Financial innovation is the act of creat ing and then popularizing new financial instruments, as well as new financial technologi es, institutions, and m arket s. Despite this, there is little research on the process and governance of financial innovation. The journal of financial innovation is in finance journal that focuses on new products, new markets and new financial mechanisms. Before moving to oxford in 2011, he spent over three decades at harvard university where he completed his ab in economics, mba and phd in business economics, as well as spending 22 years on the faculty. Financial innovation in the uk faculty of finance working paper no 4 shelagh heffernan,1 xiaoqing maggie fu2, xiaolan fu,3 july, 2008 abstract this study employs a recent national survey of over 1100 british financial firms to ascertain the determinants of financial innovation and their sales success using logit and generalised tobit models. A counterfactual research agenda by josh lerner and peter tufano, in the rate and direction of inventive activity revisited, edited by josh lerner and stern stern, to be published by the university of chicago press for the national bureau of economic research. This chapter explores the broader impacts of financial innovation. Rethinking financial innovation reducing negative outcomes. Federal reserve bank of atlanta working paper, 200910. In the rate and direction of inventive activity revisited, ed.
There is a striking paucity of empirical studies of determinants and consequences of financial innovation, mainly due the lack of data. Corporate finance program, productivity, innovation, and entrepreneurship program financial innovation has been both praised as the engine of growth of society and castigated for being the source of the weakness of the. Trends in financial innovation14nov11 wharton finance. May 18, 2017 the power of financial innovations to affect societies on global and intergenerational levels compels us to ask how we can ensure their responsible emergence in society. View enhanced pdf access article on wiley online library. Peter tufano, financial innovation and firstmover advantages. View enhanced pdf access article on wiley online library html view download pdf for offline viewing. Although financial innovation has been an important part of the financial landscape throughout modern economic history, it has received relatively little attention in academia.
Railroads in the nineteenth century volume 71 issue 1 peter tufano. These programs range from ones that literally compel families to save, to those that make it hard not to save, make it easier to save, provide financial incentives to induce savings, leverage social networks to support savers, and finally, to programs that excite. These programs range from ones that literally compel families to save. It looks at the literatures on financial innovation, and at the similarities and differences between financial innovation and other forms of innovation. Tufano is grateful for the ongoing support of the harvard business school division of research, and schneider. Over the past 65 years, financial innovation has presented u. Table 1, cont selected examples of consumer finance innovation, 1980present. A counterfactual research agenda josh lerner, peter tufano. Business failure, judicial intervention, and financial. Harnessing innovationharnessing innovation peter tufano sylvan c. Financial innovation and endogenous growth, economics working papers 0097, institute for advanced study, school of social science. Also appears in nber rate and direction volume, 2011 making financial markets work for consumers with john campbell, howell jackson and brigitte madrian. A research agenda josh lerner, harvard business school and nber peter tufano, harvard business school and nber financial innovation has been both praised as the engine of growth of society and castigated for being the source of the weakness of the economy.
Financial innovation and the future of financial intermediation otieno caroline achieng corresponding author jomo kenyatta university of agriculture and technology, college of human resource and development, p. A counterfactual research agenda josh lerner and peter tufano nber working paper no. We also propose a research agenda to systematically address the. Peter tufano born 1957 is the dean of the said business school at the university of oxford. Financial innovation has been both praised as the engine of growth of society and castigated for being the source of the weakness of the economy. Financial innovation in the uk cass business school. Financial innovation financial innovation is the act of creating and then popularizing new financial instruments as well as new financial technologies, institutions and markets. Business failure, judicial intervention, and financial innovation.
Applied studies of financial innovation prentice hall, 1995 by scott mason, robert c. Northholland financial innovation and firstmover advantages peter tufano harvard business school, boston, nla 02763, usa received october 1989, final version received february 1990 this paper uses a database of 58 financial innovations from 19741986 to examine how investment banks are compensated for their investments. Financial innovation, in handbook of the economics of finance volume 1a. Financial innovation is viewed as the engine driving the financial system towards its goal of. Recent financial innovations include hedge funds, private equity, weather derivatives, retailstructured products, exchangetraded funds, multifamily offices, and islamic bonds. Giannini professor of finance, stanford university. Peter tufano, financial innovation, corporate finance, 10. Peter tufano, peter moores dean and professor of finance. Financial innovation and endogenous growth, nber working papers 15356, national bureau of. Of financial innovations and excesses horne 1985 the. Derivatives, crowdfunding, private equity, venture capital, cdo, behavioral finance. Peter tufano, financial innovation, in handbook of the economics of finance 307, 31112 george m. Kagira peter karani jomo kenyatta university of agriculture and technology, college of human resource and. Technological change, financial innovation, and diffusion in banking.
