Ricardo J. Caballero

Last updated
Ricardo J. Caballero
Born (1959-10-20) 20 October 1959 (age 64)
Santiago, Chile
Academic career
Institution Massachusetts Institute of Technology
Columbia University
Field Macroeconomics
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 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.

Contents

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

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. [7] 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 Readings

Related Research Articles

<span class="mw-page-title-main">James Tobin</span> American economist (1918–2002)

James Tobin was an American economist who served on the Council of Economic Advisers and consulted with the Board of Governors of the Federal Reserve System, and taught at Harvard and Yale Universities. He contributed to the development of key ideas in the Keynesian economics of his generation and advocated government intervention in particular to stabilize output and avoid recessions. His academic work included pioneering contributions to the study of investment, monetary and fiscal policy and financial markets. He also proposed an econometric model for censored dependent variables, the well-known tobit model.

A macroeconomic model is an analytical tool designed to describe the operation of the problems of economy of a country or a region. These models are usually designed to examine the comparative statics and dynamics of aggregate quantities such as the total amount of goods and services produced, total income earned, the level of employment of productive resources, and the level of prices.

<span class="mw-page-title-main">John B. Taylor</span> American economist (born 1946).

John Brian Taylor is the Mary and Robert Raymond Professor of Economics at Stanford University, and the George P. Shultz Senior Fellow in Economics at Stanford University's Hoover Institution.

Financial econometrics is the application of statistical methods to financial market data. Financial econometrics is a branch of financial economics, in the field of economics. Areas of study include capital markets, financial institutions, corporate finance and corporate governance. Topics often revolve around asset valuation of individual stocks, bonds, derivatives, currencies and other financial instruments.

<span class="mw-page-title-main">Lars Peter Hansen</span> American economist

Lars Peter Hansen is an American economist. He is the David Rockefeller Distinguished Service Professor in Economics, Statistics, and the Booth School of Business, at the University of Chicago and a 2013 recipient of the Nobel Memorial Prize in Economics.

<span class="mw-page-title-main">Olivier Blanchard</span> French economist and professor

Olivier Jean Blanchard is a French economist and professor who currently serves as the Robert M. Solow Professor Emeritus of Economics at the Massachusetts Institute of Technology, and as the C. Fred Bergsten Senior Fellow at the Peterson Institute for International Economics. He was the chief economist at the International Monetary Fund from September 1, 2008, to September 8, 2015. Blanchard was appointed to the position under the tenure of Dominique Strauss-Kahn; he was succeeded by Maurice Obstfeld. According to IDEAS/RePEc, he is one of the most cited economists in the world.

<span class="mw-page-title-main">William A. Barnett</span> American economist

William Arnold Barnett is an American economist, whose current work is in the fields of chaos, bifurcation, and nonlinear dynamics in socioeconomic contexts, econometric modeling of consumption and production, and the study of the aggregation problem and the challenges of measurement in economics.

The Frisch Medal is an award in economics given by the Econometric Society. It is awarded every two years for empirical or theoretical applied research published in Econometrica during the previous five years. The award was named in honor of Ragnar Frisch, first co-recipient of the Nobel prize in economics and editor of Econometrica from 1933 to 1954. In the opinion of Rich Jensen, Gilbert F. Schaefer Professor of Economics and chairperson of the Department of Economics of the University of Notre Dame, "The Frisch medal is not only one of the top three prizes in the field of economics, but also the most prestigious 'best article' award in the profession". Five Frisch medal winners have also won the Nobel Prize.

Complexity economics is the application of complexity science to the problems of economics. It relaxes several common assumptions in economics, including general equilibrium theory. While it does not reject the existence of an equilibrium, it sees such equilibria as "a special case of nonequilibrium", and as an emergent property resulting from complex interactions between economic agents. The complexity science approach has also been applied to computational economics.

<span class="mw-page-title-main">Nobuhiro Kiyotaki</span> Japanese economist

Nobuhiro Kiyotaki FBA is a Japanese economist and the Harold H. Helms '20 Professor of Economics and Banking at Princeton University. He is especially known for proposing several models that provide deeper microeconomic foundations for macroeconomics, some of which play a prominent role in New Keynesian macroeconomics.

The Bernacer Prize is awarded annually to European young economists who have made outstanding contributions in the fields of macroeconomics and finance. The prize is named after Germán Bernácer, an early Spanish macroeconomist.

Jacques H. Drèze was a Belgian economist noted for his contributions to economic theory, econometrics, and economic policy as well as for his leadership in the economics profession. Drèze was the first President of the European Economic Association in 1986 and was the President of the Econometric Society in 1970.

