Vita:
Richard MacMinn
vitam impendere vero


Office:

Katie School

College of Business

Illinois State University

Normal, Illinois 61790


  Home:
1913 Gailey Lane
Bloomington, Illinois 61704

Phone: +1 309 438 7993
Fax: +1 309 438 5510
Email: richard.macminn@ilstu.edu
  Phone: +1 309 662 7593
Fax: +1 309 662 7593
Email: richard@macminn.org

Education

University of Illinois
Ph. D. 1978 Economics

University of Illinois
M. A. 1973 Public Administration

University of California at Los Angeles
B. A. 1967 Political Science

 


Experience

2002-Present

Edmondson-Miller Chair in Insurance and Financial Services, Illinois State University

 

Courses Risk Management and Insurance  
  Life Insurance  

2000-2002

Swiss Re Chair in the Management of Risk, The University of Nottingham

 

1998-2000

Associate Professor of Finance and Management Science and Information Systems, The University of Texas

 

1997-1998

Visiting Shepard Professor, The Ohio State University

 

Courses:

Risk Management and Insurance

 

1988-1997

Associate Professor of Finance, The University of Texas

 

Courses:

Business Finance is the first undergraduate course in corporate finance. The course stresses the time value of money, risk and return, capital budgeting, the cost of capital, leverage, and capital structure. Students can access their scores on the class roster, access a formula sheet that is linked to lectures and problems, submit assignments directly into a relational database that is linked to the class roster, and more.

 

 

Corporate Finance is the second undergraduate course in corporate finance. The course stresses the theoretical foundations of corporate finance. In addition to the standard fare of capital budgeting and capital structure this course includes topics such as the market for corporate control and the use of derivatives in managing corporate risk.

 

 

Uncertainty in Economics and Finance is one of the core courses in the finance Ph.D. program. The course develops the notions of risk, risk aversion, arbitrage, and equilibria in economies that include financial markets. Adverse selection and moral hazard problems are also stressed.

 

1987-1988

Visiting Associate Professor, The University of Missouri

 

1986-1987

Associate Professor and Graduate Advisor, The University of Texas

 

Courses:

Corporate Finance, Uncertainty in Economics and Finance, Information Economics, Managerial Economics

 

1981-1985

Assistant Professor of Finance, The University of Texas

 

Courses:

Uncertainty in Economics and Finance, Managerial Economics, Corporate Finance

 

1977-1981

Assistant Professor of Economics, The State University of New York at Binghamton

 

Courses:

Microeconomic Theory, Uncertainty in Economics, Labor Economics, Managerial Economics, Microeconomic Principles, Statistics

 

1972-1973

Administrative Officer, U.S. Atomic Energy Commission

 

1967-1971

Administrative Officer and Squadron Commander, United States Air Force

 

     

Honors

2006 ARIA Outstanding Achievement Award
  This award was for furthering the science of risk management through the promotion of education, research and communication during my nine year tenure as editor of the Journal of Risk and Insurance.
2004 APRIA Outstanding Paper Award
  This was the award for the best paper presented at the eight annual conference of the Asia-Pacific Risk and Insurance Association in Seoul

2003

Robert I. Mehr Award

 

The Mehr Award is presented by the American Risk and Insurance Association each year for that paper published ten years ago that has best stood the test of time.

2002

ARIA President's Award

 

The prize is awarded for Outstanding contributions to the Field and to the Association.

2001

Casualty Actuarial Society Prize

 

This prize is presented by the Casualty Actuarial Society for the paper published by the American  Risk and Insurance Association during the year that makes the most valuable contribution to casualty actuarial science.

