Journal Article
The Asian crisis and the exposure of large U.S. firms
Schmid, Frank A.; Emmons, William R. (2000-01)
A deep financial and economic crisis ravaged many Asian nations during 1997 and 1998. In this article, William Emmons and Frank Schmid examine the impact of the crisis on corporate risk for a subset of large U.S. firms that are included in the S&P 100 stock-market index. They find that the Asian crisis changed many of these firms' exposure to stock-market movements-that is, their "betas" or sensitivity to stock-market risk. In particular, the extent of a firm's sales exposure to Asia appears to be an important link through which the crisis affected beta. This effect is amplified by ...
Review , Volume 82 , Issue Jan , Pages 15-34

Journal Article
Quality spreads in the bond market
Schmid, Frank A. (1999-07)
Monetary Trends , Issue Jul

Journal Article
Credit unions and the common bond
Schmid, Frank A.; Emmons, William R. (1999-09)
A distinguishing feature of credit unions is the legal requirement that members share a common bond. This organizing principle recently became the focus of national attention when the Supreme Court and the U.S. Congress took opposite sides in a controversy regarding the number of common bonds (fields of membership) that could coexist within a single credit union. In this article, Emmons and Schmid develop and simulate a model of credit-union formation and consolidation to examine the effects of common-bond restrictions on the performance of credit unions. The performance measures are ...
Review , Volume 81 , Issue Sep , Pages 41-64

Journal Article
Gamblers fallacy?
Schmid, Frank A. (2002-04)
Monetary Trends , Issue Apr

Journal Article
Membership structure, competition, and occupational credit union deposit rates
Schmid, Frank A.; Emmons, William R. (2001-01)
How do occupational credit unions set deposit rates? This article shows that the answer to this question will depend on (i) who actually makes business decisions in credit unions (who is in control), and (ii) whether local deposit market competition is important. It is not obvious who controls occupational credit unions. If the sponsor (the employer) is in control, then loans and deposits are priced to maximize the surplus received by all of the credit union?s current and potential members (those eligible to join). If members are in control, then a group of members with a majority can ...
Review , Volume 83 , Issue Jan , Pages 41-50

Working Paper
Pricing and dividend policies in open credit cooperatives
Schmid, Frank A.; Emmons, William R. (2000)
This paper develops an integrated model of pricing and dividend policies in open credit cooperatives (those that do business with members and non-members on a non-discriminatory basis). We show that both the distribution of member preferences and the amount of non-member business the cooperative does influence its optimal pricing and dividend policies. For a fixed distribution of member preferences, the larger the fraction of business done by members, the smaller the optimal dividend and the larger the optimal pricing subsidy (hence, increasing demand). On the other hand, for a fixed fraction ...
Working Papers , Paper 2000-008

Working Paper
When for-profits and not-for-profits compete: theory and empirical evidence from retail banking
Schmid, Frank A.; Emmons, William R. (2004)
We model competition in local deposit markets between for-profit and not-for-profit financial institutions. For-profit retail banks may offer a superior bundle of financial services, but not-for-profit (occupational) credit unions enjoy sponsor subsidies that allow them to capture a share of the local market. The model predicts that greater participation in credit unions in a given county will be associated with higher levels of retail-bank concentration. We find empirical evidence of this association. The ability of credit unions to affect local banking market structure supports the ...
Working Papers , Paper 2004-004

Journal Article
Is the current account deficit weighing on the dollar?
Schmid, Frank A. (2003-08)
International Economic Trends , Issue Aug

Working Paper
Banks vs. credit unions; dynamic competition in local markets
Schmid, Frank A.; Emmons, William R. (2000)
One interesting aspect of the financial services industry is that for-profit institutions such as commercial banks compete directly with not-for-profit financial intermediaries such as credit unions. In this article, we analyze competition among banks and between banks and credit unions using a dynamic model of spatial competition. The model allows for the co-existence of (for-profit) banks and (not-for-profit) credit unions. Using annual county-level data on banking market concentration and credit-union participation rates for the period 1989-96, we find empirical evidence of two-way ...
Working Papers , Paper 2000-006

Journal Article
The stock market: beyond risk lies uncertainty
Schmid, Frank A. (2002-07)
In the cover story, stock market investors will find out why it's so important to distinguish between these two sides of randomness.
The Regional Economist , Issue Jul. , Pages 4-9