| dc.contributor.author | Simsek, Alp | |
| dc.date.accessioned | 2013-12-06T18:38:40Z | |
| dc.date.available | 2013-12-06T18:38:40Z | |
| dc.date.issued | 2013-05 | |
| dc.identifier.issn | 0002-8282 | |
| dc.identifier.issn | 1944-7981 | |
| dc.identifier.uri | http://hdl.handle.net/1721.1/82669 | |
| dc.description.abstract | I illustrate the effect of financial innovation on portfolio risks by using an example with risk-sharing needs and belief disagreements. I consider two types of innovation: product innovation, formalized as an expansion of new financial assets; and process innovation, formalized as a reduction in transaction costs. When belief disagreements are large, both types of innovation increase portfolio risks. Moreover, endogenous financial innovation is directed towards speculative assets that increase portfolio risks. | en_US |
| dc.language.iso | en_US | |
| dc.publisher | American Economic Association | en_US |
| dc.relation.isversionof | http://dx.doi.org/10.1257/aer.103.3.398 | en_US |
| dc.rights | Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. | en_US |
| dc.source | American Economic Association | en_US |
| dc.title | Financial Innovation and Portfolio Risks | en_US |
| dc.type | Article | en_US |
| dc.identifier.citation | Simsek, Alp. “Financial Innovation and Portfolio Risks.” American Economic Review 103, no. 3 (May 2013): 398-401. © 2013 the American Economic Association | en_US |
| dc.contributor.department | Massachusetts Institute of Technology. Department of Economics | en_US |
| dc.contributor.mitauthor | Simsek, Alp | en_US |
| dc.relation.journal | American Economic Review | en_US |
| dc.eprint.version | Final published version | en_US |
| dc.type.uri | http://purl.org/eprint/type/JournalArticle | en_US |
| eprint.status | http://purl.org/eprint/status/PeerReviewed | en_US |
| dspace.orderedauthors | Simsek, Alp | en_US |
| dc.identifier.orcid | https://orcid.org/0000-0003-0840-1848 | |
| mit.license | PUBLISHER_POLICY | en_US |
| mit.metadata.status | Complete | |
