The seemingly never ending scandals in the world of finance with their damaging effects on value and human welfare …

Does finance follow the real economy, or the other way around? This paper unites the two competing schools of thought …, for economies with high-quality institutions, the view that finance follows the real economy is essentially correct … of output. On the other hand, for economies with low-quality institutions, the view that finance is a key driver of the …

We examine the role of trust in financial institutions as a necessary condition for the wider use of formal financial … attend a 3.5 hour training session designed to build their trust in financial institutions. Using household survey data … combined with high-frequency administrative data, we find that the intervention: (a) significantly increased the level of trust …

Academics' view of the benefits of finance vastly exceeds societal perception. This dissonance is at least partly … explained by an under-appreciation by academia of how, without proper rules, finance can easily degenerate into a rent …-seeking activity. I outline what finance academics can do, from a research point of view and from an educational point of view, to …

changes in investor trust, the model can account for the sharp decline of finance in the Great Depression, as well as its slow …We introduce the model of asset management developed in Gennaioli, Shleifer, and Vishny (2012) into a Solow … trust and encouraged growth of financial income …

In the data, asset prices exhibit large negative moves at frequencies of about 18 months. These large moves are … growth using the cross-section of signals. The uncertainty (confidence measure) about investor's growth expectations, as in … the data, is time-varying and subject to large moves. The fluctuations in confidence measure affect the distribution of …

resources to industries with a 'natural' reliance on outside finance due to a comparative advantage in these industries. By … good growth opportunities, regardless of their reliance on outside finance. To test these predictions, we use a measure of …