Gary Bernard Gorton (born c. 1951) is an
American
American(s) may refer to:
* American, something of, from, or related to the United States of America, commonly known as the "United States" or "America"
** Americans, citizens and nationals of the United States of America
** American ancestry, pe ...
economist
An economist is a professional and practitioner in the social sciences, social science discipline of economics.
The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this ...
who currently serves as the Frederick Frank Class of 1954 Professor of Finance at
Yale School of Management
The Yale School of Management (also known as Yale SOM) is the graduate business school of Yale University, a private research university in New Haven, Connecticut. The school awards the Master of Business Administration (MBA), MBA for Executive ...
. He is known for his theory on the role of repurchase agreements on the 2008 financial crisis.
As one of the top economists in the world, Gorton is frequently mentioned as a possible recipient of the Nobel Prize in Economics.
Early life
Gorton was born to a psychiatrist in Phoenix. He earned a B.A. in Chinese Language and Literature from
Oberlin College
Oberlin College is a private liberal arts college and conservatory of music in Oberlin, Ohio. It is the oldest coeducational liberal arts college in the United States and the second oldest continuously operating coeducational institute of highe ...
in 1973. After his undergraduate career, he followed a roundabout path to his current position in academia. He first obtained a M.A. in Chinese Studies from
University of Michigan
, mottoeng = "Arts, Knowledge, Truth"
, former_names = Catholepistemiad, or University of Michigania (1817–1821)
, budget = $10.3 billion (2021)
, endowment = $17 billion (2021)As o ...
in 1974. He had thought of becoming an actor and even drove a cab in Cleveland. Eventually, he settled in graduate school in economics: he earned a M.A. in Economics from
Cleveland State University
Cleveland State University (CSU) is a public research university in Cleveland, Ohio. It was established in 1964 and opened for classes in 1965 after acquiring the entirety of Fenn College, a private school that had been in operation since 1923 ...
in 1977 and a M.A. in Economics from the
University of Rochester
The University of Rochester (U of R, UR, or U of Rochester) is a private research university in Rochester, New York. The university grants undergraduate and graduate degrees, including doctoral and professional degrees.
The University of ...
in 1980. He earned his Ph.D. in economics from University of Rochester in 1983. His dissertation was titled "Banking Panics" with the economists
Robert Barro
Robert Joseph Barro (born September 28, 1944) is an American macroeconomist and the Paul M. Warburg Professor of Economics at Harvard University. Barro is considered one of the founders of new classical macroeconomics, along with Robert Lucas, J ...
and
Robert King on his dissertation committee.
Career
After completing his Ph.D. in economics, Gorton joined the faculty at the Wharton School at the University of Pennsylvania. During this time, Gorton served as the director of the research program for the Federal Deposit Insurance Corporation and as a senior economist at the Federal Reserve in Philadelphia, where he focused on the financial markets, banks, and bank regulation. He is a former member of the Moody’s Investors Services Academic Advisory Panel. He remained at the University of Pennsylvania for 24 years until he joined the faculty at the Yale School of Management. At the Yale School of Management, Gorton teaches a course titled "Capital Markets." Gorton has also taught at the University of Chicago's Booth School of Business and has worked at the Bank of England as a Houblon-Norman Fellow.
In his book titled "Slapped by the Invisible Hand: The Panic of 2007," Gorton wrote in May 2009 that the rise of the unregulated
shadow banking system
The shadow banking system is a term for the collection of non-bank financial intermediaries (NBFIs) that provide services similar to traditional commercial banks but outside normal banking regulations. Examples of NBFIs include hedge funds, in ...
was a primary cause of the
subprime mortgage crisis
The United States subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010 that contributed to the 2007–2008 global financial crisis. It was triggered by a large decline in US home prices after the col ...
.
Gary Gorton-NBER and Yale-Slapped in the Face by the Invisible Hand: Banking and the Panic of 2007-Updated May 2009
/ref>
As an expert in stock and futures markets, banking, and asset pricing, he is an editor of the '' Review of Economic Studies'' and the ''Review of Financial Studies
''The Review of Financial Studies'' is a peer-reviewed academic journal covering the field of finance. It is published by Oxford University Press on behalf of the Society for Financial Studies. It was established following discussions at the 19 ...
''. He has also served on the editorial boards of Journal of Financial Services Research, the Journal of Financial Intermediation, the Journal of Financial Markets, the Journal of Money, Credit, and Banking, Advances in International Banking and Finance, Finance Letters, and the Economic Policy Review (of the Federal Reserve Bank of New York).
References
External links
Gary Gorton homepage
via Yale University
{{DEFAULTSORT:Gorton, Gary
1951 births
Living people
Oberlin College alumni
Yale University faculty
21st-century American economists
1950s births
University of Rochester alumni
University of Michigan alumni
Cleveland State University alumni