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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/31370
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| Title: | Has the U.S. Finance Industry Become Less Efficient? |
| Authors: | Philippon, Thomas |
| Issue Date: | 13-Dec-2011 |
| Series/Report no.: | FIN-11-037 |
| Abstract: | I use the neoclassical growth model to study financial intermediation in
the U.S. over the past 140 years. I measure the cost of intermediation
on the one hand, and the production of assets and liquidity services on
the other. Surprisingly, the model suggests that the finance industry
has become less efficient: the unit cost of intermediation is higher
today than it was a century ago. Improvements in information technology
seem to have been cancelled out by increases in trading activities whose
social value is difficult to assess. |
| URI: | http://hdl.handle.net/2451/31370 |
| Appears in Collections: | Finance Working Papers
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