Deborah Lucas

Sloan Distinguished Professor of Finance
Direct of MIT Center for Finance and Policy

Biography | Selected Publications

“Joint Risk of DB Pension Underfunding and Sponsor Termination: Incorporating Options-Based Projections and Valuations into PIMS.” Lucas, Deborah J. Journal of Pension Economics and Finance Vol. 14, No. 2 (2015): 172-185. (2015)

“‘Truth is our only refuge': why the CBO must remain independent.” Lucas, Deborah J. In The Conversation, February 2015.

Putting an accurate price tag on government credit support.” Lucas, Deborah J. In VOXeu. Centre for Economic Policy Research, December 2014.

Evaluating the Government as a Source of Systemic Risk.” Lucas, Deborah J. Journal of Financial Perspectives Vol. 2, No. 3 (2014). (2014)

“Rebutting Arrow and Lind: Why Governments Should Use Market Rates for Discounting.” Lucas, Deborah J. Journal of Natural Resources Policy Research Vol. 6, No. 1 (2012): 85-91. (2014)

“Comment on ‘Testing Macroprudential Stress Tests: The Risk of Regulatory Risk Weights,’ by Viral Acharya, Robert Engle, and Diane Pierre.” Lucas, Deborah J. Journal of Monetary Economics Vol. 5 (2014): 54-56. (2014)

“Evaluating the Cost of Government Credit Support: The OECD Context.” Lucas, Deborah J. Economic Policy Vol. 29, No. 79 (2014): 553-597. (2014)

Federal Credit Programs.” Lucas, Deborah J. In Public Economics in the United States: How the Federal Government Analyzes and Influences the Economy, edited by Steven Payson, 375-398. Santa Barbara, CA: ABC-CLIO, LLC, 2014.

"Comment on “’Effects of unconventional monetary policy on financial institutions’ by Gabriel Chowdorow-Reich." Lucas, Deborah J. Brookings Papers on Economic Activity (2014): 205:209. (2014)

"Keeping College Within Reach: Examining Opportunities to Strengthen Federal Student Loan Programs." Deborah J. Lucas. In Testimony before the Committee on Education and the Workforce, U.S. House of Representatives. Washington, DC: March 2013.

Aging and the Macroeconomy. Long-Term Implications of an Older Population. Lee, Ronald, Roger W. Ferguson Jr., Alan J. Auerbach, Axel Boersh-Supan, John Bongaarts, Susan M. Collins, Charles M. Lucas, Deborah J. Lucas, Olivia S. Mitchell, William D. Nordhaus, James M. Poterba, John W. Rowe, Louise M. Sheiner and David A. Wise. Washington, DC: National Academy Press, 2012.

Comment on ‘The Future of U.S. Housing Finance Reform’ by Phillip Swagel.” Lucas, Deborah J. The B.E. Journal of Macroeconomics Vol. 12, No. 3 (2012): 1935-1690. (2012)

Valuation of Government Policies and Projects.” Lucas, Deborah J. Annual Review of Financial Economics, Vol. 4 (2012): 39-58. (2012)

Fair-Value Accounting for Federal Credit Programs.” Deborah Lucas and Mark Hadley. In Congressional Budget Office Issue Brief, edited by Damien Moore. Washington, DC: March 2012.

The Federal Debt: Assessing the Capacity to Pay.” Lucas, Deborah J. In Is the U.S. Government Debt Different?, edited by Franklin Allen, Anna Gelpern, Charles Mooney and David Skeel, 101-111. Philadelphia: FIC Press, 2012.

Federal Loan Guarantees for the Construction of Nuclear Power Plants.” Wendy Kiska and Deborah Lucas. Edited by Loretta Lettner. Washington, DC: August 2011.

The Budgetary Cost of Fannie Mae and Freddie Mac and Options for the Future Federal Role in the Secondary Mortgage Market.” Deborah Lucas. Testimony before the Committee on the Budget, U.S. House of Representatives. Washington, DC: June 2011. (2011)

Fannie Mae, Freddie Mac and the Role of the Secondary Mortgage Market.” Deborah Lucas and David Torregrosa. Edited by Christian Howlett. Washington, DC: December 2010.

