Department of Economics
New York University

DOUGLAS GALE

 

CURRICULUM VITAE

DATE OF BIRTH:

March 27, 1950

CITIZENSHIP:

Canadian

CURRENT ADDRESS:

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)

EDUCATION:

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

CURRENT POSITIONS:

Julius Silver Professor of Economics, New York University
Extraordinary Fellow, Churchill College, Cambridge

PREVIOUS POSITIONS:

Junior Research Fellow, Churchill College, Cambridge (1975-78)
Lecturer in Economics, London School of Economics (1978-81)
Reader in Economics, London School of Economics (1981-85)
Visitor in Economics, University of Pennsylvania (1984-85)
Professor of Economics, London School of Economics (1985-86)
Associate Professor of Economics, University of Pennsylvania (1985-87)
Professor of Economics, University of Pennsylvania (1987-88)
Professor of Economics, University of Pittsburgh (1986-90)
Visiting Professor of Economics, Massachusetts Insitute of Technology (1989-90)
Professor of Economics, Boston University (1990-96)
Visitor in Economics, University of Pennsylvania (1994)
Co-Director, C.V. Starr Center for Applied Economics, New York University (1998-99)
Chairman, Department of Economics, New York University (1999-2002)

HONORS AND AWARDS:

University Scholar (Trent University)
Canadian Transportation Commission Fellowship (Carleton University)
Commonwealth Scholarship (University of Cambridge)
Fellow of the Econometric Society (1987)
Churchill Lecturer in Economic Theory (1997)
Salomon Brothers, Smith Barney Prize (for “Optimal Financial Crises”, ASSA Meetings, Chicago, IL, January 1998)

PROFESSIONAL ACTIVITIES:

Member, Editorial Board, The Review of Economic Studies 1979-88)
Assistant Editor, The Review of Economic Studies (1980-83)
Research Fellow, Centre for Economic Policy Research (1984-87)
Associate Editor, The Journal of Economic Theory (1986-92, 1997-2001)
Member, NBER Working Group on Financial Markets and Economic Fluctuations (1986-88)
Associate Editor, The Journal of Mathematical Economics (1988-92)
Co-Editor, Economic Theory (1990-92, 1996-97)
Associate Editor, Econometrica (1990-92)
Member, Economics Advisory Panel, National Science Foundation (1991-92)
Co-Editor, Econometrica (1992-96)
Associate Editor, Economic Theory (1992-95)
Chairman, Program Committee, North American Summer Meetings of the Econometric Society (held at Boston University, June 1993).
Associate Editor, Ricerche Economiche (1997- )
Advisory Editor, Macroeconomic Dynamics (1997- )
Distinguished Visitor, Financial Markets Group, London School of Economics (1992-95, 1998-2000).
Senior Fellow, Wharton Financial Institutions Center (1998-2000).
Sloan Fellow, Wharton Financial Institutions Center (2000-01).

RESEARCH INTERESTS:

Economics of finance, money and banking; general equilibrium theory; coordination problems; bounded rationality in economics.

PUBLICATIONS:

Books

  • Money in Equilibrium. Cambridge: Cambridge University Press (1982).
  • Money in Disequilibrium. Cambridge:Cambridge University Press (1983).
  • Comparing Financial Systems. Cambridge, MA: MIT Press (2000) (with Franklin Allen).
  • Strategic Foundations of General Equilibrium: Dynamic Matching and Bargaining Games. Cambridge and New York: Cambridge University Press (2000).

    • Edited books

  • Economic Analysis of Markets and Games: Essays in Honor of Frank Hahn Cambridge, MA: MIT Press (1992) (with P. Dasgupta, O. Hart and E. Maskin).
  • Financial Innovation and Risk Sharing Cambridge, MA: MIT Press (1994) (with F. Allen).

