Ben R. Craig

Person

Areas of Expertise economics of networks, econometrics, banking and finance

BA,
Economics,
Harvard College,
1976

PhD,
Economics,
Stanford University,
1986

Ben Craig is an economist emeritus of the Research Department of the Federal Reserve Bank of Cleveland. Before his retirement, he specialized in the economics of networks, banking, and finance, with an emphasis on empirical structural modeling.

Dr. Craig joined the Bank in 1994 and retired in July 2023. Dr. Craig was an assistant professor of economics at Indiana University. He has also taught at Washington State University, Stanford University, and the University of Konstanz in Germany. He was a visiting scholar at the Bundesbank in Germany in 2001, 2007-2008, and 2012-2014.

Dr. Craig earned a BA with honors from Harvard University in 1976 and received a PhD in economics from Stanford in 1986. He is married and the father of three children.

Working Papers

Working Paper

Intermediation in the Interbank Lending Market

Ben R. Craig Yiming Ma

03.05.2020 | WP 20-09

This paper studies systemic risk in the interbank market. We first establish that in the German interbank lending market, a few large banks intermediate funding flows between many smaller periphery banks and that shocks to these intermediary banks in the financial crisis spill over to the activities of the periphery banks. We then develop a network model in which banks trade off the costs and benefits of link formation to explain these patterns. The model is structurally estimated using banks’ preferences as revealed by the observed network structure in the precrisis period. It explains why the interbank intermediation arrangement arises, estimates the frictions underlying the arrangement, and quantifies how shocks are transmitted across the network. Model estimates based on precrisis data successfully predict changes in network-links and in lending arising from the crisis in out-of-sample tests. Finally, we quantify the systemic risk of a single intermediary and the impact of ECB funding in reducing this risk through model counterfactuals.

Topics: Financial markets, Financial networks

Working Paper

Recreating Banking Networks under Decreasing Fixed Costs

Dietmar Maringer Ben R. Craig Sandra Paterlini

11.05.2019 | WP 19-21

Theory emphasizes the central role of the structure of networks in the behavior of financial systems and their response to policy. Real-world networks, however, are rarely directly observable: Banks’ assets and liabilities are typically known, but not who is lending how much and to whom. We first show how to simulate realistic networks that are based on balance-sheet information by minimizing costs where there is a fixed cost to forming a link. Second, we also show how to do this for a model with fixed costs that are decreasing in the number of links. To approach the optimization problem, we develop a new algorithm based on the transportation planning literature. Computational experiments find that the resulting networks are not only consistent with the balance sheets, but also resemble real-world financial networks in their density (which is sparse but not minimally dense) and in their core-periphery and disassortative structure.

Topics: Financial networks

Working Paper

The Effect of Possible EU Diversification Requirements on the Risk of Banks’ Sovereign Bond Portfolios

Ben R. Craig Margherita Giuzio Sandra Paterlini

05.23.2019 | WP 19-12

Recent policy discussion includes the introduction of diversification requirements for sovereign bond portfolios of European banks. In this paper, we evaluate the possible effects of these constraints on risk and diversification in the sovereign bond portfolios of the major European banks. First, we capture the dependence structure of European countries’ sovereign risks and identify the common factors driving European sovereign CDS spreads by means of an independent component analysis. We then analyze the risk and diversification in the sovereign bond portfolios of the largest European banks and discuss the role of “home bias,” i.e., the tendency of banks to concentrate their sovereign bond holdings in their domicile country. Finally, we evaluate the effect of diversification requirements on the tail risk of sovereign bond portfolios and quantify the system-wide losses in the presence of fire-sales. Under our assumptions about how banks respond to the new requirements, demanding that banks modify their holdings to increase their portfolio diversification may mitigate fire-sale externalities, but it may be ineffective in reducing portfolio risk, including tail risk.

Topics: Bank policy and regulation

Working Paper

Spatial Dependence and Data-Driven Networks of International Banks

Ben R. Craig Martín Saldías Zambrana

12.02.2016 | WP 16-27

This paper computes data-driven correlation networks based on the stock returns of international banks and conducts a comprehensive analysis of their topological properties. The analysis shows many common features that have been documented in the recent literature but were obtained with private information on banks' exposures.

