Lauren RubensteinOn Sept. 10, Professor of Economics Richard Grossman participated in a Book Manuscript Workshop at Queen's University Centre for Economic History in Belfast, Ireland. He gave a talk on his forthcoming book, WRONG: Nine Economic Policy Disasters and What We Can Learn From Them. It will be published by Oxford University Press in October.
Professor of Economics Richard Grossman's op-ed, "The Best Way to Reform Libor: Scrap It," was published in The Wall Street Journal on July 25. "The British have learned nothing from the recent Libor scandal" involving the manipulation by banks of a vitally important interest-rate benchmark, writes Grossman. This is clear from a recent decision by a British government-appointed committee to hand over control of Libor to NYSE Euronext, a company that owns the New York Stock Exchange, the London International Financial Futures and Options Exchange, and a number of other stock, bond, and derivatives exchanges. “In other words, the company that will be responsible for…
Olivia DrakeProfessor of Economics Richard Grossman presented a paper during the Workshop on Monetary and Financial History, held June 26 at the at the Federal Reserve Bank of Atlanta. The paper he presented, titled, "Bloody Foreigners! Overseas Equity on the London Stock Exchange, 1870-1913," considers data on capital gains, dividend, and total returns for domestic and overseas equities listed on the London Stock Exchange during 1870-1913. The paper is available to read here.
Professor of Economics Richard Grossman has been named a 2013 Guggenheim Fellow. He will work on a project about the evolution of banking regulation across the industrialized world. Awarded by the John Simon Guggenheim Memorial Foundation, the fellowship assists research and artistic creation “for men and women who have already demonstrated exceptional capacity for productive scholarship or exceptional creative ability in the arts.” This year, 175 scholars, artists and scientists were selected to receive fellowships from a group of almost 3,000 applicants from the U.S. and Canada. “The Guggenheim Foundation has been giving awards to distinguished scholars and artists for…
Rosa Hayes '13 presented her paper on yield spread during The Carroll Round, an annual international economics conference at Georgetown University, in April. The Carroll Round provides a unique forum for research and discussion among the world’s top undergraduates. The goal of the Carroll Round is to foster the exchange of ideas among the leading undergraduate international economics and political economy students by encouraging and supporting the pursuit of scholarly innovation in the field. Hayes' advisor is Masami Imai, chair and associate professor of East Asian studies, associate professor of economics and director of the Freeman Center for East Asian…
Professor of Economics Richard Grossman was an invited discussant at a conference on “Understanding the Capital Structures of Non-Financial and Financial Corporations,” sponsored by the National Bureau of Economic Research. The conference took place in Cambridge, Mass. on April 5-6. Grossman discussed a paper titled “Short-Term Debt and Financial Crises: What can we Learn from Treasury Supply,” by Arvind Krishnamurthy and Annette Vissing-Jorgensen, both of Northwestern University. For more information see the conference's website.
(more…)
“Climate Change, once considered an issue for a distant future, has moved firmly into the present.” This is the message in the draft version of the Third National Climate Assessment, which was released on Jan. 11. Gary Yohe, the Huffington Foundation Professor of Economics and Environmental Studies, is vice chair of the National Climate Assessment and Development Advisory Committee (NCADAC), a 60-member committee that includes representatives from academia, state and local governments, non-governmental organizations, business and industry, and others, and the committee that issued this draft. Since this is a “review draft,” Yohe encouraged the Wesleyan community and their friends (along…
Professor of Economics Richard Grossman had an op-ed in The Hartford Courant on Jan. 5 about negotiations over the "fiscal cliff" in Washington. He writes that though reasonable people may disagree over what top marginal tax rate is ideal for the economy, the stubborn resistance of Congressional Republicans to any tax increases is the product of ideology, not reason. Looking back over history, he writes, the "abdication of sound economic reasoning in favor of ideology" has resulted in numerous policy mistakes with long-lasting economic impacts. As an historical example, Grossman cites Britain's decision to return to the gold standard following…
Assistant Professor of Economics Abigail Hornstein recently has had two academic papers published. In September 2012, her paper, "Usage of an estimated coefficient as a dependent variable," co-authored with William Greene of New York University's Stern School of Business, was published in the journal Economics Letters. The paper demonstrated the efficiency gains of a particular set of empirical estimation techniques. It is available online here. In addition, Hornstein's solo-authored paper, titled, "Corporate capital budgeting and CEO turnover," was published in December 2012 in the Journal of Corporate Finance. In this paper, she demonstrated the considerable cross-sectional and inter-temporal variation in the quality of a firm's…
On Sept. 14 and 15, Professor of Economics Richard Grossman attended a conference in Munich jointly sponsored by the Bundesbank (the German central bank) and a Munich-based research institute called CESifo. Grossman chaired a session and acted as a discussant at the conference, whose focus was, "The Banking Sector and the State." According to the conference website: "The current financial and sovereign debt crisis has shown once again that the banking sector and the state are intertwined in many ways: On the one hand, the state lends support to distressed banks and accepts risks from the private sector; in this…
Professor of Economics Richard Grossman published an op-ed in The Hartford Courant on August 7 about the global "Libor" banking scandal. Taking a lesson from the old mob-run "numbers racket," Grossman proposes an elegant solution to fixing deficits in the Libor, and renewing public confidence in the banking system. The Libor (London Interbank Offered Rate) is currently calculated by asking a group of banks to self-report the cost for them to borrow money from other banks. The highest and lowest 25 percent of submitted estimates are thrown out, and the average of the remaining submissions is the Libor. Banks are supposed to…