    • Articles

  • “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.
  • “Incentive-Compatible Debt Contracts: The One-Period Problem,” Review of Economic Studies 52 (1985) 647-663 (with Martin Hellwig).
  • “Bargaining and Competition, Part I: Characterization,” Econometrica 54 (1986) 785-806.
  • “Bargaining and Competition, Part II: Existence,” Econometrica 54 (1986) 807-818.
  • “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 (with S. Bhattacharya).
  • “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.
  • “Optimal Security Design,” Review of Financial Studies 1 (1988) 229-263 (with Franklin Allen).
  • “Repudiation and Renegotiation:The Case of Sovereign Debt,” International Economic Review 30 (1989) 3-31 (with M. Hellwig).
  • “Incomplete Markets and the Incentives to Set up an Options Exchange,” Geneva Papers on Risk and Insurance Theory15 (1990) 17-46 (with Franklin Allen).
  • “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).
  • “Arbitrage, Short Sales and Financial Innovation,” Econometrica 59 (1991) 1041-1068 (with Franklin Allen).
  • “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).
  • “Measurement Distortion and Missing Contingencies in Optimal Contracts,” Economic Theory 2 (1992) 1-26 (with Franklin Allen).
  • “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.
  • “Stock Price Manipulation,” Review of Financial Studies 5 (1992) 503-529 (with Franklin Allen).
  • “Informational Capacity and Financial Collapse,” in C. Mayer and X. Vives (eds.) Financial Intermediation in the Reconstruction of Europe. Cambridge: Cambridge University Press (1993).
  • “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 Franklin Allen).
  • “Information Revelation and Strategic Delay in a Model of Investment,” Econometrica 62 (1994) 1065-1085 (with Christophe Chamley).
  • “Price and Quality Cycles for Experience Goods,” The RAND Journal 25 (1994) 590-607 (with Robert Rosenthal).
  • “Dynamic Coordination Games,” Economic Theory 5 (1995) 1-18.
  • “A Welfare Comparison of Intermediaries and Financial Markets in Germany and the U.S.,” European Economic Review 39 (1995) 179-209 (with Franklin Allen).
  • “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.
  • “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 (with Franklin Allen).
  • “Delay and Cycles,” Review of Economic Studies 63 (1996) 169-198.
  • “Financial Markets, Financial Intermediaries and Intertemporal Smoothing” Journal of Political Economy 105 (1997) 523-546 (with Franklin Allen).
  • “Spoiled for Choice: Variety and Efficiency in Markets with Incomplete Information,” Ricerche Economiche 51 (1997) 41-67.
  • “Optimal Financial Crises,” Journal of Finance 53 (1998) 1245-1284 (with Franklin Allen).
  • “Innovations in Financial Services, Relationships and Risk Sharing,” Management Science 45 (1999) 1239-1253 (with Franklin Allen).
  • “Experimentation, Imitation, and Strategic Stability,” Journal of Economic Theory 84 (1999) 1-40 (with Robert Rosenthal).
  • “Financial Contagion,” Journal of Political Economy 108 (2000) 1-33 (with Franklin Allen).
  • “Diversity of Opinion and Financing of New Technologies,” Journal of Financial Intermediation 8 (1999) 68-89 (with F. Allen).
  • “Corporate Governance and Product Market Competition” in Xavier Vives (ed.) Corporate Governance: Theoretical and Empirical Perspectives. Cambridge: Cambridge University Press (2000) (with F. Allen).
  • “Bubbles, Crises, and Policy” Oxford Review of Economic Policy 15 (1999) 9-19 (with F. Allen).
  • “The Asian Crisis and the Process of Contagion” Journal of Financial Compliance and Regulation 7 (1999) 243-249 (with F. Allen).
  • “Signaling in Markets with Two-Sided Adverse Selection” Economic Theory, 18 (2001) 391-414.
  • “Bubbles and Crises,” The Economic Journal 110 (2000) 236-256 (with F. Allen).
  • “Experimentation, Imitation, and Strategic Stability: Addendum,” Journal of Economic Theory 97 (2001) 164-174 (with R. Rosenthal).

  • “Optimal Currency Crises” Carnegie-Rochester Conference Series on Public Policy 53 (2000) 177-230 (with F. Allen).

  • “Monotone Games with Positive Spillovers,” Games and Economic Behavior, 37 (2001) 295-320.

  • “Dollarization, Bailouts, and the Stability of the Banking System” (with X. Vives) Quarterly Journal of Economics, 117 (2002) 467-502.

