DOUGLAS W. DIAMOND
September 2008
Curriculum Vitae
Click here for downloadable papers
Address
Phone: (773) 702-7283
Education
A.B., Economics,
M.A., Economics,
M. Phil., Economics,
Ph.D., Economics,
Academic Honors
and Editorships
Fellow of the Econometric
Society, 1990-.
Fellow of the American
Academy of Arts and Sciences, 2001-.
Editor, Journal of Business, 1988- 2001
Foreign Editor, Review of Economic Studies,
1993-97.
Associate Editor, Journal of Finance,
1988-1996, 2000-2003.
Associate Editor, Journal of Banking and Finance,
1995-.
Associate Editor, Journal of Financial Services
Research, 1993-.
Editorial Board, Journal of Financial
Intermediation, 1989-93.
President, Western Finance Association, 2001-2002.
President, American Finance Association, 2003-2004.
Board of Directors, Center for Research in Security
Prices, 1994-
Board of Directors, American Finance Association,
1988-90, 1999-2006.
National Science Foundation grants, 1987-91, 1999-2008.
Garn Institute of Finance grant, 1989-1990.
Batterymarch Fellowship, 1984-1985.
Phi Beta Kappa, Brown
University, 1975.
Academic Consultant, Federal Reserve Board, 1990.
Academic Consultant, Federal
Reserve Bank of Richmond, 1990-.
Teaching and Research
Experience
Merton H. Miller Distinguished Service Professor of Finance, Graduate
School of Business,
National Bureau of Economic Research, Research
Associate, 1999-.
Professor of Finance,
Visiting Professor of Finance, Hong Kong
Visiting Scholar, University of
Summer Research Associate, Board of Governors of the Federal Reserve
System, summers of 1976-78.
Teaching Fellow, Department of Economics, Yale
University, 1977-1978.
Director of Research,
Research Associate, Rhode Island Governor's Task Force on Health
Finance, 1973-1974.
Special Project Associate, A. G. Becker and Co.,
Research
Interests
Theory of
financial intermediaries, financial crises, and liquidity; bank
regulation and deposit insurance; debt maturity structure and the role of
short-term debt.
Publications
"Information Aggregation in a Noisy Rational
Expectations Economy," Journal of Financial Economics, September
1981 (with Robert Verrecchia).
"Optimal Managerial Contracts and Equilibrium Security
Prices," Journal of Finance, May 1982 (with Robert Verrecchia).
"Bank
Runs, Deposit Insurance and Liquidity," Journal of Political
Economy, June 1983 (with Philip Dybvig). Reprinted in Financial Markets
and Incomplete Information: Frontiers of Modern Financial Theory, Bhattacharaya and Constantinides
(editors), Rowman and Littlefield Publishers, 1989
(and in Winter 2000 Quarterly Review of the
Research Department of the Federal Reserve Bank of
"Financial
Intermediation and Delegated Monitoring," Review of Economic
Studies, July 1984.
"Optimal Release of Information by Firms," Journal of
Finance, September 1985.
"Banking Theory, Deposit Insurance and Bank
Regulation," Journal of Business, January 1986 (with Philip
Dybvig).
"Constraints on Short-Selling and Asset Price Adjustment to
Private Information," Journal of Financial Economics, June 1987. (with Robert Verrecchia).
"Asset Services and Financial
Intermediation," in Financial Markets and Incomplete Information:
Frontiers of Modern Financial Theory, S. Bhattacharaya
and G. Constantinides (editors), Rowman
and Littlefield Publishers, 1989.
"Reputation Acquisition in Debt Markets," Journal of
Political Economy, August 1989.
"Debt Maturity Structure and Liquidity Risk," Quarterly
Journal of Economics, August 1991.
"Monitoring and Reputation: The Choice Between
Bank Loans and Directly Placed Debt," Journal of Political Economy,
August 1991.
"Disclosure, Liquidity and the Cost of Capital," Journal
of Finance, September 1991. (with Robert Verrecchia).
"Bank Loan Maturity and Priority When Borrowers
Can Refinance," in Capital Markets and Financial Intermediation,
Colin Mayer and Xavier Vives (editors), Cambridge
University Press, 1993.
"Seniority and Maturity of Debt Contracts," Journal of
Financial Economics, June 1993.
"Corporate
Capital Structure: The Control Roles of Bank and Public Debt, with Taxes and
Costly Bankruptcy," Economic Quarterly of the Federal Reserve
Bank of
"Financial
Intermediation as Delegated Monitoring, a Simple Example," Economic
Quarterly of the Federal Reserve Bank of
"Liquidity, Banks, and Markets," Journal of Political
Economy, October 1997.
"A Theory of Bank Capital," Journal
of Finance December 2000 (with Raghuram Rajan). Click the title to download as a pdf
file
"Liquidity risk, liquidity creation and financial fragility: A
theory of banking," Journal of Political
Economy April 2001. (with Raghuram Rajan). Click the title to download as a pdf
file.
