Papers by Ronnie Phillips
SSRN Electronic Journal
It is widely recognized that small business is not only an important source of employment but is ... more It is widely recognized that small business is not only an important source of employment but is the genesis of virtually all successful large enterprises. Given their size and characteristic opaqueness, Small and Medium Enterprises (SMEs) tend to be more financially constrained than large firms because of the lack of access to external financing from both banks and capital markets. Though building a relationship provides the loan officer more information about the individual entrepreneur, there are other factors that can influence the success or failure of an enterprise. We divide the entrepreneurial information available to bank loan officers into three segments: information about competition in the local banking market, information about success and failures of other SMEs in the local market, and information about how well other banks are performing in the local market. The primary purpose of our paper is to find proxies for this entrepreneurial information and to gauge its impac...
The Twentieth Century Trend of Institutionalism in Mainstream Economics Journals
Research in the History of Economic Thought and Methodology, 2003
... Walton Hamilton 12 4 10 9 Wesley Mitchell 30 15 22 11 Thorstein Veblen 13 3 4 9 Totals 97 61 ... more ... Walton Hamilton 12 4 10 9 Wesley Mitchell 30 15 22 11 Thorstein Veblen 13 3 4 9 Totals 97 61 98 60 a Includes coauthored articles. b Includes notes and symposia proceedings. c May include multiple reviews (ie in more than one journal) of same book. Page 6. 288 RONNIE J ...
SSRN Electronic Journal, 2000
As recovery from the present economic crisis begins, policymakers must address what reforms will ... more As recovery from the present economic crisis begins, policymakers must address what reforms will be made in financial system in order to prevent the reoccurrence of a similar crisis in the future. What will Congress do in response? In terms of long-term financial reform, what is to be expected from Congress is passage of legislation that increases oversight and regulation by the federal financial regulatory agencies. The purpose of this policy brief is to explain and evaluate one proposal for reform of the financial system that would help mitigate the policy conundrum that often results from conflicting short-run and long-run policies. This proposal, known as "narrow banking," would separately regulate and supervise the role of banks in providing a safe and stable means of payment from the system of credit creation by financial institutions. The heart of the proposal is to make checkable deposits as safe a means of payment as currency presently issued by the Federal Reserve System, but without the need for the elaborate supervisory and regulatory structure required when federal deposit insurance and the discount window are part of the financial safety net.
Journal of Cultural Economics, 2014
Though there is a long tradition of band members quitting the group or taking a hiatus, the rock ... more Though there is a long tradition of band members quitting the group or taking a hiatus, the rock group as an organization to produce music continues to be both popular and economically viable. Frequent media reports of conflicts between rock band members, managers, recording companies, and others involved in the music business could lead one to question whether the costs of keeping a group together are worth the rewards. The problems usually center around whether individual members of the group feel that they are adequately compensated for their contributions to the group's output. What explains this resilience of groups in popular music today in light of the changes in the music industry in recent decades? We compare the 1960s experience of musicians who quit the group with contemporary musicians and examine the impact of technological and institutional changes on the Billboard Top 100 charts for groups, collaborations, and solo projects of those who left groups. Our analysis supports the theoretical model of joint production discussed by Alchian and Demsetz and the view of U2's Bono that the group has a unique output and changes in contracts, compensation, and consumer focus on artists have not diminished the importance of the rock group as an organization for producing music.(JEL classification: L26 Entrepreneurship, Z1 Cultural Economics; Keywords: music industry, entrepreneurship, theory of the firm) Ain't no way to keep a band together-bands come and go.
The Milken Institute Series on Financial Innovation and Economic Growth, 2008
Stability in the Financial System, 1996
Federal Housing Policies and the Recent Financial Crisis
Financial Institutions, Corporations, Investors, and Activists, 2012
SSRN Electronic Journal, 2000
SSRN Electronic Journal, 2000
SSRN Electronic Journal, 2000
What differentiates American capitalism from all other forms of industrial capitalism is a histor... more What differentiates American capitalism from all other forms of industrial capitalism is a historical focus on both the creation of wealth (entrepreneurship) and the reconstitution of wealth (philanthropy). Philanthropy has been part of the implicit American social contract that continuously nurtures and revitalizes economic prosperity. Much of the new wealth created historically has been given back to the community to build many of the great social institutions that have paved the way for future economic growth. This entrepreneurship-philanthropy nexus has not been fully explored by either economists or the general public. The purpose of this paper is to suggest that American philanthropists-particularly those who have made their own fortunes-create foundations that, in turn, contribute to greater and more widespread economic prosperity through knowledge creation. Analyzing philanthropy sheds light on our current understanding of how economic development has occurred, as well as the roots of American economic dominance.
