We model technological and financial innovation as reflecting the decisions of profit maximizing agents and explore the implications for economic growth. We start with a Schumpeterian endogenous growth model where entrepreneurs earn monopoly profits by inventing better goods and financiers arise...

This paper examines the evolving importance of banks and securities markets during the process of economic development. We find that as countries develop economically, (1) the size of both banks and securities markets increases relative to the size of the economy, (2) the association between an...

A large literature asserts that standard essential patents (SEPs) allow their owners to “hold up” innovation by charging fees that exceed their incremental contribution to a final product. We evaluate two central, interrelated predictions of this SEP hold-up hypothesis: (1) SEP-reliant...

AbstractThe following sections are included:IntroductionBank Deregulation and Competition in Nonfinancial IndustriesBlacks’ Relative Wages and the Racial Bias IndexResultsPrerequisitesThe Impact of Deregulation on Blacks’ Relative WagesExtensionsConclusionsReferences

AbstractThe following sections are included:IntroductionFinance and Growth, Inequality, and PovertyBanks, growth, inequality, and the poorCross-country evidenceU.S. evidence on finance, growth, inequality, and the poorBanks, markets, and growthFinancial Innovation and GrowthConclusionsReferences

We disaggregate the self-employed into incorporated and unincorporated to distinguish between "entrepreneurs" and other business owners. We show that the incorporated self-employed and their businesses engage in activities that demand comparatively strong nonroutine cognitive abilities, while...

In this postmortem, I find that the design, implementation, and maintenance of financial policies during the period from 1996 through 2006 were primary causes of the financial system's demise. The evidence is inconsistent with the view that the collapse of the financial system was caused only by...

This paper examines the evolving importance of banks and securities markets during the process of economic development. As economies develop, they increase their demand for the services provided by securities markets relative to those provided by banks, such that securities markets become...