Monika Piazzesi received her PhD in economics at Stanford University. She was a recipient of the Deutsche Studienstiftung ERP (1997-2000). She has been the Joan Kenney Professor of Economics at Stanford University since 2010. She is also a senior fellow at the Stanford Institute for Economic Policy Research. In 2005, when she was an assistant professor at the University of Chicago Business School, she received the Germán Bernácer Prize. She subsequently won the Elaine Bennett Research Prize. Her research focuses on asset pricing and time series econometrics, especially related to bond markets and the term structure of interest rates. She has published papers related to housing issues, asset prices and quantities, bond markets, interest rate and GDP. In 2023, she was elected to the National Academy of Sciences.

Thomas Philippon is a French economist and professor of finance at the New York University Stern School of Business.

Robert Stephen Pindyck is an American economist, Bank of Tokyo-Mitsubishi Professor of Economics and Finance at Sloan School of Management at Massachusetts Institute of Technology. He is also a research associate with the National Bureau of Economic Research and a Fellow of the Econometric Society. He has also been a Visiting Professor at Tel-Aviv University, Harvard University, and Columbia University.

Roger Edward Alfred Farmer is a British/American economist. He is currently a professor at the University of Warwick and is a Distinguished Emeritus Professor and former Chair of the Economics department at the University of California, Los Angeles. He has also held positions at the University of Pennsylvania, the European University Institute and the University of Toronto. He is a Fellow of the Econometric Society, Research Associate of the National Bureau of Economic Research, and Research Fellow of the Centre for Economic Policy Research, and the former Research Director of the National Institute of Economic and Social Research (NIESR). In 2013, he was the Senior Houblon-Norman Fellow at the Bank of England. He is internationally recognized for his work on self-fulfilling prophecies. Farmer has published several scholarly articles in leading academic journals. He is also a co-founder of the Indeterminacy School in Macroeconomics. His body of work has advanced the view that beliefs are a new fundamental in economics that have the same methodological status as preferences, technology, and endowments. In his 1993 book, Macroeconomics of Self-fulfilling Prophecies, he argues that beliefs should be modeled with the introduction of a Belief Function, which explains how people form ideas about the future based on things they have seen in the past. In his 2010 book, Expectations, Employment and Prices, he suggests an alternative paradigm to New Keynesian economics which reintroduces a central idea from John Maynard Keynes' The General Theory of Employment, Interest and Money; that high involuntary unemployment can persist as a permanent equilibrium outcome. He provided an accessible introduction to these ideas in his 2010 book How the Economy Works, and more recently, in his 2016 book Prosperity for All, both of which were written for a general audience. The Farmer Monetary Model has different and high policy implications and relevance. Farmer's policy proposal to achieve full employment by controlling and stabilizing asset prices shows promise as a way to help prevent stock market crashes and deep recessions. His son is the economist Leland Edward Farmer, who joined the faculty at the University of Virginia in July 2017.

<span class="mw-page-title-main">Eduardo Engel</span>

Eduardo Engel is the former president and current board member of the think tank Espacio Público and professor at the Department of Economics of the University of Chile. From 2001 to 2012 he was Professor of Economics at the Yale University. He chaired the Presidential Advisory Council on Conflicts of Interest, Influence Peddling, and Corruption – also known as the Engel Commission – in 2015.

<span class="mw-page-title-main">Willi Semmler</span> German born American economist

Willi Semmler is a German born American economist who currently teaches at The New School in New York.

Pierre-Olivier Gourinchas is a French economist who currently works as S.K. and Angela Chan Professor of Management at the University of California, Berkeley, where he also directs the Clausen Center for International Business and Policy and is affiliated with the Haas School of Business. His research focuses on macroeconomics, in particular international macroeconomics and international finance. In 2008, Gourinchas received the Prize of the Best Young Economist of France.

References

  1. 1 2 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. "Awards | The Econometric Society". www.econometricsociety.org. Retrieved 2019-01-19.
  8. 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.
  9. "A Model of Endogenous Risk Intolerance and LSAPs: Asset Prices and Aggregate Demand in a "Covid-19" Shock".
  10. 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 .
  11. 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.
  12. "Missing Aggregate Dynamics and VAR Approximations of Lumpy Adjustment Models".
  13. http://economics.mit.edu/files/15083 [ bare URL PDF ]
  14. http://economics.mit.edu/files/8177 [ bare URL PDF ]
  15. http://economics.mit.edu/files/3679 [ bare URL PDF ]
  16. http://economics.mit.edu/files/12624 [ bare URL PDF ]