Ricardo J. Caballero

This article is about the macroeconomist. For the singer and television star, see Ricardo Caballero Tostado.

Ricardo J. Caballero
Born	(1959-10-20) 20 October 1959 (age 65) Santiago, Chile
Academic career
Field	Macroeconomics
Institution	Massachusetts Institute of Technology Columbia University
Alma mater	Pontificia Universidad Católica de Chile (B.S.) Pontificia Universidad Católica de Chile (M.A.) Massachusetts Institute of Technology (Ph.D.)
Doctoral advisor	Olivier Blanchard [1] Stanley Fischer [1]
Doctoral students	Emmanuel Farhi [2]
Awards	Bdf-TSE Senior Prize in Monetary Economics and Finance (2022) Fellow of the Econometric Society (1998) Frisch Medal (2002) Smith Breeden Prize (2008) Brattle Group Prize (2014)
Information at IDEAS / RePEc

Ricardo Jorge Caballero (born 20 October 1959) is a Chilean macroeconomist who is the Ford International Professor of Economics at the Massachusetts Institute of Technology. He also served as the Chairman of MIT's Economic Department from 2008 to 2011. He is a director of the World Economic Laboratory at MIT and an NBER Research Associate. Caballero received his PhD from MIT in 1988, ^[3] and he taught at Columbia University before returning to the MIT faculty.

Recently, Caballero's work has focused on Risk-Centric Macroeconomics and Safe Assets. He has also studied the aggregate behavior of economies with heterogeneous agents, ^[4] the macroeconomic effects of irreversible investment in firm-specific assets, ^[5] and Schumpeterian theories of technological progress through creative destruction. ^[6]

Awards and fellowships

Caballero is the recipient of the 2022 Banque de France-Toulouse School of Economics Senior Prize ^[7] in Monetary Economics and Finance.

In 2002, Caballero was awarded the Econometric Society's Frisch Medal with Eduardo Engel for their paper Explaining Investment Dynamics in U.S. Manufacturing: A Generalized (S, s) Approach. ^[8] He was awarded the Smith Breeden Prize by the American Finance Association for “Collective Risk Management in a Flight to Quality Episode”, Journal of Finance, 63(5), October 2008 (joint with Arvind Krishnamurthy) and the Journal of Finance 2014 Brattle Group Prize for distinguished papers for “Fire Sales in a Model of Complexity,” joint with Alp Simsek.

In April 1998, Caballero was elected a Fellow of the Econometric Society and subsequently of the American Academy of Arts and Sciences in April 2010.

Selected reading

• “Monetary Policy and Asset Price Overshooting: A Rationale for the Wall/Main Street Disconnect,” Journal of Finance, Vol. 79, No. 3, May 2024, pp. 1719-1753, (with Alp Simsek) ^[9]
• “A Note on Temporary Supply Shocks with Aggregate Demand Inertia,” American EconomicReview: Insights,Vol. 5, No. 2, June 2023, pp. 241-258 (with Alp Simsek) ^[10]
• “Monetary Policy with Opinionated Markets,” American Economic Review, Vol. 112, No. 7, July 2022, pp. 2353-2392 (with Alp Simsek) ^[11]
• Global Imbalances and Policy Wars at the Zero Lower Bound (with Emmanuel Farhi and Pierre-Olivier Gourinchas) Review of Economic Studies 88.6 (November 2021): 2570–2621 ^[12]
• A Model of Endogenous Risk Intolerance and LSAPs: Asset Prices and Aggregate Demand in a "Covid-19" Shock (with Alp Simsek) The Review of Financial Studies 34.11 (November 2021) ^[13]
• A Risk-centric Model of Demand Recessions and Speculation (with Alp Simsek) Quarterly Journal of Economics 135.3 (August 2020) ^[14]
• A Model of Fickle Capital Flows and Retrenchment (with Alp Simsek) Journal of Political Economy 128.6 (April 2020) ^[15]
• Missing Aggregate Dynamics and VAR Approximations of Lumpy Adjustment Models (with David Berger and Eduardo M.R.A. Engel) SSRN (November 2018) ^[16]
• Reach for Yield and Fickle Capital Flows (with Alp Simsek) AEA Papers and Proceedings (2018): 493-498 ^[17]
• Fire Sales in a Model of Complexity (with Alp Simsek) The Journal of Finance 68.6 (December 2013): 2549-2587 ^[18]
• Collective Risk Management in a Flight to Quality Episode (with Arvind Krisnamurthy) Journal of Finance 63.5 (October 2008): 2195-2230 ^[19]
• “Zombie Lending and Depressed Restructuring in Japan,” American Economic Review, 2008, Vol. 98, No. 5, pp. 1943-1977 (with T. Hoshi and A. Kashyap) ^[20]
• “An Equilibrium Model of ‘Global Imbalances’ and Low Interest Rates,” American Economic Review, Vol. 98, No. 1, March 2008, pp. 358-393 ^[21] (with E. Farhi and P.O.Gourinchas)
• Explaining Investment Dynamics in U.S. Manufacturing: A Generalized(S,s) Approach (with Eduardo M. R. A. Engel) July 1999, Econometrica 67(4), 783-826. ^[22]
• “The Cleansing Effect of Recessions” American Economic Review, Vol. 84, No. 5, December 1994, pp. 1350-1368. (with M. Hammour) ^[23]
• “How High are the Giants' Shoulders: An Empirical Assessment of Knowledge Spillovers and Creative Destruction in a Model of Economic Growth,” in NBER Macroeconomics Annual 1993 ^[24] , Cambridge: The MIT Press, 15-86 (with A. Jaffe)
• “On the Sign of the Investment Uncertainty Relationship,” ^[25] American Economic Review, Vol. 81, No. 1, March 1991, pp. 279-288