Topics: International economics

Working Paper

Credit Market Information Feedback

Lakshmi Balasubramanyan Ben R. Craig James B. Thomson Saeed Zaman

09.16.2015 | WP 15-15

We examine how a combination of credit market and asset quality information can jointly be used in assessing bank franchise value. We find that expectations of future credit demand and future asset quality explain contemporaneous bank franchise value, indicative of the feedback in credit market information and its consequent impact on bank franchise value.

Topics: Financial markets

Working Paper

Centrality-based Capital Allocations

Adrian Alter Ben R. Craig Peter Raupach

01.29.2015 | WP 15-01

This paper looks at the effect of capital rules on a banking system that is connected through correlated credit exposures and interbank lending.

Topics: Bank policy and regulation, Financial networks

Working Paper

The Role of Interbank Relationships and Liquidity Needs

Ben R. Craig Falko Fecht Günseli Tümer-Alkan

10.16.2014 | WP 14-21

In this paper, we focus on the interconnectedness of banks and the price they pay for liquidity.

Topics: Financial networks

Working Paper

Interbank Lending and Distress: Observables, Unobservables, and Network Structure

Ben R. Craig Michael Koetter Ulrich Krüger

10.03.2014 | WP 14-18

We provide empirical evidence on the relevance of systemic risk through the interbank lending channel.

Topics: Financial networks

Working Paper

Volatile Lending and Bank Wholesale Funding

Ben R. Craig Valeriya Dinger

10.03.2014 | WP 14-17

The paper presents the first empirical study of the relation between bank loan volume volatility and bank retail and wholesale liabilities.

Topics: Lending and access to credit

Working Paper

Filling in the Blanks: Network Structure and Interbank Contagion

Kartik Anand Ben R. Craig Goetz von Peter

10.02.2014 | WP 14-16

This paper proposes an efficient method for estimating counterparty exposures in banking and financial markets.

Topics: Financial networks

Working Paper

Substitution between Net and Gross Settlement Systems: A Concern for Financial Stability?

Ben R. Craig Falko Fecht

12.08.2011 | WP 11-32

This paper studies the factors that drive the relative importance of net and gross settlement systems over the short run, using transaction volumes from countries that have had both a net and a gross settlement system at the same time.

Topics: Payment system, Financial stability

Working Paper

The Duration of Bank Retail Interest Rates

Ben R. Craig Valeriya Dinger

12.01.2011 | WP 10-01R

We use bank retail interest rates as price examples in a study of the determinants of price durations.

Topics: Monetary policy

Working Paper

Public Policy in Support of Small Business: The American Experience

Ben R. Craig William E. Jackson III James B. Thomson

08.02.2011 | WP 11-16

Government interventions to alleviate credit constraints on small firms need to be designed to correct the specific market failure resulting in socially suboptimal credit flows.

Topics: Small businesses

Working Paper

The Importance of Financial Market Development on the Relationship between Loan Guarantees for SMEs and Local Market Employment Rates

Craig Armstrong Ben R. Craig William E. Jackson III James B. Thomson

11.01.2010 | WP 10-20

We empirically examine whether a major government intervention in the small-firm credit market yields significantly better results in markets that are less financially developed.

Working Paper

Interbank Tiering and Money Center Banks

Ben R. Craig Goetz von Peter

09.23.2010 | WP 10-14

This paper provides evidence that interbank markets are tiered rather than flat, in the sense that most banks do not lend to each other directly but through money center banks acting as intermediaries.

Working Paper

Lending Patterns in Poor Neighborhoods

Francisca García-Cobián Richter Ben R. Craig

06.02.2010 | WP 10-06R

This study contributes to the characterization of subprime lending in poor neighborhoods by including a spatial dimension to the analysis, in an attempt to capture the social effects of differences in poor and less poor neighborhoods.

