Faculty News

An op-ed by Prof. Thomas Philippon on the efficiency of the finance industry

Excerpt from VoxEU -- "The cost of intermediation in the US is between 1.3% and 2.3% over 130 years. However, the finance cost index has been trending upward, especially since the 1970s. This is counter-intuitive. If anything, the technological development of the past 40 years – in IT in particular – should have disproportionately increased efficiency in the finance industry." 

Additional coverage appeared in Business Insider, Seeking Alpha, Financial Times Alphaville blog, Wall Street Journal blog and the Financial Post.

Read full article as published on VoxEU.