WorldCat Identities

Rajan, Raghuram

Works: 161 works in 851 publications in 7 languages and 7,325 library holdings
Genres: History  Case studies 
Roles: Author, Editor, Redactor
Classifications: HC110.I5, 330.90511
Publication Timeline
Most widely held works by Raghuram Rajan
Fault lines : how hidden fractures still threaten the world economy by Raghuram Rajan( Book )

32 editions published between 2010 and 2012 in 3 languages and held by 1,527 WorldCat member libraries worldwide

Raghuram Rajan was one of the few economists who warned of the global financial crisis before it hit. Rajan shows how the individual choices that collectively brought about the economic meltdown--made by bankers, government officials, and ordinary homeowners--were rational responses to a flawed global financial order in which the incentives to take on risk are incredibly out of step with the dangers those risks pose. He traces the deepening fault lines in a world overly dependent on the indebted American consumer to power global economic growth and stave off global downturns. He exposes a system where America's growing inequality and thin social safety net create tremendous political pressure to encourage easy credit and keep job creation robust, no matter what the consequences to the economy's long-term health; and where the U.S. financial sector, with its skewed incentives, is the critical but unstable link between an overstimulated America and an underconsuming world
Saving capitalism from the capitalists : unleashing the power of financial markets to create wealth and spread opportunity by Raghuram Rajan( Book )

42 editions published between 2003 and 2015 in 6 languages and held by 962 WorldCat member libraries worldwide

"Saving Capitalism from the Capitalists is a groundbreaking book that will radically change our understanding of the capitalist system, particularly the role of financial markets. They are the catalyst for inspiring human ingenuity and spreading prosperity. The perception of many, especially in the wake of never-ending corporate scandals, is that financial markets are parasitic institutions that feed off the blood, sweat, and tears of the rest of us."--Jacket
The great reversals : the politics of financial development in the 20th century by Raghuram Rajan( Book )

33 editions published between 2000 and 2001 in English and held by 164 WorldCat member libraries worldwide

We show that the development of the financial sector does not change monotonically over time. In particular, we find that by most measures, countries were more financially developed in 1913 than in 1980 and only recently have they surpassed their 1913 levels. This pattern is inconsistent with most recent theories of why cross-country differences in financial development do not track differences in economic development, since these theories are based upon time-invariant factors, such as a country's legal origin. We propose instead an 'interest group' theory of financial development. Incumbents oppose financial development because it breeds competition. The theory predicts that incumbents' opposition will be weaker when an economy allows both cross-border trade and capital flows. This theory can go some way in accounting for the cross-country differences and the time series variation of financial development
Liquidity shortages and banking crises by Douglas W Diamond( Book )

33 editions published between 2002 and 2004 in English and held by 142 WorldCat member libraries worldwide

Emerging markets do not handle adverse shocks well. In this paper, I will outline an explanation of why emerging markets are so fragile, and why they may adopt contractual mechanisms %uF818 such as a dollarized banking system -- that increase their fragility. I draw on this analysis to explain why dollarized economies may be prone to dollar shortages and twin crises. The model of crises described here differs in some important aspects from what is now termed the first, second, and third generation models of crises. I then examine how domestic policies, especially monetary policy, can mitigate the adverse effects of these crises. Finally, I will ask if there is a constructive role for international financial institutions both in helping to prevent the crises and in helping resolve them
The cost of diversity : the diversification discount and inefficient investment by Raghuram Rajan( Book )

21 editions published between 1997 and 1999 in English and held by 99 WorldCat member libraries worldwide

In a simple model of capital budgeting in a diversified firm where headquarters has limited power, we show that funds are allocated towards the most inefficient divisions. The distortion is greater the more diverse are the investment opportunities of the firm's divisions. We test these implications on a panel of diversified firms in the U.S. during the period 1979-1993. We find that i) diversified firms mis-allocate investment funds; ii) the extent of mis-allocation is positively related to the diversity of the investment opportunities across divisions; iii) the discount at which these diversified firms trade is positively related to the extent of the investment mis-allocation and to the diversity of the investment opportunities across divisions
What determines firm size? by Krishna B Kumar( Book )

19 editions published in 1999 in English and held by 94 WorldCat member libraries worldwide

