1997 Working Paper Series

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#97-01
Optimal Financial Crises
Franklin Allen and Douglas Gale, December 1976
This is the preprint version only. For the published version please see: "Optimal Financial Crises." Journal of Finance. Vol. 53 (4), pp. 1245-84. August 1998.

#97-02-B
Organizational Form and Efficiency: An Analysis of Stock and Mutual Property-Liability Insurers
J. David Cummins, Mary A. Weiss and Hongmin Zi, May 1998
Forthcoming, Management Science.

#97-03-B
Comparison of Frontier Efficiency Methods: An Application to the U.S. Life Insurance Industry
J. David Cummins and Hongmin Zi, July 1997
This is the preprint version only. For the published version please see: "Comparison of Frontier Efficiency Methods: An Application to the U.S. Life Insurance Industry," Journal of Productivity Analysis, Vol. 10(2), pp. 131-52. October 1998.

#97-04
Inside the Black Box: What Explains Differences in the Efficiencies of Financial Institutions?
Allen N. Berger and Loretta J. Mester, January 1997
This is the preprint version only. For the published version please see: "Inside the Black Box: What Explains Differences in the Efficiencies of Financial Institutions?" Journal of Banking and Finance. Vol. 21, pp. 895-947. July 1997.

#97-05
Efficiency of Financial Institutions: International Survey and Directions for Future Research
Allen N. Berger and David B. Humphrey, January 1997
This is the preprint version only. For the published version please see: "Efficiency of Financial Institutions: International Survey and Review." European Journal of Operational Research. Vol. 98, pp. 175-212. April 1997.

#97-06-C
Is Share Price Related to Marketability? Evidence from Mutual Fund Share Splits
Chitru S. Fernando, Srinivasan Krishnamurthy and Paul A. Spindt, August 1999

#97-07
The Value Effects of Bank Mergers and Acquisitions
Steven J. Pilloff and Anthony M. Santomero, October 1996
This is the preprint version only. For the published version please see: "The Value Effects of Bank Mergers and Acquisitions: Mergers of Financial Institutions." Y. Amihud, G. Miller, Editors. Irwin Professional Publications. 1998.

#97-08
Property Exemptions and Loan Repayments
Richard Hynes, February 1997

#97-09
Examining the Contribution of Information Technology Toward Productivity and Profitability in U.S. Retail Banking
Baba Prasad and Patrick T. Harker, March 1997

#97-10-C
Strategies or Routines ? Knowledge Codification, Path-Dependence and the Evolution of Post-Acquisition Integration Practices in the U.S. Banking Industry
Maurizio Zollo, August 1998

#97-11
Monies and Banking
Anthony M. Santomero and John J. Seater, March 1997

#97-12
Retirement Wealth Accumulation and Decumulation: New Developments and Outstanding Opportunities
Olivia S. Mitchell and James F. Moore, April 1997
This is the preprint version only. For the published version please see: "Retirement Wealth Accumulation and Decumulation: New Developments and Outstanding Opportunities." Journal of Risk and Insurance. Vol. 65(3), pp. 371-400. December 1998.

#97-13
Life Insurance Firms in the Retirement Market: Is the News All Bad?
Paul Hoffman and Anthony M. Santomero, April 1997
This is the preprint version only. For the published version please see: "Life Insurance Firms in the Retirement Market: Is the News All Bad?" Journal of the American Society of CLU and ChFC. July 1998.

#97-14
The Competitive Performance of Life Insurance Firms in the Retirement Asset Market
Harris Chorney, Jill Goldman, Olivia S. Mitchell and Anthony M. Santomero, April 1997

#97-15
Empirical Evidence on the Duration of Bank Relationships
Steven Ongena and David C. Smith, March 1997
This is the preprint version only. For the published version please see: "Quality and the Duration of Bank Relationships" in GlobalCash Europe Vol. 96. D. F. Birks, editor. MacMillan Publishers.

#97-16
Product Focus versus Diversification: Estimates of X-Efficiency for the US Life Insurance Industry
Joseph W. Meador, Harley E. Ryan, Jr., and Carolin D. Schellhorn, February 1997
This is the preprint version only. For the published version please see: Forthcoming as "Product Focus versus Diversification: Estimates of X-Efficiency for the U.S. Life Insurance Industry." Patrick T. Harker and Stavros Zenios, eds., Performance of Financial Institutions. Cambridge University Press, Cambridge. 1999.

#97-17
Disentangling Within- and Between-Country Efficiency Differences of Bank Branches
Antreas D. Athanassopoulos, Andreas Soteriou and Stavros Zenios, March 1997
This is the preprint version only. For the published version please see: "Disentangling Within- and Between-Country Efficiency Differences of Bank Branches" in Patrick T. Harker and Stavros A. Zenios, eds., Performance of Financial Institutions. Cambridge University Press, Cambridge. 1999.