2000

Robert I. Mehr Award

2000

Brian Hey Prize (second

 

Awarded for the explanation of insurance cycles and crises in  "Great (and not so Great) Expectations:  An Endogenous Economic Explication of Insurance Cycles and Liability Crises"

1998

COS Award

 

The previous version of " Great (and not so Great) Expectations:  An Endogenous Economic Explication of Insurance Cycles and Liability Crises" was the winner of the 1998 Casualty Actuarial Society Committee on Online Services Prize Program

1997

Robert I. Mehr Award

1994

Robert C. Witt Award

1991

Robert C. Witt Award

1988

Graduate School of Business Summer Research Award, University of Texas

1988

College of Business Administration Foundation Award for Research Excellence

1987

Graduate School of Business Summer Research Award, University of Texas

1986

Graduate School of Business Summer Research Award, University of Texas

1985

L + EC Law Institute for Economists, Dartmouth

1985

University Research Institute Summer Research Award, University of Texas

1984

Graduate School of Business Summer Research Award, University of Texas

1983

University Research Institute Summer Research Award, University of Texas

 

Beta Gamma Sigma National Honorary Scholarship Society

 

Phi Kappa Phi Honor Society

1971

Air Force Commendation Medal

   

Publications

Search and Market Equilibrium, Journal of Political Economy, 308-327, April 1980

 

Job Search and the Labor Dropout Problem Reconsidered, Quarterly Journal of Economics, August 1980

 

Technological Uncertainty and the Theory of the Firm, with A. Holtmann, Southern Economic Journal, July 1983

 

A General Diversification Theorem, Journal of Finance, June 1984

 

Forward Market Equilibrium, with George Morgan and Stephen Smith, Southern Economic Journal, July 1984

 

Search and the Market for Lemons, Information Economics and Policy, June 1986

 

A Financial Theory of the Insurance Firm, with Robert Witt, Geneva Papers on Risk and Insurance, January 1987

Presented at the Risk Theory Seminar in Los Angeles, 1984

 

Insurance and Corporate Risk Management, Journal of Risk and Insurance, December 1987

Presented at the American Risk and Insurance Association Meeting in Vancouver, British Columbia, 1985, and the American Economic Association Meetings in New York, 1985; Mehr Award 1997

 

Forward Markets, Stock Markets, and the Theory of the Firm, Journal of Finance, December 1987

 

Uncertainty, the Fisher Model, and Corporate Financial Theory, with John Martin, Research in Finance, volume 7, 1988, JAI Press Inc., Greenwich, Connecticut

Presented at the American Finance Association Meetings in San Francisco, 1983

 

Liability Insurance and Corporate Risk Management, with Li Ming Han, Proceedings of the International Insurance Society, Inc., 1989

 

Forward and Spot Market Equilibria for Storable Commodities, with George Morgan and Stephen Smith, Quarterly Review of Economics and Business, Autumn 1990

 

Limited Liability and the Corporate Demand for Liability Insurance, with Li-Ming Han, Journal of Risk and Insurance, December 1990

Presented at the Seminar of the European Group of Risk and Insurance Economists in Vienna, Austria, 1990; Witt Award from the American Risk and Insurance Association, 1991; Mehr Award 2000

 

Imperfect Information and the Inter-temporal Misallocation of Resources with Callable versus Non-Callable Debt, with Ricardo Rodriguez, Quarterly Review of Economics and Business, 1991

 

An Anatomy of the Poison Pill, with Douglas Cook, Managerial and Decision Economics, 1991

 

The Under-investment Problem, Bond Covenants and Insurance, with James Garven, Journal of Risk and Insurance, 1993

Witt Award from the American Risk and Insurance Association, 1994; Mehr Award 2003

 

The Risk-Shifting Problem and Convertible Bonds, Advances in Quantitative Analysis of Finance and Accounting, 1993

 

Corporate Spin-offs as a Value Enhancing Technique When Faced With Legal Liability, with Patrick Brockett, Journal of Insurance: Mathematics, and Economics, April 1995

 

Stock Options, Managerial Incentives, and Capital Structure, with Frank Page, Journal of Financial Studies, December 1995