References

1. Caballero, Ricardo J. (1988). The Stochastic Behavior of Consumption and Savings (PDF) (Ph.D.). MIT . Retrieved 17 October 2016.
2. Farhi, Emmanuel (2006). Three essays in macroeconomics (PDF) (Ph.D.). MIT . Retrieved 20 Jun 2017.
3. Caballero, Ricardo Jorge (1988), The Stochastic Behavior of Consumption and Savings. Ph.D. dissertation, Massachusetts Institute of Technology.
4. Caballero, R.; Engel, E. (1999). "Explaining investment dynamics in US manufacturing: a generalized (S,s) approach" (PDF). Econometrica . 67 (4): 783–826. doi:10.1111/1468-0262.00053. S2CID   158174490.
5. Caballero, R. & Hammour, M. (1998). "The macroeconomics of specificity" (PDF). Journal of Political Economy . 106 (4): 724–767. doi:10.1086/250028. S2CID   85507019.
6. Caballero, R. & Hammour, M. (1996). "On the timing and efficiency of creative destruction" (PDF). Quarterly Journal of Economics . 111 (3): 805–852. doi:10.2307/2946673. JSTOR   2946673. S2CID   17836698.
7. "The Banque de France and TSE have awarded prizes to six researchers for their work in monetary economics and finance". www.tse-fr.eu. 2024-06-21. Retrieved 2025-03-21.
8. "Awards | The Econometric Society". www.econometricsociety.org. Retrieved 2019-01-19.
9. Caballero, Ricardo J.; Simsek, Alp (2024). "Monetary Policy and Asset Price Overshooting: A Rationale for the Wall/Main Street Disconnect". The Journal of Finance. 79 (3): 1719–1753. doi:10.1111/jofi.13343. ISSN   1540-6261.
10. Caballero, Ricardo J.; Simsek, Alp (June 2023). "A Note on Temporary Supply Shocks with Aggregate Demand Inertia". American Economic Review: Insights. 5 (2): 241–258. doi:10.1257/aeri.20220109. ISSN   2640-205X.
11. Caballero, Ricardo J.; Simsek, Alp (July 2022). "Monetary Policy with Opinionated Markets". American Economic Review. 112 (7): 2353–2392. doi:10.1257/aer.20210271. ISSN   0002-8282.
12. Caballero, Ricardo J; Farhi, Emmanuel; Gourinchas, Pierre-Olivier (15 November 2021). "Global Imbalances and Policy Wars at the Zero Lower Bound". The Review of Economic Studies. 88 (6): 2570–2621. doi:10.1093/restud/rdab015. hdl: 1721.1/144450 .
13. "A Model of Endogenous Risk Intolerance and LSAPs: Asset Prices and Aggregate Demand in a "Covid-19" Shock".^{[ permanent dead link ‍]}
14. Simsek, Alp; Caballero, Ricardo J. (2020). "A Risk-centric Model of Demand Recessions and Speculation". The Quarterly Journal of Economics. 135 (3): 1493–1566. doi:10.1093/qje/qjaa008. hdl: 1721.1/144451 .
15. Caballero, Ricardo J.; Simsek, Alp (2020). "A Model of Fickle Capital Flows and Retrenchment". Journal of Political Economy. 128 (6): 2288–2328. doi:10.1086/705719. S2CID   219037926.
16. "Missing Aggregate Dynamics and VAR Approximations of Lumpy Adjustment Models". Archived from the original on 2020-07-15. Retrieved 2021-12-09.
17. Caballero, Ricardo J.; Simsek, Alp (2018), "Reach for Yield and Fickle Capital Flows" (PDF), AEA Papers and Proceedings, vol. 108, pp. 493–498, doi:10.1257/pandp.20181056, hdl: 1721.1/122789 , ISSN   2574-0776, archived from the original on November 30, 1998.
18. Fire Sales in a Model of Complexity (PDF), March 27, 2012, archived from the original on November 30, 1998.
19. Caballero, Ricardo J.; Krishnamurthy, Arvind (2008), "Collective Risk Management in a Flight to Quality Episode" (PDF), The Journal of Finance, vol. LXIII, no. 5, pp. 2195–2230, archived from the original on November 30, 1998.
20. "‪Zombie lending and depressed restructuring in Japan‬". scholar.google.com. Retrieved 2025-03-21.
21. "‪An equilibrium model of "global imbalances" and low interest rates‬". scholar.google.com. Retrieved 2025-03-21.
22. Caballero, Ricardo J.; Engel, Eduardo M. R. A. (1999), "Explaining investment dynamics in U.S. manufacturing: A generalized (S.s) approach", Econometrica, vol. 67, no. 4, pp. 783–826, archived from the original on January 25, 2020.
23. "‪The cleansing effect of recessions‬". scholar.google.com. Retrieved 2025-03-21.
24. Caballero, Ricardo J.; Jaffe, Adam B. (January 1993). "How High Are the Giants' Shoulders: An Empirical Assessment of Knowledge Spillovers and Creative Destruction in a Model of Economic Growth". NBER Macroeconomics Annual. 8: 15–74. doi:10.1086/654207. ISSN   0889-3365.
25. "‪On the sign of the investment-uncertainty relationship‬". scholar.google.com. Retrieved 2025-03-21.

External links

• Ricardo Caballero's homepage at MIT Archived 2012-02-06 at the Wayback Machine
• MIT Department of Economics website