Working Paper

Deposit Market Competition, Costs of Funding and Bank Risk

Ben R. Craig Valeriya Dinger

04.01.2010 | WP 09-05R

In this paper we revisit the long debate on the risk effects of bank competition and propose a new approach to the empirical estimation of the relation between deposit market competition and bank risk.

Working Paper

A Microeconometric Investigation into Bank Interest Rate Rigidity

Ben R. Craig Valeriya Dinger

03.18.2010 | WP 10-01

We use bank retail interest rates as price examples in a study of the determinants of price durations.

Working Paper

Deposit Market Competition, Costs of Funding and Bank Risk

Ben R. Craig Valeriya Dinger

06.01.2009 | WP 09-05

In this paper we revisit the long debate on the risk effects of bank competition and propose a new approach to the empirical estimation of the relation between deposit market competition and bank risk.

Working Paper

Bank Mergers and the Dynamics of Deposit Interest Rates

Ben R. Craig Valeriya Dinger

02.01.2009 | WP 08-06R

Despite extensive research interest in the last decade, the banking literature has not reached a consensus on the impact of bank mergers on deposit rates.

Working Paper

Bank Mergers and the Dynamics of Deposit Interest Rates

Ben R. Craig Valeriya Dinger

09.01.2008 | WP 08-06

Despite extensive research interest in the last decade, the banking literature has not reached a consensus on the impact of bank mergers on deposit rates.

Working Paper

On Government Intervention in the Small-Firm Credit Market and Its Effect on Economic Performance

Ben R. Craig William E. Jackson III James B. Thomson

02.01.2007 | WP 07-02

We empirically test whether the Small Business Administration’s main guaranteed lending program—the 7(a) program—has a greater impact on economic performance in low-income markets than in others.

Working Paper

Small Firm Credit Market Discrimination, SBA-Guaranteed Lending, and Local Market Economic Performance

Ben R. Craig William E. Jackson III James B. Thomson

11.01.2006 | WP 06-13

We empirically test whether SBA-guaranteed lending has a greater impact on economic performance in markets with a high percentage of potential minority small businesses.

Working Paper

Gross Loan Flows

Ben R. Craig Joseph G. Haubrich

03.01.2006 | WP 06-04

Changes in net lending hide the much larger and more variable gross lending flows.

Working Paper

Small-Firm Credit Markets, SBA-Guaranteed Lending, and Economic Performance in Low-Income Areas

Ben R. Craig William E. Jackson III James B. Thomson

01.01.2006 | WP 06-01

SBA guaranteed-lending programs are one of many government-sponsored market interventions aimed at promoting small business.

Working Paper

Recovering Market Expectations of FOMC Rate Changes with Options on Federal Funds Futures

John B. Carlson Ben R. Craig William Melick

07.01.2005 | WP 05-07

This paper demonstrates how options on federal funds futures, which began trading in March 2003, can be used to recover the implied probability density function (PDF) for future Federal Open Market Committee (FOMC) interest rate outcomes.

Working Paper

State-Dependent Pricing, Inflation, and Welfare in Search Economies

Ben R. Craig Guillaume Rocheteau

05.01.2005 | WP 05-04

This paper investigates the welfare effects of inflation in economies with search frictions and menu costs.

Working Paper

The Eurosystem Money Market Auctions: A Banking Perspective

Nikolaus Bartzsch Ben R. Craig Falko Fecht

05.01.2005 | WP 05-06

This paper analyzes the individual bidding behavior of German banks in the money market auctions conducted by the ECB from the beginning of the third quarter of 2000 to the end of the first quarter of 2001.

Working Paper

SBA-Loan Guarantees and Local Economic Growth

Ben R. Craig William E. Jackson III James B. Thomson

04.01.2005 | WP 05-03

Increasingly policymakers are looking to the small business sector as a potential engine of economic growth.

Working Paper

The Forecast Ability of Risk-Neutral Densities of Foreign Exchange

Ben R. Craig Joachim Keller

11.01.2004 | WP 04-09

We estimate the process underlying the pricing of American options by using higher-order lattices combined with a multi-grid method.

