Ballooning finance

Bruno Biais, Jean-Charles Rochet, Paul Woolley 21 August 2014

a

A

One of the curiosities of the modern economy is why the finance sector is so large. Economists have only recently sought to document and ponder this phenomenon. Empirically, Greenwood and Scharfstein (2013) find that, in the US, financial services, which accounted for 2.8% of GDP in 1950, made up 8.3% of GDP in 2006.

a

A

Topics:  Financial markets

Tags:  securitisation, financial crises, moral hazard, asymmetric information, financial innovation, global crisis, bubbles, monitoring, shirking, junk bonds, CDOs, CDSs, ETFs

Managing bureaucrats

Imran Rasul, Daniel Rogger 19 November 2013

a

A

Since its inception in the 1850s, the British Civil Service has become a cornerstone of the executive branch of the UK government, translating the policy programme of the government into practice. Its practices have evolved gradually over the decades, but it is now in the midst of a major upheaval – in 2012, the Minister for the Cabinet Office and the Head of the Civil Service jointly published the Civil Service Reform Plan. The plan recognised the increased expectations on government to deliver public services in the context of perhaps permanently diminished government resources.

a

A

Topics:  Development Institutions and economics Politics and economics

Tags:  Africa, Management, incentives, Nigeria, bureaucracy, civil service, monitoring