Education

B.S., Oklahoma State University, mathematics, 1970

M.S., Oklahoma State University, economics, 1974

Ph.D., Northwestern University, economics, 1979

Work Experience

Federal Reserve Bank of Boston

Vice President and Economist, 2012-
Senior Economist and Policy Advisor, 2012
Visiting Economist, 1985-2000

University of Kentucky, Gatton College of Business and Economics

Gatton Chair in International Banking and Financial Economics, 2000-2011

Boston College

Professor of Economics, 1989-2000
Director of Graduate Studies, 1987-1990
Associate Professor of Economics, 1984-1989
Assistant Professor of Economics, 1979-1984
Instructor, 1978-1979

University of Canterbury, Christchurch, New Zealand

Visiting Erskine Fellow, March-April 1994
Visiting Professor, March-May, 1992

Affiliations

Journal of Money, Credit, and Banking

Associate Editor, 2002-

Columbia University, Center on Japanese Economy and Business

Research Associate, 2006-

FDIC, Center for Financial Research

Fellow, 2004-2005

Publications

Refereed journal articles

"Capital Constraints, Asymmetric Information, and Internal Capital Markets in Banking: New Evidence," with Dmytro Holod Journal of Money, Credit, and Banking 42(5):879-906 (August 2010).

“Credit Availability and the Structure of the Homebuilding Industry,” with Brent Ambrose Real Estate Economics 36(4):659-692 (Winter 2008). [winner of the Edwin Mills award for the best paper published in REE in 2008]

“Asymmetric Information and Liquidity Constraints: A New Test,” with Dmytro Holod Journal of Banking and Finance. 31(8):2425-2451 ( August 2007).

“Comovement After Joining an Index: Spillovers of Nonfundamental Effects,” with Brent Ambrose and Dong Lee Real Estate Economics. 35(1):57-90 (2007).

“Housing, Credit Constraints, and Macro Stability: The Secondary Mortgage Market and Reduced Cyclicality of Residential Investment,” with James A. Wilcox American Economic Review, Papers and Proceedings, 96(2):135-140 (May 2006).

“Unnatural Selection: Perverse Incentives and the Misallocation of Credit in Japan,” with Eric Rosengren American Economic Review 95(4) 1144-1166 (September 2005).

“Identifying the Macroeconomic Effect of Loan Supply Shocks,” with Eric Rosengren and Geoffrey Tootell, Journal of Money, Credit, and Banking 35(6):931-946 (December 2003, Part 1).

"Does the Federal Reserve Possess an Exploitable Informational Advantage?" with Eric Rosengren and Geoffrey Tootell Journal of Monetary Economics 50(4): 817-839 (May 2003).

“Troubled Banks, Impaired Foreign Direct Investment: The Role of Relative Access to Credit,” with Michael Klein and Eric Rosengren American Economic Review 92(3): 664-682 (June 2002).

"Determinants of the Japan Premium: Actions Speak Louder than Words," with Eric Rosengren Journal of International Economics 53(2): 283-305 (April 2001).

"The Market Reaction to the Disclosure of Supervisory Actions: Implications for Bank Transparency," with John S. Jordan and Eric S. Rosengren Journal of Financial Intermediation 9(3): 298-319 (July 2000).

"Collateral Damage: Effects of the Japanese Bank Crisis on Real Activity in the United States," with Eric Rosengren American Economic Review 90(1):30-45 (March 2000).

"Is Bank Supervision Central to Central Banking?" with Eric Rosengren and Geoffrey Tootell Quarterly Journal of Economics 114(2): 629-653 (May 1999).

"The Poor Performance of Foreign Bank Subsidiaries: Were the Problems Acquired or Created?" with Eric Rosengren and Faith Kasirye Journal of Banking and Finance 23(2-4): 579-604 (February 1999).

"Bank Consolidation and Small Business Lending: It's Not Just Bank Size That Matters," with Eric Rosengren Journal of Banking and Finance 22(6-8): 799-819 (August 1998).

"Derivatives Activity at Troubled Banks," with Eric Rosengren Journal of Financial Services Research 12(2-3): 287-302 (October/December 1997). Reprinted in The Regulation and Supervision of Banks, Vol. III, Maximilian J.B. Hall, ed., Edward Elgar Publishing, 2001.

