Our Research Focus

Financial Markets & Institutions

We study the behavior of banks and similar institutions in modern financial markets. Our recent work has dealt with the interactions between bank supervisors and financial markets, and the mortgage lending market.

Issue Title Author(s)
First Quarter 2014 The Financial Crisis, the Collapse of Bank Entry, and Changes in the Size Distribution of Banks Roisin McCord
Edward S. Prescott
Fourth Quarter 2013 Pecuniary Externalities, Segregated Exchanges, and Market Liquidity in a Diamond-Dybvig Economy with Retrade Borys Grochulski
Second Quarter 2013 Too Big to Manage? Two Book Reviews Edward S. Prescott
Fourth Quarter 2012 Some Theoretical Considerations Regarding Net Asset Values for Money Market Funds Huberto M. Ennis
Second Quarter 2012 On the Benefits of GDP-Indexed Government Debt: Lessons from a Model of Sovereign Defaults Juan Carlos Hatchondo
Leonardo Martinez
First Quarter 2012 Exchange Rate Volatility in a Simple Model of Firm Entry and FDI Thomas A. Lubik
Katheryn N. Russ
Fourth Quarter 2011 Strategic Behavior in the Tri-Party Repo Market Huberto M. Ennis
Third Quarter 2011 Introduction to the Special Issue on Modern Macroeconomic Theory Andreas Hornstein
Third Quarter 2011 Financial Frictions in Macroeconomic Fluctuations Vincenzo Quadrini
Third Quarter 2011 Macroeconomics with Heterogeneity: A Practical Guide Fatih Guvenen
Second Quarter 2011 Financial Firm Resolution Policy as a Time-Consistency Problem Borys Grochulski
Fall 2009 Dynamic Provisioning: A Countercyclical Tool for Loan Loss Reserves. Eliana Balla
Andrew McKenna
Spring 2009 The Consolidation of Financial Regulation: Pros, Cons, and Implications for the United States Sabrina R. Pellerin
John R. Walter
Patricia Wescott
Spring 2009 Should Increased Regulation of Bank Risk-Taking Come from Regulators or from the Market? Robert L. Hetzel
Winter 2008 Should Bank Supervisors Disclose Information About Their Banks? Edward S. Prescott
Winter 2008 Antitrust Analysis in Banking: Goals, Methods, and Justifications in a Changed Environment John R. Walter
Patricia E. Wescott
Fall 2006 Changes in the Size Distribution of U. S. Banks: 1960 - 2005 Hubert P. Janicki
Edward S. Prescott
Spring 2006 Can Feedback from the Jumbo CD Market Improve Bank Surveillance? R. Alton Gilbert
Andrew P. Meyer
Mark D. Vaughan
Winter 2006 The 3-6-3 Rule: An Urban Myth? John R. Walter
Spring 2005 Bank Risk of Failure and the Too-Big-to-Fail Policy Huberto M. Ennis
H. S. Malek
Winter 2005 Depression-Era Bank Failures: The Great Contagion or the Great Shakeout? John R. Walter
Fall 2004 Auditing and Bank Capital Regulation Edward S. Prescott
Winter 2004 Closing Troubled Banks: How the Process Works John R. Walter
Summer 2003 Accounting for Corporate Behavior John A. Weinberg
Spring 2003 Banking and Commerce: Tear Down This Wall? John R. Walter
Fall 2002 Competition Among Bank Regulators John A. Weinberg
Summer 2002 The Economics of Financial Privacy: To Opt Out or Opt In? Jeffrey M. Lacker
Spring 2002 What Can Price Theory Say about the Community Reinvestment Act? John R. Walter
Robert L. Lacy
Spring 2002 Can Risk-Based Deposit Insurance Premiums Control Moral Hazard? Edward S. Prescott
Fall 2001 On the Size Distribution of Banks Huberto M. Ennis
Summer 2001 Regulating Bank Capital Structure to Control Risk Edward S. Prescott
Winter 1999 A Primer on Moral-Hazard Models Edward S. Prescott
Summer 1998 The Bank Merger Wave: Causes and Consequences J. Alfred Broaddus, Jr.