Motivated by theories of the firm, which we classify as technological' or organizational, ' we analyze the determinants of firm size across industries and across countries in a sample of 15 European countries. We find that, on average, firms facing larger markets are larger. At the industry level, we find firms in the utility sector are large, perhaps because they enjoy a natural, or officially sanctioned, monopoly. Capital intensive industries, high wage industries, and industries that do a lot of R & D have larger firms, as do industries that require little external financing. At the country level, the most salient findings are that countries with efficient judicial systems have larger firms, and, correcting for institutional development, there is little evidence that richer countries have larger firms. Interestingly, institutional development, such as greater judicial efficiency, seems to be correlated with lower dispersion in firm size within an industry. The effects of interactions (between an industry's characteristics and a country's environment) on size are perhaps the most novel results in the paper, and are best able to discriminate between theories. As the judicial system improves, the difference in size between firms in capital intensive industries and firms in industries that use little physical capital diminishes, a finding consistent with size of firms in industries dependent on external finance is larger in countries with better financial markets, suggesting that financial constraints limit average firm size
Power in a theory of the firm by Raghuram Rajan( Book )

19 editions published between 1996 and 1998 in English and held by 93 WorldCat member libraries worldwide

Transactions take place in the firm rather than in the market because the firm offers agents" who make specific investments power. Past literature emphasizes the allocation of ownership as the" primary mechanism by which the firm does this. Within the contractibility assumptions of this" literature, we identify a potentially superior mechanism, the regulation of access to critical resources." Access can be better than ownership because: i) the power agents get from access is more contingent" on them making the right investment; ii) ownership has adverse effects on the incentive to specialize." The theory explains the importance of internal organization and third party ownership."
Business environment and firm entry : evidence from international data by Leora Klapper( Book )

22 editions published between 2003 and 2004 in English and held by 77 WorldCat member libraries worldwide

Using a comprehensive database of firms in Western and Eastern Europe, we study how the business environment in a country drives the creation of new firms. Our focus is on regulations governing entry. We find entry regulations hamper entry, especially in industries that naturally should have high entry. Also, value added per employee in naturally "high entry" industries grows more slowly in countries with onerous regulations on entry. Interestingly, regulatory entry barriers have no adverse effect on entry in corrupt countries, only in less corrupt ones. Taken together, the evidence suggests bureaucratic entry regulations are neither benign nor welfare improving. However, not all regulations inhibit entry. In particular, regulations that enhance the enforcement of intellectual property rights or those that lead to a better developed financial sector do lead to greater entry in industries that do more R&D or industries that need more external finance
Financial dependence and growth by Raghuram Rajan( Book )

14 editions published between 1995 and 1996 in English and held by 74 WorldCat member libraries worldwide

Does finance affect economic growth? A number of studies have identified a positive correlation between the level of development of a country's financial sector and the rate of growth of its per capita income. As has been noted elsewhere, the observed correlation does not necessarily imply a causal relationship. This paper examines whether financial development facilitates economic growth by scrutinizing one rationale for such a relationship; that financial development reduces the costs of external finance to firms. Specifically, we ask whether industrial sectors that are relatively more in need of external finance develop disproportionately faster in countries with more developed financial markets. We find this to be true in a large sample of countries over the 1980s. We show this result is unlikely to be driven by omitted variables, outliers, or reverse causality
Banks as liquidity providers : an explanation for the co-existence of lending and deposit-taking by A. K Kashyap( Book )

14 editions published in 1999 in English and held by 73 WorldCat member libraries worldwide

This paper addresses the following question: what ties together the traditional commercial banking activities of deposit-taking and lending? We begin by observing that since banks often lend via commitments, or credit lines, their lending and deposit-taking may be two manifestations of the same primitive function: the provision of liquidity on demand. After all, once the decision to extend a line of credit has been made, it is really nothing more than a checking account with overdraft privileges. This observation leads us to argue that there will naturally be synergies between the two activities, to the extent that both require banks to hold large volumes of liquid assets (cash and securities) on their balance sheets: if deposit withdrawals and commitment takedowns are imperfectly correlated, the two activities can share any deadweight costs of holding the liquid assets. We develop this idea with a simple model, and then use a variety of data to test the model's empirical implications
The influence of the financial revolution on the nature of firms by Raghuram Rajan( Book )

