Chester Spatt

Chester Spatt

Academic Affiliate

Email: Contact Marc Vellrath

Phone: (925) 258-9600 VCard View CV


Chester Spatt is the Pamela R. and Kenneth B. Dunn Professor of Finance and the Director of the Center for Financial Markets at Carnegie Mellon’s Tepper School of Business. In addition to his academic duties, he is a Research Associate of the National Bureau of Economic Research and a Fellow of TIAA-CREF Institute.

Chester is the former Chief Economist and Director of the Office of Economic Analysis at the U.S. Securities and Exchange Commission (SEC). He has also served as a President of the Western Finance Association and the Society for Financial Studies. Chester’s consulting practice focuses on providing expertise on such issues as securities litigation and financial markets, financial regulation, credit rating agencies, mortgages, trading, taxation and asset allocation and valuation, among other areas.

Chester’s research and teaching interests include fixed-income, commodity and options valuation and hedging; the economics of financial market regulation; taxation and asset allocations; and market microstructure. His articles have been published in the leading academic journals including the Journal of Finance, the American Economic Review, the Review of Financial Studies, the Journal of Financial Markets, and the Journal of Real Estate Finance and Economics, among others. He has also served as an editor for a number of leading academic journals.

Chester has a Bachelor’s degree in Economics from Princeton University, and a Master’s and Ph.D. degrees in Economics from the University of Pennsylvania.


Ph.D. in Economics, University of Pennslyvania

Areas of expertise

Recent news, presentations, and publications

FSG Affiliate, Chester Spatt, named to the Federal Reserve Board’s new Model Validation Council,
FSG Affiliate, Chester Spatt, chosen as member of Systematic Risk Council,

C.S. Spatt, “Economics of Regulation,” Level II Reading for Charter Financial Analyst Institute, Level II Program, 2012, Reading 16.

“Taxes and Investments Choice,” Annual Review of Financial Economics (with R. Dammon), 4, 2012, 411-429.

“Complexity of Regulation,” Harvard Business Law Review Online, 3, 2012, 1-9.

“Designing Reliable Clearing and Settlement Systems for Enhancing the Transparency and Stability of Derivatives Markets,” prepared for Wharton e-book on Strengthening the Liquidity of Financial System, forthcoming.

“Equity Trading in the 21st Century,” Quarterly Journal of Finance (with J. Angel and L. Harris), 1, 2011, 1-53.

“Imperfect Competition in Financial Markets: An Empirical Study of Island and NASDAQ,” Management Science (with B. Biais and C. Bisiere), 56, 2010, 2237-2250.

“Interim News and the Role of Proxy Voting Advice,” December 2010 (with C. Alexander, M. Chen and D. Seppi) Review of Financial Studies, 23, 4419-4454.

“An Informal Perspective on the Economics and Regulation of Securities Markets,” December 2010, Annual Review of Financial Economics, 2, 127-143.

“Equilibrium Asset Pricing and Portfolio Choice Under Asymmetric Information,” Review of Financial Studies (with B. Biais and P. Bossaerts) 23, April 2010, 1503-1543.

“Liquidity” in Encyclopedia of Quantitative Finance, edited by R. Cont, John Wiley and Sons, Ltd., Chichester, UK pp. 1062-1066, April 12, 2010.

“Speed and Equity Trading,” chapter 6 in Current Perspectives in Modern Equity Markets, November 2010.

“Regulatory Conflict: Market Integrity vs. Financial Stability,” University of Pittsburgh Law Review, 2010, 71, 625-639.

Statement of the Financial Economists Roundtable “Reforming the OTC Derivatives Markets,” Summer 2010, (drafting committee: C. Spatt (chair), D. Duffie, P. Kyle), Journal of Applied Corporate Finance, 22, 40-47.

“Ratings Shopping and Asset Complexity: A Theory of Ratings Inflation,” July 2009, Journal of Monetary Economics, 56, 696-699.

“Systemic Risks in Our Global Marketplace,” in Globalization and Systemic Risk (eds Douglas Evanoff, George Kaufman and David Hoelscher), World Scientific Publishing Co. Pte. Ltd., New Jersey, 2009, pp. 313-330.

“Maximizing Long-Term Wealth Accumulation: It’s Not Just about ‘What’ Investments to Make, but also ‘Where’ to Make Them” (with R. Dammon, J. Poterba and H. Zhang), Research Dialogue TIAA-CREF Institute 85, September 2005, 1-12 (with R. Dammon, J. Poterba and H. Zhang).

“The Effect of Refinancing Costs and Market Imperfections on the Optimal Call Policy and the Pricing of Debt Contracts,” Real Estate Economics, 33, 2005, 595-617 (with K. Dunn).

“Market Microstructure: A Survey of Microfoundations, Empirical Results, and Policy Implications” (with B. Biais and L. Glosten) Journal of Financial Markets, May 2005, 217-264.

“Optimal Asset Location and Allocation with Taxable and Tax-Deferred Investing” (with R. Dammon and H. Zhang) Journal of Finance, 59, June 2004, 999-1038 (with R. Dammon and H. Zhang).  Reprinted in Stephen A. Ross, Mentor: Influence through the Generations, Mark Grinblatt, editor, McGraw-Hill, 2007, 129-164.

“Capital Gains Taxes and Portfolio Rebalancing” (with R. Dammon and H. Zhang), Review of Financial Studies, 14, Fall 2001, 1-14.

“Optimal Consumption and Investment with Capital Gains Taxes” (with R. Dammon and H. Zhang), Review of Financial Studies, 14, Fall 2001, 1-14.

“Equilibrium Forward Curves for Commodities” (with B. Routledge and D. Seppi), Journal of Finance, June 2000, 55, 1297-1338.

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