Winter 1998 Can a Safety Net Subsidy Be Contained? John R. Walter
Winter 1997 The Pre-Commitment Approach in a Model of Regulatory Banking Capital Edward S. Prescott
Fall 1996 Firewalls John R. Walter
Spring 1996 Tie-in Sales and Banks John A. Weinberg
Fall 1995 Derivatives Debacles: Case Studies of Large Losses in Derivatives Markets Anatoli Kuprianov
Fall 1994 Were Bank Examiners Too Strict with New England and California Banks? John R. Walter
Robert M. Darin
Spring 1994 Choices in Banking Policy J. Alfred Broaddus, Jr.
Spring 1993 Commercial Paper Thomas K. Hahn
Issue Title Author(s)
1991 Too Big to Fail: Origins, Consequences, and Outlook Robert L. Hetzel
1991 Loan Loss Reserves John R. Walter
1991 Reflections on Deposit Insurance Robert P. Black
1990 The Case for Interstate Branch Banking David L. Mengle
1990 Reforming Deposit Insurance: Lessons from the Savings and Loan Crisis Michael Dotsey
Anatoli Kuprianov
1989 The Future of Deposit Insurance: An Analysis of the Alternatives Anatoli Kuprianov
David L. Mengle
1989 Banking Under Changing Rules: The Fifth District Since 1970 David L. Mengle
1988 International Risk-Based Capital Standard: History and Explanation Malcolm C. Alfriend
1987 A Review of Bank Performance in the Fifth District, 1986 David L. Mengle
John R. Walter
1987 Cost Dispersion and the Measurement of Economies in Banking David B. Humphrey
1987 IPC or Total Deposits? There Is a Difference! Donald L. Welker
1984 A Review of Bank Performance in the Fifth District, 1983 F. Ward McCarthy, Jr.
1984 The Evolution of the Bank Regulatory Structure: A Reappraisal F. Ward McCarthy, Jr.
1981 Eurodollars Marvin Goodfriend
1981 Evolution in Banking Competition Walter A. Varvel
Henry C. Wallich
1981 Commercial Paper Peter A. Abken
1980 Short-Term Investment Pools Timothy Q. Cook
Jeremy G. Duffield
1980 Investments for Small Savers at Commercial Banks James F. Tucker
1980 Negotiable Certificates of Deposit Bruce J. Summers
1980 Bank Profits and Inflation Henry C. Wallich
1980 The Financial Services Industry: Recent Trends and Future Prospects Aubrey N. Snellings
1979 Nonbank Activities of Fifth District Bank Holding Companies Walter A. Varvel
1979 Average Costs of Money Market Mutual Funds Timothy Q. Cook
Jeremy G. Duffield
1979 Money Market Mutual Funds: A Reaction to Government Regulations or A Lasting Financial Innovation? Timothy Q. Cook
Jeremy G. Duffield
1979 Profitability of Minority Banks in 1977 James F. Tucker
1978 Automatic Transfers from Savings to Checking: Perspective and Prospects J. Alfred Broaddus, Jr.
1978 Regulation Q and the Behavior of Savings and Small Time Deposits at Commercial Banks and the Thrift Institutions Timothy Q. Cook
1978 The Implicit Deposit Rate Concept: Issues and Applications Michael A. Klein
1978 Honest Money Henry C. Wallich
1978 Managing Cash Assets: Operating Balances and Reserve Requirements Bruce J. Summers
1978 Seasonal Movements in Short-Term Yield Spreads Thomas A. Lawler
1978 LIFO Inventory Accounting: Effects on Corporate Profits, Inventory-Sales Ratios, and Inventory Investment Walter A. Varvel
