Olivia DrakeAbigail Hornstein, associate professor of economics, and her former thesis student, Zachary Nguyen '12 are the co-authors of a paper titled "Is More Less? Propensity to Diversify via M&A and Market" published in the International Review of Financial Analysis, June 2014, pp. 64-88. Mergers and acquisitions (M&A) could lead to a firm diversifying into new industries, and the impact of this may be related to the firm’s prior diversification. By using a panel of 1,030 M&A transactions from 2000-2010, Hornstein and Nguyen found that that previously diversified firms are more likely to pursue industrially diversifying M&A. "Both previous and contemporary diversification…
Bill Craighead, assistant professor of economics, is the author of a paper titled "Monetary Rules and Sectoral Unemployment in Open Economies" published in the June 2014 issue of the Journal of Macroeconomics. Search theory has given us a more realistic mechanism to study unemployment in macroeconomic models. In this paper, Craighead integrated search theory into an “open economy” macroeconomic model – i.e., a model of an economy that interacts with the rest of the world. One important question in open economy models is what measure of inflation should monetary policy respond to – consumer prices, which include imported goods, or producer…
Lauren RubensteinProfessor of Economics Richard Grossman gave a public lecture about his book, WRONG: Nine Economic Policy Disasters and What We Can Learn From Them, at the Center for Economic Studies/Institute for Economic Research at Munich University on April 7. He delivered the talk in German. More information about the Munich Seminars is here. The book was published in November 2013 by Oxford University Press. A video of the lecture is available here.
The Board of Trustees recently conferred tenure to four Wesleyan faculty. Their promotions take effect July 1. They are: Lisa Cohen, associate professor of English; Abigail Hornstein, associate professor of economics; Miri Nakamura, associate professor of Asian languages and literatures; and Anna Shusterman, associate professor of psychology. Other tenure announcements may be released after the Board's May meeting. "Please join us in congratulating them on their impressive records of accomplishment," said Wesleyan President Michael Roth. Brief descriptions of their areas of research and teaching are below: Lisa Cohen joined the English Department’s creative writing faculty in Fall 2007. Her courses are…
Professor of Economics Richard Grossman is the author of an op-ed titled, "The Monetary Cosmopolitans," published March 27 on Project Syndicate, a website that publishes commentary "by global leaders and thinkers." Grossman expresses support for a new trend toward countries appointing foreigners, and those with considerable foreign experience, to what is widely considered a country's second most important post: that of the head of the central bank. "This represents a major departure from the tradition of filling central banks' top leadership positions with people who have spent most of their careers there—a tradition that, over time, allowed central banks to…
Thomson Whitin, the Chester D. Hubbard Professor of Economics and Social Science, Emeritus, died Dec. 9 at the age of 90. Whitin had already achieved distinction when he joined the Wesleyan faculty as a professor of economics in 1963. He graduated from Princeton University in 1943 and served as an officer in the U.S. Navy during World War II on the aircraft carrier the Bonhomme Richard. Having obtained a doctorate in economics from Princeton University, and teaching there until 1952, he joined the faculty of M.I.T. as an assistant professor. While on leave from M.I.T. from 1956–58, he served as…
Bill Craighead, assistant professor of economics, is the co-author of a paper titled, "As the Current Account Turns: Disaggregating the Effects of Current Account Reversals in Industrial Countries," published in the December issue of The World Economy. An abstract is available online here. In the paper, Craighead examines "current account reversals" which occur when a country significantly reduces its international borrowing and its trade deficit. "While there has been quite a bit of study of these episodes in economics, most of it has looked at the impact on the overall economy. What we did was look at how these episodes…
Richard Grossman, professor of economics, spoke about the poor thinking behind nine of the worst economic policy mistakes of the past 200 years at Boston Public Library Dec. 4. Grossman is the author of the newly-published book, Wrong: Nine Economic Policy Disasters and What We Can Learn from Them. He also spoke about economic policy mistakes at the Seminary Coop Bookstore in Chicago on Nov. 14 and the Museum of American Finance in New York on Nov. 21. At Wesleyan, he teaches classes in American and European economic history, macroeconomics, and money and banking. Grossman also is a visiting scholar at the…
Masami Imai, professor of economics, participated in the first annual Stanford Summer Juku on the Japanese Political Economy. He discussed a paper titled, "Banks restructuring sonata: How capital injection triggered labor force rejuvenation in Japanese banks" by David Vera. Learn more here.
Professor of Economics Richard Grossman recently had three op-eds published in major newspapers. All related in different ways to the U.S. Congress' negotiations over the budget and debt ceiling, and the resulting shut down. Grossman is the author of a new book, Wrong: Nine Economic Policy Disasters and What We Can Learn from Them, published this month by Oxford University Press. Read more about it in this Wesleyan Connection story. The Hartford Courant on Oct. 4 published an op-ed by Grossman arguing that the Republicans were on an "ideological crusade" in their refusal to pass a continuing budget resolution unless substantial changes were made to the…
David LowRichard Grossman, professor of economics, is the author of Wrong: Nine Economics Policy Disasters and What We Can Learn from Them, published by Oxford University Press in October 2013. In recent years, the world has been rocked by major economic crises, most notably the devastating collapse of Lehman Brothers, the largest bankruptcy in American history, which triggered the breathtakingly destructive sub-prime disaster. What sparks these vast economic calamities? Why do our economic policy makers fail to protect us from such upheavals? In Wrong, Grossman addresses such questions, shining a light on the poor thinking behind nine of the worst economic policy mistakes…
Masami Imai, professor of economics, professor of East Asian studies, is the author of a newly-published paper and a paper that just won an award. "Local Economic Effects of a Government-Owned Depository Institution: Evidence from a Natural Experiment in Japan," was given the best paper award in the Journal of Financial Intermediation. The paper, originally published in that journal in January 2012, can be read here. Imai is also the co-author–with Peter Hull of the Massachusetts Institute of Technology–of a paper,"Economic Shocks and Civil Conflict: Evidence from Foreign Interest Rate Movements," published in the Journal of Development Economics in July. It…