Annual Conference

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International Macroeconomics, Money & Banking

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May 2019

Financial structure and income inequality

Leonardo GAMBACORTA, Giovanni FERRI, Michael BREI
This paper empirically investigates the link between financial structure and income inequality. Using data for a panel of 97 economies over the period 1989-2012, we find that the relationship is not monotonic. Up to a point, more finance reduces income inequality. Beyond that point, inequality rises...
Keywords: inequality, finance, Banks, financial markets.
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Specialty Conference

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Specialty Conference

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Jan 2017

Financial sector origins of economic growth delusion

Frederic MALHERBE, Michael MCMAHON
After financial crises, GDP is typically persistently weak compared to pre-crisis trends. We build a simple competitive general equilibrium model to highlight role that the financial sector may have in boosting GDP to unsustainable, undesirable levels before financial crises. Allowing banks to freel...
Keywords: financial crises, GDP, trade, Loans, time-series
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Specialty Conference

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Specialty Conference

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Sep 2020

Financial intermediation and technology: What’s old, what’s new?

Arnoud BOOT, Peter HOFFMANN, Luc LAEVEN, Lev RATNOVSKI
We study the effects of technological change on financial intermediation, distinguishing between innovations in information (data collection and processing) and communication (relationships and distribution). Both follow historic trends towards an increased use of hard information and less in-person...
Keywords: Financial Intermediation, Financial Innovation, FinTech, Information, Communication
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2023

Financial Intermediaries vs. Capital Allocation: The Forgotten Role of Mutual Funds

Yanbo WANG, Hong ZHANG, Massimo MASSA
Recent evidence challenges the allocational efficiency of firms (in allocating capital to more productive sectors). We investigate whether financial intermediaries can help achieve better allocation. We find domestic mutual funds exhibit significant allocational efficiency in their equity investment...
Keywords: Allocational efficiency, Mutual Fund Investment, capital markets
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Annual Conference

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Investment Finance

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May 2022

Financial intermediaries and contagion in market efficiency: The case of ETFs

Frank Weikai LI, Claire Yurong HONG, Avanidhar SUBRAHMANYAM
Capital constraints of financial intermediaries can affect liquidity provision. We investigate whether these constraints spillover and consequently cause contagion in the degree of market efficiency across assets managed by a common intermediary. Specifically, we provide evidence of strong comovemen...
Keywords: ETFs, financial intermediaries, capital constraints
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