Working Paper

On SBA-Guaranteed Lending and Economic Growth

Ben R. Craig James B. Thomson William E. Jackson III

04.01.2004 | WP 04-03

Increasingly, policymakers are looking to the small business sector as a potential engine of economic growth.

Working Paper

The Empirical Performance of Option-Based Densities of Foreign Exchange

Ben R. Craig Joachim Keller

11.13.2003 | WP 03-13

In this paper, we calculate risk-neutral densities (RND) by estimating the daily diffusion process of underlying futures contract for foreign exchange, based on the price of the American puts and calls reported on Chicago Mercantile Exchange.

Working Paper

The Forecasting Performance of German Stock Option Densities

Ben R. Craig Ernst Glatzer Joachim Keller Martin Scheicher

11.12.2003 | WP 03-12

In this paper we will be estimating risk-neutral densities (RND) for the largest euro area stock market (the index of which is the German DAX), reporting their statistical properties, and evaluating their forecasting performance.

Working Paper

Currency Competition in a Fundamental Model of Money

Gabriele Camera Ben R. Craig Christopher Waller

11.01.2003 | WP 03-11

We study how two fiat monies, one safe and one risky, compete in a decentralized trading environment.

Working Paper

Pricing Kernels, Inflation, and the Term Structure of Interest Rates

Ben R. Craig Joseph G. Haubrich

10.01.2003 | WP 03-08

We estimate a discrete-time multivariate pricing kernel for the term structure of interest rates, using both yields and inflation rates.

Working Paper

Federal Home Loan Bank Lending to Community Banks. Are Targeted Subsidies Necessary?

Ben R. Craig James B. Thomson

08.01.2001 | WP 01-12

The Gramm-Leach-Bliley Act of 1999 amended the lending authority of the Federal Home Loan Banks to include advances secured by small enterprise loans of community financial institutions.

Working Paper

Sterilized Intervention, Nonsterilized Intervention, and Monetary Policy

Ben R. Craig Owen F. Humpage

07.01.2001 | WP 01-10

Sterilized intervention is generally ineffective. Countries that conduct monetary policy using an overnight, interbank rate as an intermediate target automatically sterilize their interventions.

Working Paper

Gross Loan Flows

Ben R. Craig Joseph G. Haubrich

11.01.2000 | WP 00-14

We present a series of stylized facts about gross loan flows and how they vary over time, bank size, and region. We define loan creation as the sum of the change in bank loans at all banks that increased loans since last quarter.

Working Paper

Currency Portfolios and Nominal Exchange Rates in a Dual Currency Search Economy

Ben R. Craig Christopher Waller

12.01.1999 | WP 99-16

We analyze a dual currency search model in which agents are allowed to hold multiple units of both currencies. Hence, agents hold portfolios of currency.

Working Paper

Performance and Asset Management Effects of Bank Acquisitions

Ben R. Craig João Cabral dos Santos

11.01.1996 | WP 96-19

This paper studies the effects of acquisitions on both acquired and acquiring banks.

Working Paper

Some Monte Carlo Results on Nonparametric Changepoint Tests

Edward J. Bryden John B. Carlson Ben R. Craig

12.01.1995 | WP 95-17

For long periods since 1982, core inflation has behaved as if it were generated by a process with a fixed mean and serially independent error term.

Working Paper

Voting on Social Security: Evidence from OECD Countries

Friedrich Breyer Ben R. Craig

11.01.1995 | WP 95-11

This article tests the subset of public choice models for social security that have empirical implications.

Economic Commentaries

Economic Commentary

Two Approaches to Predicting the Path of the COVID-19 Pandemic: Is One Better?

Ben R. Craig Tom Phelan Jan-Peter Siedlarek Jared Steinberg

04.08.2021 | EC 2021-10

We compare two types of models used to predict the spread of the coronavirus, both of which have been used by government officials and agencies. We describe the nature of the difference between the two approaches and their advantages and limitations. We compare examples of each type of model—the University of Washington IHME or “Murray” model, which follows a curve-fitting approach, and the Ohio State University model, which follows a structural approach.