Presented at the Econometric Society Meetings in Washington D. C., 1995, the Southwest Finance Association Meetings in Houston, 1995, and the Korean Financial Management Association Meetings in Seoul, 1995

 

Genetic Testing, Insurance Economics, and Societal Responsibility, with Patrick Brockett, North American Actuarial Journal, January 1999

 

Great (and not so Great) Expectations:  An Endogenous Economic Explication of Insurance Cycles and Liability Crises, with Gene C. Lai, Robert C. Witt, Hung-Gay Fung and Patrick L. Brockett, Journal of Risk and Insurance, December 2000

This was previously called On Liability Insurance Crises and was presented at the American Risk and Insurance Association Meetings in Seattle, 1995, and at the Risk Theory Seminar in Tuscaloosa, 1997

Risk and Choice:  A Perspective on the Integration of Finance and Insurance, Risk Management and Insurance Review, Spring 2000

Value and Risk, Journal of Banking and Finance, 2001

On the Judgment Proof Problem, Geneva Papers on Risk and Insurance Theory, 27: 143-152, 2002

 

A Perspective on some Economic Issues in the U.S. Insurance Market, with Patrick Brockett, Risques, 60: 63-69, 2004

 

On Corporate Risk Management and Insurance, Asia-Pacific Journal of Risk and Insurance, 1(1): 97-119, 2005

Presented at the Seminar of the European Group of Risk and Insurance Economists in Hannover, Germany, 1996, at the American Risk and Insurance Association Meeting in San Diego, 1997, at the Inaugural Meeting of the Asia and Pacific Risk and Insurance Association in Singapore, 1997, and at the Western Risk and Insurance Association Meeting in Kaanapali, 1998

 

Stock Options and Capital Structure, with F. H. Page, Annals of Finance, 2(1): 39-50, 2006

Presented at the NSF/NBER Decentralization Conference in Tuscaloosa, 1996

Stock Options and the Corporate Demand for Insurance with Li-Ming Han, Journal of Risk and Insurance, 73(2):231-260, 2006

Presented at the Asia-Pacific Risk and Insurance Association Meetings in Seoul, 2004 and the Southern Risk and Insurance Association Meetings in Charleston, 2004.

Longevity Risk and Capital Markets with Patrick Brockett and David Blake, Journal of Risk and Insurance, 73(4): 551-557, 2006

Longevity Bonds: Financial Engineering, Value and Use  with David Blake, Andrew Cairns and Kevin Dowd, Journal of Risk and Insurance, 73(4): 2006

Presented at the 8th Bowles Symposium and 2nd International Longevity Risk and Capital Market Solutions Symposium in Chicago, 2006.

 

Genetic Testing and Adverse Selection with Patrick Brockett and J. A. Raeburn, Annals of Actuarial Science, 2(2): 2007

Presented at the European Group of Risk and Insurance Economists Meetings in Zurich, 2004, the Southern Risk and Insurance Association Meetings in Clearwater, 2003, the Asia-Pacific Risk and Insurance Association Meetings in Bangkok, 2003, and the American Risk and Insurance Association Meetings in Montreal, 2002

Longevity Risk and Capital Markets: the 2007-2008 update, with David Blake and Jennifer Wang, Asia-Pacific Journal of Risk and Insurance, 3(1): 1-5. 2008

Securitization of Catastrophe Risk: New Developments in Insurance-Linked Securities and Derivatives with Sylvie Bouriaux, Journal of Insurance Issues, Spring 2009

Longevity Risk and Capital Markets: the 2008-2009 update, with David Blake, Anja De Waegenaere and Theo Nijman, Insurance, Mathematics and Economics, 46(1): 135-138. 2010

Select Birth Cohorts with J. Frederik Weber, European Actuarial Journal, 1 (Suppl 2):S395S409. 2011


Mossin's Theorem Given Random Initial Wealth with SoonKoo Hong, Keun Ock Lew and Patrick L. Brockett, Journal of Risk and Insurance, 78 (2), 309-324. 2011