"The International Transmission of Financial Shocks: The Case of Japan," with Eric Rosengren American Economic Review, 87(4): 495-505 (September 1997).

"Will Legislated Early Intervention Prevent the Next Banking Crisis?" with Eric Rosengren Southern Economic Journal 64(1): 268-280 (July 1997).

"Bank Regulatory Agreements and Real Estate Lending," with Eric Rosengren Real Estate Economics 24(1):55-73 (Spring 1996).

"The Capital Crunch: Neither a Borrower Nor a Lender Be," with Eric Rosengren Journal of Money, Credit, and Banking 27(3):625-638 (August 1995). Reprinted in The Regulation and Supervision of Banks, Vol. III, Maximilian J.B. Hall, ed., Edward Elgar Publishing, 2001.

"Bank Regulation and the Credit Crunch," with Eric Rosengren Journal of Banking and Finance 19(3-4): 679-692 (June 1995). Reprinted in The Regulation and Supervision of Banks, Vol. III, Maximilian J.B. Hall, ed., Edward Elgar Publishing, 2001.

"Bank Real Estate Lending and the New England Capital Crunch," with Eric Rosengren Journal of the American Real Estate and Urban Economics Association 22(1): 33-58 (Spring 1994).

"Treasury Bill Rates in the 1970s and 1980s," with Patric Hendershott Journal of Money, Credit and Banking 195-214 (May 1992).

"The Baby Boom, 'Pent-Up' Demand and Future House Prices," with James A. Wilcox Journal of Housing Economics 1: 347-367 (December 1991).

"The Measurement and Determinants of Single-Family House Prices," with James A. Wilcox AREUEA Journal 19(3): 353-382 (Fall 1991).

"Determinants of U.S. Treasury Bill Rates," with Patric Hendershott Financial Markets and Portfolio Management, no. 1:9-15 (1989).

"Household Saving in the United States: Measurement and Behavior," with Patric Hendershott Journal of Business and Economic Statistics 7(1):11-19 (January 1989).

"Monetary Policy Regimes and the Reduced Form for Interest Rates," with James A. Wilcox Journal of Money, Credit and Banking 19(3): 273-291 (August 1987).

"An Ex Ante View of Household Portfolio Choice: The Role of Expected Capital Gains," with David Ortmeyer Review of Economics and Statistics 68(2):207-216 (May 1986).

"Tax Rate Effects on Interest Rates," with James A. Wilcox Economics Letters 20(2): 183-186 (February 1986).

"The Degree of Fiscal Illusion in Interest Rates: Some Direct Estimates," with James A. Wilcox American Economic Review 74(5): 1061-1066 (December 1984).

"The Postwar Stability of the Fisher Effect," with James A. Wilcox Journal of Finance September 38(4): 1111-1124 (1983).

"Capital Gains and Personal Saving Behavior," Journal of Money, Credit and Banking 15(1):1-23 (February 1983).

"Interest Rates, Income Taxes and Anticipated Inflation" American Economic Review 72(5): 980-991 (December 1982).

"Personal Saving and the Measurement of Income Tax Liabilities" Review of Economics and Statistics 64(1):143-147 (February 1982).

Other journal articles

"Implications of the Globalization of the Banking Sector: The Latin American Experience," with Eric S. Rosengren New England Economic Review (September/October 2000, 45-62).

“Using Bank Supervisory Data to Improve Macroeconomic Forecasts,” with Eric Rosengren and Geoffrey Tootell New England Economic Review (September/October 1999, 21-32).

"Japanese Banking Problems: Implications for Lending in the United States,” with Eric Rosengren New England Economic Review (January/February 1999, 25-36).

"The Evolution of Bank Lending to Small Business," with Eric Rosengren New England Economic Review (March/April 1998, 27-36).

"How Well Capitalized Are Well-Capitalized Banks?" with Eric Rosengren New England Economic Review (September/October 1997, 41-50).

"Have Borrower Concentration Limits Encouraged Bank Consolidation?" with Eric Rosengren New England Economic Review (January/February 1997, 37-47).

"The Use of Capital Ratios to Trigger Intervention in Problem Banks: Too Little, Too Late," with Eric Rosengren New England Economic Review (September/October 1996, 49-58).

"Bank Regulatory Agreements in New England," with Eric Rosengren, New England Economic Review (May/June 1995, 15-24).