"Should
Japanese Banks Be Recapitalized?" Monetary and Economic Studies
(Bank of
"Banks,
Short Term Debt and Financial Crises: Theory, Policy Implications and
Applications," Carnegie Rochester Conference on Public Policy,
54 (Summer 2001). (with Raghuram Rajan). Click the title to download as a pdf
file.
Banks
and Liquidity, American Economic Review, Papers and Proceedings,
May 2001) (with Raghuram Rajan). Click the title to
download as a pdf file.
Should
Banks Be Recapitalized? Economic Quarterly of the Federal Reserve
Bank of
Bank
Bailouts and Aggregate Liquidity, American Economic Review, Papers and
Proceedings, May 2002 (with Raghuram Rajan). Click
the title to download as a pdf file.
Committing
to Commit: Short-term Debt When Enforcement is Costly, American
Finance Association Presidential Address, August 2004, Journal of Finance.
Liquidity
Shortages and Banking Crises, Journal of Finance (April 2005) (with
Raghuram Rajan). Click the title to download as a pdf file.
Money
in a Theory of Banking, American Economic Review, March 2006. (with Raghuram Rajan). Click the
title to download as a pdf file.
Comment on
Bubbles and capital flow volatility: Causes and risk management, Journal
of Monetary Economics, Volume 53, Issue 1, January 2006, Pages 55-57.
Delegated
Monitoring and Legal Protection, working paper, revised October 2006,
Banks, Runs and Liquidity Creation, working paper,
Banks
and Liquidity Creation:A Simple Exposition
of the Diamond-Dybvig Model, Economic Quarterly of the Federal
Reserve Bank of
Legal
Systems, Bank Finance and Debt Maturity, November
2007.
Illiquidity and Interest
Rate Policy, September 2008 (with Raghu Rajan).
"Bank
Runs, Deposit Insurance and Liquidity," Journal of Political
Economy, June 1983 (with Philip Dybvig). Reprinted in Financial Markets
and Incomplete Information: Frontiers of Modern Financial Theory, Bhattacharaya and Constantinides
(editors), Rowman and Littlefield Publishers, 1989
(and in Winter 2000 Quarterly Review of the
Research Department of the Federal Reserve Bank of
"Financial
Intermediation and Delegated Monitoring," Review of Economic
Studies, July 1984.
"Corporate
Capital Structure: The Control Roles of Bank and Public Debt, with Taxes and
Costly Bankruptcy," Economic Quarterly of the Federal Reserve
Bank of
"Financial
Intermediation as Delegated Monitoring, a Simple Example," Economic
Quarterly of the Federal Reserve Bank of
"A Theory of Bank Capital," Journal
of Finance December 2000 (with Raghuram Rajan). Click the title to download as a pdf
file
"Liquidity risk, liquidity creation and financial fragility: A
theory of banking," Journal of Political
Economy April 2001. (with Raghuram Rajan). Click the title to download as a pdf
file.
"Should
Japanese Banks Be Recapitalized?" Monetary and Economic Studies
(Bank of
Revised and extended as Should
banks be recapitalized? forthcoming in Economic Quarterly of the
Federal Reserve Bank of Richmond, Click the title to
download as a pdf file.
"Banks,
Short Term Debt and Financial Crises: Theory, Policy Implications and
Applications," Carnegie Rochester Conference on Public Policy,
54 (Summer 2001). (with Raghuram Rajan). Click the title to download as a pdf
file.
Banks
and Liquidity, American Economic Review, Papers and Proceedings,
May 2001) (with Raghuram Rajan). Click the title to download
as a pdf file.
Should
Banks Be Recapitalized? Economic Quarterly of the Federal Reserve
Bank of
Bank
Bailouts and Aggregate Liquidity, American Economic Review, Papers and
Proceedings, May 2002 (with Raghuram Rajan). Click
the title to download as a pdf file.
Committing
to Commit: Short-term Debt When Enforcement is Costly, American
Finance Association Presidential Address, August 2004, Journal of Finance.
Liquidity
Shortages and Banking Crises, Journal of Finance (April 2005) (with
Raghuram Rajan). Click the title to download as a pdf file.
Money
in a Theory of Banking, American Economic Review, March 2006. (with Raghuram Rajan). Click the
title to download as a pdf file.
Comment on
Bubbles and capital flow volatility: Causes and risk management, Journal
of Monetary Economics, Volume 53, Issue 1, January 2006, Pages 55-57. Click the title to download as a pdf
file.
Delegated
Monitoring and Legal Protection, working paper, revised October 2006,
Banks
and Liquidity Creation:A Simple Exposition
of the Diamond-Dybvig Model, Economic Quarterly of the Federal
Reserve Bank of
Legal
Systems, Bank Finance and Debt Maturity, November
2007.
Click the title to download as a pdf file.