Our Research Focus

Financial Markets and Institutions

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We study the behavior of banks and similar institutions in modern financial markets. In addition, we consider the role of government regulation in those markets. Our recent work has dealt with the interactions between bank supervisors and financial markets, and the causes of and responses to bank runs.

 
Issue Title Author(s)
First Quarter 2010 Introduction to the Special Issue on the Diamond-Dybvig Model Edward S. Prescott
First Quarter 2010 Bailouts Edward J. Green
First Quarter 2010 On the Fundamental Reasons for Bank Fragility Huberto M. Ennis
Todd Keister
First Quarter 2010 Inside-Money Theory after Diamond and Dybvig Ricardo de O. Cavalcanti
First Quarter 2010 Monetary Theory and Electronic Money: Reflections on the Kenyan Experience William Jack
Tavneet Suri
Robert Townsend
Fall 2009 Dynamic Provisioning: A Countercyclical Tool for Loan Loss Reserves. Eliana Balla
Andrew McKenna
Summer 2009 Distortionary Taxation for Efficient Redistribution Borys Grochulski
Spring 2009 The Consolidation of Financial Regulation: Pros, Cons, and Implications for the United States Sabrina R. Pellerin
John R. Walter
Patricia E. 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
Winter 2008 A Quantitative Study of the Role of Wealth Inequality on Asset Prices Juan Carlos Hatchondo
Spring 2007 Banks and Liquidity Creation: A Simple Exposition of the Diamond-Dybvig Model Douglas W. Diamond
Fall 2006 Changes in the Size Distribution of U. S. Banks: 1960 - 2005 Hubert P. Janicki
Edward S. Prescott
Fall 2006 Not Your Father's Credit Union John R. Walter
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
Winter 2005 Banking Markets in a Decade of Mergers: A Preliminary Examination of Five North Carolina Markets John A. Weinberg
Fall 2004 Auditing and Bank Capital Regulation Edward S. Prescott
Spring 2004 Some Recent Trends in Commercial Banking Huberto M. Ennis
Winter 2004 Closing Troubled Banks: How the Process Works John R. Walter
Summer 2003 Accounting for Corporate Behavior John A. Weinberg
Spring 2003 Economic Fundamentals and Bank Runs Huberto M. Ennis
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
Summer 2002 Private Money and Counterfeiting Stephen D. Williamson
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
Fall 2001 Should Banks Be Recapitalized? Douglas W. Diamond
Summer 2001 Regulating Bank Capital Structure to Control Risk Edward S. Prescott
Fall 1999 Limited Commitment and Central Bank Lending Jeffrey M. Lacker
Marvin Goodfriend
Winter 1999 Pooling or Purchase: A Merger Mystery John R. Walter
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
Fall 1997 Group Lending and Financial Intermediation: An Example Edward S. Prescott
Spring 1997 Tax Disincentives to Commercial Bank Lending Anatoli Kuprianov
Winter 1997 The Pre-Commitment Approach in a Model of Regulatory Banking Capital Edward S. Prescott
Fall 1996 Firewalls John R. Walter
Summer 1996 Financial Intermediation as Delegated Monitoring: A Simple Example Douglas W. Diamond
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
Summer 1994 The Role of Interest Rate Swaps in Corporate Finance Anatoli Kuprianov
Spring 1994 Choices in Banking Policy J. Alfred Broaddus, Jr.
