Contact Information
340 Wohlers Hall
1206 South Sixth Street
Champaign IL 61820

(217) 333-2813
c-kahn@illinois.edu

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Charles Kahn

Professor of Finance and Fred S. Bailey Memorial Chair of Finance

Education

Ph.D. Economics, Harvard University, 1981.
B.A. (M.A.) Economics, University of Cambridge, 1977.
B.A. Applied Mathematics, Harvard University, 1975.

Research Interests

A specialist in the economics of information and uncertainty, his research focuses on the applications of the theory of contracts and incentives to banking and financial intermediation. Current projects include an examination of arrangements for payment systems, including clearing houses, wire-transfers, and electronic moneys. He has been a Houblon-Norman Fellow of the Bank of England and is currently a visiting scholar at the Federal Reserve Bank of Chicago.

Research

Journal Articles

"Private Payment Systems, Collateral, and Interest Rates" C. Kahn, Annals of Finance, (9) 1 83-114 2013.


"Comment on “Precautionary Demand and Liquidity in Payment Systems” by Gara M. Afonso and Hyun Song Shin" C. Kahn, Journal of Money, Credit, and Banking, October, 621-623 2011.


"Why Pay? An Introduction to Payments Economics" C. Kahn, W. Roberds, Journal of Financial Intermediation, (18) January, 1-23 2009.


"Payments Settlement: Tiering in Private and Public Systems" C. Kahn, W. Roberds, Journal of Money, Credit, and Banking, (41) August, 5 855-884 2009.


"Credit and Identity Theft" C. Kahn, W. Roberds, Journal of Monetary Economics, (55) March, 251-264 2008.


"Transferability, Finality and Debt Settlement" C. Kahn, W. Roberds, Journal of Monetary Economics, (54) May, 4 955-978 2007.


"Bank Consolidation and the Dynamics of Consumer Loan Interest Rates" C. Kahn, G. Pennacchi, B. Sopranzetti, Journal of Business, (78) January, 1, Part 2 99-133 2005.


"Low Revenue Equilibria in Simultaneous Ascending Price Auctions" R. Engelbrecht-Wiggans, C. Kahn, Management Science, (51) March, 3 356-371 2005.


"Money Is Privacy" C. Kahn, J. McAndrews, W. Roberds, International Economic Review, (46) May, 2 377-399 2005.


"Allocating Bank Regulatory Power: Lender of Last Resort, Deposit Insurance and Supervision" C. Kahn, J. Santos, European Economic Review, [WorkingPaper.pdf] (49) 8 2107-2136 2005.


"Comment on 'Competition and Financial Stability' by Allen and Gale" C. Kahn, Journal of Money, Credit, and Banking, (36) June, 3; part 2 2004.


"Moral Hazard and Optimal Subsidiary Structure for Financial Institutions" C. Kahn, A. Winton, Journal of Finance, (59) December, 6 2531-2575 2004.


"Settlement Risk under Gross and Net Settlement" C. Kahn, W. Roberds, J. McAndrews, Journal of Money, Credit, and Banking, (35) August, 4 591-608 2003.


"The Economics of Payment Finality" C. Kahn, W. Roberds, Federal Reserve Bank of Atlanta Economic Review, (87) 30-39 2002.


"Performance-Based Wages in Tax Collection: The Brazilian Tax Collection Reform and Its Effects" C. Kahn, E. Silva, J. Ziliak, Economic Journal, (111) January, 468 188-205 2001.


"Real Time Gross Settlement and the Costs of Immediacy" C. Kahn, W. Roberds, Journal of Monetary Economics, (47) April, 2 299-319 2001.


"Economic Functions of Referrals and Referral Fees" P. Colwell, C. Kahn, Journal of Real Estate Finance and Economics, (23) November, 3 267-296 2001.


"The Design of Wholesale Payments Networks: The Importance of Incentives" C. Kahn, W. Roberds, Federal Reserve Bank of Atlanta Economic Review, Summer, 30-39 1999.


"Strategic Transmission of Information and Short-Term Commitment" C. Kahn, T. Tsoulouhas, Economic Theory, (14) July, 1 131-153 1999.


