Gary Gorton
Encyclopedia
Gary B. Gorton is an American
economist
who currently serves as professor at Yale School of Management
. He is a central figure in the study of the global financial crisis of 2008–2009.
in 1973. He has three Master's Degrees: University of Michigan
in 1974, Cleveland State University
in 1977, and University of Rochester
in 1980. He earned his Ph.D. from University of Rochester in 1983.
Gorton is an expert in stock and futures markets, banking, and asset pricing. He is editor of the Review of Economic Studies
.
AIG Financial Products
sponsored a major study on the historical performance of commodity futures by Gorton and K. Geert Rouwenhorst
.
AIG's financial products division employed Gorton's models in calculating insurance rates for credit default swaps on residential mortgage-based collaterized debt obligations. Gorton assured AIG managers that the models were sufficiently "robust" to maintain accurate CDS insurance rates even in adverse economic situations. AIG's reliance upon his predictions contributed to the company's multi-billion dollar losses in the subprime mortgage crisis
.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
who currently serves as professor at Yale School of Management
Yale School of Management
The Yale School of Management is the graduate business school of Yale University and is located on Hillhouse Avenue in New Haven, Connecticut, United States. The School offers Master of Business Administration and Ph.D. degree programs. As of January 2011, 454 students were enrolled in its MBA...
. He is a central figure in the study of the global financial crisis of 2008–2009.
Life and career
Gorton earned his Bachelor of Arts degree from Oberlin CollegeOberlin College
Oberlin College is a private liberal arts college in Oberlin, Ohio, noteworthy for having been the first American institution of higher learning to regularly admit female and black students. Connected to the college is the Oberlin Conservatory of Music, the oldest continuously operating...
in 1973. He has three Master's Degrees: University of Michigan
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
in 1974, Cleveland State University
Cleveland State University
Cleveland State University is a public university located in downtown Cleveland, Ohio. It was established in 1964 when the state of Ohio assumed control of Fenn College, and it absorbed the Cleveland-Marshall College of Law in 1969...
in 1977, and University of Rochester
University of Rochester
The University of Rochester is a private, nonsectarian, research university in Rochester, New York, United States. The university grants undergraduate and graduate degrees, including doctoral and professional degrees. The university has six schools and various interdisciplinary programs.The...
in 1980. He earned his Ph.D. from University of Rochester in 1983.
Gorton is an expert in stock and futures markets, banking, and asset pricing. He is editor of the Review of Economic Studies
Review of Economic Studies
The Review of Economic Studies is a peer-reviewed academic journal in economics. It was established in 1933 and is published by Wiley-Blackwell. It is the eighth-ranked economics journal in overall impact according to the ranking of Kalaitzidakis et al...
.
AIG Financial Products
AIG Financial Products
AIG Financial Products Corporation. is a subsidiary of the American International Group, headquartered in Fairfield, CT, with major operations in London, it is currently in the process of winding down all of its operations. The collapse of AIG Financial Products is considered to have played a...
sponsored a major study on the historical performance of commodity futures by Gorton and K. Geert Rouwenhorst
Geert Rouwenhorst
K. Geert Rouwenhorst is a Professor at Yale School of Management and Deputy Director for International Financial Center at Yale. He is also a partner at SummerHaven Investment management. His work has traced the history of mutual funds through 18th century Netherlands...
.
AIG's financial products division employed Gorton's models in calculating insurance rates for credit default swaps on residential mortgage-based collaterized debt obligations. Gorton assured AIG managers that the models were sufficiently "robust" to maintain accurate CDS insurance rates even in adverse economic situations. AIG's reliance upon his predictions contributed to the company's multi-billion dollar losses in the subprime mortgage crisis
Subprime mortgage crisis
The U.S. subprime mortgage crisis was one of the first indicators of the late-2000s financial crisis, characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages....
.
External links
- Gary Gorton homepage via Yale University