19 editions published in 2001 in English and held by 73 WorldCat member libraries worldwide

Major technological, regulatory, and institutional changes have made finance more widely available in recent years, amounting to a bone fide 'financial revolution'. In this article, we focus on the impact the financial revolution has had on the way firms are (or should be) organized and managed, and on the policy consequences
The effect of credit market competition on lending relationships by Mitchell A Petersen( Book )

13 editions published between 1993 and 1994 in English and held by 70 WorldCat member libraries worldwide

This paper provides a simple model showing that the extent of competition in credit markets is important in determining the value of lending relationships. Creditors are more likely to finance credit constrained firms when credit markets are concentrated because it is easier for these creditors to internalize the benefits of assisting the firms. The model has implications about the availability and the price of credit as firms age in different markets. The paper offers evidence for these implications from small business data. It concludes with conjectures on the costs and benefits of liberalizing financial markets, as well as the timing of such reforms
Trade credit : theories and evidence by Mitchell A Petersen( Book )

13 editions published between 1995 and 1996 in English and held by 70 WorldCat member libraries worldwide

In addition to borrowing from financial institutions, firms may be financed by their suppliers. Although there are many theories explaining why non-financial firms lend money, there are few comprehensive empirical tests of these theories. This paper attempts to fill the gap. We focus on a sample of small firms whose access to capital markets may be limited. We find evidence that firms use trade credit relatively more when credit from financial institutions is not available. Thus while short term trade credit may be routinely used to minimize transactions costs, medium term borrowing against trade credit is a form of financing of last resort. Suppliers lend to firms no one else lends to because they may have a comparative advantage in getting information about buyers cheaply, they have a better ability to liquidate goods, and they have a greater implicit equity stake in the firm's long term survival. We find some evidence consistent with the use of trade credit as a means of price discrimination. Finally, we find that firms with better access to credit from financial institutions offer more trade credit. This suggests that firms may intermediate between institutional creditors and other firms who have limited access to financial institutions
What do we know about capital structure? : some evidence from international data by Raghuram Rajan( Book )

12 editions published between 1994 and 2000 in English and held by 66 WorldCat member libraries worldwide

We investigate the determinants of capital structure choice by analyzing the financing decisions of public firms in the major industrialized countries. At an aggregate level, firm leverage is fairly similar across the G-7 countries. We find that factors identified by previous studies as important in determining the cross- section of capital structure in the U.S. affect firm leverage in other countries as well. However, a deeper examination of the U.S. and foreign evidence suggests that the theoretical underpinnings of the observed correlations are still largely unresolved
Banks and markets : the changing character of European finance by Raghuram Rajan( Book )

17 editions published in 2003 in English and held by 66 WorldCat member libraries worldwide

In the last two decades the European financial markets have become more market oriented. We analyze the economic and political forces that have triggered these changes as well as their likely welfare implications. We also try to assess whether this trend will continue. Based on our analysis, we conjecture that even if Europe might benefit from a continuation of the trend, in the near future political support for it is likely to become much weaker. Furthermore, without serious reforms, the trend is likely to benefit Southern Europe less than Northern Europe
Organization structure and credibility : evidence from commercial bank securities activities before the Glass-Steagall Act by Randy Kroszner( Book )

13 editions published between 1995 and 1996 in English and Undetermined and held by 64 WorldCat member libraries worldwide

This paper investigates how organizational structure can affect a firm's ability to compete. In particular, we examine the two ways in which U.S. commercial banks organized their investment banking operations before the 1933 Glass-Steagall Act forced the banks to leave the securities business: as an internal securities department within the bank and as a separately incorporated and capitalized securities affiliate. We document a strong movement toward the use of the affiliate structure during the 1920s, and regulation does not appear to explain this evolution. While departments underwrote seemingly higher quality firms and securities than did comparable affiliates, the departments obtained lower prices for the issues they underwrote. This evidence is consistent with the hypothesis that there was a perception of potential conflicts of interest when lending and underwriting were closely combined in the departmental structure. We find evidence that bank managers during this period were concerned about such perceptions. We then develop further tests to support the view that by distancing underwriting activities from lending operations, banks could more credibly certify the quality of the issues they underwrote, thereby obtaining higher prices for them. Our results suggest that internal organization may indeed affect the activities and effectiveness of a firm. They also suggest that bank regulators' interest in 'firewalls' between commercial and investment banking may be reasonable, but that the market may propel banks to adopt an internal structure that would address regulators' concerns
The paradox of liquidity by Stewart C Myers( Book )