Spring 1994 Corporate Capital Structure: The Control Roles of Bank and Public Debt with Taxes and Costly Bankruptcy Douglas W. Diamond
Winter 1994 Firm Size, Finance, and Investment John A. Weinberg
Winter 1994 Does Adverse Selection Justify Government Intervention in Loan Markets? Jeffrey M. Lacker
Summer 1993 Economic Quarterly: Credit Aggregates from the Flow of Funds Accounts Milton P. Reid, III
Stacey L. Schreft
Summer 1993 Economic Quarterly: Over-the-Counter Interest Rate Derivatives Anatoli Kuprianov
Spring 1993 Commercial Paper Thomas K. Hahn
Winter 1993 Economic Quarterly: Bankers Acceptances Robert K. LaRoche
Issue Title Author(s)
1992 Money Market Futures Anatoli Kuprianov
1992 Credit Rationing by Loan Size in Commercial Loan Markets Stacey L. Schreft
Anne P. Villamil
1991 Too Big to Fail: Origins, Consequences, and Outlook Robert L. Hetzel
1991 Financial Evolution and the Long-Run Behavior of Velocity: New Evidence from U.S. Regional Data Peter N. Ireland
1991 Loan Loss Reserves John R. Walter
1991 Productivity in Banking and Effects from Deregulation David B. Humphrey
1991 Survey Evidence of Tighter Credit Conditions: What Does It Mean? Raymond E. Owens
Stacey L. Schreft
1991 Reflections on Deposit Insurance Robert P. Black
1990 The Case for Interstate Branch Banking David L. Mengle
1990 Why do Estimates of Bank Scale Economies Differ? David B. Humphrey
1990 A Yankee Recipe for a EuroFed Omelet Robert F. Graboyes
1990 Fifth District Bank Performance John R. Walter
Donald L. Welker
1990 Reforming Deposit Insurance: Lessons from the Savings and Loan Crisis Michael Dotsey
Anatoli Kuprianov
1990 Takeovers and Stock Price Volatility Jeffrey M. Lacker
John A. Weinberg
1989 Top Performing Small Banks: Making Money the Old-Fashioned Way Benton E. Gup
John R. Walter
1989 The Future of Deposit Insurance: An Analysis of the Alternatives Anatoli Kuprianov
David L. Mengle
1989 Fifth District Banks' Return on Assets: Highest in Decade John R. Walter
Donald L. Welker
1989 Banking Under Changing Rules: The Fifth District Since 1970 David L. Mengle
1989 Improving America's Competitiveness H. Robert Heller
1988 International Risk-Based Capital Standard: History and Explanation Malcolm C. Alfriend
1988 The Monetary Responsibilities of a Central Bank Robert L. Hetzel
1988 A Review of Bank Performance in the Fifth District, 1987 David L. Mengle
John R. Walter
1987 The Australian Money Market and the Operations of the Reserve Bank of Australia: A Comparative Analysis Michael Dotsey
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 The Theory of Multiple Expansion of Deposits: Why it is and Whence it Came Thomas M. Humphrey
1987 IPC or Total Deposits? There Is a Difference! Donald L. Welker
1986 Options on Short-Term Interest Rate Futures Anatoli Kuprianov
1986 Short-Term Municipal Securities John R. Walter
1986 Short-Term Interest Rate Futures Anatoli Kuprianov
1986 Treasury Bill versus Private Money Market Yield Curves Timothy Q. Cook
Thomas A. Lawler
Timothy D. Rowe
1986 Economic Review: A Review of Bank Performance in the Fifth District, 1985 David L. Mengle
John R. Walter
1986 The Discount Window David L. Mengle
1986 An Analysis of Federal Reserve Pricing Anatoli Kuprianov
1986 Thrift Competition: Does It Matter? Donald L. Welker
1985 A Review of Bank Performance in the Fifth District, 1984 David L. Mengle
John R. Walter
1985 Are NOWs Being Used as Savings Accounts? Timothy Q. Cook
Timothy D. Rowe
1985 Financial Innovation in the United States - Background, Current Status and Prospects J. Alfred Broaddus, Jr.
1984 An Investigation of Cash Management Practices and Their Effects on the Demand for Money Michael Dotsey
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.
1983 The Behavior of the Spread between Treasury Bill Rates and Private Money Market Rates since 1978 Timothy Q. Cook
Thomas A. Lawler
1983 An Examination of Implicit Interest Rates on Demand Deposits Michael Dotsey
1983 A Review of Bank Performance in the Fifth District, 1982 John R. Walter
1983 The Relationship between the Discount Rate and the Federal Funds Rate under the Federal Reserve's Post-October 6, 1979 Operating Procedure J. Alfred Broaddus, Jr.
