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Douglas Diamond

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Douglas Diamond
Diamond at the White House in 2022
Born
Douglas Warren Diamond

(1953-10-25)October 25, 1953(age 70)
EducationBrown University(BA)
Yale University(MA,MPhil,PhD)
Known forDiamond–Dybvig model
ChildrenRebecca Diamond
AwardsNobel Memorial Prize in Economic Sciences(2022)
Academic career
DisciplineEconomics
InstitutionsUniversity of Chicago
ThesisEssays on Information and Financial Intermediation(1980)
Doctoral advisorStephen A. Ross

Douglas Warren Diamond(born October 25, 1953)[1][2]is an American economist. He is currently the Merton H. Miller Distinguished Service Professor of Finance at theUniversity of ChicagoBooth School of Business,where he has taught since 1979. Diamond specializes in the study offinancial intermediaries,financial crises,andliquidity.He is aformer president of the American Finance Association(2003) and theWestern Finance Association(2001-02).

In October 2022, Diamond was awarded theNobel Memorial Prize in Economic Sciencesjointly withBen BernankeandPhilip H. Dybvig.The prize was awarded in recognition of the economists' "research on banks and financial crises"[3][4]

Diamond is best known for his work on financial crises andbank runs,particularly the influentialDiamond–Dybvig modelpublished in 1983 and the Diamondmodelofdelegated monitoringpublished in 1984.[5]In 2016, he was awarded theCME Group-MSRIPrize in Innovative Quantitative Applications.[6]

Early life and education

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Douglas Warren Diamond was born on October 25, 1953.[2]He was raised in theHyde Parkneighborhood ofChicagoby a single mother.[7][8]

As an adolescent, Diamond originally intended to study molecular biology. Diamond matriculated atBrown University,where he decided to study economics instead, after taking a course onMilton FriedmanandAnna Schwartz'sA Monetary History of the United States.[7][8]He graduatedPhi Beta Kappafrom Brown with a Bachelor of Arts degree in economics in 1975.[9]The following year, and in 1977 Diamond earned Master's degrees, and ultimately a PhD in economics in 1980 fromYale University.[9]At Yale, both Diamond and future Nobel co-recipient Philip H. Dybvig were advised byStephen A. Ross.According to Diamond, the two would regularly converse outside Ross' office while waiting for appointments with him.[10][11]

A later version of the third chapter of Diamond's 1980 doctoral dissertation "Essays on Information and Financial Intermediation" was republished in 1984 inThe Review of Economic Studiesunder the title "Financial Intermediation and Delegated Monitoring"[12][5]This publication coined the term "delegated monitoring" and described Diamond's formal model of delegated monitoring.[13]According to theCommittee for the Nobel Memorial Prize in Economic Sciences,Diamond's model is considered "the first trulymicro-foundedtheory offinancial intermediation."[14]Since its publication, Diamond (1984) has become a key publication in scholarship concerning financial intermediation.[14]

Career

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Since 1979, Diamond has taught at the University of Chicago Booth School of Business. He has held the Merton H. Miller Distinguished Service Professorship since July 2000, having previously held theTheodore O. YntemaProfessorship.[9]From 2010 to 2014, Diamond directed the Fama-Miller Center for Research in Finance at the University of Chicago.

Diamond has additionally served as a visiting scholar at theUniversity of Bonn(1983) and theBank of Japan(1999), as visiting professor at theHong Kong University of Science and TechnologyandMIT Sloan School of Management,and as a professor and teaching fellow at theYale School of Management.[9]

Nobel Memorial Prize in Economics

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In the early 2010s, Diamond was repeatedly floated as a contender for the Nobel Memorial Prize in Economic Sciences. In 2011, Diamond was listed byThomson Reutersas one of the "researchers likely to be in contention for Nobel honors based on the citation impact of their published research."[15]He was again named as a contender for the prize in 2013 by economistHubert Fromlet,[16]The Wall Street Journal,[17]andCatherine Rampell,writing forThe New York Times.[18]

On October 10, 2022, Diamond received the Nobel Memorial Prize in Economic Sciences jointly with long-time collaborator Philip H. Dybvig and formerChair of the Federal Reserve,Ben Bernanke. Much of the work for which the prize was awarded stems from work Diamond and Dybvig published in the early and mid-1980s.[19]

Personal life

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Diamond has been married to Elizabeth Cammack Diamond since 1982.[20]The couple has two children,[21]including economistRebecca Diamond.[22]

He is the son of Leon Diamond,[23][24]a psychiatrist, and Margaret Gunkel Seehafer, a social worker and professor.[25]

Honors and awards

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Awards

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Publications

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Articles

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  • Diamond, Douglas; Rajan, Raghuram (April 2009)."Fear of Fire Sales and the Credit Freeze".The Quarterly Journal of Economics.126(2): 557–591.doi:10.3386/w14925.
  • Diamond, Douglas W.; Rajan, Raghuram G. (April 2001)."Liquidity Risk, Liquidity Creation, and Financial Fragility: A Theory of Banking"(PDF).Journal of Political Economy.109(2): 287–327.doi:10.1086/319552.S2CID32078187.
  • Diamond, Douglas W. (August 1991). "Monitoring and Reputation: The Choice between Bank Loans and Directly Placed Debt".Journal of Political Economy.99(4): 689–721.doi:10.1086/261775.S2CID56293289.
  • Diamond, Douglas W. (1984). "Financial Intermediation and Delegated Monitoring".The Review of Economic Studies.51(3): 393–414.doi:10.2307/2297430.JSTOR2297430.
  • Diamond, Douglas W.; Dybvig, Philip H. (June 1983)."Bank Runs, Deposit Insurance, and Liquidity"(PDF).Journal of Political Economy.91(3): 401–419.doi:10.1086/261155.S2CID14214187.

