Chicago Unbound

Article Title

Efficiency and Benefit-Cost Analysis of the Financial System

Authors

Thomas PhilipponFollow

Start Page

107

Abstract

Financial intermediation arises from the need for expertise in channeling capital from savers to borrowers in the presence of transaction costs. I present a framework for measuring the overall efficiency of financial intermediation and emphasize some key challenges in applying benefit-cost analysis to finance: long-run cycles in financial activity, the burden of proof between regulators and the regulated, and the interaction between benefit-cost analysis and academic research.

Recommended Citation

Philippon, Thomas (2014) "Efficiency and Benefit-Cost Analysis of the Financial System," Journal of Legal Studies: Vol. 43: No. 3, Article 4.
Available at: https://chicagounbound.uchicago.edu/jls/vol43/iss3/4