Has the US Finance Industry Become Less Efficient? On the Theory and Measurement of Financial Intermediation

S-Tier
Journal: American Economic Review
Year: 2015
Volume: 105
Issue: 4
Pages: 1408-38

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A quantitative investigation of financial intermediation in the United States over the past 130 years yields the following results: (i) the finance industry's share of gross domestic product (GDP) is high in the 1920s, low in the 1960s, and high again after 1980; (ii) most of these variations can be explained by corresponding changes in the quantity of intermediated assets (equity, household and corporate debt, liquidity); (iii) intermediation has constant returns to scale and an annual cost of 1.5-2 percent of intermediated assets; (iv) secular changes in the characteristics of firms and households are quantitatively important. (JEL D24, E44, G21, G32, N22)

Technical Details

RePEc Handle
repec:aea:aecrev:v:105:y:2015:i:4:p:1408-38
Journal Field
General
Author Count
1
Added to Database
2026-01-29