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|Title: ||Empirical Studies of Financial Innovation: Lots of Talk, Little Action?|
|Authors: ||Frame, W. Scott|
White, Lawrence J.
|Keywords: ||Financial innovation|
|Issue Date: ||2002 |
|Series/Report no.: ||EC-02-18|
|Abstract: ||This paper reviews the extant empirical studies of financial innovation.
Adopting broad criteria, we found just two-dozen studies (24), over half
of which (14) had been conducted since 2000. Since some financial
innovations are examined by more than one study, only 14 distinct
phenomena have been covered. Especially striking is the fact that only
two studies are directed at the hypotheses advanced in many broad
descriptive articles concerning the environmental conditions (e.g.,
regulation, taxes, unstable macroeconomic conditions, and ripe
technologies) spurring financial innovation. We offer some tentative
conjectures as to why empirical studies of financial innovation are
comparatively rare. Among our suggested culprits is an absence of
accessible data. We urge financial regulators to undertake more surveys
of financial innovation and to make the survey data more available to researchers.|
|Appears in Collections:||Economics Working Papers|
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