Laeven, Luc; Levine, Ross; Michalopoulos, Stelios - C.E.P.R. Discussion Papers - 2009
We model technological and financial innovation as reflecting the decisions of profit maximizing agents and explore the … also engage in the costly, risky, and potentially profitable process of innovation: Financiers can invent more effective … processes for screening entrepreneurs. Every existing screening process, however, becomes less effective as technology advances …