Heterogeneity and Portfolio Choice: Theory and Evidence.” Curcuru, Stephanie, John Heaton, Deborah J. Lucas and Damien Moore. In The Handbook of Financial Econometrics: Tools and Techniques, edited by Yacine Aït-Sahalia and Lars Peter Hansen, 337-382. USA: North Holland, 2010.

The Budgetary Impact and Subsidy Cost of the Federal Reserve’s Activities During and Financial Crisis.” Kim Kowalewski, Wendy Kiska and Deborah Lucas. Edited by Leah Mazade. Washington, DC: May 2010.

Guaranteed Versus Direct Lending: The Case of Student Loans.” Lucas, Deborah J. and Damien Moore. In Measuring and Managing Federal Financial Risk, edited by Deborah J. Lucas. Chicago, IL: University of Chicago Press, 2010.

The Cost of Risk to the Government and Its Implications for Federal Budgeting.” Lucas, Deborah J. and Marvin Phaup. In Measuring and Managing Federal Financial Risk, edited by Deborah J. Lucas, 29-54. Chicago, IL: University of Chicago Press, 2010.

Valuing Government Guarantees: Fannie and Freddie Revisited.” Lucas, Deborah J. and Robert L. McDonald. In Measuring and Managing Federal Financial Risk, edited by Deborah J. Lucas, 131-154. Chicago, IL: University of Chicago Press, 2010.

“Is Mark-to-Market Accounting Destabilizing? Analysis and Implications for Policy.” Heaton, John, Deborah J. Lucas and Robert L. McDonald. Journal of Monetary Economics Vol. 5, No. 1 (2010): 64-75. (2010)

“How Should Public Pension Plans Invest?" Deborah J. Lucas and Stephen Zeldes. In Papers and Proceedings of the One Hundred Twenty-First Annual Meeting of the American Economic Association, edited by William R. Johnson and Jane E. Voros. Nashville, TN: May 2006. (2009)

“Reforming Credit Reform.” Lucas, Deborah J. and Marvin Phaup. Public Budgeting & Finance Vol. 28, No. 4 (2008): 90-110. (2008)

Comment on ‘Making Sense of the Subprime Crisis’ by K. Gerardi, A. Lehnart, S. Sherland and P. Willen.” Lucas, Deborah J. Brookings Papers on Economic Activities (2008): 146:153. (2008)

Can Heterogeneity, Undiversified Risk, and Trading Frictions Solve the Equity Premium Puzzle?” Heaton, John and Deborah J. In Handbook of the Equity RIsk Premium, edited by Rajnish Mehra, 535-557. USA: North-Holland, 2007.

Federal Financial Guarantees Under the Small Business Administration’s 7(a) Program.” Deborah Lucas and Wendy Kiska. Edited by Christine Bogusz. Washington, DC: October 2007.

“Comment on ‘Global Demographic Trends and Social Security Reform’ by Orazio Attanasio, Sagiri Kitao, and Giovanni Violante.” Lucas, Deborah J. Journal of Monetary Economics Vol. 54, No. 1 (2007): 199-204. (2007)

Comment on ‘On Asset-Liability Matching and Federal Deposit and Pension Insurance’ by Zvi Bodie.” Deborah J. Lucas. In Federal Reserve Bank of St. Louis Review, edited by William R. Emmons and Anthony Pennington-Cross. St. Louis, MO: July 2006.

“Who Holds the Toxic Waste? An Investigation of MBS Holdings.” Joseph G. Haubrich and Deborah J. Lucas. In Proceedings of the 2006 Conference on Bank Structure and Competition. Chicago, IL: 2006.

Evaluating Benefit Guarantees in Social Security.” Sven Sinclair, Deborah Lucas, Amy Rehder Harris, Michael Simpson and Julie Topoleski. Edited by Loretta Lettner. Washington, DC: March 2006.