Longevity Risk and Capital Markets: the 2009-2010 update with D. Blake, D., P. Brockett, P. and S. Cox.   North American Actuarial Journal, 15 (2), 141-149. 2011

Longevity isk and Capital Markets: The 2010-2011 Update with D. Blake, D., C. Courbage, and M. Sherris, M. (2011). Geneva Papers on Risk and Insurance: Issues and Practice, 36 (4), 489-500. 2011

Directors, Directors and Officers Insurance and Corporate Governance. with Y. Ren,  Journal of Insurance Issues. 2011

Longevity/Mortality Risk Modeling and Securities Pricing. with Y. Deng and P. Brockett.  Journal of Risk and Insurance, 79 (3), 697-721. 2012 

 


Monograph

The Fisher Model and Financial Markets (Singapore: World Scientific Publishing, 2005)

 

Books 

The Theory of Finance: Evidence and Applications, with John Martin and Samuel Cox, (Chicago: Dryden, 1988)

Chapters
On Corporate Insurance, with James Garven, in the Handbook of Insurance, (Boston: Kluwer, November 2000)

On the demand for corporate insurance: creating value, with James Garven,  in The Handbook of Insurance. (Boston: Kluwer Academic Publishers. 2011)

 On longevity risk and the new life markets with D. Blake, G. Coughlan,  in The Handbook of Insurance. (Boston: Kluwer Academic Publishers. 2011)

 


Speeches

Longevity Risk and Capital Markets: the New Life Markets.   Insurance Seminar at Qingdao University, Qingdao, China. 2012

Risk, Insurance and Society: Insurance and the Creation of Value.   China International Conference on Insurance and Risk Management, Qingdao, China. 2012

The Creation of Value.   Korean Insurance Academic Society Annual Meeting, Seoul, Korea. 2011

Longevity Risk and Capital Markets: the New Life Markets.   International Symposium on Longevity Risk and the Role of Insurance Companies, Seoul, Korea. 2011

The Annuity Puzzle.   Longevity Risk and Capital Market Solutions Symposium, New York, New York. 2009

The Fisher Model and Financial Markets: the building blocks
    This presentation was made during a stay at Ludwig-Maximilians-University in Munich as a visiting scholar in November 2008.  Also see the video of this presentation.

The Fisher Model and  Financial Markets: an Economist's Perspective on Financial Markets, Risk Management and Value Creation
    This presentation was also made during a stay at Ludwig-Maximilians-University in Munich as a visiting scholar in November 2008.

Managing Catastrophic Risk
    Katie School Symposium: Catastrophe Management for Insurance Companies: Identifying Risk and CAT Models, April 17th, 2007, Normal, Illinois; Third Annual Illinois State University Actuarial Research Event, April 19th, 2007, Bloomington, Illinois; speech at the Insurance Institute for Asia and the Pacific, Manila

Longevity Risk, Capital Markets and Financial Engineering
    Ulm University, Ulm, Germany, June 21st, 2006 and Ludwig-Maximilians-University, Munich, Germany, June 28th, 2006

Genetic Testing and Life Insurance
    Ludwig-Maximilians-University, Munich, Germany, June 25th, 2006

Hedging Brevity Risk with Mortality-based Securities
    Asia-Pacific Risk and Insurance Association Conference, Tokyo, Japan, July 2006

Genetic Testing and Adverse Selection
    Western Risk and Insurance Association, Maui, January 2003; Asia-Pacific Risk and Insurance Association, Bangkok, July 2003; American Risk and Insurance Association, Denver, 2003; Geneva Group of Risk and Insurance Economists, 2003

International Mortality Comparisons
    Society of Actuaries, Vancouver, June 2003

The Creation of Value
        Presented at the Asia Pacific Risk and Insurance Association Conference, Shanghai, July 2002

Risk and Choice

        Presented at the International Conference on Risk Management and Insurance, Taipei, July 1999

 


Partial List of Working Papers

 

