Jump to ContentJump to Main Navigation
Beyond Junk BondsExpanding High Yield Markets$
Users without a subscription are not able to see the full content.

Glenn Yago and Susanne Trimbath

Print publication date: 2003

Print ISBN-13: 9780195149234

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0195149238.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 29 January 2020

Regulatory Choke Holds on Economic Growth

Regulatory Choke Holds on Economic Growth

Chapter:
(p.26) 3 Regulatory Choke Holds on Economic Growth
Source:
Beyond Junk Bonds
Author(s):

Glenn Yago (Contributor Webpage)

Susanne Trimbath

Publisher:
Oxford University Press
DOI:10.1093/0195149238.003.0003

The chapter starts by pointing out that a fundamental mismatch exists between the sources of job creation and capital formation in the USA, and that US financial history can be read as a long attempt to resolve this. Flow of funds data from the 1950s to the late 1990s reflect the relative contraction of financial institutional sources of capital and the expansion of capital markets. However, an analysis of this structural shift shows that small businesses have participated less than large ones (although they represent over 40% of total assets, debt, and net worth), and they remain disproportionately dependent on banks as their major source of capital. The effect of the recession of the early 1990s on such small firms is discussed in terms of the four sources of regulatory chokes (i.e. overregulation) that have hampered their economic growth: banking regulations, insurance regulations, thrift regulations, and merger regulations. The last part of the chapter discusses the reinvention of financial institutions and the restructuring of regulation, and financial technology transfer for small businesses – such as developing secondary markets for small‐firm equity and debt, and the creation of derivatives or issue of bonds or certificates by investment originators.

Keywords:   banking regulations, banks, bond issuance, capital access, capital formation, capital markets, derivatives markets, economic growth, institutional capital, insurance, insurance regulations, merger regulations, mergers, overregulation, secondary markets, small businesses, thrift, thrift regulations, USA

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .