Alan C. Hess

Alan C. Hess

Academic Affiliate

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Alan Hess is the Stephenson Endowed Professor of Finance and Business Economics at the Foster School of Business at the University of Washington.

Dr. Hess’s research and teaching interests encompass all aspects of financial markets and financial institutions, including risk management, the valuation of financial institutions, and the design of financial instruments.

Dr. Hess has worked at the U.S. Securities and Exchange Commission and in the Federal Reserve System. His consulting activities include expert testimony on lost profits and unjust enrichment; patent, copyright and trademark infringement damages; valuation of closely held firms, banks, loan portfolios, and complex securities and derivatives; risk management; cost of capital estimation; securities fraud; and antitrust liability and damages. He is the past president of the Western Finance Association and an advisor to a pension fund.

Dr. Hess has won numerous teaching awards including the University of Washington’s Distinguished Teaching Award; the M.B.A. Association’s Distinguished Professor Award, the Executive MBA Program’s Excellence in Teaching Award, the Burlington Northern Distinguished Teaching Award, and the Wells Fargo Outstanding Teaching Award.


Ph.D., Economics, Carnegie Mellon University, 1969
M.S., Economics, Carnegie Mellon University, 1967
B.S., Industrial Management, Purdue University, 1963

Areas of expertise

Recent news, presentations, and publications

“Banks Equity Holdings and Loan Losses: International Evidence.” Presented at the New York Federal Reserve Bank/Wharton Financial Institutions Conference, September 2006.

“Conditional Time-Varying Interest Rate Risk Premium: Evidence from the Treasury Bill Futures Market.” With Avraham Kamara. Journal of Money, Credit and Banking, August 2005.

“Are the Major Japanese Banks Uniform or Unique?” With Kathryn Dewenter and Yasushi Hamao. Presented at the NBER/CEPR/CIRJE/EIJS Japan Project Meeting, Tokyo, September 2004.

“Are Relationship and Transactional Banks Different? Evidence from Loan Loss Provisions and Write-Offs.” With Kathryn Dewenter. Presented at the Financial Intermediation Research Society conference, Capri, Italy, May 2004. Presented at the European Financial Management Association conference, Basle June 2004.

“Risks and Returns in Relationship and Transactional Banks: Evidence from Banks’ Returns in Germany, Japan, the U.K., and the U.S.,” (with K. Dewenter), Cambridge University Press, 1999.

“An International Comparison of Banks’ Equity Returns,” (with K. Dewenter), Journal of Money, Credit, and Banking, August 1998.

“A Market-Based Risk Classification of Financial Institutions,” (with K. Laisathit), Journal of Financial Services Research, December 1997. One of the ten most frequently downloaded papers on the Financial Economics Network.

“Portfolio Theory, Transaction Costs, and the Demand for Time Deposits,” Journal of Money, Credit, and Banking, November 1995

“The Term Premium: Default, Liquidity and Interest Rate Risk,” (with A. Kamara), abstract in Journal of Finance, Vol. 50, No. 3, July 1995, pp. 979-980

“Do Regulated Utilities Have Growth Opportunities?” Assessment Journal, July/August 1995

“Elements of Mortgage Securitization,” (with C. Smith), Reprinted in Studies in Financial Institutions: Commercial Banks, C.M. James and C.W. Smith, eds., McGraw-Hill, 1994

“The Effects of Transaction Costs on Households’ Financial Asset Demands,” Journal of Money, Credit, and Banking, August 1991

“Elements of Mortgage Securitization,” (with C. Smith), Journal of Real Estate Finance and Economics, 1988.

“Could Thrifts Be Profitable? Theoretical and Empirical Evidence,” Carnegie-Rochester Conference Series on Public Policy, Spring 1987.

“The Intermediation Profit Margin: A New Measure of Savings and Loan Association Financial Performance,” Center for the Study of Banking and Financial Markets Digest,  Winter 1987.

“Size Effects of Seasoned Stock Issues: Empirical Evidence,” (with S. Bhagat), Journal of Business, October 1986.

“Discount Mortgage Financing and Housing Prices,” (with P.A. Malatesta), Housing Finance Review, Summer 1986.

“Comment on Quantification of Selected Elements of Non-Standard Financing which Are Only Partially Capitalized,” Property Tax Journal, December 1985.

“Discount Mortgage Financing and House Prices,” (with P.A. Malatesta), Center for the Study of Banking and Financial Markets Digest, Winter 1985

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