Timothy Q. Cook
1982 Money, the Monetary Base, and Nominal GNP William E. Cullison
1982 Determinants of Individual Tax-Exempt Bond Yields: A Survey of the Evidence Timothy Q. Cook
1982 The Competition for Transaction Accounts Walter A. Varvel
John R. Walter
1982 A Model of Money Stock Determination with Loan Demand and a Banking System Balance Sheet Constraint Marvin Goodfriend
1981 The Market for Federal Funds Seth P. Maerowitz
1981 Eurodollars Marvin Goodfriend
1981 Evolution in Banking Competition Walter A. Varvel
Henry C. Wallich
1981 Commercial Paper Peter A. Abken
1980 Redlining: An Economic Analysis John P. Segala
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 Exchange Rate Policy and the Dual Role of Exchange Rate Movements in International Adjustment Marvin Goodfriend
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
1979 A Summary of the International Banking Act of 1978 John P. Segala
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 Correspondent Services, Federal Reserve Services, and Bank Cash Management Policy Bruce J. Summers
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 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 Seasonal Adjustment of the Money Stock: Problems and policy Implications Thomas A. Lawler
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
1977 A Monetarist Model of Exchange Rate Determination Thomas M. Humphrey
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
1975 The Classical Concept of the Lender of Last Resort Thomas M. Humphrey
1974 The Residential Mortgage Market in Recent Years Timothy Q. Cook
1974 State Taxation of Fifth District Banks Daniel A. Karp
10-08
May 2010		 Debt Dilution and Sovereign Default Risk Juan Carlos Hatchondo
Leonardo Martinez
Cesar Sosa Padilla
10-07
April 2010		 Over-the-Counter Loans, Adverse Selection, and Stigma in the Interbank Market Huberto M. Ennis
John A. Weinberg
10-06
April 2010		 Assessing the Effectiveness of the Paulson "Teaser Freezer" Plan: Evidence from the ABX Index Eliana Balla
Robert E. Carpenter
Breck L. Robinson
10-05
April 2010		 Quantifying the Impact of Financial Development on Economic Development Jeremy Greenwood
Juan M. Sanchez
Cheng Wang
09-11
August 2009		 Are Harsh Penalties for Default Really Better? Kartik B. Athreya
Xuan S. Tam
Eric R. Young
09-10R
July 2009		 Recourse and Residential Mortgage Default: Theory and Evidence from U.S. States (Revised: June 2010) Andra C. Ghent
Marianna Kudlyak
09-8
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
09-7
April 2009		 Assessing the Effectiveness of the Paulson "Teaser Freezer" Plan: Evidence from the ABX Index Eliana Balla
Robert E. Carpenter
Breck L. Robinson
09-5
April 2009		 Credit and Self-Employment Kartik B. Athreya
Ahmet Akyol
08-8R
December 2008		 Financing Development: The Role of Information Costs (Revised August 2009) Jeremy Greenwood
Juan M. Sanchez
Cheng Wang
08-6
October 2008		 A Quantitative Theory of Information and Unsecured Credit Kartik B. Athreya
Xuan S. Tam
Eric R. Young
07-2
March 2007		 Bank Runs and Institutions: The Perils of Intervention Huberto M. Ennis
Todd Keister
06-12
November 2006		 Market-Based Regulation and the Informational Content of Prices Philip Bond
Itay Goldstein
Edward S. Prescott
05-7
September 2005		 Asymmetric Information and the Lack of International Portfolio Diversification Juan Carlos Hatchondo
05-5
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
04-3
March 2004		 Bank Runs and Investment Decisions Revisited Huberto M. Ennis
Todd Keister
04-2
February 2004		 State-Contingent Bank Regulation With Unobserved Actions and Unobserved Characteristics David A. Marshall
Edward S. Prescott
03-1
January 2003		 Economic Growth, Liquidity, and Bank Runs Huberto M. Ennis
Todd Keister
00-12
December 2000		 Banking and the Political Support for Dollarization Huberto M. Ennis
99-3
April 1999		 Firm-Specific Learning and the Investment Behavior of Large and Small Firms Wenli Li
John A. Weinberg
99-2
March 1999		 Limited Commitment and Central Bank Lending Marvin Goodfriend
Jeffrey M. Lacker
98-4
May 1998		 Collateralized Debt as the Optimal Contract Jeffrey M. Lacker
95-5
December 1995		 The Adverse Selection Approach to Financial Intermediation: Some Characteristics of the Equilibrium Financial Structure John A. Weinberg
94-10
August 1994		 The Effects of Open Market Operations a Model of Intermediation and Growth Stacey L. Schreft
Bruce D. Smith
94-9 (Revised Sep. 1995)
July 1994		 The Coalition-Proof Core in Adverse Selection Economies Jeffrey M. Lacker
John A. Weinberg
94-6
May 1994		 Commercial Real Estate Overbuilding in the 1980's: Beyond the Hog Cycle Raymond E. Owens
94-7
June 1994		 Money and the Gain from Enduring Relationships in the Turnpike Model Peter N. Ireland
94-5
May 1994		 Money, Banking, and Capital Formation Stacey L. Schreft
Bruce D. Smith
93-2
March 1993		 Identifying Credit Crunches Raymond E. Owens
Stacey L. Schreft
92-3
December 1992		 Endogenous Financial Innovation and the Demand for Money Peter N. Ireland
92-1
March 1992		 Identifying Credit Crunches Stacey L. Schreft
Raymond E. Owens
91-5
May 1991		 Survey Evidence of Tighter Credit Conditions: What Does It Mean? Stacey L. Schreft
Raymond E. Owens
91-3
February 1991		 Scope Economies: Fixed Costs, Complementarity, and Functional Form Lawrence B. Pulley
David B. Humphrey
90-10
November 1990		 Liquidity Constraints in Commercial Loan Markets with Imperfect Information and Imperfect Competition Anne P. Villamil
90-8
November 1990		 A 'Coalition Proof' Equilibrium for a Private Information Credit Economy Jeffrey M. Lacker
John A. Weinberg
90-7
September 1990		 Wicksell's Monetary Framework and Dynamic Stability Thomas M. Humphrey
90-6
August 1990		 Interest Rates and the Conduct of Monetary Policy Marvin Goodfriend
90-5
June 1990		 Costs and Technical Change: Effects from Bank Deregulation David B. Humphrey
90-3R2
November 1989		 Collateralized Debt as the Optimal Contract (Revised: Feb. 1991) Jeffrey M. Lacker
89-4
October 1989		 The Feasibility of Market Value Accounting for Commercial Banks David L. Mengle
88-8
August 1988		 An Analysis of the Determinants of the Yield on Individual Municipal Securities J. Alfred Broaddus, Jr.
