 ◽  
Author(s):  
Thomas Philippon ◽  
Ariell Reshef
Keyword(s):  
Human Capital ◽  
Past Century ◽  
Job Complexity ◽  
Finance Industry ◽  
Financial Deregulation ◽  
Size Distribution Of Firms ◽  
Skill Intensity ◽  
Time Space ◽  
Earnings Risk ◽  
The U.S

Abstract We study the allocation and compensation of human capital in the U.S. finance industry over the past century. Across time, space, and subsectors, we find that financial deregulation is associated with skill intensity, job complexity, and high wages for finance employees. All three measures are high before 1940 and after 1985, but not in the interim period. Workers in finance earn the same education-adjusted wages as other workers until 1990, but by 2006 the premium is 50% on average. Top executive compensation in finance follows the same pattern and timing, where the premium reaches 250%. Similar results hold for other top earners in finance. Changes in earnings risk can explain about one half of the increase in the average premium; changes in the size distribution of firms can explain about one fifth of the premium for executives.

Historical Introduction

1977 ◽  
Vol 35 ◽  
pp. 2-5
Author(s):  
R. D. Heidenreich
Keyword(s):  
Electron Emission ◽  
Secondary Electron ◽  
Secondary Electron Emission ◽  
50Th Anniversary ◽  
Secondary Emission ◽  
Wave Nature ◽  
Nobel Prize In Physics ◽  
Primary Electrons ◽  
The U.S ◽  
Mutual Agreement

This program has been organized by the EMSA to commensurate the 50th anniversary of the experimental verification of the wave nature of the electron. Davisson and Germer in the U.S. and Thomson and Reid in Britian accomplished this at about the same time. Their findings were published in Nature in 1927 by mutual agreement since their independent efforts had led to the same conclusion at about the same time. In 1937 Davisson and Thomson shared the Nobel Prize in physics for demonstrating the wave nature of the electron deduced in 1924 by Louis de Broglie.The Davisson experiments (1921-1927) were concerned with the angular distribution of secondary electron emission from nickel surfaces produced by 150 volt primary electrons. The motivation was the effect of secondary emission on the characteristics of vacuum tubes but significant deviations from the results expected for a corpuscular electron led to a diffraction interpretation suggested by Elasser in 1925.

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