"Bank Deposit Rate Clustering: Theory and Empirical Evidence" C. Kahn, G. Pennacchi, B. Sopranzetti, Journal of Finance, (54) December, 6 2185-2214 1999.


"Calibration of a Model of the Afternoon Effect in Cattle Auctions" R. Engelbrecht-Wiggans, C. Kahn, Quarterly Review of Economics and Finance, (39) Spring, 1 113-128 1999.


"Demandable Debt as a Means of Payment: Bank Notes vs. Checks" C. Kahn, W. Roberds, Journal of Money, Credit, and Banking, (31) August, 3; part 2 500-525 1999.


"Competition and Incentives with Nonexclusive Contracts" C. Kahn, D. Mookherjee, Rand Journal of Economics, (29) Fall, 3 443-465 1998.


"Ownership Structure, Speculation and Shareholder Information" C. Kahn, A. Winton, Journal of Finance, (53) February, 1 99-130 1998.


"Payment System Settlement and Bank Incentives" C. Kahn, W. Roberds, Review of Financial Studies, (11) Winter, 4 845-870 1998.


"One-Stop Shopping for Settlement Services: RESPA, Referral Fees, and Consumer Reaction" C. Kahn, Illinois Real Estate Letter, Summer, 1998.


"Multi-Unit Pay-Your-Bid Auctions with Variable Awards" C. Kahn, Games and Economics Behavior, (23) 25-42 1998.


"The Efficiency of Self Regulated Payments Systems: Leaming from the Suffolk System" C. Calomiris, C. Kahn, Journal of Money, Credit, and Banking, (28) November, 4 766-797 1996.


"Coalition Proof Equilibrium in an Adverse Selection Insurance Economy" C. Kahn, D. Mookherjee, Journal of Economic Theory, (66) June, 1 113-138 1995.


"Market Failure with Moral Hazard and Side Trading" C. Kahn, D. Mookherjee, Journal of Public Economics, (58) October, 2 159-184 1995.


"Housing-Finance Intervention and Private Incentives: Helping Minorities and the Poor" C. Calomiris, C. Kahn, S. Longhofer, Journal of Money, Credit, and Banking, (26) August, 3 634-674 1994.


"The Economic Role of Foreclosures" C. Kahn, A. Yavas, Journal of Real Estate Finance and Economics, (8) January, 1 35-51 1994.


"Introducing Work Rules into Models of Wage-Employment Contracts" C. Kahn, P. Reagan, Quarterly Review of Economics and Finance, (33) Fall, 3 217-231 1993.


"Non Existence and Inefficiency of Equilibria with American Options and Convertible Bonds" C. Kahn, S. Krasa, Economic Theory, (3) 1 1993.


"An Equilibrium Model of Quits Under Optimal Contracting" C. Kahn, S. Longhofer, European Economic Review, (37) August, 6 1203-1222 1993.


"Exclusion and Moral Hazard: The Case of Identical Demand" C. Kahn, E. Silva, Journal of Public Economics, (52) September, 2 217-235 1993.


"The Existence and Characterization of Optimal Contracts on a Continuous State Space" C. Kahn, Journal of Economic Theory, (59) February, 122-144 1993.


"The Good, the Bad and the Ugly: Coalition-Proof Equilibrium in Infinite Games" C. Kahn, Games and Economics Behavior, 101-121 1992.


"Protecting the Winner: Second-Price Versus Oral Auctions" R. Englebrecht-Wiggans, C. Kahn, Economics Letters, (35) 243-248 1991.


"The Role of Demandable Debt in Structuring Optimal Banking Arrangements" C. Calomiris, C. Kahn, The American Economic Review, (81) June, 497-513 1991.


"The Economic Role of Foreclosure Rules" C. Kahn, Illinois Real Estate Letter, Summer, 8-11 1991.


"Cooperative Arrangements for the Regulation of Banking by Banks" C. Calomiris, C. Kahn, Ill. Business Review, Fall, 1990.


"Default, Foreclosure and Strategic Renegotiation" C. Kahn, G. Huberman, Law and Contemporary Problems, (52) Winter, 49-61 1989.


"The Use of Complicated Models as Explanations: A Re-examination of Williamson's Late 19th Century America" C. Kahn, Research in Economic History, (11) 185-216 1988.


