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Financial Entropy and the Optimality of Over-regulation

In: The New International Financial System Analyzing the Cumulative Impact of Regulatory Reform

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  • Alan S. Blinder

Abstract

The following sections are included:PreviewWhy Do We Have Finance? Why Do We Regulate It?The Big Tradeoff: Less Mean for Less VarianceThe Financial Entropy TheoremThe Optimality of Over-regulationAppraising the Long-run Effects of Some Recent ReformsSummaryReferences

Suggested Citation

  • Alan S. Blinder, 2015. "Financial Entropy and the Optimality of Over-regulation," World Scientific Book Chapters, in: Douglas D Evanoff & Andrew G Haldane & George G Kaufman (ed.), The New International Financial System Analyzing the Cumulative Impact of Regulatory Reform, chapter 1, pages 3-35, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814678339_0001
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    References listed on IDEAS

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    1. Bernanke, Ben S. & Gertler, Mark & Gilchrist, Simon, 1999. "The financial accelerator in a quantitative business cycle framework," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 21, pages 1341-1393, Elsevier.
    2. Jean Tirole, 2014. "The Contours of Banking and the Future of Its Regulation," MIT Press Book Chapters, in: What Have We Learned? Macroeconomic Policy After the Crisis, edition 1, volume 1, chapter 11, pages 143-154, The MIT Press.
    3. Anat Admati & Martin Hellwig, 2013. "The Bankers' New Clothes: What's Wrong with Banking and What to Do about It," Economics Books, Princeton University Press, edition 1, volume 1, number 9929.
    4. Robert J. Shiller, 2012. "Finance and the Good Society," Economics Books, Princeton University Press, edition 1, number 9652.
    5. Alan S. Blinder, 2010. "It’s Broke, Let’s Fix It: Rethinking Financial Regulation," International Journal of Central Banking, International Journal of Central Banking, vol. 6(34), pages 277-330, December.
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    Cited by:

    1. Giuseppe Vita & Livio Ferrante, 2021. "Is legislation grease or sand to economic growth? An econometric analysis using data from Italian regions before and after the 2008 crisis," European Journal of Law and Economics, Springer, vol. 51(3), pages 541-561, June.
    2. Avdjiev, Stefan & Aysun, Uluc & Tseng, Michael C., 2022. "Regulatory arbitrage behavior of internationally active banks and global financial market conditions," Economic Modelling, Elsevier, vol. 112(C).
    3. Uluc Aysun & Michael Tseng, 2021. "Regulatory arbitrage and global push factors," Working Papers 2021-01, University of Central Florida, Department of Economics.
    4. Alpanda, Sami & Aysun, Uluc, 2022. "Regulatory arbitrage and economic stability," Journal of International Money and Finance, Elsevier, vol. 129(C).
    5. Gai, Prasanna & Kemp, Malcolm & Sánchez Serrano, Antonio & Schnabel, Isabel, 2019. "Regulatory complexity and the quest for robust regulation," Report of the Advisory Scientific Committee 8, European Systemic Risk Board.
    6. Jiří Šindelář & Michal Erben, 2017. "Problems with quality in financial distribution - a state or market failure? [Problémy v distribuci finančních produktů: selhání trhu anebo regulace?]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2017(3), pages 5-17.

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    More about this item

    Keywords

    Financial Stability; Systemic Risk; Financial Regulation; Too-Big-to-Fail; Regulatory Burden; Financial Institutions;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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