The Impact of Derivative Markets on Asset Management and the Economy

SUERF Studies No. 2008/5

175 Pages Posted: 10 Feb 2011

See all articles by Bernhard Sammer

Bernhard Sammer

Vienna University of Economics and Business - European Institute

Peter R. Haiss

WU Vienna University of Economics and Business; UniCredit Bank Austria; IES Vienna - Institute for the International Education of Students

Martin Gartner

affiliation not provided to SSRN

Otto Loistl

Vienna University of Economics and Business

Stephan Zellner

Vienna University of Economics and Business

Robert C. Merton

Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER); Harvard Business School - Finance Unit

Krzysztof Rybinski

Warsaw University

Urszula Sowa

National Bank of Poland

Date Written: June 6, 2010

Abstract

During the last decade, derivatives markets became an asset class of their own and influenced the financial landscape strongly. While the financial sector contributes positively to overall economic growth in many studies up to the mid nineties, a positive contribution of the financial sector to economic growth in mature market economies is less evident with more recent data. What has happened? Is the rapid growth of derivative markets a catalyst for changes in the financial sector? Did the impact of asset management on the economy change? Drawing on the Merton and Bodie (1995) functional perspective, this paper tries to explain this change by discussing the spheres of derivative impact. We find that derivatives appear to fill part of the gap that traditional products and participants recently face in explaining the fostering of economic development.

Keywords: derivatives, financial integration, financial crisis, finance-growth-nexus

JEL Classification: C22, E 4, F36, G15, G29, N20

Suggested Citation

Sammer, Bernhard and Haiss, Peter R. and Gartner, Martin and Loistl, Otto and Zellner, Stephan and Merton, Robert C. and Rybinski, Krzysztof and Sowa, Urszula, The Impact of Derivative Markets on Asset Management and the Economy (June 6, 2010). SUERF Studies No. 2008/5, Available at SSRN: https://ssrn.com/abstract=1756771

Bernhard Sammer

Vienna University of Economics and Business - European Institute ( email )

Vienna
Austria

Peter R. Haiss (Contact Author)

WU Vienna University of Economics and Business ( email )

Institute for Production Management
Welthandelsplatz 1
Vienna, A-1020
Austria
++43-660 4848254 (Phone)
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UniCredit Bank Austria ( email )

Rothschildplatz 1
Vienna, A-1020
Austria
++43-(0)50505 44214 (Phone)
++43-(0)50505 89 44214 (Fax)

HOME PAGE: http://www.bankaustria.com

IES Vienna - Institute for the International Education of Students

Johannesgasse 7
Vienna, A-1010
Austria

Martin Gartner

affiliation not provided to SSRN

Otto Loistl

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

Stephan Zellner

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

Robert C. Merton

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

77 Massachusetts Avenue
E62-634
Cambridge, MA 02139-4307
United States
617 715 4866 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Harvard Business School - Finance Unit ( email )

Boston, MA 02163
United States
617-495-6678 (Phone)

Krzysztof Rybinski

Warsaw University ( email )

ul. Dluga 44/50
Warszawa, Pl-00681
Poland
+48 22 22 74 04 (Phone)
+48 22 22 74 05 (Fax)

Urszula Sowa

National Bank of Poland ( email )

00-919 Warsaw
Poland

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