"Limited Contract Enforcement and Strategic Renegotiation" G. Huberman, C. Kahn, The American Economic Review, (78) June, 3 471-484 1988.


"Two-Sided Uncertainty and Up-or-Out Contracts" C. Kahn, G. Huberman, Journal of Labor Economics, (6) October, 423-443 1988.


"A Competitive Efficiency Wage Model with Keynesian Features" C. Kahn, D. Mookherjee, Quarterly Journal of Economics, (103) November, 609-645 1988.


"Strategic Renegotiation" G. Huberman, C. Kahn, Economics Letters, (28) December, 117-121 1988.


"Erratum: The Durable Goods Monopolist and Consistency with Increasing Costs" C. Kahn, D. Malueg, J. Solow, Econometrica, (56) March, 754 1988.


"The Durable Goods Monopolist and Consistency with Increasing Costs" C. Kahn, Econometrica, (54) March, 2 275-294 1986.


"Optimal Employment Contracts with Bankruptcy Constraints" C. Kahn, J. Scheinkman, Journal of Economic Theory, (35) April, 2 343-365 1985.


"Optimal Severance Pay with Incomplete Information" C. Kahn, Journal of Political Economy, (93) June, 3 435-451 1985.


"Wage-Employment Contracts" J. Green, C. Kahn, Quarterly Journal of Economics, (98) Supplement, 173-187 1983.


"The Solution of Linear Difference Models Under Rational Expectations" O. Blanchard, C. Kahn, Econometrica, (48) July, 1305-1311 1980.

Conference Proceedings

"The CLS Bank: A Solution to the Risks of International Payments Settlement?" C. Kahn, W. Roberds, (54) June, 191-226 2001.


"Demandable Debt as the Optimal Banking Contract" C. Calomiris, C. Kahn, August, 35-43 1988.

Chapters in Books

"Clearing House Interbank Payments System (CHIPS)" In Wiley-Blackwell Encyclopedia of Globalization, (Eds: Ritzer, George), John Wiley & Sons: England, 2012.


"Some Implications of Systemic Risk and the Design of Regulatory Architecture" M. Espinosa-Vega, J. Sole, C. Kahn, R. Matta, In Macrorudential Regulatory Policies: The New Road to Financial Stability, (Eds: Stijn Claessens, Douglas D Evanoff, George G. Kaufman and Laura Kodres), World Scientific Publishing Co.: , 2011.


"Allocating Lending of Last Resort and Supervision in the Euro Area" C. Kahn, J. Santos, In Monetary Unions and Hard Pegs: Effects on Trade, Financial Development and Stability, (Eds: George M. von Furstenberg, Volbert Alexander, and Jacques Melitz), Oxford University Press: Oxford, 2004.


"Modeling of Choices with Uncertain Preferences" C. Kahn, In Health Values for Policy: An Economic Approach, (Eds: George Tolley, Donald Kenkel and Robert Fabian), The University of Chicago Press: Chicago, 1994.


"An Agency Theory Approach to Slave Incentives" C. Kahn, 551-565 In Without Consent or Contract: Technical Papers on Slavery, (Eds: Robert Fogel and Stanley Engerman), W. W. Norton and Company: New York, 1992.


"A Linear Programming Solution to the Slave Diet" C. Kahn, 522-535 In Without Consent or Contract: Technical Papers on Slavery, (Eds: Robert Fogel and Stanley Engerman), W. W. Norton and Company: New York, 1992.


"Semi-Stability in Game Theory: A Survey of Ugliness" C. Kahn, C. Asilis, In Papers in Game Theory and Economic Applications: Procedings of An International Conference Held at the Indian Statistical Institute, (Eds: B. Dutta et al.), Springer-Verlag: Berlin-Heidelberg, 1992.

Honors and Awards


Incomplete list of Excellent Teachers , University of Illinois , 1995-2011


, Who's Who in Economics 4th Ed. , 2003


, CBA Excellence in Research Award , 2002


, Commerce Alumni Teaching Award , 1999


Outstanding Professor of the Year , Illinois MBA Program , 1996


, E.G.S.O Teaching Award Nomination , 1995


, E.G.S.O Teaching Award , 1990


Scholarship , National Science Foundation , 1977-1980


Marshall Scholar , Cambridge University , 1975-1977


 


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