Donald D. Hester

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One of the more dramatic financial events of the late 1980s and early 1990s was the surge in Japanese stock prices that was immediately followed by a very sharp decline of more than 50 percent. While the unprecedented fluctuations in Japanese stock prices were domestic financial shocks, the unique institutional characteristics of the Japanese economy(More)
We describe a patient who had sequential strokes in both hemispheres with a severe unilateral spatial neglect after a first right-sided parietal infarct and abrupt disappearance of the neglect after a second left-sided frontal infarct. The first lesion involve the caudalmost right angular gyrus (area 39), whereas the second lesion involved the left frontal(More)
This paper reports tests of hypotheses that a variety of interest rates and other measures from financial markets in countries belonging to the European Monetary Union (EMU) were converging prior to the introduction of the euro in January 1999. We expected to find convergence because of i) removal of national barriers to flows of funds, ii) explicit and(More)
This paper presents a model of de novo branching by Italian banks and reports estimates of its parameters that were obtained by applying a probit-regression (or Tobit) method to cross-section samples of up to 206 large banks for the years 1992-1996. The number of branches has increased rapidly since about 1988. The model incorporates information on banking(More)
This paper focuses on how financial institutions function in an imperfectly competitive market, one that is repeatedly shocked by financial innovations and governmental interventions and is always in disequilibrium. It does not consider whether or not financial institutions caused the collapse of real estate markets, but instead offers reasons why major(More)
This morning we are very fortunate to have three interesting and distinctive papers that treat different aspects of the problem of implementing monetary policy. The first is by Carl Walsh, who has been a visitor at the Kansas City Federal Reserve Bank. His paper is one of two recent highly innovative studies that he has prepared. They use the rational(More)
Introduction and summary Risk managers use a “peeling an onion” analogy to illustrate their prioritization of risk management activities. The resulting priorities have produced the contracting innovations needed to manage the outer layers of this risk onion. These tools are derivative contracts whose values are driven by changes in interest rates, equity(More)