#97-18
Profits and Productivity
C.A. Knox Lovell and E. Grifell-Tatjé, October 1996

#97-19
Country and Firm Sources of International Competitiveness: The Case of the Foreign Exchange Market
Adrian Tschoegl, October 1996

#97-20-C
Inside the Black Box: What Makes a Bank Efficient?
Frances X. Frei, Patrick T. Harker and Larry W. Hunter, June 1998
This is the preprint version only. For the published version please see: "Inside the Black Box: What Makes a Bank Efficient?" in Patrick T. Harker and Stavros A. Zenios, eds., Performance of Financial Institutions. Cambridge University Press, Cambridge. 1999.

#97-21
Linking and Weighting Efficiency Estimates with Stock Performance in Banking Firms
Belarmino Adenso-Díaz and Fernando Gascón

#97-22
Acceptable Risk: A Study of Global Currency Trading Rooms in the US and Japan
Srilata A. Zaheer
This is the preprint version only. For the published version please see: "Acceptable Risk: A Study of Global Currency Trading Rooms in the US and Japan " in Patrick T. Harker and Stavros A. Zenios, eds., Performance of Financial Institutions. Cambridge University Press, Cambridge. 1999.

# 97-23
Risks and Returns in Relationship and Transactional Banks: Evidence from Banks' Returns in Germany, Japan, the U.K., and the U.S.
Kathryn L. Dewenter and Alan C. Hess
This is the preprint version only. For the published version please see: "Risks and Returns in Relationship and Transactional Banks: Evidence from Banks' Returns in Germany, Japan, the U.K., and the U.S. " in Patrick T. Harker and Stavros A. Zenios, eds., Performance of Financial Institutions. Cambridge University Press, Cambridge. 1999.

#97-24
On the Pricing of Intermediated Risks: Theory and Application to Catastrophe Reinsurance
Kenneth A. Froot and Paul G.J. O'Connell

#97-25
The Effect of TBTF Deregulation on Bank Cost of Funds
Lazarus Angbazo and Anthony Saunders

#97-26
Innovation in Financial Services, Relationships and Risk Sharing
H. Franklin Allen and Douglas Gale
Forthcoming, Management Science.

#97-27
Diversification, Organization, and Efficiency: Evidence from Bank Holding Companies
Peter G. Klein and Marc R. Saidenberg

#97-28
Efficiency, Profitability and Quality of Banking Services
Stavros Zenios and Andreas Soteriou
Forthcoming, Management Science.

#97-29
How the Environment Determines the Efficiency of Banks: A Comparison between French and Spanish Banking Industry
Michel Dietsch and Ana Lozano Vivas

#97-30
Entry Restrictions, Industry Evolution and Dynamic Efficiency: Evidence from Commercial Banking
Jith Jayaratne and Philp E. Strahan
This is the preprint version only. For the published version please see: "Entry Restrictions, Industry Evolution, and Dynamic Efficiency: Evidence from Commercial Banking." Journal of Law & Economics. Vol. 41 (1), pp. 239-73. April 1998.

#97-31
Outperformance: Does Managerial Specialization Pay?
Piet Eichholtz, Hans Op t Veld and Mark Schweitzer

#97-32
Payment System Settlement and Bank Incentives
Charles M. Kahn and William Roberds
This is the preprint version only. For the published version please see: "Payment System Settlement and Bank Incentives." The Review of Financial Studies. Vol. 11(4), pp. 845-870. Winter 1998.

#97-33
Technological Change, Financial Innovation, and Financial Regulation: The Challenges for Public Policy
Lawrence J. White

#97-34
Converting 1-Day Volatility to h-Day Volatitlity: Scaling by Root-h is Worse Than You Think
Francis X. Diebold, Andrew Hickman, Atsushi Inoue and Til Schuermann, July 1997
This is the preprint version only. For the published version please see: "Scale Models." Risk. Vol. 11, p. 104-7. 1998.

#97-35
Deposit Insurance: Do We Need It and Why?
Anthony M. Santomero, August 1997
This is the preprint version only. For the published version please see: "Deposit Insurance: Do We Need It and Why?" Ekonomia. Vol. 1 (1), pp. 1-19. Summer 1997.

#97-36
Process Variation as a Determinant of Service Quality and Bank Performance: Evidence from the Retail Banking Study
Frances X. Frei, Ravi Kalakota and Leslie M. Marx, May 1997
Forthcoming, Management Science.

#97-37
Evaluating Density Forecasts
Francis X. Diebold, Todd A. Gunther and Anthony S. Tay, August 1997
This is the preprint version only. For the published version please see: "Evaluation Density Forecasts, With Applications to Financial Risk Management." International Economic Review. Vol. 39, pp. 863-883.

#97-38
The International Expansion of the Norwegian Banks
Siv Fagerland Jacobsen and Adrian E. Tschoegl, August 1997
This is the preprint version only. For the published version please see: "The International Expansion of Norwegian Banks." Business History 43 (3). With Martin Boldt-Christmas and Siv Fagerland Jacobsen. 2001: 79-104.

