Working Paper: NBER ID: w0739
Authors: Patric H. Hendershott; Kevin E. Villani
Abstract: This paper proceeds as follows. We first identify the essential services provided by a financial system and then derive the characteristics of the system that would exist in a technologically advanced society unfettered by nonneutral taxes and regulations. Next we consider how taxes and regulations have shaped the existing American financial structure. Finally, we posit likely tax and regulatory changes and conjecture as to how technological innovation will further interact with these changes to alter the American financial system. Our basic contentions are that the tax and regulatory influences are eroding and that the system will eventually move toward the unfettered financial system described in the first section.
Keywords: No keywords provided
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Tax and regulatory changes (H29) | Structure of the housing finance system (G21) |
| Tax and regulatory influences eroding (H29) | Transition towards an unfettered financial system (P34) |
| Technological innovation interacts with tax and regulatory changes (O39) | Alters the American financial system (G28) |