CAFIN and UC Investments Speaker Series Financial Risks, Innovation and Inclusion in a Post-COVID World
Lisa Cook, Professor of Economics and International Relations, Michigan State University
Violence and Economic Activity: Evidence from African American Inventors, 1870-1940
Recent studies have examined the effect of political conflict and domestic terrorism on economic and political outcomes. This talk focuses on Dr. Cook’s paper using the rise in mass violence between 1870 and 1940 as a natural experiment for determining the impact of ethnic and political violence on economic activity, namely patenting. She finds that violent acts account for more than 1100 missing patents compared to 726 actual patents among African American inventors over this period. Valuable patents decline in response to major riots and segregation laws. Absence of the rule of law covaries with declines in patent productivity for white and black inventors, but this decline is significant only for African American inventors. Patenting responds positively to declines in violence. These findings imply that ethnic and political conflict may affect the level, direction, and quality of invention and economic growth over time.
The economic crisis associated with COVID-19 pandemic has altered all aspects of our lives. In a new CAFIN speaker series, we will focus on financial challenges and developments. Among the questions that are relevant are: What are the risks to the global financial system in the medium to long run? Is the banking system robust enough? What kinds of future policy interventions might be necessary? What changes to payment systems and other financial innovations have been accelerated by the crisis? How do contagion control policies affect populations that are traditionally underserved by the financial sector? Will financial inclusion be more difficult to achieve after the pandemic?
Friday, January 15 at 9:00am