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Economists


Photo of W. Scott Frame W. Scott Frame
Financial Economist and Senior Policy Adviser (on leave)

Research Department
Federal Reserve Bank of Atlanta
1000 Peachtree Street N.E.
Atlanta, Georgia 30309-4470
404-498-8783
Scott.Frame@atl.frb.org

To interview economists, press should contact Public Affairs at 404-498-8748.


  • Biography
  • Research
  • Curriculum Vitae

Biography

W. Scott Frame is a financial economist and senior policy adviser on the financial team in the research department of the Federal Reserve Bank of Atlanta. His major fields of study are financial institutions, credit markets, real estate, and public policy. He is currently on leave at the University of North Carolina at Charlotte.

Prior to joining the Bank in 2001, Dr. Frame was a senior financial economist at the U.S Treasury Department from 1996 to 2000. He also worked at the Federal Reserve Bank of Atlanta as an economic analyst from 1993 to 1995 and as an instructor at the University of Georgia. Dr. Frame was promoted to financial economist and associate policy adviser in 2003 and assumed his current duties in 2007.

Dr. Frame assisted in the response to the financial crisis in various ways. During the fall of 2008, he worked as a special advisor to the U.S. Treasury Department and assisted with the conservatorships for Fannie Mae and Freddie Mac. In 2009, Dr. Frame was a member of the team implementing the Federal Reserve's Term Asset-Backed Lending Facility. He also acted as a consultant to the Council of Economic Advisers in 2010 on housing finance-related issues.

Dr. Frame has published in several journals, including the Journal of Finance, the Journal of Financial Economics, the Journal of Money, Credit and Banking, the Journal of Economic Literature, and the Journal of Business.

Dr. Frame is an associate editor of the Journal of Money, Credit, and Banking; Journal of Financial Services Research; and the Quarterly Journal of Finance and Accounting. He is also a member of the American Economic Association, the American Real Estate and Urban Economics Association, the Financial Management Association, and the International Banking, Economics and Finance Association. He has served as a referee for the American Economic Review, the Journal of Finance, the Journal of Money, Credit, and Banking, the Journal of Financial Intermediation, and the Review of Financial Studies, among others.

Dr. Frame received his doctorate in economics in 1996 and his master's degree in economics in 1993, both from the University of Georgia. He received his bachelor of science in economics in 1990 from Arizona State University.

Research

Research Interests

Financial Institutions, Credit Markets, Real Estate, and Public Policy

Journal Publications

"Federal Home Bank Advances and Commercial Bank Portfolio Composition" (with Diane Hancock and Wayne Passmore). Journal of Money, Credit and Banking, June 2012 (44). Pages 661–84.

"Tests of Ex Ante versus Ex Post Theories of Collateral Using Private and Public Information" (with Allen Berger and Vasso Ioannidou). Journal of Financial Economics, April 2011 (100). Pages 85–97.

The Surprising Use of Credit Scoring for Small Business Lending by Community Banks and the Attendant Effects on Credit Availability, Risk, and Profitability" (with Allen Berger and Adrian Cowan). Journal of Financial Services Research, April 2011 (39). Pages 1–17.

"The Information Revolution and Small Business Lending: The Missing Evidence" (with Robert DeYoung, Dennis Glennon, and Peter Nigro). Journal of Financial Services Research, April 2011 (39). Pages 19–33.

"Why do Borrowers Pledge Collateral? New Empirical Evidence on the Role of Asymmetric Information" (with Allen Berger, Marco Espinosa, and Nathan Miller). Journal of Financial Intermediation, January 2011 (20). Pages 55–70.

"The Federal Home Loan Bank System: The Lender of Next-to-Last Resort" (with Adam Ashcraft and Morten L. Bech). Journal of Money, Credit, and Banking, June 2010 (42). Pages 551–83.

"The 2008 Federal Intervention to Stabilize Fannie Mae and Freddie Mac" Journal of Applied Finance, Fall/Winter 2008 (18). Pages 124–33.

"Commercial Lending Distance and Historically Underserved Areas" (with Robert DeYoung, Dennis Glennon, Daniel McMillen, and Peter Nigro). Journal of Economics and Business, January/February 2008 (60). Pages 149–64.

"An Analysis of the Systemic Risks Posed by Fannie Mae and Freddie Mac and an Evaluation of the Policy Options for Reducing Those Risks" (with Robert A. Eisenbeis and Larry D. Wall). Journal of Financial Services Research, June 2007 (31). Pages 75–99.

"Charter Value, Risk-Taking Incentives, and Emerging Competition for Fannie Mae and Freddie Mac" (with Lawrence J. White). Journal of Money, Credit, and Banking, February 2007 (39). Pages 83–104.

