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On the welfare effects of financial development

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Detalhes bibliográficos
Resumo:The aim of this paper is to show how the evolution of financial technology affects the welfare in the economy. On the empirical side, I construct a time series for the costs of financial services, and I find that the evolution shows a decreasing trend in the period analyzed. In addition, the new statistical tool goes a long way to explaining US M1 money demand. I find that the financial costs became significantly lower after major financial innovation events had taken place. Then I study how financial innovation, understood as a decrease in portfolio adjustment costs, affects macro variables and welfare.
Autores principais:Silva, Diogo Martinho da
Assunto:financial costs market segmentation money demand welfare
Ano:2013
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:Universidade de Lisboa
Idioma:inglês
Origem:Repositório da Universidade de Lisboa
Descrição
Resumo:The aim of this paper is to show how the evolution of financial technology affects the welfare in the economy. On the empirical side, I construct a time series for the costs of financial services, and I find that the evolution shows a decreasing trend in the period analyzed. In addition, the new statistical tool goes a long way to explaining US M1 money demand. I find that the financial costs became significantly lower after major financial innovation events had taken place. Then I study how financial innovation, understood as a decrease in portfolio adjustment costs, affects macro variables and welfare.