James R. Thompson

School of Accounting and Finance
The University of Waterloo
+1 (519) 888-4567 ext. 38601
james .at. uwaterloo .dot. ca

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James Thompson

Academic Positions
Short Term Visiting Positions
  • Visiting Assistant Professor of Economics, University of Auckland, Feb-March 2014
  • Visiting Researcher, Reserve Bank of New Zealand, Jan-Feb 2014
  • Visiting Researcher, Center for Economic Studies (Munich), Aug-Sept 2012
  • Visiting Researcher, Federal Reserve Bank of New York, July 2009.
Research Fields / Interests
  • Risk Transfer Markets, Banking, Financial Stability
  • Insurance, Regulation, Contract Theory

Ph.D. - Economics, Queen's University (2008)
Masters - Economics, Financial Specialization, Queen's University (2003)
Bachelors - Computer Science and Economics, University of Western Ontario (2002)

  • Counterparty Risk in Financial Contracts: Should the Insured Worry about the Insurer?, August 2010. Quarterly Journal of Economics. Note that this link requires journal access. For an older working paper version, click here to visit ssrn.

    • Using the case of credit risk insurance in banking, we explore the consequences of counterparty risk on the contracting parties. Click here and here to view the not for publication appendices which include an additional extension of the model and the key results without the limited liability assumption on the insurer.
    • Winner of the Toronto CFA Society Fellowship Award.
    • Winner of the Northern Finance Association Best Student Paper Award.

  • Separation Without Exclusion in Financial Insurance, (with Eric Stephens), December 2013. Forthcoming, Journal of Risk and Insurance
    • We show how separation of insured party types can be obtained when insurers cannot preclude purchases from other insurers.

  • CDS as Insurance: Leaky Lifeboats in Stormy Seas, (with Eric Stephens), July 2014. Journal of Financial Intermediation
    • Theoretical analysis of credit default swaps to determine the features that drive counterparty risk and the differences between these contracts and traditional insurance.
    • Presentations: 2011 WFA (Sante Fe), 2011 FIRS (Sydney), LSE Paul Wooley Center Conference (London), 2011 Risk Theory Society (Little Rock), Duke (Fuqua), University of Toronto, Bank of Canada, University of Alberta
Working Papers and Work in Progress
  • Lemons and Proud of it: Information Asymmetry and Risk Transfer Markets, (with Eric Stephens), February 2015.
    • Information revelation can be supported in equilibrium without any intervention; however transaction taxes and centralized clearing can be pareto improving.
    • Presentations: 2014 WFA, Vanderbilt, Federal Reserve Board, Wharton

  • Who Participates in Risk Transfer Markets? The Role of Transaction Costs and Counterparty Risk, (with Eric Stephens), March 2014.
    • Theoretical analysis of how transaction costs affect who participates in risk transfer markets in multiple informational environments.
    • Presentations: University of Pennsylvania (Wharton), Federal Reserve Board of Governors, Georgia State University (RMI), University of Waterloo, 2012 CEA.

  • Capital Structure, Pay Structure and Job Termination (with Jason Allen), October 2015.
    • Theoretical and empirical analysis with novel dataset on how variable pay can exist without appealing to agency problems.

  • Credit Risk Transfer: To Sell or to Insure, Updated February 2014.
    • When a bank can choose between dispersing risk by credit derivatives or direct sales, what influences their choice when both are affected by asymmetric information?

  • An Efficient Market for Information, (with Douglas Gale and Frank Milne), Draft: September 2008.
    • Information dissemination while preserving the welfare theorms with the example of the market for managers and salary evolution.

University of Pennsylvania, Wharton School
  • FNCE 726 - Advanced Corporate Finance (MBA), 2012
University of Waterloo, School of Accounting and Finance
  • AFM 271 - Managerial Finance, 2008-2011
  • AFM 272 - Mathematical Corporate Finance, 2009-2011
  • AFM 274 - Managerial Finance II, 2013, 2015, 2016
  • AFM 372 - Mathematical Corporate Finance II, 2016
Queen's Univesity, Department of Economics
  • Econ 255 - Mathematics for Economics, 2006

Auto Insurance costs in Ontario: Canadian Banks and the Financial Crisis
  • AM 570 News - multiple news segments in 2008, 2009

Research / Group Affiliations

For Fun...
  • In my free time I enjoy playing badminton, hockey, and soccer. I'm a coach for the latter two for 3-6 year olds.