Chester Spatt

Professor Carnegie Mellon University

  • Pittsburgh PA

Chester Spatt has been a leader in financial economics for more than four decades.

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Carnegie Mellon University

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Biography

A pioneer in financial regulation research, Chester Spatt has been a leader in financial economics for more than four decades. His research has spanned across most of the financial economics discipline to include securities and financial regulations (SEC and Fed), equity and fixed-income market design and trading, mortgages and real estate, taxes and investing, and inflation. He is a research associate of the National Bureau of Economic Research and he previously served as chief economist for the U.S. Securities and Exchange Commission.

Areas of Expertise

Banking, Finance and Investment
Finance
Economic Theory
Applied Economics
Econometrics

Media Appearances

Why mortgage rates aren’t falling—despite the tariff pause

CNBC  online

2025-04-11

Mortgage rates are likely to remain high due to rising yields on 10-year Treasury bonds, which have surged about 9% since early April. This reflects “the elevated volatility in financial markets due to the tariffs and fears of a recession,” says Chester Spatt (Tepper School of Business).

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Why Trump’s Crypto Reserve Plan Has Experts Worried

Time  online

2025-03-04

Trump’s plan for a national crypto reserve has raised concerns among experts, with Chester Spatt (Tepper School of Business) warning that relying on Bitcoin to reduce U.S. debt is risky and unpredictable.

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An outdated IRS tax law that’s unchanged since the Clinton era is making the U.S. housing crisis worse

Fortune  online

2025-01-27

Many homeowners are hesitant to sell as outdated capital gains tax exclusions fail to account for skyrocketing property values and high mortgage rates. Chester Spatt (Tepper School of Business) said that “most homeowners are reluctant to sell properties with 3% or 4% underlying mortgage loans,” which is tightening the housing supply and making the U.S. housing crisis worse.

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Media

Social

Industry Expertise

Financial Services

Education

University of Pennsylvania

Ph.D.

Economics

1979

University of Pennsylvania

M.A.

Economics

1976

Princeton University

B.A.

Economics

1975

Articles

Big data in finance

The Review of Financial Studies

2021

Big data is revolutionizing the finance industry and has the potential to significantly shape future research in finance. This special issue contains papers following the 2019 NBER-RFS Conference on Big Data. In this introduction to the special issue, we define the “big data” phenomenon as a combination of three features: large size, high dimension, and complex structure. Using the papers in the special issue, we discuss how new research builds on these features to push the frontier on fundamental questions across areas in finance—including corporate finance, market microstructure, and asset pricing. Finally, we offer some thoughts for future research directions.

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Proxy advisory firms, governance, market failure, and regulation

The Review of Corporate Finance Studies

2021

Proxy advisory firms developed due to market failures underlying voting and corporate governance more broadly. However, these firms, which have not been subject to mandatory regulation, reflect their own market failures, emphasizing challenges underlying corporate governance. We highlight underlying frictions, such as economies of scale and public goods aspects to information production, the import of incentive conflicts faced by the advisory firms, their power, and the implications of their recommendations and votes by different types of investors. Asset managers emphasizing stewardship are more supportive of management than are proxy advisors. We highlight the evolving regulatory environment and limitations of one-size-fits-all recommendations.

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A tale of two crises: The 2008 mortgage meltdown and the 2020 COVID-19 crisis

The Review of Asset Pricing Studies

2020

The causes and consequences of the 2008 mortgage meltdown and 2020 COVID-19 crisis are quite different: the 2008 mortgage meltdown reflected infection of the financial system due to excess leverage and poor-quality mortgage loans, and the recent crisis reflects a substantial global economic shock to contain the viral outbreak of the coronavirus. Yet the financial and medical systems share many elements, such as opacity and interconnectedness as well as adequate buffers and reserves. We examine these themes as well as asset pricing, moral hazard (though it was at the root of the crisis only in the Great Recession), the consequences for government as a systemic actor, economic concentration, and capital market regulation in the two crises. In both crises, interventions in financial markets and disruptions in the housing market played important, but differing, roles.

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