DATE OF BIRTH: March 27, 1950



Department of Economics
New York University
269 Mercer Street
New York, NY 10003

(212) 998-8944 (Tel)
(212) 995-3932 (Fax)

<douglas.gale@nyu.edu> (E-mail)


1967-70 B.Sc. (Trent University) Economics
1970-72 M.A. (Carleton University) Economics
1972-75 Ph.D (University of Cambridge) Economics


University Scholar (Trent University)

Canadian Transportation Commission Fellowship (Carleton Univ.)

Commonwealth Scholarship (University of Cambridge)


Professor of Economics, New York University


1975-78 Junior Research Fellow, Churchill College, Cambridge
1978-81 Lecturer in Economics, London School of Economics
1981-85 Reader in Economics, London School of Economics
1984-85 Visitor in Economics, University of Pennsylvania
1985-86 Professor of Economics, London School of Economics
1985-87 Associate Professor of Economics, University of Pennsylvania
1987-88 Professor of Economics, University of Pennsylvania
1986-90 Professor of Economics, University of Pittsburgh
1989-90 Visiting Professor of Economics, Massachusetts Insitute of Technology
1990-96 Professor of Economics, Boston University
1994 Visitor in Economics, University of Pennsylvania


1979-88 Member, Editorial Board, The Review of Economic Studies
1980-83 Assistant Editor, The Review of Economic Studies
1984-87 Research Fellow, Centre for Economic Policy Research
1986-92 Associate Editor, The Journal of Economic Theory
1986-88 Member, NBER Working Group on Financial Markets and Economic Fluctuations
1988-92 Associate Editor, The Journal of Mathematical Economics
1990-92 Co-Editor, Economic Theory
1990-92 Associate Editor, Econometrica
1991-92 Member, Economics Panel, National Science Foundation
1992-96 Co-Editor, Econometrica.
1992-95 Associate Editor, Economic Theory
1992-93 Chairman, Program Committee, North American Summer Meetings of the
Econometric Society (held at Boston University, June 1993).
1992-95 Distinguished Visitor, the Financial Markets Group, London School of Economics.
1996- Co-Editor, Economic Theory
1997- Associate Editor, Journal of Economic Theory
1997- Associate Editor, Ricerche Economiche


Fellow of the Econometric Society (1987)


Financial economics; microstructure of markets; foundations of macroeconomics and monetary economics


(a) Books

Money in Equilibrium (Cambridge: Cambridge University Press, 1982)

Money in Disequilibrium (Cambridge: Cambridge University Press, 1983)

(b) Edited books

(with P. Dasgupta, O. Hart and E. Maskin) Economic Analysis of Markets and Games: Essays in Honor of Frank Hahn. Cambridge, MA: MIT Press (1992).

(with F. Allen) Financial Innovation and Risk Sharing. Cambridge, MA: MIT Press (1994).

(c) Papers

"A Note on Conjectural Equilibria," Review of Economic Studies 45 (1978) 33-38

"The Core of a Monetary Economy without Trust," Journal of Economic Theory 19 (1978) 456-491

"Large Economies with Trading Uncertainty," Review of Economic Studies 46 (1979) 319-338

"Money, Information and Equilibrium," Journal of Economic Theory 23 (1980) 28-65

"Improving Coalitions in a Monetary Economy," Review of Economic Studies 48 (1981) 365-384

"Competitive Models with Keynesian Features," Economic Journal 93 (1983) 17-33

(with Martin Hellwig) "Incentive-Compatible Debt Contracts: The One-Period Problem," Review of Economic Studies 52 (1985)

"Bargaining and Competition, Part I: Characterization," Econometrica 54 (1986) 785-806

"Bargaining and Competition, Part II: Existence," Econometrica 54 (1986) 807-818

(with S. Bhattacharya) "Preference Shocks, Liquidity and Central Bank Policy," in W. Barnett and K. Singleton, eds., New Approaches to Monetary Economics. New York: Cambridge University Press (1987) 69-88

"Limit Theorems for Markets with Sequential Bargaining," Journal of Economic Theory 43 (1987) 20-54.

"Price Setting and Competition in a Simple Duopoly Model," Quarterly Journal of Economics 103 (1988) 729-740.

(with Franklin Allen) "Optimal Security Design," Review of Financial Studies 1 (1988) 229-263.

(with M. Hellwig) "Repudiation and Renegotiation: The Case of Sovereign Debt," International Economic Review 30 (1989) 3-31

(with Franklin Allen) "Incomplete Markets and the Incentives to Set up an Options Exchange," Geneva Papers on Risk and Insurance Theory 15 (1990) 17-46.

"Underinvestment and the Demand for Liquid Assets," in L. McKenzie and S. Zamagni, eds., Value and Capital: 50 Years After. London: Macmillan (1990).

"The Efficient Design of Public Debt," in M. Draghi and R. Dornbusch, eds., Public Debt Management: Theory and History. Cambridge: Cambridge University Press (1990).