See also

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References

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  1. ^"Douglas Diamond's Curriculum Vitae"(PDF).Retrieved2022-10-10.
  2. ^ab"The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2022".NobelPrize.org.Retrieved2022-12-09.
  3. ^abHorowitz, Julia (10 October 2022)."Nobel Prize in economics awarded to trio including Ben Bernanke for work on financial crises | CNN Business".CNN.Retrieved10 October2022.
  4. ^"The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2022".NobelPrize.org.Retrieved2022-10-13.
  5. ^abDiamond, Douglas W. (1984). "Financial Intermediation and Delegated Monitoring".The Review of Economic Studies.51(3): 393–414.doi:10.2307/2297430.JSTOR2297430.[non-primary source needed]
  6. ^abDouglas Diamond to receive CME Group-MSRI Prize in Innovative Quantitative Applications Retrieved on March 24, 2016.
  7. ^ab"How Prof. Douglas Diamond transformed the way we think about banking | University of Chicago News".2022-12-07. Archived fromthe originalon 2022-12-07.Retrieved2022-12-08.
  8. ^ab"Douglas W. Diamond".The University of Chicago Booth School of Business.Retrieved2022-12-09.
  9. ^abcd"Douglas W Diamond".
  10. ^Cummings, Mike (2022-10-10)."For Nobel laureates, successful collaboration began as Yale grad students".YaleNews.Retrieved2022-10-10.
  11. ^"The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2022".NobelPrize.org.Retrieved2022-10-13.
  12. ^Diamond, Douglas Warren (1980).Essays on Information and Financial Intermediation(Thesis).OCLC9473153.NAIDBB03350655.[page needed][non-primary source needed]
  13. ^Hasan, A K M Kamrul; Suzuki, Yasushi (2021). "Theoretical Discussion on Banking Business Model and Banking Regulations".Implementation of Basel Accords in Bangladesh.pp. 35–71.doi:10.1007/978-981-16-3472-7_3.ISBN978-981-16-3471-0.S2CID241704137.
  14. ^abThe Committee for the Prize in Economic Sciences in Memory of Alfred Nobel."Scientific Background on the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2022"(PDF).p. 28.
  15. ^Runners and riders. Retrieved on March 24, 2016.
  16. ^Magnusson, Niklas (October 3, 2013)."Deaton, Dixit, Tirole on Fromlet's Top Nobel Economy Prize List".Bloomberg News.
  17. ^Cronin, Brenda (2013-10-10)."Handicapping the 2013 Economics Nobel".Wall Street Journal.ISSN0099-9660.Retrieved2022-10-13.
  18. ^Rampell, Catherine (2013-10-11)."Economists to Watch for the Nobel Prize".Economix Blog.Retrieved2022-10-13.
  19. ^Granville, Kevin (2022-10-10)."Douglas Diamond and Philip Dybvig Created an Influential Model About Bank Runs".The New York Times.ISSN0362-4331.Retrieved2022-10-13.
  20. ^"Douglas W. Diamond Wins Nobel Prize in Economic Sciences".The University of Chicago Booth School of Business.Retrieved2022-10-13.
  21. ^"Douglas Diamond wins Nobel Prize for research on banks and financial crises | University of Chicago News".news.uchicago.edu.10 October 2022.Retrieved2022-10-13.
  22. ^List, John A (July 2020)."NON EST DISPUTANDUM DE GENERALIZABILITY? A GLIMPSE INTO THE EXTERNAL VALIDITY TRIAL"(PDF).NBER Working Paper Series(27535): 30.
  23. ^"Leon Diamond Obituary | Chicago Tribune".news.uchicago.edu.Retrieved2022-10-19.
  24. ^"Leon Diamond 1924-2022".Retrieved2022-10-19.
  25. ^"Seehafer, Margaret Irene Gunkel" Woodie "".madison.30 March 2017.Retrieved2022-10-20.
  26. ^"Fellows | The Econometric Society".econometricsociety.org.Retrieved2022-10-10.
  27. ^"Douglas W. Diamond".American Academy of Arts & Sciences.Retrieved2022-10-10.
  28. ^"Fellows".The American Finance Association.Retrieved2022-10-10.
  29. ^ab"Douglas W. Diamond".nasonline.org.Retrieved2022-10-10.
  30. ^"Douglas Diamond wins Morgan Stanley-AFA award for financial economics research".news.uchicago.edu.9 January 2012.Retrieved2022-10-11.
  31. ^ab"Yale Graduate School honors four alumni with Wilbur Cross Medals | Yale Graduate School of Arts & Sciences".gsas.yale.edu.Retrieved2022-10-11.
  32. ^"Chicago Booth's Douglas Diamond wins Onassis Prize in Finance".news.uchicago.edu.25 April 2018.Retrieved2022-10-11.
  33. ^"Honorary Degrees".Corporation | Brown University.Retrieved2024-05-09.
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