Ricardo Jorge Caballero (born 20 October 1959) is a

Chile Chile, officially the Republic of Chile, is a country in western South America. It is the southernmost country in the world and the closest to Antarctica, stretching along a narrow strip of land between the Andes, Andes Mountains and the Paci ...

macroeconomist Macroeconomics is a branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies. Macroeconomists study topics such as output/GDP ( ...

who is the Ford International Professor of Economics at the

Massachusetts Institute of Technology The Massachusetts Institute of Technology (MIT) is a Private university, private research university in Cambridge, Massachusetts, United States. Established in 1861, MIT has played a significant role in the development of many areas of moder ...

. 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, and he taught at

Columbia University Columbia University in the City of New York, commonly referred to as Columbia University, is a Private university, private Ivy League research university in New York City. Established in 1754 as King's College on the grounds of Trinity Churc ...

before returning to the

MIT The Massachusetts Institute of Technology (MIT) is a private research university in Cambridge, Massachusetts, United States. Established in 1861, MIT has played a significant role in the development of many areas of modern technology and sc ...

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 In economic theory and econometrics, the term heterogeneity refers to differences across the units being studied. For example, a macroeconomic model in which consumers are assumed to differ from one another is said to have heterogeneous agents. U ...

, the

macroeconomic Macroeconomics is a branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies. Macroeconomists study topics such as output/ GDP ...

effects of irreversible investment in firm-specific assets, and Schumpeterian theories of technological progress through

creative destruction Creative destruction (German: ''schöpferische Zerstörung'') is a concept in economics that describes a process in which new innovations replace and make obsolete older innovations. The concept is usually identified with the economist Josep ...

Awards and fellowships

Caballero is the recipient of the 2022 Banque de France-Toulouse School of Economics Senior Prize in Monetary Economics and Finance. In 2002, Caballero was awarded the

Econometric Society The Econometric Society is an international society of academic economists interested in applying statistical tools in the practice of econometrics. It is an independent organization with no connections to societies of professional mathematicians o ...

Frisch Medal 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 Ra ...

with Eduardo Engel for their paper ''Explaining Investment Dynamics in U.S. Manufacturing: A Generalized (S, s) Approach''. 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 In the scientific discipline of economics, the Econometric Society is a learned society devoted to the advancement of economics by using mathematical and statistical methods. This article is a list of its (current and in memory) fellows. Fellows ...

and subsequently of the

American Academy of Arts and Sciences The American Academy of Arts and Sciences (The Academy) is one of the oldest learned societies in the United States. It was founded in 1780 during the American Revolution by John Adams, John Hancock, James Bowdoin, Andrew Oliver, and other ...

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) * “A Note on Temporary Supply Shocks with Aggregate Demand Inertia,” ''American Economic'' ''Review: Insights'',Vol. 5, No. 2, June 2023, pp. 241-258 (with Alp Simsek) * “Monetary Policy with Opinionated Markets,” ''American Economic Review'', Vol. 112, No. 7, July 2022, pp. 2353-2392 (with Alp Simsek) * 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 * 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) * A Risk-centric Model of Demand Recessions and Speculation (with Alp Simsek) ''Quarterly Journal of Economics'' 135.3 (August 2020) * A Model of Fickle Capital Flows and Retrenchment (with Alp Simsek) ''Journal of Political Economy'' 128.6 (April 2020) * Missing Aggregate Dynamics and VAR Approximations of Lumpy Adjustment Models (with David Berger and Eduardo M.R.A. Engel) SSRN (November 2018) * Reach for Yield and Fickle Capital Flows (with Alp Simsek) ''AEA Papers and Proceedings'' (2018): 493-498 * Fire Sales in a Model of Complexity (with Alp Simsek) ''The Journal of Finance'' 68.6 (December 2013): 2549-2587 * Collective Risk Management in a Flight to Quality Episode (with Arvind Krisnamurthy) ''Journal of Finance'' 63.5 (October 2008): 2195-2230 * “Zombie Lending and Depressed Restructuring in Japan,” ''American Economic Review'', 2008, Vol. 98, No. 5, pp. 1943-1977 (with T. Hoshi and A. Kashyap) * “An Equilibrium Model of ‘Global Imbalances’ and Low Interest Rates,” ''American Economic Review,'' Vol. 98, No. 1, March 2008, pp. 358-393(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. * “The Cleansing Effect of Recessions” ''American Economic Review,'' Vol. 84, No. 5, December 1994, pp. 1350-1368. (with M. Hammour) * “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, Cambridge: The MIT Press, 15-86 (with A. Jaffe) * “On the Sign of the Investment Uncertainty Relationship,” ''American Economic Review,'' Vol. 81, No. 1, March 1991, pp. 279-288

References

External links

Ricardo Caballero's homepage at MIT

MIT Department of Economics website
{{DEFAULTSORT:Caballero, Ricardo J. 1959 births Living people International finance economists MIT School of Humanities, Arts, and Social Sciences faculty Columbia University faculty Fellows of the Econometric Society Fellows of the American Academy of Arts and Sciences 21st-century Chilean economists 20th-century Chilean economists MIT School of Humanities, Arts, and Social Sciences alumni Pontifical Catholic University of Chile alumni