(with Franklin Allen) "Arbitrage, Short Sales and Financial Innovation," Econometrica 59 (1991) 1041-1068.

"Incomplete Mechanisms and Efficient Allocation in Labor Markets" Review of Economic Studies 58 (1991) 823-851.

"Optimal Risk-Sharing through Renegotiation of Simple Contracts," Journal of Financial Intermediation 1 (1991) 283-306.

"Informational Efficiency of Search Equilibrium," in P. Dasgupta, D. Gale, O. Hart and E. Maskin, eds., Economic Analysis of Markets and Games: Essays in Honor of Frank Hahn. Cambridge, MA: MIT Press (1992).

(with Franklin Allen) "Measurement Distortion and Missing Contingencies in Optimal Contracts," Economic Theory 2 (1992) 1-26.

"A Walrasian Theory of Markets with Adverse Selection," Review of Economic Studies 59 (1992) 229-255.

"Standard Securities," Review of Economic Studies 59 (1992) 731-755.

(with Franklin Allen) "Stock Price Manipulation," Review of Financial Studies 5 (1992) 503-529.

"Informational Capacity and Financial Collapse," in C. Mayer and X. Vives (eds.) Financial Intermediation in the Reconstruction of Europe (1993).

(with Franklin Allen) "Financial Innovation: An Overview," Part I (Chapters 1-5) of F. Allen and D. Gale, Financial Innovation and Risk Sharing. Cambridge, MA: MIT Press (1994).

(with Franklin Allen) "Liquidity Preference, Market Participation and Asset Price Volatility" American Economic Review 84 (1994) 933-955.

(with Christophe Chamley) "Information Revelation and Strategic Delay in a Model of Investment" Econometrica 62 (1994) 1065-1085.

(with Robert Rosenthal) "Price and Quality Cycles for Experience Goods" The RAND Journal 25 (1994) 590-607.

"Dynamic Coordination Games" Economic Theory 5 (1995) 1-18.

(with Franklin Allen) "A Welfare Comparison of Intermediaries and Financial Markets in Germany and the U.S." European Economic Review 39 (1995) 179-209.

"Equilibria and Pareto Optima of Markets with Adverse Selection," Economic Theory 7 (1996) 207-235.

"What Have We Learned from Social Learning?" European Economic Review, 40 (1996) 617-628.

(with Franklin Allen) "Universal Banking, Intertemporal Risk Smoothing, and European Financial Integration" in A. Saunders and I. Walter (eds.) Universal Banking: Financial System Design Reconsidered. New York: Irwin (1996) 528-542.

"Delay and Cycles," Review of Economic Studies 63 (1996) 169-198.

(with Franklin Allen) "Financial Markets, Financial Intermediaries and Intertemporal Smoothing" Journal of Political Economy (to appear).

"Spoiled for Choice: Variety and Efficiency in Markets with Incomplete Information" Ricerche Economiche (to appear).


(with M. Hellwig) "A General Equilibrium Model of the Transactions Demand for Money", CARESS Working Paper 85-07 (1985, revised 1987).

(with M. Hellwig) "Informed Speculation in Large Markets" University of Pittsburgh (1987, revised 1988) mimeo.

(with Robert Rosenthal) "Experimentation, Imitation, and Strategic Stability," Boston University (1996).

(with Franklin Allen) "Optimal Financial Crises" New York University (1996).


"A Strategic Model of a Labor Market with Incomplete Information"

"Informational Capacity and the Credit Crunch"

"Branch Banking, Unitary Banking and Competition"

(with Franklin Allen) "The Market for Internal Funds".

(with Franklin Allen) Comparative Financial Systems


(with M. Hellwig) "Optimal Debt Contracts: A Comparative Static Analysis" CARESS Working Paper 86-06 (1986)

"A Simple Characterization of Bargaining Equilibrium in a Large Market without the Assumption of Dispersed Characteristics" CARESS Working Paper 86-05 (1986).

"A Strategic Model of Trade with Money as a Medium of Exchange" CARESS Working Paper 86-0* (1986).


NSF Grant SES-8520224 (two years)
University of Pennsylvania1
"Strategic Models of Markets"
3-1-86 to 8-31-88 2

NSF Grant SES-8720589 (two years)
"Collaborative Studies in the Microstructure of Financial Markets"
University of Pittsburgh
6-1-88 to 11-30-90

NSF Grant SES-9196061 (two years)3
"Further Studies in the Microstructure of Financial Markets"
Boston University
1-1-91 to 5-31-93

NSF Grant SES-9122102 (two years)
"Studies in Intermediation and Financial Markets"
Boston University
9-1-92 to 2-28-94

NSF Grant SBR-9422194 (three years)
"Financial Markets and Financial Intermediaries"
Boston University
6-1-95 to 11-30-98

1 Second year transferred to Boston University
2 All grant periods include six month unfunded flexibility period
3 Originally issued to University of Pittsburgh as Grant No. SES-8920586, 6-1-90. Second year transferred to University of Pittsburgh

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