"Is Bank Lending Important for the Transmission of Monetary Policy? An Overview," with Eric Rosengren New England Economic Review, (November/ December 1995, 3-10); also in Is Bank Lending Important for the Transmission of Monetary Policy? Joe Peek and Eric Rosengren, eds., Federal Reserve Bank of Boston Conference Series No. 39, 1995, 1-11.

"Business Failures in New England," with James W. Meehan, Jr. and Eric Rosengren, New England Economic Review (November/December 1993, 33-44).

"The Capital Crunch in New England," with Eric Rosengren, New England Economic Review (May/June 1992, 21-31).

"A Real, Affordable Mortgage," with James A. Wilcox, New England Economic Review (January/February 1991, 51-66).

"A Call to ARMs: Adjustable Rate Mortgages in the 1980s," New England Economic Review (March/April 1990, 47-61).

"The Stock Market and Economic Activity," with Eric Rosengren New England Economic Review (May/June 1988, 39-50).

"Inflation and the Excess Taxation of Personal Interest Income," New England Economic Review (March/April 1988, 46-52).

"The Distorting Effects of the Inflation Premium on Personal Income and Expenditures" New England Economic Review (September/October 1987, 10-24).

"Household Wealth Composition: The Impact of Capital Gains" New England Economic Review (November/December 1986, 26-39).

"Tax Rates and Interest Rates on Tax-Exempt Securities," with James A. Wilcox New England Economic Review, (January/February 1986, 29-41).

Books and book chapters

“The Changing Role of Main Banks in Aiding distressed Firms in Japan,” in Japan’s Bubble, Deflation and Long-Term Stagnation Koichi Hamada, Anil Kashyap, and David Weinstein, eds., MIT Press, 2011, 309-342.

“The Role of Banks in the Transmission of Monetary Policy,” with Eric Rosengren, in The Oxford Handbook of Banking Allen Berger, Philip Molyneux, and John Wilson, eds., Oxford University Press, 2010, 257-277.

“Secondary Bank Lending in Japan,” with Zekeriya Eser and Eric Rosengren, in Japan’s Great Stagnation: Financial and Monetary Policy Lessons for Advanced Economies, Michael Hutchison and Frank Westermann, eds., CESifo Seminar Series, MIT Press, 2006, 129-155.

“The Importance of Bank Access to External Funds for the Transmission of Monetary Policy,” with Dmytro Holod, in The Art of the Loan in the 21st Century, Proceedings of the 41st Annual Conference on Bank Structure and Competition, Federal Reserve Bank of Chicago, 2005, 229-240.

“Crisis Resolution and Credit Allocation: The Case of Japan,” with Eric Rosengren, in Systemic Financial Crises: Containment and Resolution, Patrick Honohan and Luc Laeven, eds., Cambridge University Press, 2005, 276-305.

“The Fall and Rise of Banking Safety Net Subsidies,” with James A. Wilcox, in Too Big To Fail: Policies and Practices in Government Bailouts, Benton E. Gup, ed., Greenwood Publishing Group, 2004, 169-193.

“Secondary Mortgage Markets, GSEs, and the Changing Cyclicality of Mortgage Flows,” with James A. Wilcox, in Andrew H. Chen, ed., Research in Finance, Vol. 20, Elsevier Science B.V., 2003, 61-80.

“Synergies Between Bank Supervision and Monetary Policy: Implications for the Design of Bank Regulatory Structure,” with Eric Rosengren and Geoffrey Tootell, in Frederic S. Mishkin, ed., Prudential Supervision: What Works and What Doesn’t? Chicago: The University of Chicago Press, 2001, 273-293.

“Japanese Banking Problems: Implications for Southeast Asia,” with Eric Rosengren, in Global Financial Crises and Reforms: Cases, Correlates and Caveats, B. N. Ghosh, ed., London: Routledge, 2001; and in Banking, Financial Integration, and International Crises, Leonardo Hernandez and Klaus Schmidt-Hebbel, eds., Santiago: Central Bank of Chile, 2002, 303-332.

"Implications of the Globalization of the Banking Sector: The Latin American Experience," with Eric S. Rosengren, in Building an Infrastructure for Financial Stability, John S. Jordan and Eric S. Rosengren, eds., Federal Reserve Bank of Boston Conference Series no. 44, 2000, 145-170.

