Institutions and Financial Structure (Not Offered in 2023-24)

It covers theoretical and empirical explanations for the time series and cross country variation in the structure of governance, regulation and access across financial systems.
The recent literature on institutional development recognizes that financial contracting and governance depends on “the rules of the game” and the nature of their enforcement. As these are shaped by political, legal and cultural institutions, disentangling their specific channels is a fine scientific challenge.
While the topics are broad, the course seeks a rigorous approach based on structural models to explain both the cross country variation in financial structure as well as their historical evolution. The intent is to build a framework drawn from the literature in institutions and growth, grounded in the methodology of corporate finance and political economy theory.