There is, and has always been, considerable dis-agree-

ment among researchers over what methods suit the measurement of financial innovation since the 1990s.The appropriate tool for macro-economic stabilization de-

pends on the underlying theory in use. Many theories measuring the impact of financial innovations apply cointegration and are modelled to take care of changes in both the short and long run in technology, deposit money and structural changes to policy. I support the use of cointegration models supported by acceptable theory whether monetary or keynesian.

before going to measure the impact of financial innovations on the investment, you have to develop an operational definition for financial innovations.

Operational definition will guide you in enumerating the financial innovations which are worthful for research.

Next, you trace out the dates of initiation of the financial innovations into the market.

Analyze the significance of the difference in investment after the initiations of the financial innovations.

Any further discussion in this regard is most welcome.

For Impact Study : (1) You need an outcome that you want to measure. Impact on what? (2) Impact studies require a Base line and an End line survey/data about investment, or behavior or return or trading and an estimate of true counterfactual. Doing before-after kind of study or with-without kind of study does not provide robust analysis.