The Annuity Puzzle

Presented at the Asia-Pacific Risk and Insurance Association meetings in Beijing, 2009, and at the Longevity Risk and Capital Market Solutions Symposium in New York, 2009

 

Hedging Brevity and Longevity Risk with Mortality-based Securities with Andreas Richter

Presented at the European Group of Risk and Insurance Economists Meetings in Marseille, 2004 and the Asia-Pacific Risk and Insurance Association Meetings in Tokyo, 2006

 

Measuring Economic Capital: Value at Risk, Expected Tail Loss and the Copula Approach with Jeungbo Shim and Seung-Hwan Lee

 

Consumption, Population and the Cross-Section of Stock Returns with TzuLing Lin and Larry Tzeng

 

Directors and Officers Insurance and Corporate Governance with Li Ming Han

 

The Demand for Insurance with Investment Opportunities with Soon Koo Hong, Robert Witt and Patrick Brocket

 

On the Origins of the Demand for Life Insurance

 

On Privacy and Insurance with Li-Ming Han

 

Forward Market Equilibria

 

Financial Engineering and Variable Risk Premiums in Eurodollar Futures with William Scott

  

Competition and Compensation

Presented at Seoul National University, Seoul, Korea, 1995 and the NSF/NBER Decentralization Conference in Tuscaloosa, 1996

 

Liability Rules and Corporate Risk Management

Presented at the American Risk and Insurance Association Meetings in Toronto, 1994, the Western Risk and Insurance Association Meeting in Las Vegas, 1999, the Asia and Pacific Risk and Insurance Association in Hong Kong, 1999, the International Conference on Risk Management and Insurance in Taipei, 1999, and the American Risk and Insurance Association Meetings in Vancouver, 1999

  

Hidden Information and Financial Certification, with Anthony B. Sanders

 

Hidden Knowledge, Hidden Action, and Optimal Financial Contracts

 

Industrial Structure, Negligence, and Corporate Risk Management with Robert C. Witt

Presented at the Seminar of the European Group of Risk and Insurance Economists in London, 1992, the Risk Theory Seminar in College Station, Penn State, 1992, and the American Risk and Insurance Association Meeting in San Francisco, 1993

 


Service

1998-2006

Editor of the Journal of Risk and Insurance

 

2010-Present Editorial Board, Insurance Markets and Companies  
2007-Present Associate Editor Journal of Risk and Insurance  
2004-Present Associate Editor of the Asia-Pacific Journal of Risk and Insurance  

2000-Present

Associate Editor of the Journal of Insurance Issues

 

1988-Present

Associate Editor of the Quarterly Review of Economics and Finance

 

2000-2003

Member of the Board of Governors, Asia-Pacific Risk and Insurance Association

 

2003-2006

Member of the Board, American Risk and Insurance Association

2004-2006

External Examiner for the Chinese University of Hong Kong

 

2007

External Examiner for Heriot Watt University, Edinburgh

2008 External Examiner for Georgia State University, Atlanta  
2008 External Examiner for the University of Texas, Austin  
2008 Editor, September 2008 Issue of the Asia-Pacific Journal of Risk and Insurance on Longevity Risk  

Referee:

American Economist
Asia-Pacific Journal of Risk and Insurance
Economic Journal
Energy Journal

Engineering Economist
Financial Review
Geneva Papers on Risk and Insurance
Information Economics and Policy
International Economic Review
Journal of Banking and Finance
Journal of Finance
Journal of Financial and Quantitative Analysis
Journal of Institutional and Theoretical Economics
Journal of Insurance Issues
Journal of Political Economy
Journal of Risk and Insurance

National Science Foundation
Quarterly Journal of Economics
Quarterly Review of Economics and Business
Review of Quantitative Finance and Accounting
Southern Economic Journal


Copyright 2005, MacMinn.org
Wednesday October 17, 2012 02:03:02 PM -0700

Comments to:  Richard MacMinn