Non-market Sources of American Entrepreneurial Capitalism
Non-market Entrepreneurship, 2008
Journal of Financial Services Research, 2008
The first Conference on Bank Structure and Competition was held at the Federal Reserve Bank of Ch... more The first Conference on Bank Structure and Competition was held at the Federal Reserve Bank of Chicago in 1963. Since that time, the Conference has served to stimulate and disseminate policy relevant research on issues affecting the financial services industry and as a forum for debating the relevant policy issues of the day. We evaluate the impact of the Conference on public policy and the banking and finance literature. We provide a qualitative argument that the Conference has helped promote policy change by showing that major financial reforms were typically discussed years earlier at the Conference. We then analyze data from the Social Science Citation Index and find that the Conference has had a strong and systematic impact on the banking and finance literature.
International Journal of Banking, Accounting and Finance, 2013
Payday loans are very expensive forms of credit, and states that permit payday lending typically ... more Payday loans are very expensive forms of credit, and states that permit payday lending typically impose ceilings on loan prices. We test whether and how such constraints influence the pricing behaviour of payday lenders, using data on 35,098 payday loans originated in Colorado between 2000 and 2006. We find that loan prices moved upward toward the legislated price ceiling over time, a pattern that is consistent with implicit collusion facilitated by a pricing focal point. This phenomenon is accompanied by a reduction in competitive rivalry: as average prices approach the ceiling over time, statistical evidence consistent with classical price competition fades, and is replaced by evidence consistent with a variety of strategic pricing.
Proceedings, 2007
Abstract: We examine the pricing patterns of payday lenders in Colorado between 2000 and 2005, us... more Abstract: We examine the pricing patterns of payday lenders in Colorado between 2000 and 2005, using Tobit estimation techniques to account for legislated price ceilings, and a Heckman correction procedure to correct for locational choices made by payday lenders. Our ...
What differentiates American capitalism from all other forms of industrial capitalism is its hist... more What differentiates American capitalism from all other forms of industrial capitalism is its historical focus on both the creation of wealth (entrepreneurship) and the reconstitution of wealth (philanthropy). Philanthropy is part of the implicit social contract that continuously nurtures and revitalizes economic prosperity. Much of the new wealth created historically has been given back to the community, to build up the great social institutions that have a positive feedback on future economic growth. This entrepreneurship-philanthropy nexus has not been fully explored by either economists or the general public. The purpose of this paper is to suggest that American philanthropists-especially those who have made their own fortunes-create foundations that, in turn, contribute to greater and more widespread economic prosperity through knowledge creation. If we do not analyze philanthropy we can understand neither how economic development occurred nor what accounts for American economic dominance.
SSRN Electronic Journal, 2000
We offer a novel explanation of underwriting volatility in propertyliability insurance markets in... more We offer a novel explanation of underwriting volatility in propertyliability insurance markets in terms of private uncertainty over public regulatory policy. Underwriting involving random losses to policyholders is one source of risk to the equity value of insurance firms. Solvency regulations, however, pose a second source of risk to equity value when the implementation of such regulations randomly affects the return to underwriting but exhibits imperfect correlation with market conditions over time. Using a differential game in a standard no-arbitrage environment to model interaction between these two sources of risk, we derive the valuation equation for property-liability underwriting inclusive of the respective bestreply underwriting strategy of a representative insurance firm and the implementation strategy of a representative regulator. Owing to the conflicting effects of these strategies on firm equity, regulations adopted to reduce the solvency risk of insurers can, paradoxically, increase underwriting volatility in an otherwise efficient insurance market. Under certain parametric conditions, we also show that, even in the presence of complete financial markets, a subgame perfect Nash equilibrium of this game can exhibit a limit cycle in the value of underwriting which mirrors empirical evidence on the presence of cycles in property-liability insurance markets.
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Papers by Ronnie Phillips