The Roots of the Financial Collapse: Going Way, Way Back

The paper is based on a talk given in April 2010. It traces the roots of the recent financial crisis from development of the limited liability corporation, to separation of ownership from control, tax incentives for debt financing, investment bankers moving to the corporate form, government backstopping the lenders, and the failure of the quants. Finally, it considers the Minsky hypothesis, under which financial markets are inherently unstable.

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Year of publication:	2010-09-25
Authors:	Petersen, Harold
Institutions:	Department of Economics, Boston College
Subject:	financial crises \| limited liability \| leverage \| incentives \| investment banking \| corporate taxation \| quants \| Minsky hypothesis

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Extent:	application/pdf
Series:	Boston College Working Papers in Economics.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Boston College Working Papers in Economics Number 760
Classification:	G01 - Financial Crises ; G18 - Government Policy and Regulation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009493196