We investigate the effect of stock market liberalization on technological innovation. Using a sample of 20 economies that experience stock market liberalization, we find that these economies exhibit a higher level of innovation output after liberalization, and this effect is disproportionately...

This study first establishes a causal relation between insider trading and the likelihood of stock price crash occurrence, and then investigates potential channels through which the former influences the latter. Exploiting the initial enforcement of insider trading laws in a country as a natural...

We explore the relation between a country's patents and its economic and productivity growth. Consistent with patents reflecting important innovations, a one standard deviation increase in patent stock leads to a 1.58% (1.52%) elevation in GDP (TFP) growth. Patent stock has a stronger impact on...

We attribute the success of China's monetary-fiscal policies in producing 8.7% growth in 2009 to the following: (1) the capital adequacy ratio requirement was not binding because the banks' capital had not been reduced by losses on assets like subprime mortgages; (2) the initial fiscal position...