  • “Asset Price Bubbles and Monetary Policy” in Financial Crises and Global Governance edited by Meghnad Desai and Yahia Said. London, New York: Routledge (2003). (with F. Allen)

  • Comparative Financial Systems: A Survey” in Credit, Intermediation and the Macroeconomy edited by Sudipto Bhattacharya, Arnoud Boot and Anjan Thakor. Oxford: Oxford University Press (2004). (with F. Allen)

  • “Asset Price Bubbles and Stock Market Interlinkages,” in W. Hunter, G. Kaufman, and M. Pomerleano (eds.) Asset Price Bubbles: The Implications for Monetary, Regulatory, and International Policies. Cambridge, MA: MIT Press (2003).

  • “Financial Regulation in a Changing Environment,” in T. Courchene and E. Neave (eds) Framing Financial Structure in an Information Environment. Kingston, Ontaria: John Deutsch Institute for the Study of Economic Policy, Queen’s University (2003).
  • “Bayesian Learning in Social Networks,” Games and Economic Behavior 45 (2003) 329-346 (with Shachar Kariv).

  • “Competition and Financial Stability,” Journal of Money, Credit, and Banking 36 (2004) 453-480 (with Franklin Allen).

  • “Financial Intermediaries and Markets,” (with F. Allen) Econometrica 72 (2004) 1023-1061.

  • “Financial Fragility,” (with F. Allen) Journal of the European Economic Association (to appear).

  • "Capital Adequacy Regulation: In Search of a Rationale” (with F. Allen), in R. Arnott, B. Greenwald, R. Kanbur and B. Nalebuff (eds). Economics for an Imperfect World: Essays in Honor of Joseph Stiglitz.  Cambridge MA:  MIT Press (2003).

  • “From Cash-in-the-Market Pricing to Financial Fragility,” Journal of the European Economic Association (to appear) (with Franklin Allen).

  •  “Are Bank Capital Ratios Too High or Too Low: Risk Aversion, Incomplete Markets, and Optimal Capital Structures,” Journal of the European Economic Association (to appear) (with Onur Özgür) 
  •  “Competition and Complexity” Econometrica (to appear) (with Hamid Sabourian).

    • SUBMITTED FOR PUBLICATION:
    • “Markov Equilibria in Dynamic Matching and Bargaining Games” (with H. Sabourian)
    • "Learning in Networks: An Experimental Study" (with Syngjoo Choi and Shachar Kariv).
    • “Competitive Insurance Markets with Asymmetric Information: A Cournot-Arrow-Debreu Approach” (with M. Hellwig)
    • "Behavioral Aspects of Learning in Social Networks: An Experimental Study" (with Syngjoo Choi and Shachar Kariv)
    • "Liquidity, Interest, and Asset Prices"

    IN PREPARATION:

    • Understanding Financial Crises (with F. Allen)
    • “Competition and Complexity, Part I: Endogenous Matching” (with H. Sabourian)
    • “The Market for Managers” (with F. Milne)
    • “A Strategic Model of a Labor Market with Incomplete Information”.
    • “Informational Capacity and the Credit Crunch”.
    • “Branch Banking, Unitary Banking and Competition”.
    • “The Market for Internal Funds” (with Franklin Allen).
    • “General Equilibrium with Incomplete Information”.
    • “Markets and Intermediaries” (with Franklin Allen).

    OTHER PAPERS:

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

    • RESEARCH GRANTS:

    1. NSF Grant SES-8520224  “Strategic Models of Markets”. (1986 to 1988)
    2. NSF Grant SES-8720589  “Collaborative Studies in the Microstructure of Financial Markets”. (1988 to 1990)
    3. NSF Grant SES-9196061  “Further Studies in the Microstructure of Financial Markets”. (1991 to 1993)
    4. NSF Grant SES-9122102  “Studies in Intermediation and Financial Markets”. (1992 to 1994)
    5. NSF Grant SBR-9422194  "Financial Markets and Financial Intermediaries”. (1995 to 1998)
    6. NSF Grant SBR-9810912  “Financial Theory of the Firm”. (1998 to 2001)
    7. NSF Grant SES-0095109 “Financial Institutions for an Unstable World” (2001 to 2004)