Radical Financial Innovation

Shiller, Robert J.

Radical Financial Innovation

Cowles Foundation Discussion Paper No. 1461

29 Pages Posted: 30 Apr 2004

Robert J. Shiller

Yale University - Cowles Foundation; National Bureau of Economic Research (NBER); Yale University - International Center for Finance

Date Written: April 2004

Abstract

Radical financial innovation is the development of new institutions and methods that permit risk management to be extended far beyond its former realm, covering important new classes of risks. This paper compares past such innovation with potential future innovation, looking at the process that produced past success and the possibilities for future financial innovation.

Keywords: Risk management, institutions, incomplete markets, livelihood insurance, behavioral finance, livelihood risks, home equity insurance, country risks

JEL Classification: G10

Suggested Citation: Suggested Citation

Shiller, Robert J., Radical Financial Innovation (April 2004). Cowles Foundation Discussion Paper No. 1461. Available at SSRN: https://ssrn.com/abstract=537402