Topics: Public health crises, Econometrics, modeling, and forecasting

Economic Commentary

Modeling Behavioral Responses to COVID-19

Ben R. Craig Tom Phelan Jan-Peter Siedlarek Jared Steinberg

03.04.2021 | EC 2021-05

Many models have been developed to forecast the spread of the COVID-19 virus. We present one that is enhanced to allow individuals to alter their behavior in response to the virus. We show how adding this feature to the model both changes the resulting forecast and informs our understanding of the appropriate policy response. We find that when left to their own devices, individuals do curb their social activity in the face of risk, but not as much as a government planner would. The planner fully internalizes the effect of all individuals’ actions on others in society, while individuals do not. Further, our simulations suggest that government intervention may be particularly important in the middle and later stages of a pandemic.

Topics: Econometrics, modeling, and forecasting

Economic Commentary

How Well Does the Cleveland Fed’s Systemic Risk Indicator Predict Stress?

Ben R. Craig

12.03.2020 | EC 2020-28

A number of financial stress measures were developed after the financial crisis of 2007–2009 in the hope that they could provide regulators with advance warning of conditions that might warrant a corrective response. The Cleveland Fed’s systemic risk indicator is one such measure. This Commentary provides a review of the SRI’s performance from 2001 to 2020 and finds that it has performed well, providing a reliable, valid, and timely signal of elevated levels of financial system stress.

Topics: Econometrics, modeling, and forecasting, Financial stability

Economic Commentary

Improving Epidemic Modeling with Networks

Ben R. Craig Tom Phelan Jan-Peter Siedlarek Jared Steinberg

09.02.2020 | EC 2020-23

Many of the models used to track, forecast, and inform the response to epidemics such as COVID-19 assume that everyone has an equal chance of encountering those who are infected with a disease. But this assumption does not reflect the fact that individuals interact mostly within much narrower groups. We argue that incorporating a network perspective, which accounts for patterns of real-world interactions, into epidemiological models provides useful insights into the spread of infectious diseases.

Topics: Econometrics, modeling, and forecasting, Public health crises

Economic Commentary

The Souk al-Manakh Crash

Ben R. Craig

11.18.2019 | EC 2019-20

From 1978 to 1981, Kuwait’s two stock markets, one the conservatively regulated “official” market and the other the unregulated Souk al-Manakh, exploded in size, growing to the point where the amount of capital actively traded exceeded that of every other country in the world except the United States and Japan. A year later, the system collapsed in an instant, causing huge real losses to the economy and financial disruption lasting nearly a decade. This Commentary examines the emergence of the Souk, the simple financial innovation that evolved to solve its rapidly increasing need for liquidity and credit, and the herculean efforts to solve the tangled problems resulting from the collapse. Two lessons of Kuwait’s crisis are that it is difficult to separate the banking and unregulated financial sectors and that regulators need detailed data on the transactions being conducted at all financial institutions to give them the understanding of the entire network they must have to maintain financial stability. If Kuwaiti officials had had transaction-by-transaction data on the trades being made in both the regulated and unregulated stock markets, then the Kuwaiti crisis and its aftermath might not have been so severe.

Topics: Labor economics, International economics

Economic Commentary

Bitcoin’s Decentralized Decision Structure

Ben R. Craig Joseph Kachovec

07.16.2019 | EC 2019-12

With the introduction of bitcoin, the world got not just a new currency, it also got evidence that a decentralized control structure could work in practice for institutional governance. This Commentary discusses the advantages and disadvantages of centralized and decentralized control structures by examining the features of the bitcoin payment system. We show that while the decentralized nature of the Bitcoin network "democratizes" payments, it is not obvious that the approach increases the equity or efficiency of markets or that the costs of the decentralized control structure won’t outweigh the benefits in the long run.

Topics: Cryptocurrencies

Economic Commentary

The Federal Funds Market since the Financial Crisis

Ben R. Craig Sara E. Millington

04.05.2017 | EC 2017-07

Through the federal funds market, commercial banks used to supply each other with overnight liquidity. But since the financial crisis, the banking system has been awash in reserves and the federal funds rate has been near zero, leaving banks little incentive to participate. Still, the market continues to operate, but it has changed.

