Introduction -- Asia's development model -- Finance in Asia -- Challenges to development & finance -- Financial systems & practice -- Institutional foundations of finance -- Credit risk & commercial banking -- Investment banking & financial innovation -- Debt securities, derivatives & complex...

Using municipal cities during China’s reform era as the setting, we investigate how different aspects of financial development affect resource misallocation in an integrated framework. Using different identification strategies, we find that local government-driven finance exacerbates the...