Douglas Gale

Douglas Gale is Professor of Economics at New York University.

  • Comparing Financial Systems

    Comparing Financial Systems

    Franklin Allen and Douglas Gale

    The authors argue that the view that market-based systems are best is simplistic; a more nuanced approach is necessary.

    Financial systems are crucial to the allocation of resources in a modern economy. They channel household savings to the corporate sector and allocate investment funds among firms; they allow intertemporal smoothing of consumption by households and expenditures by firms; and they enable households and firms to share risks. These functions are common to the financial systems of most developed economies. Yet the form of these financial systems varies widely. In the United States and the United Kingdom competitive markets dominate the financial landscape, whereas in France, Germany, and Japan banks have traditionally played the most important role.

    Why do different countries have such different financial systems? Is one system better than all the others? Do different systems merely represent alternative ways of satisfying similar needs? Is the current trend toward market-based systems desirable? Franklin Allen and Douglas Gale argue that the view that market-based systems are best is simplistic. A more nuanced approach is necessary. For example, financial markets may be bad for risk sharing; competition in banking may be inefficient; financial crises can be good as well as bad; and separation of ownership and control can be optimal. Financial institutions are not simply veils, disguising the allocation mechanism without affecting it, but are crucial to overcoming market imperfections. An optimal financial system relies on both financial markets and financial intermediaries.

    • Hardcover $85.00
    • Paperback $60.00
  • Financial Innovation and Risk Sharing

    Financial Innovation and Risk Sharing

    Franklin Allen and Douglas Gale

    Franklin Allen and Douglas Gale assemble some of their key papers along with a five-chapter overview that not only synthesizes their work but provides a historical and institutional review and a discussion of alternative approaches as well.

    Franklin Allen and Douglas Gale have contributed substantially to the study of financial innovation, developing economic models to address the question of whether the market provides institutions and opportunities for individuals to share risks efficiently. In this book they assemble some of their key papers along with a five-chapter overview that not only synthesizes their work but provides a historical and institutional review and a discussion of alternative approaches as well. The lengthy overview surveys the authors' approach to financial innovation, principally their development of a basic theory of risk sharing in an economy with incomplete markets. The first two chapters summarize the history of innovation and illustrate the types of innovation, innovators, and motives for innovation. Chapters three and four look at industrial organization approaches to innovation and outline the authors' theory. The fifth chapter discusses other approaches and an agenda for future research.

    • Hardcover $70.00
    • Paperback $35.00
  • Economic Analysis of Markets and Games

    Economic Analysis of Markets and Games

    Essays in Honor of Frank Hahn

    Partha Dasgupta, Douglas Gale, Oliver Hart, and Eric Maskin

    These original essays focus on a wide range of topics related to Frank Hahn's distinguished work in economics. Ranging from market analysis and game theory to the microeconomic foundations of macroeconomics and from equilibrium and optimality with missing markets to economics and society, they reflect the diversity of modem research in economic theory. What distinguishes Hahn's work and many of the essays in this book is that the motivation often comes from practical concerns about unemployment, savings and investment, poverty, or the stability of markets.

    The essays in Part I deal with the microeconomic foundations of macroeconomics - a field in which Hahn has made important contributions, most notably in the theory of monetary economics. Topics include an evaluation of Hahn's contribution to the theory of distribution and such macroeconomic themes as coordination failure, multiple equilibria, and strategic issues. Part II contains recent contributions to game theory reflecting Hahn's interest in the question of what is rational behavior. The essays in Part III concentrate on general-equilibrium theory with missing markets, a field in which Hahn has made major advances. Although the essays address a different set of issues, they share with Hahn's works such themes as market failure, indeterminacy of equilibrium, and the role of money.

    • Hardcover
    • Paperback $65.00

Contributor

  • Ham Radio's Technical Culture

    Ham Radio's Technical Culture

    Kristen Haring

    A history of ham radio culture: how ham radio enthusiasts formed identity and community through their technical hobby, from the 1930s through the Cold War.

    Decades before the Internet, ham radio provided instantaneous, global, person-to-person communication. Hundreds of thousands of amateur radio operators—a predominantly male, middle- and upper-class group known as "hams"—built and operated two-way radios for recreation in mid twentieth century America. In Ham Radio's Technical Culture, Kristen Haring examines why so many men adopted the technical hobby of ham radio from the 1930s through 1970s and how the pastime helped them form identity and community.

    Ham radio required solitary tinkering with sophisticated electronics equipment, often isolated from domestic activities in a "radio shack," yet the hobby thrived on fraternal interaction. Conversations on the air grew into friendships, and hams gathered in clubs or met informally for "eyeball contacts." Within this community, hobbyists developed distinct values and practices with regard to radio, creating a particular "technical culture." Outsiders viewed amateur radio operators with a mixture of awe and suspicion, impressed by hams' mastery of powerful technology but uneasy about their contact with foreigners, especially during periods of political tension.

    Drawing on a wealth of personal accounts found in radio magazines and newsletters and from technical manuals, trade journals, and government documents, Haring describes how ham radio culture rippled through hobbyists' lives. She explains why hi-tech employers recruited hams and why electronics manufacturers catered to these specialty customers. She discusses hams' position within the military and civil defense during World War II and the Cold War as well as the effect of the hobby on family dynamics. By considering ham radio in the context of other technical hobbies—model building, photography, high-fidelity audio, and similar leisure pursuits—Haring highlights the shared experiences of technical hobbyists. She shows that tinkerers influenced attitudes toward technology beyond hobby communities, enriching the general technical culture by posing a vital counterpoint.

    • Hardcover $7.75
    • Paperback $19.95