Topics: Monetary policy

Economic Commentary

Excess Reserves: Oceans of Cash

Ben R. Craig Matthew M. Koepke

02.12.2015 | EC 2015-02

Before the financial crisis, banks did not hold much in cash reserves above what the Fed required. Now they hold a lot of excess reserves because the costs and benefits of doing so have changed.

Topics: Financial networks

Economic Commentary

Reforming the Over-the-Counter Derivatives Market: What’s to Be Gained?

Kent Cherny Ben R. Craig

07.07.2010 | EC 2010-06

While derivative financial instruments have made the hedging and exchange of risk more efficient, the recent crisis showed that they also pose a substantial threat to financial stability in times of systemic turmoil.

Economic Commentary

Credit Default Swaps and Their Market Function

Kent Cherny Ben R. Craig

09.22.2009 | EC 7/1/2009

The market for credit default swaps is neither transparent nor regulated, perhaps undermining the stability of the financial system it has helped innovate.

Topics: Lending and access to credit

Economic Commentary

FOMC Communications and the Predictability of Near-Term Policy Decisions

John B. Carlson Ben R. Craig Patrick Higgins William Melick

06.01.2006 | EC 6/1/2006

In February 1994, the FOMC began a new era in transparency, gradually building a communications apparatus that conveys information about the Committee’s decisions and expectations.

Economic Commentary

The Role of Relationships in Small-Business Lending

Ben R. Craig William E. Jackson III James B. Thomson

10.15.2005 | EC 10/15/2005

In the presence of imperfect information, both large and small banks try to find alternative ways to identify creditworthy borrowers.

Economic Commentary

The Growing Significance of Purchasing Power Parity

Ben R. Craig

04.01.2005 | EC 4/1/2005

The principle of purchasing powerparity is central to the theoreticalunderpinnings of the analysis of manytrade issues, but up until recently,there was little evidence that PPP heldin the long run.

Economic Commentary

Too Much Risk?

Joseph G. Haubrich Ben R. Craig

03.15.2005 | EC 3/15/2005

Are asset prices climbing too far toofast?

Economic Commentary

Rethinking the Welfare Cost of Inflation

Ben R. Craig Guillaume Rocheteau

03.01.2005 | EC 3/1/2005

New models of monetary economies,developed in the last 15 years, suggestthat traditional measures of the welfarecost of inflation may underestimatethe true loss that inflation inflictson society.

Economic Commentary

Are SBA Loan Guarantees Desirable?

Ben R. Craig William E. Jackson III James B. Thomson

09.15.2004 | EC 9/15/2004

Over the last 10 years, the Small Business Administration has been responsible for well over $100 billion in small business credit extensions, more than any single private lender.

Economic Commentary

Bubble, Toil, and Trouble

Ben R. Craig

10.15.2003 | EC 10/15/2003

Not everyone believes bubbles occur in stock markets. Many economists do, but others think something else is happening during periods of rapidly rising and plummeting stock prices.

Economic Commentary

Why Are TIIS Yields So High? The Case of the Missing Inflation-Risk Premium

Ben R. Craig

03.15.2003 | EC 3/15/2003

Treasury inflation-indexed securities are just like nominal Treasuries, except that their coupon and principal payments are indexed to inflation.

Economic Commentary

Options and the Future: What Do Markets Think?

Ben R. Craig

10.01.2002 | EC 10/1/2002

We’re used to hearing analysts make predictions about where the economy is headed based on changes in the prices people are paying for stocks, futures, or other assets.

Economic Commentary

Resisting Electronic Payment Systems: Burning Down the House?

Ben R. Craig

07.01.1999 | EC 7/1/1999

In the Cleveland Museum of Art hangs a famous painting, The Burning of the Houses of Parliament, by J.M.W. Turner.