“An Options-Based Approach to Evaluating the Risk of Fannie Mae and Freddie Mac.” Lucas, Deborah J. and Robert L. McDonald. Journal of Monetary Economics Vol. 53, No. 1 (2006): 155-176. (2006)

The Risk Exposure of the Pension Benefit Guarantee Corporation.” Wendy Kiska, Deborah Lucas and Marvin Phaup. Edited by Janey Cohen. Washington DC: September 2005.

"Investing Public Pensions in the Stock Market: Implications for Risk Sharing, Capital Formation and Public Policy in the Developed and Developing World." Lucas, Deborah. In Social Security Reform: Financial and Political Issues in International Perspective, edited by Robin Brooks and Assaf Razin, 183-204. New York, NY: Cambridge University Press, 2005.

Estimating the Value of Subsidies for Federal Loans and Loan Guarantees.” Deborah Lucas, Marvin Phaup and Ravi Prasad. Edited by Christian Spoor. Washington, DC: August 2004

“Modeling the Effects of Fiscal Policy Imbalances: How Much Does Myopia Matter?” Lucas, Deborah J. Review of Economic Dynamics Vol. 6, No. 4 (2003): 789-805. (2003)

Evaluating and Accounting for Federal Investment in Corporate Stocks and Other Private Securities.” Deborah Lucas, Doug Hamilton and Marvin Phaup. Edited by Christian Spoor. Washington, DC: January 2003.

“Investing Public Pensions in the Stock Market: Implications for Risk Sharing, Capital Formation and Public Policy in the Developed and Developing World.” Lucas, Deborah J. Sasin Journal of Management Vol. 7 (2001): 179-202. (2001)

"Federal Subsidies and the Housing GSEs." Deborah Lucas and Marvin Phaup. Edited by John Skeen. Washington, DC: May 2001.

Comment on ‘The Social Security Trust Fund, the Riskless Interest Rate, and Capital Accumulation,’ by Andrew B. Abel.” Lucas, Deborah J. In Risk Aspects of Investment Based Social Security Reform, edited by John Y. Campbell and Martin Feldstein, 194-200. Chicago, IL: University of Chicago Press, 2000.

“Portfolio Choice and Asset Prices: The Importance of Entrepreneurial Risk.” Heaton John, and Deborah J. Lucas. Journal of Finance Vol. 55, No. 3: 1163-1198. (2000)

“Portfolio Choice in the Presence of Background Risk.” Heaton, John and Deborah J. Lucas. The Economic Journal Vol. 110, No. 460 (2000): 1-26. (2000)

Stock Prices and Fundamentals.” Heaton, John and Deborah J. Lucas. In NBER Macroeconomics Annual, edited by Ben S. Bernanke and Julio J. Rotemberg, 213-264. Cambridge, MA: MIT, 2000.

“Price and Interest Rate Dynamics Induced by Multiperiod Contracts.” Lucas, Deborah J. North American Journal of Economics and Finance, Vol. 10, No. 2 (1999): 315-338. (1999)

“Shareholder Heterogeneity, Adverse Selection, and Payout Policy.” Lucas, Deborah J. and Robert McDonald. Journal of Financial and Quantitative Analysis Vol. 33, No. 2 (1998): 233-253. (1998)

External Financing and Insurance Cycles.” Gron, Anne and Deborah J. Lucas. In The Economics of Property Casualty Insurance, edited by David F. Bradford, 5-28. Chicago, IL: January 1998.

“Market Frictions, Savings Behavior, and Portfolio Choice.” Heaton, John and Deborah J. Lucas. Macroeconomic Dynamics Vol. 1, No. 1 (1997): 76-101. (1997)

“Managed Competition with Prefunding: The Solution for Long-term Care?” Lucas, Deborah J. The Milbank Quarterly Vol. 74, No. 4 (1996): 571-591. (1996)

“Evaluating the Effects of Incomplete Markets on Risk Sharing and Asset Pricing.” Heaton, John and Deborah J. Lucas. Journal of Political Economy Vol. 104, No. 3 (1996): 443-487. (1996)

Comment on ‘A Scorecard for Indexed Government Debt’ by John Campbell and Robert Shiller.” Lucas, Deborah J. 1996 NBER Macroeconomics Annual edited by Ben S. Bernanke and Julio J. Rotemberg, 201-206. Cambridge, MA: MIT Press, 1996.

