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A Multi-Sectoral Approach to Financialisation

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  • Marwil J. Dávila-Fernández
  • Lionello F. Punzo

Abstract

We present a multi-sectoral assessment of financialisation based on Input-Output analysis. Our main innovation consists in introducing financialisation as an increase in financial content per unit of output produced. In this way, we can investigate changes in relative importance of financial activities taking into account interactions among sectors. Using a 15 and 14-sector level of aggregation, we study the United States and Brazilian experiences for the period 1947-2015 and 1995-2011, respectively. Although methods focusing on the disaggregation of Input-Output tables have been largely explored in past decades, they have received limited attention in the literature on financialisation. We aim to refocus on multisectoral issues by offering a simple structure of analysis to assess the interconnections between the real and financial sides of the economy.

Suggested Citation

  • Marwil J. Dávila-Fernández & Lionello F. Punzo, 2018. "A Multi-Sectoral Approach to Financialisation," Department of Economics University of Siena 794, Department of Economics, University of Siena.
    • Handle: RePEc:usi:wpaper:794
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    More about this item

    Keywords

    Financialisation; Financial intermediation; Input-Output; United States; Brazil.;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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