Economic Commentary

Global ATM Banking: Casting the Net

John D. Hueter Ben R. Craig

08.15.1998 | EC 8/15/1998

Twenty-five years of technological progress have transformed the way banking is done. Paychecks can be deposited, charitable contributions withdrawn, electronically.

Economic Commentary

Where Have All the Tellers Gone?

Ben R. Craig

04.15.1997 | EC 4/15/1997

Even in the rapidly expanding U.S. economy, the rising GDP tide has not been able to lift all boats. Some industries continue to contract as aggregate production bounds ahead.

Economic Commentary

Competing Currencies: Back to the Future?

Ben R. Craig

10.15.1996 | EC 10/15/1996

Sometimes, an emerging or rapidly changing currency experiences a period in which it competes with a second currency as a medium of exchange.

Economic Commentary

Are Wages Inflexible?

Ben R. Craig

04.01.1995 | EC 4/1/1995

How often does an average worker’s hourly wage change? Do employees and employers avoid wage cuts? When wage changes occur, do they tend to come in gradual, small adjustments or in the form of a single large increase?

Policy Discussion Papers

Policy Discussion Papers

Does Government Intervention in the Small-Firm Credit Market Help Economic Performance?

Ben R. Craig James B. Thomson William E. Jackson III

08.01.2007 | No. 22

The guaranteed lending programs of the Small Business Administration (SBA) are large and growing rapidly.

Policy Discussion Papers

Inflation and Welfare: A Search Approach

Ben R. Craig Guillaume Rocheteau

01.01.2006 | No. 12

This paper extends recent findings in the search-theoretic literature on monetary exchange regarding the welfare costs of inflation.
“Filling in the Blanks: Network Structure and Interbank Contagion.” With Goetz von Peter and Kartik Anand. Journal of Quantitative Finance, 2015, 15(4): 625–636.

“The Role of Interbank Relationships and Liquidity Needs.” With Falko Fecht and Günseli Tümer-Alkan. Journal of Banking and Finance, 2015, 53 (April) 99-111.

“Tiering in the Interbank Market.” With Goetz von Peter. Journal of Financial Intermediation, 2014, (July): 322–347.

“The Duration of Bank Interest Rates.” With Valeriya Dinger. International Journal of the Economics of Business, 2014, 21(2): 191–207.

“Deposit Market Competition, Wholesale Funding, and Bank Risk.” With Valeriya Dinger. Journal of Banking and Finance, 2013, 37(9): 3605–3622.

“Gross Loan Flows.” With Joseph G. Haubrich. Journal of Money, Credit, and Banking, 2013, 45(2–3): 401–421.

“Public Policy in Support of Small Business: The American Experience.” With James Thomson and William Jackson. Entrepreneurial Business Law Journal, 2011.

“Bank Mergers and the Dynamics of Deposit Rates.” With Valeriya Dinger. Journal of Financial Services Research, 2008.

“State-Dependent Pricing, Inflation, and Welfare in Search Economies.” With Guillaume Rocheteau. European Economic Review, 2007.

“Inflation and Welfare: A Search Approach.” With Guillaume Rocheteau. Journal of Money, Credit, and Banking, 2007.

“The Euro-system Money Market Auctions: A Banking Perspective.” With Falko Fecht. Journal of Banking and Finance, 2007.

“Income Effects on Small Business Loans.” With James B. Thomson and William Jackson III. Journal of Small Business Studies, 2007.

“SBA Loan Guarantees and Local Growth.” With James B. Thomson and William Jackson III. Journal of Small Business Management, 2006.

“Recovering Market Expectations of FOMC Rate Changes with Options on Federal Funds Futures.” With John B. Carlson and William Melick. Journal of Futures Markets, January 2006.

“Currency Portfolios, Nominal Price Rates, and Price Distributions in a Dual Currency Search Economy.” With Chris Waller. Journal of Monetary Economics, 2004 (May).

“Gresham’s Law versus Currency Competition.” With Chris Waller and Gabriel Camera. Journal of International Economics, 2004 (March).

“The Myth of a Strong Dollar Policy.” With Owen Humpage. Cato Journal, 2002.