This class of breakthroughs that attracted no real. The questionnaire should ask whether financial institutions have engaged in product or process innovation, financial innovation inputs used, factors that encourage or hamper financial innovation. Last thousand year 1100 1200 0 1400 1500 1600 1700 1800 1900 1156. Financial innovation household finance financial engineering financial institutions. This is forthcoming as a chapter, the consequences of financial innovation. Financial innovation and firstmover advantages sciencedirect. Peter is a prolific scholar and course developer, a seasoned academic leader, a social entrepreneur, and an advisor to business and government leaders. This requires an understanding of how innovation occurs and how it is governed in practice. His research and course development focus on mutual funds, corporate financial engineering, and consumer finance.
Leveraging financial innovation to serve the poor 18. D2d fund d2d fund haveman and wolffs estimates of us asset poverty 2001 overall, 2533% of americans are assetpoor. Trends in financial innovation and their welfare impact. A research agenda, authorjosh lerner and peter tufano, year2009.
This journal provides a global academic forum for exchanging. For a survey of the nascent empirical literature on financial innovation, see w. Northholland financial innovation and firstmover advantages peter tufano harvard business school, boston, nla 02763, usa received october 1989, final version received february 1990 this paper uses a database of 58 financial innovations from 19741986 to examine how investment banks are compensated for their investments in developing new. He previously served as the as the schools senior associate dean for planning and university affairs, its director of faculty development, and head of the finance unit. Said business school, university of oxford 34 quote 12. Financial innovation and endogenous growth luc laeven, ross levine, and stelios michalopoulos december 5, 20 abstract we model technological and nancial innovation as re. Trends in financial innovation and their welfare impact an overview franklin allen wharton school university of pennsylvania november 14, 2011 abstract there is a fair amount of evidence that financial innovations are sometimes undertaken to create complexity and exploit the purchaser.
As dean, peter has championed the concept of a business school embedded within the university. His ongoing work focuses on household finance, financial innovation, and fintech. The shadow banking system has spawned an array of financial innovations. Coleman professor of financial management at the harvard business school. From coercion to excitement peter tufano and daniel schneider february 2008 ucc08 this paper was previously presented at the national poverty center conference on access, assets and poverty. This essay surveys the existing literature on financial innovation from. At the same time, consumer finance has increasingly become a doityourself activity ryan, trumbull, and tufano, 2010. Last years 1100 1200 0 1400 1500 1600 1700 1800 1900 1156. Financial innovation is the act of creating new financial instruments as well as new financial technologies, institutions, and markets. A historical and functional perspective, which appeared in the book, cases in financial engineering. Handbook of the economics of finance corporate finance. The power of financial innovations to affect societies on global and intergenerational levels compels us to ask how we can ensure their responsible emergence in society.
A research agenda, authorjosh lerner and peter tufano, year2009 josh lerner, peter tufano. The chapter proposes a research agenda to systematically address the social welfare implications of financial innovation. This essay surveys the literature on financial innovation from a wide variety. Coleman professor of financial management senior associate dean harvard business school founder and chairman doorways to dreams fund, inc. Dean and professor, oxford university, said business school. Innovative ways to encourage personal savings harvard. Baikburuk inovasi keuangan munich personal repec archive. Financial innovation and the future of financial intermediation. The continuing importance of financial innovation 32 4. Chapter 06 in handbook of the economics of finance, 2003, vol. This article is a condensed version of securities innovations. The recent case studies discussed in this article are described in greater detail in the book. Feb 14, 2011 financial innovation has been both praised as the engine of growth of society and castigated for being the source of the weakness of the economy.