1978 Perspectives on Fifth District Banking: 1960-1976 Bruce J. Summers
1978 The Impact of Large Time Deposits on the Growth Rate of M2 Timothy Q. Cook
1977 Some Factors Affecting Short-Run Growth Rates of the Money Supply J. Alfred Broaddus, Jr.
Timothy Q. Cook
1977 Bank Capital Adequacy: Perspectives and Prospects Bruce J. Summers
1977 Changes in Banking Concentration in Selected Fifth District SMSAs, 1970-1976 Walter A. Varvel
Suzanne J. Stone
1977 The Need for Order in International Finance Arthur F. Burns
1976 Performance Characteristics of High-Earning Minority Banks Bruce J. Summers
James F. Tucker
1976 FDIC Policy Toward Bank Failures Walter A. Varvel
1976 Regulations Affecting Competition Between Banks and Thrift Institutions in the Fifth District Bruce J. Summers
1976 A Review of the Municipal Bond Market Richard Rosenbloom
1976 The $2 Bill Returns Suzanne J. Stone
1976 Foreign Banking in the United States: Movement Toward Federal Regulation Bruce J. Summers
1975 Loan Commitments to Business in United States Banking History Bruce J. Summers
1975 A Valuation Approach to Bank Holding Company Acquisitions Walter A. Varvel
1975 A Time Series Analysis of Business Loans at Large Commercial Banks Bruce J. Summers
1974 The Residential Mortgage Market in Recent Years Timothy Q. Cook
1974 State Taxation of Fifth District Banks Daniel A. Karp
Paper Title Author(s)
May 2015
Did the Financial Reforms of the Early 1990s Fail? A Comparison of Bank Failures and FDIC Losses in the 1986-92 and 2007-13 Periods Eliana Balla
Edward S. Prescott
John R. Walter
July 2014
A Simple General Equilibrium Model of Large Excess Reserves Huberto M. Ennis
March 2014
Asset Trading and Valuation with Uncertain Exposure Juan Carlos Hatchondo
Per Krusell
Martin Schneider
January 2014
Does Greater Inequality Lead to More Household Borrowing? New Evidence from Household Data Olivier Coibion
Yuriy Gorodnichenko
Marianna Kudlyak
John Mondragon
November 2013
mREITs and Their Risks (Revised December 2013) Sabrina R. Pellerin
Steven Sabol
John R. Walter
August 2013
Internet Banking: An Exploration in Technology Diffusion and Impact (Revised August 2014) Richard Sullivan
Zhu Wang
August 2013
Are Young Borrowers Bad Borrowers? (Revised June 2014) Peter Debbaut
Andra C. Ghent
Marianna Kudlyak
July 2013
Sudden Stops, Time Inconsistency, and the Duration of Sovereign Debt Juan Carlos Hatchondo
Leonardo Martinez
May 2013
Demand Externalities and Price Cap Regulation: Learning from the U.S. Debit Card Market (Revised July 2014) Zhu Wang
March 2013
Banker Compensation and Bank Risk Taking: The Organizational Economics View Arantxa Jarque
Edward S. Prescott
February 2013
International Reserves and Rollover Risk Javier Bianchi
Juan Carlos Hatchondo
Leonardo Martinez
November 2012
Ad-valorem platform fees, indirect taxes and efficient price discrimination (Revised April 2015) Zhu Wang
Julian Wright
October 2012
The Economics of Two-Sided Payment Card Markets: Pricing, Adoption and Usage James McAndrews
Zhu Wang
August 2012
Large Excess Reserves in the U.S.: A View from the Cross-Section of Banks Huberto M. Ennis
Alexander L. Wolman
March 2012
Fiscal Rules and the Sovereign Default Premium Juan Carlos Hatchondo
Leonardo Martinez
Francisco Roch
December 2011
Loan Loss Reserves, Accounting Constraints, and Bank Ownership Structure Eliana Balla
Morgan J. Rose
November 2011
Contingent Capital: The Trigger Problem Edward S. Prescott
September 2011
Mortgage Defaults and Prudential Regulations in a Standard Incomplete Markets Model (Revised February 2014) Juan Carlos Hatchondo
Leonardo Martinez
Juan M. Sanchez
March 2011
An Experimental Analysis of Contingent Capital Triggering Mechanisms (Revised Oct. 2011) Douglas Davis
Edward S. Prescott
Oleg Korenok
October 2010
Optimal Bonuses and Deferred Pay for Bank Employees: Implications of Hidden Actions with Persistent Effects in Time Arantxa Jarque