“Federal Home Loan Bank Lending to Community Banks: Are Subsidies Desirable?” With James B. Thomson. Journal of Financial Services Research, 2001.

“Comment on ‘Inside and Outside Money as Alternative Media of Exchange’ by Neil Wallace and Ricardo O. Cavalcanti.” Journal of Money, Credit, and Banking, 1999, 31 (3, Part 2): 458-460.

“Structural Uncertainty and Breakpoint Tests: An Application to Equilibrium Velocity.” With John B. Carlson and Jeffrey C. Schwartz. Journal of Economics and Business, 1999, 52(1–2): 101–115.

“Review of Microsoft FORTRAN Powerstation.” Economic Journal, 1997.

“Voting on Public Pension Schemes: Evidence from OECD Countries.” With Friedrich Breyer. European Journal of Political Economy, 1997.

“Participation and Productivity: A Comparison of Worker–Owned Cooperatives and Conventional Firms in the Plywood Industry.” With John Pencavel, Brookings Papers on Economic Activity, Microeconomics Annual, 1995.

“Review of ‘Profit Sharing, Does It Make a Difference?’ by Douglas L. Kruse.” Journal of Comparative Economics, 1995.

“The Empirical Performance of Orthodox Models of the Firm: Conventional Firms and Worker Cooperatives.” With John Pencavel. Journal of Political Economy, 1994, 102(4): 718–744.

“The Objectives of Worker Cooperatives.” With John Pencavel. Journal of Comparative Economics, 1993, 17(2): 288–308.

“Labor Market Outcomes under Alternative Institutions: The Plywood Companies of Washington State.” With John Pencavel. American Economic Review, 1992 (December): 1083–1105. (Reprinted in Producer Cooperatives and Labor-Managed Systems, edited by David Prychitko and Jaroslav Vanek. Cheltenham, UK: Edward Elgar Publishing Ltd., 1994.

“Review of ‘The Timber Bubble that Burst: Government Policy and the Bailout of 1984’ by Joe P. Mattey,” Journal of Economic Literature, 1992 (September): 1547–1548.

“The Effects of Social Security in a Life Cycle Family Labor Supply Simulation Model.” With Ray Batina. Journal of Public Economics, 1991 (November): 199–226.

“Large Risks and the Decision to Incorporate.” With Stuart Thiel. Journal of Business and Economics, 1990, 42(3): 185–194.

“Survival Analysis Software on MS/PC-DOS Computers.” With Jennifer Anderson, Arlene Ash, David Harrington, and Marcello Pagano. Journal of Applied Econometrics, 1989, 4: 393–414.
Book Chapters

“Government Intervention in Small Business Lending Markets.” With James Thomson and William Jackson. In Public Economics in the United States: How the Federal Government Analyzes and Influences the Economy, Volume 1, edited by Steven Payson, 147–160, 2014.

With James B. Thomson and William Jackson III. “On SBA-Guaranteed Lending and Economic Growth.” Economic Development through Entrepreneurship: Government, University and Business Linkages, edited by Scott Shane, 127–150, Edward Elgar Publishing, 2006.

“Banking Consolidation in Europe: Discussion.” In Issues in European Integration, Deutsche Bundesbank in April 2003.

“Labor Market Outcomes under Alternative Institutions: The Plywood Companies of Washington State.” With John Pencavel. In Producer Cooperatives and Labor-Managed Systems, edited by David Prychitko and Jaroslav Vanek. Cheltenham, UK: Edward Elgar Publishing Ltd., 1994.

“Comment on ‘Job Security versus Income Security.’” In Adjustments in Labor Markets: An International Comparison, edited by Peter Chinloy and Ernst Stromsdorfer, 295–299, 1985.

Other Articles

“Worker-Owned Plywood Companies of the Pacific Northwest.” With John Pencavel. Research Report #11, Center for Cooperatives, 1993 (January).

“Estimating the Impact of Training on Earnings: The DCC Experiment.” With P. K. Trivedi. Ameritech Occasional Papers, 1993.

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