"Small Business Credit Scoring and Credit Availability" (with Allen Berger). Journal of Small Business Management, January 2007 (45). Pages 5–22.

"Debt Maturity, Risk, and Asymmetric Information" (with Allen Berger, Marco Espinosa, and Nathan Miller). Journal of Finance, December 2005 (60). Pages 2895–2923.

"Fussing and Fuming over Fannie and Freddie: How Much Smoke, How Much Fire?" (with Lawrence J. White). Journal of Economic Perspectives, Spring 2005 (19). Pages 159–84.

"Credit Scoring and the Availability, Price and Risk of Small Business Credit" (with Allen Berger and Nathan Miller). Journal of Money, Credit, and Banking, April 2005 (37). Pages 191–222.

"Resolving Large Financial Intermediaries: Banks Versus Housing Enterprises" (with Larry D. Wall and Robert A. Eisenbeis). Journal of Financial Stability, April 2005 (1). Pages 386–425.

"The Diffusion of Financial Innovations: An Examination of the Adoption of Small Business Credit Scoring by Large Banking Organizations" (with Jalal Akhavein and Lawrence J. White). Journal of Business, March 2005 (78). Pages 577–96.

"Empirical Studies of Financial Innovation: Lots of Talk, Little Action?" (with Lawrence J. White). Journal of Economic Literature. March 2004 (42). Pages 116–44.

"Credit Scoring and the Availability of Small Business Credit in Low- and Moderate-Income Areas" (with Michael Padhi and Lynn Woosley). Financial Review. February 2004 (39). Pages 35–54.

"Do Credit Unions Use Their Tax Advantage to Benefit Members?: Evidence from a Cost Function" (with Gordon Karels and Christine McClatchey). Review of Financial Economics. Spring 2003 (12). Pages 35–47.

"The Effect of the Common Bond and Membership Expansion on Credit Union Risk" (with Gordon Karels and Christine McClatchey). Financial Review. November 2002 (37). Pages 613–36.

"The Effect of Credit Scoring on Small Business Lending" (with Aruna Srinivasan and Lynn Woosley). Journal of Money, Credit, and Banking. August 2001 (33). Pages 813–25.

"U.S. Financial Services Consolidation: The Case of Corporate Credit Unions" (with Tim Coelli). Review of Industrial Organization. March 2001 (18). Pages 229–42.

"Abnormal Returns in the Acquisition Market: The Case of Bank Holding Companies 1990–1993" (with William Lastrapes). Journal of Financial Services Research. October 1998 (14). Pages 145–63.

"The Value of Olympic Sponsorships: Who is Capturing the Gold?" (with Kathleen Farrell). Journal of Market-Focused Management. November 1997 (2). Pages 171–82.

"Empirical Evidence on a Special-Interest-Group Perspective to Antitrust" (with Charles DeLorme and David Kamerschen). Public Choice. August 1997 (92). Pages 317–35.

"The Profit-Structure Relationship in Legally Protected Banking Markets Using Efficiency Measures" (with David Kamerschen). Review of Industrial Organization. February 1997 (12). Pages 9–22.

"Special-Interest-Group Perspective Before and After the Clayton and FTC Acts" (with Charles DeLorme and David Kamerschen). Applied Economics. July 1996 (28). Pages 773–77.

Federal Reserve Publications

"Estimating the Effect of Mortgage Foreclosures on Nearby Property Values: A Critical Review of the Literature." Economic Review, Federal Reserve Bank of Atlanta, Vol. 95, No. 3, 2010.

"The Federal Home Loan Bank System: The "Other" Housing GSE" (with Mark J. Flannery). Economic Review, Federal Reserve Bank of Atlanta, Third Quarter 2006.

"Regulating Housing GSEs: Thoughts on Institutional Structure and Authorities" (with Lawrence J. White). Economic Review, Federal Reserve Bank of Atlanta, Second Quarter 2004.

"Federal Home Loan Bank Mortgage Purchases: Implications for Mortgage Markets." Economic Review, Federal Reserve Bank of Atlanta, Third Quarter 2003.

"Fannie Mae's and Freddie Mac's Voluntary Initiatives: Lessons from Banking" (with Larry Wall). Economic Review, Federal Reserve Bank of Atlanta, First Quarter 2002.

"Financing Housing through Government-Sponsored Enterprises" (with Larry Wall). Economic Review, Federal Reserve Bank of Atlanta, First Quarter 2002.

"FYI - Examining Small Business Lending in Bank Antitrust Analysis." Economic Review, Federal Reserve Bank of Atlanta, March/April 1995 (80:2). Pages 31–40.