Edward S. Prescott
October 2010
On the Optimality of Ramsey Taxes in Mirrlees Economies Borys Grochulski
August 2009
Are Harsh Penalties for Default Really Better? Kartik B. Athreya
Xuan S. Tam
Eric R. Young
July 2009
Recourse and Residential Mortgage Default: Theory and Evidence from U.S. States (Revised June 2010) Andra C. Ghent
Marianna Kudlyak
May 2009
The Consolidation of Financial Market Regulation: Pros, Cons, and Implications for the United States Sabrina R. Pellerin
John R. Walter
Patricia E. Wescott
March 2007
Bank Runs and Institutions: The Perils of Intervention Huberto M. Ennis
Todd Keister
November 2006
Market-Based Regulation and the Informational Content of Prices Philip Bond
Itay Goldstein
Edward S. Prescott
July 2005
Should the FDIC Worry about the FHLB? The Impact of Federal Home Loan Bank Advances on the Bank Insurance Fund Rosalind L. Bennett
Mark D. Vaughan
Timothy J. Yeager
March 2004
Bank Runs and Investment Decisions Revisited Huberto M. Ennis
Todd Keister
February 2004
State-Contingent Bank Regulation With Unobserved Actions and Unobserved Characteristics David A. Marshall
Edward S. Prescott
March 1999
Limited Commitment and Central Bank Lending Marvin Goodfriend
Jeffrey M. Lacker
June 1990
Costs and Technical Change: Effects from Bank Deregulation David B. Humphrey
October 1989
The Feasibility of Market Value Accounting for Commercial Banks David L. Mengle
May 1988
Legal and Regulatory Reform in Electronic Payments: An Evaluation of Finality of Payment Rules David L. Mengle
April 1988
Financial Deregulation, Monetary Policy, and Central Banking Marvin Goodfriend
Robert G. King
July 1976
Bank Management, Competition, and Interest Rates: A Portfolio Model of Discount Window Activity William D. Jackson
September 1974
Commercial Banking Performance and Structure: A Factor Analysis Approach William D. Jackson
May 1973
Simulations of Marginal Reserve Requirements on Large Denomination Certificates of Deposit in the FRB Model Philip H. Davidson
Essay Title Author(s)
March 2015
Explaining the Decline in the Number of Banks since the Great Recession Roisin McCord
Edward S. Prescott
Tim Sablik
February 2014
Reforming Money Market Mutual Funds: A Difficult Assignment Huberto M. Ennis
Renee Haltom
December 2013
How Risky Are Young Borrowers? Peter Debbaut
Andra C. Ghent
Marianna Kudlyak
Jessie Romero
November 2013
Assessing the Risks of Mortgage REITs Sabrina R. Pellerin
David A. Price
Steven Sabol
John R. Walter
September 2012
Can Orderly Liquidation Solve the Problems of Bailouts and Bankruptcies? Betty Joyce Nash
Sabrina R. Pellerin
John R. Walter
August 2012
TARGET2: Symptom, Not Cause, of Eurozone Woes Thomas A. Lubik
Karl Rhodes
March 2012
Loan Loss Reserve Accounting and Bank Behavior Eliana Balla
Morgan J. Rose
Jessie Romero
February 2012
Experimenting with Contingent Capital Triggers Edward S. Prescott
David A. Price
June 2011
Basel III and the Continuing Evolution of Bank Capital Regulation Huberto M. Ennis
David A. Price
May 2011
The Role of Interchange Fees on Debit and Credit Card Transactions in the Payments System Tim Mead
Renee Haltom
Margaretta Blackwell
February 2011
Small Business Lending During the Recession Betty Joyce Nash
Kimberly Zeuli
June 2010
Now How Large Is the Safety Net? Jeffrey M. Lacker
John A. Weinberg
May 2010
Is There Stigma Associated with Discount Window Borrowing? Renee Haltom
Huberto M. Ennis
February 2010
Is a New Asset Bubble Emerging in Certain Markets? Renee Haltom
Brian Gaines
Juan Carlos Hatchondo
November 2009
Rolling Back the Financial Safety Net Robert L. Hetzel
Stephen Slivinski
July 2009
Systemic Risk Regulation and the "Too Big to Fail" Problem Borys Grochulski
Stephen Slivinski
December 2008
Turmoil in the Student Loan Market John R. Walter
Samuel E. Henly