Interest Rates and Inflation: What’s Next for the Federal Reserve?
Professor Pierre Yared describes why the U.S. economy is unlikely to see an economic downturn comparable with the 1970s.
Professor Pierre Yared describes why the U.S. economy is unlikely to see an economic downturn comparable with the 1970s.
Tano Santos, the Robert Heilbrunn Professor of Asset Management and Finance and Director of Columbia Business School’s Heilbrunn Center for Graham and Dodd Investing, discusses the school’s approach to value investing and finance.
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. 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 before the 2008 financial crisis.
We demonstrate a novel link between relationship-specific investments and risk in a setting where division managers operate under moral hazard and collaborate on joint projects. Specific investments increase efficiency at the margin. This expands the scale of operations and thereby adds to the compensation risk borne by the managers. Accounting for this investment/risk link overturns key findings from prior incomplete contracting studies.
Bank bond portfolios remained deeply underwater in the fourth quarter of 2022, reducing banks' access to liquidity in the first quarter when deposits became far more precious.
Todd Baker is a financial services executive whose career has led him from corporate law to C-suite strategic business leadership roles at several of the largest domestic and international banks and roles as an academic, consultant, writer, speaker and commentator on banking, financial technology, consumer financial access and regulation issues.
Brett House is Professor of Professional Practice in the Economics Division at Columbia Business School. His research and writing are focused on macroeconomics and international finance, with interests in fiscal issues, monetary policy, international trade, financial crises, and debt markets. His work has been published in peer-reviewed journals and international media.
Yiming Ma is an Associate Professor in the Finance Division at Columbia Business School. She received her Ph.D. in Finance from the Stanford Graduate School of Business in 2018 and a B.A. in Economics & Mathematical and Global Affairs from Yale University in 2013.
Karl Mergenthaler, CFA is an Executive Director in the J.P. Morgan Investment Analytics & Consulting Group. His principal responsibility is to provide analytical and consulting services to pension funds and other institutional investors. Karl has more than 14 years of experience in the financial services industry. Prior to joining J.P. Morgan in 2007, Karl was an equity analyst and portfolio manager at Avatar Associates, where he was actively involved in the management of portfolios of Exchange Traded Funds (ETFs).
Aamir A. Rehman is a Senior Fellow at the Richard Paul Richman Center for Business, Law, and Public Policy at Columbia University. His contributions to the Center focus on investors’ ESG considerations and the public aspects of private investments.
For 29 years Michael has invested directly at the security level and indirectly as an asset allocator in traditional and alternative asset classes. He is a Managing Director, Head of Hedge Funds and Alternative Alpha, and on the Investment Committee at APG, a world leader in Environmental, Social and Governance Investing. Previously he was the Chief Investment Officer at MOV37 and Protege Partners.
Professor Tano Santos is the Robert Heilbrunn Professor of Asset Management and Finance and the Academic Director of the Heilbrunn Center for Graham & Dodd Investing at Columbia Business School, Columbia University, where he has taught since 2003. Previously he was an Associate Professor at the University of Chicago Booth School of Business. At Columbia, he teaches courses on Value Investing, Modern Value, and Modern Political Economy.
Ciamac C. Moallemi is the William von Mueffling Professor of Business in the Decision, Risk, and Operations Division of the Graduate School of Business at Columbia University, where he has been since 2007. He also develops quantitative trading strategies at Bourbaki LLC, a quantitative investment advisor. A high school dropout, he received S.B. degrees in Electrical Engineering & Computer Science and in Mathematics from the Massachusetts Institute of Technology (1996).
David has over 15 years of experience investing in distressed, special situations and all-weather credit strategies, including as a Partner and Portfolio Manager of Standard General, LP. and Sunago Capital Partners LP. He also serves as Executive Chairman of Turning Point Brands, Inc. (NYSE: TPB), a Director of National Cinemedia, Inc.
Stephen Penman is the George O. May Professor in the Graduate School of Business, Columbia University where he is also co-director of the Center for Excellence in Accounting and Security Analysis and director of the Masters Program in Accounting and Fundamental Analysis.
Matthew Dell Orfano is a Senior member at Discovery Capital, focusing globally on multiple sectors, thematic trade construction, and special situations, in addition to managing their data efforts. He is responsible for individual positions and the internal thematically driven portfolio, which assimilates bottoms-up analysis and macro thematic from over 55 countries into actionable insights.
This paper provides a new approach for solving a wide class of Markov decision problems including problems in which the space is general and the system can be continuously controlled. The optimality criterion is the long-run average cost per unit time. We decompose the decision processes into a common underlying stochastic process and a sequence of interventions so that the decision processes can be embedded upon a reduced set of states.
In a preceding paper we have introduced a new approach for solving a wide class of Markov decision problems in which the state-space may be general and the system may be continuously controlled. The criterion is the average cost. This paper discusses two applications of this approach. The first application concerns a house-selling problem in which a constructor builds houses which may be sold at any stage of the construction and potential customers make offers depending on the stage of the construction.
Examines the impact of message to direct mail response on sales. Discussions on the Bales interaction process analysis; Analysis of variance; Correlation between the intention to purchase to attitude towards the magazine.
Examines the quantity-setting behavior under price uncertainty. Probability of loss; Use of the monotonicity property of distributions; Changes in fixed costs, price, and taxes.
Reprinted in Fred Lane, (ed.), <em>Current Issues in Public Administration</em> (New York: St. Martin's Press, 1978), pp. 288- 301.
This paper is presented within the context of two streams of research which can be identified in the current literature of empirical accounting research. Both of these research areas deal with changes in accounting methods. The first deals with the motivation for changes in accounting methods, and the second area, attempts are made to discover the consequences of accounting changes in terms of the reaction of capital markets to the output of the accounting process.