paper describes how specialization of banks can lead to such feedback effects, which work through the cost of financial … intermediation. In the empirical part of the paper we use US cross-state data from banks' income statements to show that the cost of …

-financial firm and commercial bank before the crisis, but the picture was quite different for large commercial banks States and for … investment banks worldwide. We document the following patterns: a) there was an increase in leverage ratios of investment banks … and financial firms during the early 2000s; b) there was no visible increase for commercial banks and non-financial firms …

In an influential paper, La Porta, Lopez-De-Silanes and Shleifer (2002) argued that public ownership of banks is …

development can explain three recent empirical patterns of international capital flows: Financial capital flows from relatively … from poor to rich countries; despite its negative net international investment position, the US receives a positive net … international investment income. We also explore the welfare and distributional effects of international capital flows and show that …