The recent financial crisis was a powerful reminder that the inherent instability of the monetary-financial system is likely to entail serious consequences for the real economy. In the U.S., the monumental Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 ("Dodd-Frank Act") has provided legislation that aims to institutionalise several aspects a new thinking on financial stability. In addition to the interagency Financial Stability Oversight Council ("FSOC"), the creation of the The Consumer Financial Protection Bureau ("CFPB") marks an important departure from the U.S. regulatory tradition of decentralized agencies whereby the institutional locus of financial oversight depended on the precise nature of the legal structure of and business activities pursued by individual financial intermediaries. In its mandate and institutional structure, the CFPB unifies both "micro-prudential" and "macroprudential" principles of financial regulation to enhance overall financial stability. From an historical perspective, the creation of the CFPB does not change the regulatory landscape to the same extent as did the creation of the Federal Reserve after the Panic of 1907 or the creation of the FDIC after the 1933 Banking Crisis. At the same time, however, the CFPB represents an important historical shift in the policy focus of U.S. financial regulation away from bank stability bank to a broad notion of financial stability that recognises the increased financialisation of households' welfare.
This paper assesses the effect of Richard Florida's creative class on economic growth and development at two levels of spatial aggregation. First, I examine the dynamics of economic growth across US metropolitan regions and investigate how they relate to regional specialization and the concentration of talent in the high-tech industry. In addition to evidence of significant high-tech clusters, I identify important complementarities with regard to the interaction between the three Ts of regional development (talent, technology and tolerance) and regional growth dynamics. Using firm-level data, the regional analysis is then complemented by exploring the location of new high-technology plant openings and their relationship with university research and development (R&D) and the creative class. Specifically, I test the hypothesis that both university R&D and the presence of “creativity” generate spillovers which are captured locally in the form of new high-tech establishments, after controlling for important location factors such as local cost, demand and agglomeration economies. While the marginal impacts of increased R&D funding on county probability for new firm formation is modest, the mix of creativity and diversity—as proxied by the Florida measure—appears to be a key driver in the locational choice of new high-tech firms. Separate estimates indicate that these findings hold up across the major high-tech industries in the USA.Regional growth, firm location, creative class, high-tech industry, R&D,
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