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Empirical Financial Intermediation



Daniel Paravisini (London School of Economics)



7-11 September 2020



15:30 to 18:30 CET

Intended for


Empirical researchers with an interest in financial intermediation.



Students need to be proficient in Ph.D. level econometrics. J. M. Wooldridge’s ”Econometric Analysis of Cross Section and Panel Data” is a good reference. Also, introductory graduate level corporate finance and financial intermediation theory is recommended. Tirole’s ”Corporate Finance” textbook is a good reference.



The course is divided in five topics, each of them covered in one lecture (approximately). In each topic, we will survey the relevant theory, critically examine the existing literature, and discuss the research and data challenges going forward. The five topics cover a wide range of questions, from longstanding ones (why do financial intermediaries exist?) to more novelones (how does machine learning change traditional intermediation?).



Financial intermediation. Liquidity provision. bank runs. Fragility and the Financial Crisis. Delegated monitoring. Informed capital. Informational advantage, hold-up, and competition. When information is soft. Organizational form and function.
The lending channel. Aggregate evidence. Exogenous shocks to bank capital and financing. Saturated regressions and beyond. Measuring real effects. Specialization.
Small business financing. Dynamism of the small business sector. Why start businesses? What hinders small firm growth?
Fintech and the microeconomics of credit. What do the new technologies bring to the table? Replacing, augmenting, or incentivizing humans? Replacing intermediation?


Daniel Paravisini is a Professor of Finance at the London School of Economics. He has a Ph.D. in economics from the Massachusetts Institute of Technology, and has published his research on credit markets and institutions in top economics, finance, and behavioral sciences journals such as the American Economic Review, the Journal of Finance, the Review of Economic Studies, and Management Science.  Professor Paravisini’s research has received three times the Brattle Award, given by the American Finance Association to the best papers in Corporate Finance published by their journal every year. He is a Co-Editor and Associate Editor of several leading journals in finance and economics and is a research associate of the Centre for Economic Policy Research and the Bureau for Research and Economic Analysis of Development. Professor Paravisini has more than fifteen years of experience in teaching applied corporate finance topics at the graduate level. Prior to joining the London School of Economics, was the G. Winnick and M. Granoff Associate Professor of Business, Columbia University Graduate School of Business.


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