I grew up in Dayton, Ohio, and received a bachelor's degree in mathematics and physics from Indiana University. After receiving a doctorate in economics from Yale University, I taught briefly at Princeton University before returning to Yale where I became a tenured Full Professor. I left Yale to join the faculty of Washington University, initially as the John E. Simon Professor of Finance and currently as the Boatmens Bancshares Professor of Banking and Finance.
Most of my research has provided fundamental theoretical analysis of practical problems. The Diamond-Dybvig model, derived with Doug Diamond at Chicago, is a pillar of modern banking theory, and after thirty years it is still used widely by academics and regulators and is one of the most widely cited papers in the Finance and Economics literatures. I have always worked on a wide range of topics. My recent work has focused more on investments and corporate governance. My research on asset allocation and spending rules for educational endowments was awarded the first Commonfund Prize for "original research with strong potential to influence practice," and my work with Bill Marshall on pricing long bonds was awarded a Graham and Dodd scroll for excellence in financial writing. In all, I have more than 30 publications in top academic journals.
I pride myself for my commitment to teaching in the Olin School's various programs, and several of my former doctoral students have become prominent scholars.
I served as president of the Western Finance Association and I have held many editorial positions at leading journals. I have also served on Washington University's Investments Committee and the National Endowment Survey Advisory Committee of the National Association of College and University Business Officers. Recently, I have been an organizer of several conferences in China.
I have done a lot of consulting work over the years, mostly applying quantitative models to practical problems in investments, especially in fixed income and asset allocation. I have also worked on a diverse set of problems, including pricing of a metals derivative offered by a company, examing charges of a violation of anti-dumping agreements, determination of the cost of capital, and determining whether recorded commodoties trades are genuine or just a paper trail created to perpetrate a tax fraud.
In recent years, I have spent a significant time visiting the Far East, mostly China. I am now spending two months per year visiting Xinan Caida (Southwest University of Finance and Economics, 西南财经大学) in Chengdu, Sichuan, China. There, I am a Chang Jiang Scholar and I am also the director of the Institute for Financial Studies (IFS or 金融研究院). I have also visited Singapore Management University, Changjiang Graduate School of Business (CKGSB), Beida (Peking University), Tsinghua University (Beijing), and Ajou University (Seoul, South Korea). I have had shorter visits for seminars or conferences at National University of Singapore, Jiaotong University in Shanghai (at SAIF new Shanghai Advanced Insitute in Finance), NTU in Singapore, Zhongyang School of Finance and Economics (Beijing), Xiamen University, Hong Kong University, and City University of Hong Kong. I was a keynote speaker at meetings of the Five-star Forum in Beijing and the Chinese Finance Association in Chengdu. I was also a keynote or plenary speaker at other international meetings, including meetings of the Bachelier Society, Northern Finance Association, and Midwest Finance Association.
I have collected some awards in China including Changjiang Scholar (长江学者), Thousand-person plan (千人计划), Chengdu Jinsha Friendship Award (成都市金沙友谊奖), Sichuan Golden Pinnacle Award (四川金顶将), and the Chinese Central Government Friendship Award (中国政府友谊将).
Some of my leisure activities include playing jazz and blues keyboards and playing some traditional instruments such as the erhu and the hulusi. I also enjoy weightlifting, Taiji, Qigong, Tui Shou (push hands), and walking.