This project analyzes the role of securities underwriters in American financial development.  During the nineteenth century, investment bankers developed the capacity to raise huge amounts of capital for railroads and other large firms, and typically played an important role in their governance.  Yet their growing influence over economic life became politically controversial.  In this project, which is joint work with Prof. Carola Frydman at Northwestern University, I study the rise and decline of financiers in the American economy, and I use legislative changes intended to restrain the influence of financiers to estimate the benefits or costs associated with their roles.

Faculty: Eric Hilt
Department: Economics