Financial innovation

Author: Philip Molynux
Publisher:
Publish Date: 2003-07-01
Features: This book is based on Schumpeter's innovation theory, which emphasizes the process rather than just the correspondence between initial conditions and outcomes. In the financial industry, environmental factors such as regulation and technology trigger initial innovations, but this does not represent all financial innovation. Financial institutions also innovate in their mutual competition, where factors such as the size, number, asset portfolio, and risk management of financial institutions play active or passive roles in innovation activities. Through theoretical and empirical research, this book extensively discusses the process and diffusion of new financial instruments. It develops theoretical models for the innovation and diffusion of new financial products and conducts empirical validation of the models. This is a pioneering work that systematically studies the process of financial innovation to date.