Timothy Q. Cook
88-2
May 1988		 Legal and Regulatory Reform in Electronic Payments: An Evaluation of Finality of Payment Rules David L. Mengle
88-1
April 1988		 Financial Deregulation, Monetary Policy, and Central Banking Marvin Goodfriend
Robert G. King
87-2
August 1987		 Velocity and the Variability of Money Growth: Evidence from Granger-Causality Tests Reevaluated Yash P. Mehra
84-4
September 1984		 A Weekly Perfect Foresight Model of the Nonborrowed Reserve Operating Procedure Marvin Goodfriend
Gary Anderson
Anil Kashyap
George Moore
Richard D. Porter
84-3
June 1984		 The Lender of Last Resort: A Historical Perspective Thomas M. Humphrey
Robert E. Keleher
83-4
December 1983		 The Behavior of the Spread Between Treasury Bill Rates and Private Money Market Rates Since 1978 Timothy Q. Cook
Thomas A. Lawler
83-1
January 1983		 A Historical Assessment of the Rationales and Functions of Reserve Requirements Marvin Goodfriend
Monica Hargraves
80-1
September 1980		 Evolution in Banking Competition Walter A. Varvel
Henry C. Wallich
79-4 (Revised Apr. 1980)
September 1979		 Determinants of the Spread Between Treasury Bill and Private Sector Money Market Rates Timothy Q. Cook
79-1 (Revised Nov. 1979)
March 1979		 Determinants of Correspondent Banking Relationships with the Federal Reserve System Bruce J. Summers
John P. Segala
78-4
October 1974		 Measuring the Default Risk of Bonds Using Yields to Maturity Thomas A. Lawler
78-3
April 1978		 Required Reserves, Correspondent Balances and Cash Asset Positions of Member and Non-Member Banks: Evidence from the Fifth Federal Reserve District Bruce J. Summers
78-1
January 1978		 Federal Reserve Policy Strategy and Interest Rate Seasonality Thomas A. Lawler
77-3
December 1977		 The Risk-Free U.S. Bond Rate: Errors in Construction and Use in Econometric Work Patric H. Hendershott
Timothy Q. Cook
77-2
December 1977		 Interest Rate Expectations and the Demand for Short-Term Business Credit Bruce J. Summers
77-1
March 1977		 The Cost of Membership in the Federal Reserve System Walter A. Varvel
76-3
November 1976		 Determinants of Long-Term Bond Risk Premiums William D. Jackson
76-2
February 1976		 The Motivation for Bank Holding Company Acquisitions Walter A. Varvel
76-1
July 1976		 Bank Management, Competition, and Interest Rates: A Portfolio Model of Discount Window Activity William D. Jackson
75-1
July 1975		 Multibank Holding Companies and Bank Behavior William D. Jackson
74-5
September 1974		 Commercial Banking Performance and Structure: A Factor Analysis Approach William D. Jackson
74-6
September 1974		 A General Model of Bank Decisions J. Alfred Broaddus, Jr.
74-4
June 1974		 Alternate Reserve Concepts as Operating Targets in Monetary Policy Implementation: Specification of the Structural Model Joseph M. Crews
Glenn C. Picou
74-1
January 1974		 Thrift Institution Competition With Commercial Banks: Empirical Evidence William D. Jackson
73-1
May 1973		 Simulations of Marginal Reserve Requirements on Large Denomination Certificates of Deposit in the FRB Model Philip H. Davidson