Accurate, Focused Research on Law, Technology and Knowledge Discovery Since 2002

You Are Here: Home » Government Documents » Paper – The Growth of Modern Finance

Paper – The Growth of Modern Finance

by on

The Growth of Modern Finance. Robin Greenwood, Harvard Business School and NBER. David Scharfstein, Harvard Business School and NBER, July 2012

  • “The U.S. financial services industry grew from 4.9% of GDP in 1980 to 7.9% of GDP in 2007. A sizable portion of the growth can be explained by rising asset management fees, which in turn were driven by increases in the valuation of tradable assets, particularly equity. Another important factor was growth in fees associated with an expansion in household credit, particularly fees associated with residential mortgages. This expansion was itself fueled by the development of non-bank credit intermediation (or “shadow banking”). We offer a preliminary assessment of whether the growth of active asset management, household credit, and shadow banking – the main areas of growth in the financial sector – has been socially beneficial.”
  • Related postings on the financial system
    • LinkedIn

    Sorry, comments are closed for this post.