"... a quantitative interpretation of financial intermediation in the U.S. over 140 years"
measuring the cost of intermediation on the one hand, and the production of financial services on the other."
"results:
(i) intermediation is produced under constant returns to scale
; (ii) “quality” adjustment for changes in borrowers’ characteristics are important;
(iii) the unit cost of intermediation in the U.S. economy has historically been around 2%
(i.e., creating and maintaining one dollar of intermediation costs about 2 cents)
; (iv) the unit cost of intermediation is higher today than it was a century ago, and it has increased over the
; (iv) the unit cost of intermediation is higher today than it was a century ago, and it has increased over the
past 30 years."
One interpretation:
".... improvements in information technology
may have been cancelled out
by increases in other financial activities
whose social value is difficult to assess."
One interpretation:
".... improvements in information technology
may have been cancelled out
by increases in other financial activities
whose social value is difficult to assess."
