# Reint E. Gropp

Reint E. Gropp (born 21 December 1966, in Bottrop) is a German economist, the president of the Halle Institute for Economic Research (IWH) as well as professor of economics at Otto-von-Guericke University Magdeburg. His fields of research cover financial economics, macroeconomics, corporate finance as well as money and banking.

## Life

Gropp studied economics at the University of Freiburg and the University of Wisconsin, Madison. He obtained his PhD in economics from the University of Wisconsin in 1994. He worked for the International Monetary Fund in Washington, D.C. from 1994 to 1999 and for the European Central Bank from 1999 to 2007, most recently as deputy head of the Financial Research Division. After that, Gropp was professor of financial economics and taxation at EBS University Wiesbaden until 2012. From 2012 to 2014, he held a chair of sustainable banking and finance at the House of Finance, Goethe University Frankfurt am Main.
Since November 2014, Gropp is president of the Halle Institute for Economic Research and professor of economics at Otto-von-Guericke University Magdeburg. He is fellow of the Center for Financial Studies, Frankfurt am Main, and associate editor of the Review of Finance. He serves as a consultant for the Bank of Canada and the Federal Reserve Bank of San Francisco.
Gropp made headlines in 2019 when his institute published a study proving that East German companies are 20 percent less productive than their West German equivalents. Gropp blamed the continuous subsidy policy and recommended no longer supporting rural areas but focusing on cities instead.

## Affiliations

* Professor of Economics, Otto von Guericke University Magdeburg (since 2014)
* Research Fellow, Center for European Studies (CefES), Milan (since 2019)
* Fellow, Center for Economic Policy Research (CEPR), London (since 2019)
* Fellow, Center for Financial Studies (CFS), Frankfurt am Main (since 2008)
* Visiting professor, University of Amsterdam (2014)
* Visiting financial economist, Federal Reserve Bank of San Francisco (2012)
* Duisenberg fellow, European Central Bank, Frankfurt am Main (2012)

## Selected publications

* Supranational Rules, National Discretion: Increasing versus Inflating Regulatory Bank Capital?, in: Journal of Financial and Quantitative Analysis, 2024 (with T. Mosk, S. Ongena, I. Simac and C. Wix)
* Do Public Bank Guarantees Affect Labor Market Outcomes? Evidence from Individual Employment and Wages, in: IWH Discussion Papers, 2024 (with Laura Baessler, Georg Gebhardt, Andre Guettler, Ahmet Taskin)
* Supranational Rules, National Discretion: Increasing versus Inflating Regulatory Bank Capital, in: Journal of Financial and Quantitative Analysis, 2021 (with Thomas Mosk, Steven Ongena, Ines Simac, Carlo Wix)
* Public Bank Guarantees and Allocative Efficiency, in: Journal of Monetary Economics, 2020 (with Andre Guettler, Vahid Saadi)
* The Cleansing Effect of Banking Crises, in: Economic Inquiry, 2020 (with Steven Ongena, Jörg Rocholl, Vahid Saadi)
* Financial Incentives and Loan Officer Behavior: Multitasking and Allocation of Effort under an Incomplete Contract, in: Journal of Financial and Quantitative Analysis, 2020 (with Patrick Behr, Alejandro H. Drexler, Andre Guettler)
* Banks’ Funding Stress, Lending Supply, and Consumption Expenditure, in: Journal of Money, Credit and Banking, 2020 (with H. Evren Damar, Adi Mordel)
* Did Consumers Want Less Debt? Consumer Credit Demand versus Supply in the Wake of the 2008-2009 Financial Crisis, in: International Journal of Central Banking, 2019 (with J. Krainer and E. Laderman) .
* Deleveraging and Consumer Credit Supply in the Wake of the 2008–09 Financial Crisis, in: International Journal of Central Banking, 2019 (with J. Krainer, E. Laderman)
* Banks' Funding Stress, Lending Supply and Consumption Expenditure, in: Journal of Money, Credit and Banking, 2019 (with H. Evren Damar, Adi Mordel)
* Banks Response to Higher Capital Requirements: Evidence from a Quasi-natural Experiment, in: Review of Financial Studies, 2019 (with Thomas Mosk, Steven Ongena, Carlo Wix)
* Hidden Gems and Borrowers with Dirty Little Secrets: Investment in Soft Information, Borrower Self-selection and Competition, in: Journal of Banking and Finance, 2018 (with Andre Guettler)
* Competition and Contestability in Bank Retail Markets, in: Handbook of Competition in Banking and Finance, 2017 (with Christoffer Kok)
* Bank Response to Higher Capital Requirements: Evidence from a Quasi-natural Experiment, in: Review of Financial Studies, 2016 (with Thomas Mosk, Steven Ongena, Carlo Wix)
* The Effect of Personal Bankruptcy Exemptions on Investment in Home Equity, in: Journal of Financial Intermediation, 2016 (with S. Corradin, H. Huizinga, Luc Laeven)
* Public Bank Guarantees and Allocative Efficiency, in: Journal of Monetary Economics, 2015 (with Andre Guettler, Vahid Saadi)
* The Dynamics of Bank Spreads and Financial Structure, in: Quarterly Journal of Finance, 2014 (with Christoffer Kok, J.-D. Lichtenberger)
* Spillover Effects among Financial Institutions: A State-Dependent Sensitivity Value-at-Risk Approach, in: Journal of Financial and Quantitative Analysis 2014 (with Z. Adams, R. Füss)
* The Impact of Public Guarantees on Bank Risk-Taking: Evidence from a Natural Experiment, in: Review of Finance 2014 (with C. Gruendl, A. Guettler)
* How Important are Hedge Funds in a Crisis?, in: Federal Reserve Bank of San Francisco Economic Letters 2014
* Payment defaults and interfirm liquidity provision, in: Review of Finance 2013 (with F. Boissay)
* Stale Information, Shocks and Volatility, in: Journal of Money, Credit and Banking 2012 (with A. Kadareja)
* Competition, Risk-shifting, and Public Bail-out Policies, in: Review of Financial Studies 2011 (with H. Hakenes, I. Schnabel)
* A New Metric for Banking Integration, in: Europe and the Euro, University of Chicago Press 2010 (with A. Kashyap)
* The Revenue Effect of Trade Liberalization, in: IMF Occasional Papers 1999 (with L. Ebrill, J. Stotsky)
* The Effect of Bankruptcy Exemptions on Credit Demand and Supply, in: Quarterly Journal of Economics 1997 (with J. Scholz and M. White)