"FYI - Commercial Bank Profits" (with Christopher Holder). Economic Review, Federal Reserve Bank of Atlanta, July/August 1994 (79:4). Pages 22–41.

Book Chapters

"The Industrial Organization of the U.S. Single-family Residential Mortgage Industry" (with Lawrence J. White) in the International Encyclopedia of Housing and Home, edited by Susan J. Smith, 2012.

"The Federal Home Loan Bank System: Current Issues in Perspective" (with Lawrence J. White) in Reforming Rules and Regulations, edited by Vivek Ghosal, 2010. Pages 255–76.

"Technological Change, Financial Innovation and Diffusion in Banking" (with Lawrence J. White) in the Oxford Handbook of Banking, edited by Allen Berger, Philip Molyneux, and John Wilson, 2010. Pages 486–507.

Atlanta Fed Working Papers

2012-12
The Devil's in the Tail: Residential Mortgage Finance and the U.S. Treasury
W. Scott Frame, Larry D. Wall, and Lawrence J. White
August 2012
Abstract || Full text in PDF

2011-12
Reexamining the Empirical Relation between Loan Risk and Collateral: The Roles of Collateral Characteristics and Types
Allen N. Berger, W. Scott Frame, and Vasso Ioannidou
September 2011
Abstract || Full text in PDF

Curriculum Vitae

Education

Ph.D., Economics, June 1996
University of Georgia, Athens, GA

M.A., Economics, March 1993
University of Georgia, Athens, GA

B.S., Economics, May 1990
Arizona State University, Tempe, AZ

Current Position

Professor of Finance, University of North Carolina at Charlotte (August 2012–present)
Teaching real estate finance courses in the MBA and MS Real Estate programs.

Financial Economist, Federal Reserve Bank of Atlanta (January 2001–present; currently on leave)
Conducting research focusing largely on the effects of technology and public policy on financial institutions and retail credit markets. Position also requires periodically briefing the Bank president and speaking to internal and external groups about various issues related to financial markets and institutions.

Special Projects

  • Consultant to the Council of Economic Advisers during 2010 working on various residential mortgage finance issues.
  • Participated in a Federal Reserve System workgroup that evaluated the desirability and feasibility of accepting privately issued residential mortgage-backed securities (new or legacy bonds) as collateral for lending under the Federal Reserve's TALF program.
  • Acted as a Special Adviser to the U.S. Treasury during the fall of 2008. Analyzed financial, policy, and operational issues leading up to the conservatorship regimes for Fannie Mae and Freddie Mac. Also provided ad hoc economic and policy analysis of various mortgage and financial market developments during the financial crisis.
  • Participated in a Federal Reserve System workgroup that developed principles for, and an application of, a new cost allocation system for Federal Reserve information technology expenditures.
  • Consulted with the Federal Reserve's Retail Payments Office (RPO) on several occasions relating to cost measurement and allocation and the pricing of various check and ACH services.


Prior Work Experience

Senior Financial Economist, U.S. Treasury Department (July 1996–December 2000).
Worked in the Office of Financial Institutions assisting policymakers by analyzing a wide variety of policy issues affecting domestic financial institutions and markets.

Ongoing Responsibilities

  • Monitoring the activities of government-sponsored enterprises (GSEs), credit unions, and their respective regulators;
  • Preparing (with a colleague) the Office's quarterly GSE Report, which provided policy analysis, financial statement information, and credit market data;
  • Researching and reporting on emerging financial practice issues (e.g., value-at-risk, credit scoring, asset securitization);
  • Writing congressionally mandated studies; and
  • Meeting with senior financial industry and regulatory representatives.

Special Projects

  • Primary researcher and author of Treasury's 2001 study "Credit Union Member Business Lending." This involved conducting a survey of over 2,500 credit unions and auditing federal safety and soundness examinations.
  • Contributed to Treasury's 1997 study "Credit Unions." This included working with an interagency team of bank examiners to study the investment practices, financial condition, financial operations, and financial controls of the nation's 10 largest corporate credit unions.
  • Evaluated the Office of Federal Housing Enterprise Oversight's proposed risk-based capital rule for Fannie Mae and Freddie Mac. This included assisting the agency's chief economist with model micro-simulations of the model and drafting sections of the regulation.
  • Evaluated the Farm Credit Administration's proposed risk-based capital rule for Farmer Mac.

Instructor, Department of Finance, University of Georgia (Spring 2008). Taught Corporate Finance in the evening MBA program.

Adjunct Professor of Economics, Marymount University (January 1999–December 2000). Taught Intermediate Macroeconomics in the MBA program three times.

Economic Analyst, Federal Reserve Bank of Atlanta (August 1993–August 1995). Evaluated competitive issues within bank merger applications for the Sixth Federal Reserve District.