14 editions published between 1995 and 1997 in English and held by 62 WorldCat member libraries worldwide

The more liquid a company's assets, the greater their value in a short-notice liquidation. Liquid assets are generally viewed as increasing debt capacity, other things being equal. This paper focusses on the dark side of liquidity: greater liquidity reduces the ability of borrowers to commit to a specific course of action. It examines the effects of differences in asset liquidity on debt capacity. It suggests an alternative theory of financial intermediation and disintermediation
Aid and growth : what does the cross-country evidence really show? by Raghuram Rajan( Book )

15 editions published in 2005 in English and Undetermined and held by 52 WorldCat member libraries worldwide

Abstract: We examine the effects of aid on growth--in cross-sectional and panel data--after correcting for the bias that aid typically goes to poorer countries, or to countries after poor performance. Even after thiscorrection, we find little robust evidence of a positive (or negative) relationship between aid inflows into a country and its economic growth. We also find no evidence that aid works better in better policy or geographical environments, or that certain forms of aid work better than others. Our findings, which relate to the past, do not imply that aid cannot be beneficial in the future. But they
What undermines aid's impact on growth? by Raghuram Rajan( Book )

16 editions published in 2005 in English and Undetermined and held by 49 WorldCat member libraries worldwide

We examine one of the most important and intriguing puzzles in economics: why it is so hard to find a robust effect of aid on the long-term growth of poor countries, even those with good policies. We look for a possible offset to the beneficial effects of aid, using a methodology that exploits both cross-country and within-country variation. We find that aid inflows have systematic adverse effects on a country''s competitiveness, as reflected in a decline in the share of labor intensive and tradable industries in the manufacturing sector. We find evidence suggesting that these effects stem from the real exchange rate overvaluation caused by aid inflows. By contrast, private-to-private flows like remittances do not seem to create these adverse effects. We offer an explanation why and conclude with a discussion of the policy implications of these findings
Illiquidity and interest rate policy by Douglas W Diamond( Book )

14 editions published between 2009 and 2011 in English and held by 18 WorldCat member libraries worldwide

The cheapest way for banks to finance long term illiquid projects is typically to borrow short term from households. But when household needs for funds are high, interest rates will rise sharply, debtors will have to shut down illiquid projects, and in extremis, will face more damaging runs. Authorities may want to push down interest rates to maintain economic activity in the face of such illiquidity, but intervention may not always be feasible, and when feasible, could encourage banks to increase leverage or fund even more illiquid projects up front. This could make all parties worse off. Authorities may want to commit to a specific policy of interest rate intervention to restore appropriate incentives. For instance, to offset incentives for banks to make more illiquid loans, authorities may have to commit to raising rates when low, to counter the distortions created by lowering them when high. We draw implications for interest rate policy to combat illiquidity
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Fault lines : how hidden fractures still threaten the world economy
Alternative Names
Govind Rajan, Raghuram 1963-

Raghuram G. Rajan 1963-....

Raghuram Govind Rajan 1963-....

Raghuram Rajan 1963-....

Raghuram Rajan Amerikaans econoom

Raghuram Rajan economista indiano

Raghuram Rajan Indian economist

Raghuram Rajan indisch-amerikanischer Ökonom

Rajan, R.

Rajan, R. G. 1963-

Rajan, Raghuram

Rajan Raghuram 1963-....

Rajan, Raghuram G.

Rajan Raghuram G. 1963-....

Раджан, Рагхурам

Раджан, Рагхурам Г.

रघुराम राजन

ৰঘূৰাম ৰাজন

ਰਘੁਰਾਮ ਰਾਜਨ

ரகுராம் கோவிந்த் ராஜன்

ரகுராம் கோவிந்த் ராஜன் பொருளாதார நிபுணர்

రఘురాం రాజన్

ರಘುರಾಮ ರಾಜನ್

രഘുറാം രാജൻ

라구람 라잔

라잔, 라구람 G


ラジャン, ラグラム



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Saving capitalism from the capitalists : unleashing the power of financial markets to create wealth and spread opportunity