An FDA for Financial Innovation: Applying the Insurable Interest Doctrine to 21st Century Financial Markets

Pareto Improving Financial Innovation in Incomplete Markets

Financial innovation in an existing asset generically supports a Pareto improvement, targeting the income effect. This result, as several on taxation, owes to one unifying notion: that an intervention generically supports Pareto improvements if the implied price adjustment is sufficiently sensitive to the economy’s risk aversion. Elul (1995) and Cass and Citanna (1998) introduce financial innov...

Revisiting financial conflicts of interest in FDA advisory committees.

CONTEXT The Food and Drug Administration (FDA) Safety and Innovation Act has recently relaxed conflict-of-interest rules for FDA advisory committee members, but concerns remain about the influence of members' financial relationships on the FDA's drug approval process. Using a large newly available data set, this study carefully examined the relationship between the financial interests of FDA Ce...

Markets for Financial Information

An Exchange Service for Financial Markets

The critical business requirements and compelling nature of the competitive landscape are pushing Information Technology systems away from the traditional centrally controlled corporate-wide architectures towards dynamic, loosely coupled, self-defining and service-based solutions. Web services are regarded as a key technology for addressing the need for connecting extended applications and prov...

Financial Innovation

Background Bitcoin, a peer-to-peer electronic currency, is a distributed ledger system (Nakamoto 2009). Every transaction is broadcast and verified by all nodes in the network through a particular consensus mechanism (Bonneau et al. 2015; Yermack 2013). Every node collects transactions in a block and the block is associated with a difficult mathematical problem. Solving that problem is called m...