“Factors Affecting the Japan Premium,” with Eric Rosengren, in Global Financial Crises: Implications for Banking and Regulation, Proceedings of the 35th Annual Conference on Bank Structure and Competition, Federal Reserve Bank of Chicago, 1999, 489-95.

“International Implications of Disclosing Supervisory Information,” with John Jordan and Eric Rosengren, in Global Financial Crises: Implications for Banking and Regulation, Proceedings of the 35th Annual Conference on Bank Structure and Competition, Federal Reserve Bank of Chicago, 1999, 72-78.

"Can Bank Supervisory Information Improve Forecasts of Variables Critical to Monetary Policy?" with Eric Rosengren and Geoffrey Tootell, in Payments Systems in the Global Economy: Risks and Opportunities, Proceedings of the 34th Annual Conference on Bank Structure and Competition, Federal Reserve Bank of Chicago, 1998, 422-30.

"Comment on 'Bank Examination and Enforcement, 1980-1994'," in History of the Eighties – Lessons for the Future: Proceedings of the FDIC Symposium, Federal Deposit Insurance Corporation, Vol. 2, 1997, 11-16.

"Small Business Credit Availability: How Important Is Size of Lender?" with Eric Rosengren, in Universal Banking: Financial System Design Reconsidered, Irwin Professional Publishing, 1996, 628-55.

"Bank Lending and the Transmission of Monetary Policy," with Eric Rosengren, in Is Bank Lending Important for the Transmission of Monetary Policy?Joe Peek and Eric Rosengren, eds., Federal Reserve Bank of Boston Conference Series No. 39, 1995, 47-68.

Is Bank Lending Important for the Transmission of Monetary Policy? ed. with Eric Rosengren, Federal Reserve Bank of Boston Conference Series No. 39, 1995.

"The Effects of Interstate Branching on Small Business Lending," with Eric Rosengren, in The New Tool Set: Assessing Innovations in Banking, Proceedings of the 31st Annual Conference on Bank Structure and Competition, Federal Reserve Bank of Chicago, 1995, 314-31.

"Crunching the Recovery: Bank Capital and the Role of Bank Credit," with Eric Rosengren, in Real Estate and the Credit Crunch, Federal Reserve Bank of Boston Conference Series No. 36, 1992, 151-74.

"Bank Capital Regulation and the New England Credit Crunch," with Eric Rosengren in Credit Markets in Transition, Proceedings of the 28th Annual Conference on Bank Structure and Competition, Federal Reserve Bank of Chicago, 1992, 490-501.

"Aggregate U.S. Private Saving: Conceptual Measures and Empirical Tests," with Patric Hendershott, in Robert E. Lipsey and Helen Stone Tice, The Measurement of Saving, Investment and Wealth, Studies in Income and Wealth Series, Vol. 52, National Bureau of Economic Research, 1989, 185-226.

"Adjustable Rate Mortgages," in The New Palgrave Dictionary of Money and Finance, John Eatwell, Murray Milgate and Peter Newman, eds., The Macmillan Press Ltd., 1992, 21-22.

"Price Level Adjusted Mortgages," with James A. Wilcox, in The New Palgrave Dictionary of Money and Finance, John Eatwell, Murray Milgate and Peter Newman, eds., The Macmillan Press Ltd., 1992, 181-82.

"Interest Rates in the Reagan Years" (with Patric Hendershott), in The Economic Legacy of the Reagan Years: Euphoria or Chaos? Anandi P. Sahu and Ronald L. Tracy, eds., Praeger Publishers, 1991, 147- 62.

"Household Saving: An Econometric Investigation," with Patric H. Hendershott, in The Level and Composition of Household Saving, P. Hendershott, ed., Cambridge, MA: Ballinger Publishing Company, 1985, 63-100.

"Real Household Capital Gains and Wealth Accumulation." with Patric H. Hendershott, in The Level and Composition of Household Saving, Hendershott, ed., Cambridge, MA: Ballinger Publishing Company, 1985, 41-61.

Working papers and other unpublished papers

“Did Banks Treat Unlisted Firms Differently than Listed Firms During the Financial Crisis? Evidence from Japan,” with Yasushi Hamao and Kenji Kutsuna, November 2010.

“Is Financial Stability Central to Central Banking?” with Eric Rosengren and Geoffrey Tootell, October 2009.

