Background
Jaffee, Dwight M. was born on February 7, 1943 in Chicago, Illinois, United States. Son of Woodrow W. and Gertrude B. Jaffee.
Jaffee, Dwight M. was born on February 7, 1943 in Chicago, Illinois, United States. Son of Woodrow W. and Gertrude B. Jaffee.
Student, Oberlin College, 1960. Bachelor, Northwestern University, 1964. Doctor of Philosophy, Massachusetts Institute of Technology, 1968.
Lector Economics, Massachusetts Institute of Technology, Cambridge, Mass., USA, 1968. Professor of Economics, Princeton University, Princeton, New Jersey, United States of America, since 1968. Association Editor Journal of Money, Credit and Banking, 5, Journal of Monetary Economics, 1975-1978, Journal of Finance, 1974-1978, Housing Finance Review, since 1980, Journal of Banking and Finance, since 1981.
Most of the research effort has focussed on the behaviour of financial intermediaries, including both theoretical models and empirical testing. Specific studies have been divided about equally among topics relating to lending behaviour, liability and deposit issues, and integrated models of intermediary behaviour. Research on loan markets has covered business, mortgage, and consumer loan markets.
A critical and continuing theme of loan market research concerns models and tests of nonprice credit rationing. Current research projects in this area study the role of moral hazard and adverse selection as they impact lender and credit rationing behaviour. Research on deposit markets has considered the rate-setting behaviour of depository institutions, the impacts of Regulation Q ceilings on their behaviour and its macroeconomic consequence, and alternative sources of funds.
Research on integrated models of intermediary behaviour have included the application of portfolio theory to intermediary behaviour, and more recently has focussed specifically on the risk associated with balance sheets of unmatched asset and liability maturities. Current research projects centre on the alternative strategies available to the institutions for hedging their interestrate exposure, including variable rate loans and futures market hedging. This in turn has led to a series of research projects concerned directly with the newly developed futures markets for
financial instruments.
Other areas of more than passing research interest have included models of disequilibrium markets and econometric estimation methods for them, the market for residential construction including the demographic component of housing demand, and electronic funds monetary systems.
Member American Economics Association, American Finance Association, Phi Beta Kappa.
Children: Jonathan, Elizabeth.