#97-39
The Norwegian Banks in the Nordic Consortia: A Case of International Strategic Alliances in Banking
Siv Fagerland Jacobsen and Adrian E. Tschoegl, August 1997
This is the preprint version only. For the published version please see: "The Norwegian Banks in the Nordic Consortia: A Case of International Strategic Alliances in Banking." Industrial and Corporate Change. Vol. 8 (1), pp. 137-45. 1999.

#97-40-B
Entry and Survival: The Case of Foreign Banks in Norway
Adrian E. Tschoegl, August 1997
This is the preprint version only. For the published version please see: "Entry and Survival: The Case of Foreign Banks in Norway." Scandinavian Journal of Management. 2002: Vol 18 (2): 131-153.

#97-41
Problems of Bank Lending in Bulgaria: Information Asymmetry and Institutional Learning
Kenneth Koford and Adrian E. Tschoegl, September 1997
This is the preprint version only. For the published version please see: "Problems of Bank Lending in Bulgaria: Information Asymmetry and Institutional Learning." MOCT-MOST: Economic Policy in Transitional Economies. Vol. 9 (2), pp. 123-152. 1999.

#97-42-B
The Technical Process of Bank Privatization in Mexico
Haluk Unal and Miguel Navarro, May 1979
This is the preprint version only. For the published version please see: "The Technical Processs of Bank Privatization in Mexico." Journal of Financial Services Research. Vol. 16(1), pp.61-83. September 1999.

#97-43
On the Profitability and Cost of Relationship Lending
Mitchell Berlin and Loretta J. Mester, July 1997
This is the preprint version only. For the published version please see: "On the Profitability and Cost of Relationship Lending." Journal of Banking and Finance. Vol. 22, pp. 873-897. August 1998.

#97-44
Economic Valuation Models for Insurers
David F. Babbel and Craig Merrill, October 1997
This is the preprint version only. For the published version please see: "Economic Valuation Models for Insurers." North American Actuarial Journal. Vol. 2, Number 3. July 1998.

#97-45
How Relevant is Volatility Forecasting for Financial Risk Management?
Peter F. Christoffersen and Francis X. Diebold, October 1997
This is the preprint version only. For the published version please see:"How Relevant is Volatility Forecasting for Financial Risk Management?" Review of Economics and Statistics. 82, 12-23, 2000.

#97-46-B
Fee Waivers in Money Market Mutual Funds
Susan E.K. Christoffersen, May 2000

#97-47
Recovering Risky Technologies Using the Almost Ideal Demand System: An Application to U.S. Banking Mutual Funds
Joseph P. Hughes,William Lang, Loretta J. Mester and Choon-Geol Moon, July 1997

#97-48-B
Innovation in Retail Banking
Frances X. Frei, Patrick T. Harker and Larry W. Hunter, January 1998
Forthcoming in R. Landeau and D. Mowrey (eds.), U.S. Industry in 2000: Studies in Competitive Performance. Washington, DC, National Academy Press.

#97-49
Investment Decisions Depend on Portfolio Disclosure
David K. Musto, August 1997
This is the preprint version only. For the published version please see:"Investment Decisions Depend on Portfolio Disclosure." Journal of Finance. Vol. 54(3), pp. 935-52. June 1999.

#97-50
Circuit Breakers and Program Trading Limits: What Have We Learned?
Lawrence Harris, October 1997
This is the preprint version only. For the published version please see: "Circuit Breakers and Program Trading Limits The Lessons Learned." The Brookings-Wharton Papers on Financial Services. Robert E. Litan and Anthony M. Santomero, 1998.

#97-51
Stock Market Volatility: Ten Years After the Crash
G. William Schwert, October 1997
This is the preprint version only. For the published version please see: "Stock Market Volatility: Ten Years After the Crash." The Brookings-Wharton Papers on Financial Services. Robert E. Litan and Anthony M. Santomero, 1998.

#97-52
Advances in Financial Market Clearing and Settlement
David B. Humphrey, October 1997
This is the preprint version only. For the published version please see: "SAdvances in Financial Market Clearing and Settlement." The Brookings-Wharton Papers on Financial Services. Robert E. Litan and Anthony M. Santomero, 1998.

#97-53
Derivative Risks, Old and New
Stephen Figlewski, October 1997
This is the preprint version only. For the published version please see: "Derivative Risks, Old and New." The Brookings-Wharton Papers on Financial Services. Robert E. Litan and Anthony M. Santomero, 1998.

#97-54
Has the Rise of Mutual Funds Increased Market Instability?
Vincent A.Warther, October 1997
This is the preprint version only. For the published version please see: "Has the Rise of Mutual Funds Increased Market Instability?" The Brookings-Wharton Papers on Financial Services. Robert E. Litan and Anthony M. Santomero, 1998.

#97-55
The Internationalization of Securities Markets Since the 1987 Crash
Ingrid M.Werner and Linda L. Tesar, October 1997
This is the preprint version only. For the published version please see: "The Internationalization of Securities Markets Since the 1987 Crash." The Brookings-Wharton Papers on Financial Services. Robert E. Litan and Anthony M. Santomero, 1998.