“The Benefits of Diversification: Evidence from Financial Synergies,” with Zsuzsa Huszar, September 2007.

“Reciprocity and Network Coordination: Evidence from Japanese Banks,” with Zekeriya Eser, revised, Revised November 2009.

“The Value to Banks of Small Business Lending,” with Dmytro Holod, October 2006.

“The Effects of Mergers and Acquisitions on Small Business Lending by Large Banking Organizations,” with Diana Hancock and James A. Wilcox, June 2004.

“The Changing Cyclicality of Housing Markets: The Effects of GSEs and Secondary Mortgage Markets,” with James A. Wilcox, February 2004.

“Impact of Tight Money and/or Recessions on Small Business,” with Diana Hancock and James A. Wilcox, April 2003.

Recent Presentations

2010

“Discussion of ‘Capital Injection, Restructuring Targets and Personnel Management: The Case of Japanese Regional Banks’,” NBER/CARF/CJEB/AJRC Japan Project Meeting, Tokyo, June

2009

“Capital Constraints, Asymmetric Information, and Internal Capital Markets in Banking:  New Evidence,” European Central Bank, January

“The Changing Role of Main Banks in Aiding Distressed Firms in Japan,” Japan Economic Seminar, George Washington University, April

“The Changing Role of Main Banks in Aiding Distressed Firms in Japan,” Chicago/London Conference on Financial Markets, University of Illinois at Chicago, May

“Comment on ’Bank Incentives and Earnings Management:  Evidence from the Japanese Banking Crisis of 1993-2002’,” NBER/CARF/CJEB/AJRC Japan Project Meeting, Tokyo, June

“Is Financial Stability Central to Central Banking?”, FRB-Boston 54th Economic Conference, Chatham, MA, October

“Reciprocity and Network Coordination:  Evidence from Japanese Banks,” 2nd CEPR-EBC-UA Conference on Competition in Banking Markets, Antwerp, Belgium, December

“Comment on ‘ On the Real Effects of Bank Bailouts:  Micro-Evidence from Japan’,” 3rd Unicredit Group Conference on Banking and Finance, Rome, December

2008

“Capital Constraints, Asymmetric Information, and Internal Capital Markets in Banking:  New Evidence,” Federal Reserve Bank of Boston, February

“The Repercussions on Small Banks and Small Businesses of Bank Capital and Loan Guarantees,” Conference on Partial Credit Guarantees:  Experiences & Lessons, The World Bank, March

“The Contribution of Bank Lending to the Long-Term Stagnation of Japan,” ESRI Workshop on Japan’s Bubble, Deflation, and Long-Term Stagnation, Columbia University, March

“Capital Constraints, Asymmetric Information, and Internal Capital Markets in Banking: New Evidence,” Federal Reserve Bank of Kansas City, April

“Comment on ‘Did Mergers Help Japanese Mega-Banks Avoid Failures? Analysis of the Distance to Default of Banks’,” NBER/CARF/CJEB/EIJS/AJRC Japan Project Meeting, Tokyo, June

“Avoid a Repeat of the Japanese Malaise:  Let Markets Work,” Japan Colloquium Series, Council on East Asian Studies, Yale University, November; “Capital Constraints, Asymmetric Information, and Internal Capital Markets in Banking:  New Evidence,” Baruch College, CUNY, December

“The Contribution of Bank Lending to the Long-Term Stagnation of Japan,” Conference on Japan’s Bubble, Deflation, and Long-Term Stagnation, Federal Reserve Bank of San Francisco, December

Public Service

Referee: American Economic Review, Bank of Japan Institute for Monetary and Economic Studies, Canadian Journal of Economics, Economica, Economic Inquiry, Economic Journal,  IMF Staff Papers, Japan and the World Economy, Journal of Banking and Finance, Journal of Business, Journal of Economics and Business, Journal of Finance, Journal of Financial Economics,  Journal of Financial Intermediation, Journal of Financial Research, Journal of Financial Services Research, Journal of Housing Economics, Journal of International Economics, Journal of the Japanese and International Economies, Journal of Money, Credit, and Banking, Multinational Finance Journal, Journal of Political Economy,  Journal of Real Estate Finance and Economics, National Science Foundation, Quarterly Journal of Economics, Real Estate Economics, Review of Economics and Statistics, Review of Financial Studies.