Professor Reint E. Gropp, Ph.D.

Professor Reint E. Gropp, Ph.D.
Aktuelle Position

seit 11/14

Präsident

Leibniz-Institut für Wirtschaftsforschung Halle (IWH)

seit 10/14

Universitätsprofessor für Volkswirtschaftslehre


Otto-von-Guericke-Universität, Magdeburg

Forschungsschwerpunkte

  • Finanzökonomik
  • Makroökonomik
  • Unternehmensfinanzierung
  • Geld und Banken

Reint E. Gropp ist seit November 2014 Präsident des IWH und Inhaber eines Lehrstuhls für Volkswirtschaftslehre an der Otto-von-Guericke-Universität Magdeburg. Er ist Associate Fellow des Centre for Economic Policy Research (CEPR) und Berater verschiedener Zentralbanken.

Reint E. Gropp hat Volkswirtschaftslehre an der Universität Freiburg und der University of Wisconsin, Madison, studiert. Im Jahr 1994 schloss er dort seine Promotion in Economics ab. Vor seinem Amtsantritt am IWH war er Professor an der Goethe-Universität Frankfurt am Main und hatte dort die Stiftungsprofessur für Sustainable Banking and Finance inne. Zuvor war er in verschiedenen Positionen für den Internationalen Währungsfonds (IWF) sowie für die Europäische Zentralbank (EZB) tätig, zuletzt als Deputy Head der Financial Research Division.

Ihr Kontakt

Professor Reint E. Gropp, Ph.D.
Professor Reint E. Gropp, Ph.D.
Mitglied - Abteilung Präsidialbereich
Nachricht senden +49 345 7753-700 Persönliche Seite

Publikationen

cover_journal-of-financial-and-Quantitative-Analysis.gif

Financial Incentives and Loan Officer Behavior: Multitasking and Allocation of Effort under an Incomplete Contract

P. Behr A. H. Drexler Reint E. Gropp Andre Guettler

in: Journal of Financial and Quantitative Analysis, im Erscheinen

Abstract

In this paper we investigate the implications of providing loan officers with a compensation structure that rewards loan volume and penalizes poor performance versus a fixed wage unrelated to performance. We study detailed transaction information for more than 45,000 loans issued by 240 loan officers of a large commercial bank in Europe. We examine the three main activities that loan officers perform: monitoring, originating, and screening. We find that when the performance of their portfolio deteriorates, loan officers increase their effort to monitor existing borrowers, reduce loan origination, and approve a higher fraction of loan applications. These loans, however, are of above-average quality. Consistent with the theoretical literature on multitasking in incomplete contracts, we show that loan officers neglect activities that are not directly rewarded under the contract, but are in the interest of the bank. In addition, while the response by loan officers constitutes a rational response to a time allocation problem, their reaction to incentives appears myopic in other dimensions.

Publikation lesen

cover_journal-of-money-credit-and-banking.gif

Banks’ Funding Stress, Lending Supply and Consumption Expenditure

H. Evren Damar Reint E. Gropp A. Mordel

in: Journal of Money, Credit and Banking, im Erscheinen

Abstract

We employ a unique identification strategy linking survey data on household consumption expenditure to bank-level data to estimate the effects of bank funding stress on consumer credit and consumption expenditures. We show that households whose banks were more exposed to funding shocks report lower levels of non-mortgage liabilities. This, however, only translates into lower levels of consumption for low income households. Hence, adverse credit supply shocks are associated with significant heterogeneous effects.

Publikation lesen

cover_journal_of_monetary_economics.jpg

Public Bank Guarantees and Allocative Efficiency

Reint E. Gropp Andre Guettler Vahid Saadi

in: Journal of Monetary Economics, im Erscheinen

Abstract

In the wake of the recent financial crisis, many governments extended public guarantees to banks. We take advantage of a natural experiment, in which long-standing public guarantees were removed for a set of German banks following a lawsuit, to identify the real effects of these guarantees on the allocation of credit (“allocative efficiency”). Using matched bank/firm data, we find that public guarantees reduce allocative efficiency. With guarantees in place, poorly performing firms invest more and maintain higher rates of sales growth. Moreover, firms produce less efficiently in the presence of public guarantees. Consistently, we show that guarantees reduce the likelihood that firms exit the market. These findings suggest that public guarantees hinder restructuring activities and prevent resources to flow to the most productive uses.

Publikation lesen

Arbeitspapiere

cover_DP_2019-19.jpg

Flight from Safety: How a Change to the Deposit Insurance Limit Affects Households‘ Portfolio Allocation

H. Evren Damar Reint E. Gropp A. Mordel

in: IWH-Diskussionspapiere, Nr. 19, 2019

Abstract

We study how an increase to the deposit insurance limit affects households‘ portfolio allocation by exogenously reducing uninsured deposit balances. Using unique data that identifies insured versus uninsured deposits, along with detailed information on Canadian households‘ portfolio holdings, we show that households respond by drawing down deposits and shifting towards mutual funds and stocks. These outflows amount to 2.8% of outstanding bank deposits. The empirical evidence, consistent with a standard portfolio choice model that is modified to accommodate uninsured deposits, indicates that more generous deposit insurance coverage results in nontrivial adjustments to household portfolios.

Publikation lesen

cover_DP_2019-11.jpg

Banks' Funding Stress, Lending Supply and Consumption Expenditure

H. Evren Damar Reint E. Gropp A. Mordel

in: IWH-Diskussionspapiere, Nr. 11, 2019

Abstract

We employ a unique identification strategy linking survey data on household consumption expenditure to bank-level data to estimate the effects of bank funding stress on consumer credit and consumption expenditures. We show that households whose banks were more exposed to funding shocks report lower levels of nonmortgage liabilities. This, however, only translates into lower levels of consumption for low income households. Hence, adverse credit supply shocks are associated with significant heterogeneous effects.

Publikation lesen

cover_DP_2019-06.jpg

What Drives Banks‘ Geographic Expansion? The Role of Locally Non-diversifiable Risk

Reint E. Gropp Felix Noth Ulrich Schüwer

in: IWH-Diskussionspapiere, Nr. 6, 2019

Abstract

We show that banks that are facing relatively high locally non-diversifiable risks in their home region expand more across states than banks that do not face such risks following branching deregulation in the 1990s and 2000s. These banks with high locally non-diversifiable risks also benefit relatively more from deregulation in terms of higher bank stability. Further, these banks expand more into counties where risks are relatively high and positively correlated with risks in their home region, suggesting that they do not only diversify but also build on their expertise in local risks when they expand into new regions.

Publikation lesen
Mitglied der Leibniz-Gemeinschaft LogoTotal-Equality-LogoWeltoffen Logo