Comment on 'Financial Intermediation and Monetary Policy in a General Equilibrium Banking Model' by Pamela Labadie.” Lucas, Deborah J. Journal of Money, Credit and Banking. Vol. 27, No. 4 (1995):1316-1318. (1995)

The Importance of Investor Heterogeneity and Financial Market Imperfections for the Behavior of Asset Prices.” Heaton, John and Deborah J. Lucas. Carnegie Rochester Conference Series on Public Policy Vol. 42, No. 1 (1995): 1-32. (1995)

Asset Pricing with Undiversifiable Income Risk and Short Sales Constraints: Deepening the Equity Premium Puzzle.” Lucas, Deborah J. Journal of Monetary Economics Vol. 34, No. 3 (1994): 325-341. (1994)

Comment on ‘A "Barter" Theory of Bank Regulation and Credit Allocation,’ by Anjan Thakor and Jess Beltz.” Lucas, Deborah J. Journal of Money, Credit and Banking Vol. 26, No. 3 (1994): 706-709. (1994)

Equity Issues with Time-Varying Asymmetric Information.” Korajczyk, Robert A., Deborah J. Lucas and Robert L. McDonald. Journal of Financial and Quantitative Analysis Vol. 27, No. 3 (1992): 397-417. (1992)

The Effects of Incomplete Insurance Markets and Trading Costs in a Consumption-Based Asset Pricing Model.” Heaton, John and Deborah J. Lucas. Journal of Economic Dynamics and Control  Vol. 16, No. 3-4 (1992): 601-620. (1992)

“Bank Financing and Investment Decisions with Asymmetric Information about Loan Quality.” Lucas, Deborah J. and Robert L. McDonald. Rand Journal Vol. 23, No. 1 (1992): 86-105. (1992)

"Asset Pricing with Incomplete Markets, A Survey." Lucas, Deborah J. Cuadernos Economicos de ICE, Vol. 50 (1992): 39-58. (1992)

The Effect of Information Releases on the Pricing and Timing of Equity Issues.” Korajczyk, Robert A., Deborah J. Lucas and Robert L. McDonald. Review of Financial Studies Vol. 4, No. 4 (1991): 685-708. (1991)

“Foundations of the Cash-in-Advance Model: A Review Essay.” Lucas, Deborah J. Journal of Monetary Economics Vol. 27, No. 3 (1991): 487-493. (1991)

The Variability of Velocity in Cash-in-Advance Models.” Hodrick, Robert J., Narayana Kocherlakota and Deborah J. Lucas. Journal of Political Economy Vol. 99, No. 2 (1991): 358-384. (1991)

Understanding the Behavior of Stock Prices around the Time of an Equity Issue.” Korajczyk, Robert A., Deborah J. Lucas and Robert L. McDonald. In Asymmetric Information, Corporate Finance, and Investment, edited by R. Glenn Hubbard, 257-278. Chicago, IL: University of Chicago Press, 1990.

Equity Issues and Stock Price Dynamics.” Lucas, Deborah J. and Robert L. McDonald. Journal of Finance Vol. 45, No. 4 (1990): 1019-1043. (1990)

Bank Portfolio Choice with Private Information About Loan Quality: Theory and Implications for Regulation.” Lucas, Deborah J. and Robert L. McDonald. Journal of Banking and Finance Vol. 11, No. 3 (1987): 473-497. (1987)

View complete list of publications (PDF) >>

 

Contact Information
Office: E62-640
Tel: (617) 715-4816
Support Staff
Name: Claudine Monique
Tel: (617) 324-7023
Group(s)

Research Center(s)

General Expertise
Fannie Mae; federal budget; federal credit programs; Fiscal policies; Freddie Mac; Governmental financial institutions; Retirement finance; Social Security; student loans