Michalopoulos, Stelios; Laeven, Luc; Levine, Ross - School of Social Science, Institute for Advanced Study - 2011
We model technological and ?nancial innovation as re?ecting the decisions of pro?t maximizing agents and explore the …, risky, and potentially pro?table process of innovation: Financiers can invent more e¤ective processes for screening … innovation, in which ?nanciers engage in privately pro?table but socially ine¢ cient innovation that slows growth. Empirical …