Instructor, Department of Economics, the University of Georgia. Taught Principles of Macroeconomics three times and co-authored an introductory macroeconomics course for the university's independent study program.

Professional Presentations

  • "Foreign Central Banks and the Market for Federal Agency Debt" (AREUEA, 2010).
  • "Tests of Ex Ante versus Ex Post Theories of Collateral using Private and Public Information" (Sveriges Riksbank, 2009; Penn State, 2009).
  • "The Federal Home Loan Bank System: The Lender of Next to Last Resort?" (Federal Reserve Bank of Atlanta, 2008; Federal Reserve Bank of Boston, 2008; FMA, 2008; ASSA, 2009; CEPR, 2009; Tilburg University, 2009).
  • "The Surprising Use of Credit Scoring for Small Business Lending by Community Banks" (Federal Reserve Bank of Kansas City, 2007; World Bank, 2008).
  • "Technological Change, Financial Innovation and Diffusion in Banking" (Bank of Mexico, 2007; Autonomous University of Mexico, 2007).
  • "What's Driving Small Borrower-Lender Distance?" (FMA, 2007).
  • "Why Do Borrowers Pledge Collateral? New Empirical Evidence on the Role of Asymmetric Information" (University of Texas-Arlington, 2006; FMA European Conference, 2007; Federal Reserve Bank of San Francisco, 2007)
  • "Commercial Lending Distance and Historically Underserved Areas" (Federal Reserve System Community Affairs Conference, 2007)
  • "Small Business Credit Scoring and Credit Availability" (Home Depot Small Business Research Forum, 2005; University of Edinburgh, 2005)
  • "Emerging Competition and Risk-Taking Incentives at Fannie Mae and Freddie Mac" (ASSA, 2004; Chicago Fed, 2004; University of South Carolina, 2005)
  • "Debt Maturity, Risk, and Asymmetric Information" (University of Edinburgh, 2003; Atlanta Fed, 2003)
  • "Mortgage Purchases by the FHLBs: Implications for Mortgage Markets" (St. Louis Fed, 2003; Loan Performance Risk Summit, 2003)
  • "The Diffusion of Small Business Credit Scoring Technology by Large Banking Organizations" (Philadelphia Fed, 2002; Atlantic Economics Association, 2000)
  • "Credit Scoring and the Availability, Price, and Risk of Small Business Credit" (University of Georgia, 2001; University of Edinburgh, 2001)
  • "The Effect of Credit Scoring on Small Business Lending" (University of Nebraska-Lincoln, 1999)
  • "U.S. Financial Services Consolidation: The Case of Corporate Credit Unions" (Southern Economics Association, 1998; Atlantic Economics Association, 1998)
  • "Abnormal Returns in the Acquisition Market: The Case of Bank Holding Companies 1990–1993" (Federal Reserve Board, 1997)


Other Professional Activities

Associate Editor, Journal of Money, Credit, and Banking

Associate Editor, Journal of Financial Services Research

Associate Editor, Quarterly Journal of Finance and Accounting

Member of the Financial Intermediation Research Society (FIRS), 2004–Present

  • FIRS Program Committee, 2004, 2006, 2008–12

Member of the Financial Management Association (FMA), 1996–Present

  • FMA Program Committee, 2002–04; 2007–08
  • Special Session Organizer, 2005–09 (U.S.); 2012 (Europe)

Member of the International Banking Economics and Finance Association (IBEFA), 2007–Present

  • Program Chair, 2013
  • Program Committee, 2008, 2009, 2011
  • Special Session Organizer, 2010

Also currently a member of the American Economic Association (AEA) and American Real Estate and Urban Economics Association (AREUEA).

External reviewer for: the National Science Foundation, the Urban Institute, the U.S. Congressional Budget Office, the U.S. Office of Federal Housing Enterprise Oversight, the U.S. Small Business Administration, and the World Bank.

Referee for: American Economic Review, Contemporary Economic Policy, Economic Inquiry, Federal Reserve Bank of New York Policy Review, Financial History Review, Financial Management, Financial Review, Journal of Applied Finance, Journal of Banking and Finance, Journal of Business Research, Journal of Credit Risk, Journal of Economics and Business, Journal of Finance, Journal of Financial Intermediation, Journal of Financial Services Research, Journal of Financial Stability, Journal of Monetary Economics, Journal of Money, Credit, and Banking, Journal of Urban Economics, Quarterly Journal of Business and Economics, Quarterly Journal of Finance and Accounting, Regional Science and Urban Economics, Research Policy, Review of Economics and Statistics, Review of Finance, Review of Financial Economics, Review of Financial Studies, Review of Industrial Organization, Review of Network Economics, Small Business Economics, and Southern Economics Journal.