Luigi Zingales

Luigi Zingales is the Robert C. McCormack Professor of Entrepreneurship and Finance at the Graduate School of Business of the University of Chicago, where he has been a member of the faculty since 1992. He is a faculty research fellow of the NBER, a research fellow of the Centre for Economic Policy Research (CEPR), a fellow of the European Corporate Governance Institute and a director of the American Finance Association. In 2003 he won the Bernacer Prize for the best European young financial economist. His research interests span from corporate governance to financial development, from political economy to the economic effects of culture. He has published extensively in the major economics and financial journals and he has recently published a book with Raghuram Rajan entitled Saving Capitalism from the Capitalists. Since 2005, he holds the Taussig Research Professorship at Harvard University.

Papers Published in World Economics:

Making Capitalism Work for Everyone

There is a widespread belief that free markets do not benefit the common person, let alone the poor: they are only an instrument for the rich to get richer. Not only is this belief false, but in fact the opposite is true. Free markets are the single most important tools to eliminate poverty and spread opportunity. The problem is that people do not distinguish enough between true free market capitalism, which implies competition and equal access, and the failed version experienced in many countries where powerful elites protect their position by denying fair access to markets. Particularly in developing countries, ordinary people never see the benefits of properly working capitalism. To make them work for all, markets need political support to provide the right amount of rules and regulations that will allow them to flourish; a government that is not too interventionist and not too laissez-faire. While there is no single proposal that will preserve the system of free enterprise from its enemies, the authors suggest three mutually reinforcing broad policy objectives: keep borders open to the flow of goods and capital; encourage the transfer of productive assets into efficient hands; and maintain safety nets focused on individuals.

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