Working Paper: NBER ID: w20894
Authors: Luigi Zingales
Abstract: Academics’ view of the benefits of finance vastly exceeds societal perception. This dissonance is at least partly explained by an under-appreciation by academia of how, without proper rules, finance can easily degenerate into a rent-seeking activity. I outline what finance academics can do, from a research point of view and from an educational point of view, to promote good finance and minimize the bad.
Keywords: Finance; Society; Public Perception; Rent-Seeking; Regulation
JEL Codes: G00; O43
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| public perception (E66) | operational capacity of finance (G31) |
| public sentiment (E66) | enforcement of financial regulations (G18) |
| growth of the financial sector (O16) | negative societal outcomes (P37) |
| historical context (B15) | public perceptions (E66) |