Bank-Industry Networks and Economic Evolution

Contents: Introduction: Problem; Relations to the literature; Innovation and economic evolution; Bank-industry networks and asymmetric information between creditors; Network commitment and dynamic transaction costs in the evolution of the bank-industry networks; Finance, institutions and quality ladders in economic growth: a synthesis between evolutionary models and endogenous growth models; Structure of the book. Credit, Innovation and the Evolutionary Viability of Universal Banks in a Securitized Economy: Universal banking, bank-industry networks and the securitized economy; The dynamic efficiency of universal banking; Differences in learning-by-financing between financial systems; A taxonomy of financial systems; Learning-by-financing efficiency and the system-specific natural rate of indebtedness; The evolution of the securitized economy; Finance and the growing need for flexibility when structural uncertainty increases; Institutional change within financial systems: specialization and diversification; Qualitative change in banking and the securitized economy; The comparative advantage of universal banks; Banks and corporate finance in a securitized economy; Summary. An Endogenous Growth Model with Asymmetric Information and Systemic Differences in Learning-by-Financing: Entropy, quality upgrading and finance; The basic model: an extension of the Grossman-Helpman Model; Innovation and differences between financial systems in costs of knowledge capital: simulation results with sixteen equilibrium regimes; Endogenous quality upgrading and the financial system: a further extension of the Grossman-Helpman Model; Endogenous quality upgrading and differences in the costs of knowledge capital: simulation results with eight equilibrium regimes; Simulation results with eight growth regimes; Innovation and the Wicksellian capital market disequilibrium for eight growth regime; Endogenous quality upgrading and R&D productivity: simulation results with four equilibrium regimes; Simulation results with four growth regimes; Innovation and the w Wicksellian capital market disequilibrium for four growth regimes; Endogenous market entropy and the financial system as information hierarchy; Summary; Main symbols. Schumpeterian Banker-Entrepreneur Interaction and the Evolution of Bank-Industry Networks: Spontaneous Order or Collective Action?: The institutional learning-by financing process; The bank-industry network as a spontaneous order in an evolutionary stag hunt game; Collective action and the evolution of bank-industry networks; Swedish industrial involvement vs. French industrial disengagement: the spontaneous evolution of bank-industry networks; Swedish upper bounds vs. French fully privileged groups: collective action and the spontaneous evolution; Summary; Main symbols. The Viability of Bank-Industry Networks in a Securitized Economy: An Assessment of Structural Changes in the Institutional Dynamics of Banker-Entrepreneur Interaction: Assessing the viability of the bank convention; The commitment to bank-industry networks in the evolving securitized economy of the 1980s; An assessment of industrial finance conventions, liquidity, solvency and financing of industry; Network commitment and trust versus control as creditors' approach; Summary. Schumpeterian Banker-Entrepreneur Interaction, Learning-By-Financing and Bank-Industry Networks: A General Conclusion; References; Index.