CFSP Hosts Unique Workshop on the Financial Underpinnings of Macro Models

October 22, 2010

In October 2010, CFSP hosted more than twenty leading economists from more than a dozen top universities for a unique workshop at MIT that examined the financial underpinning of macro models. The workshop was held to foster rare dialogue among microeconomists and their macroeconomist colleagues who use models to investigate financial systems and poverty.  

Facilitated by CFSP Faculty Director Robert M. Townsend, CFSP Member Francisco J. Buera, and Kenichi Ueda of the International Monetary Fund, eight presentations by macroeconomists were made over the two-day conference with each presentation explored further by assigned microeconomists. The presentations featured the following pairings:

  • Research on the Dynamics of Firms & Establishments in Mexico, India, and China by Chang-Tai Hsieh (University of Chicago) and discussant Christopher Woodruff  (UC-San Diego)
  • The Macroeconomics of Microfinance by Francisco J. Buera (UCLA) and discussant Christopher Udry (Yale University)
  • Financial Intermediation and Credit Policy in Business Cycle Analysis by Nobuhiro Kiyotaki (Princeton University) and discussant Guido Lorenzoni (MIT)
  • Financial Frictions, Investment and Institutions by Kenichi Ueda (IMF) and discussant Joseph Kaboski (Notre Dame)
  • A Quantitative Model of Banking Industry Dynamics by Dean Corbae (University of Texas at Austin) and discussant Juan Sanchez (Federal Resere Bank of St. Louis)
  • Quantifying the Impact of Financial Development on Economic Development by Jeremy Greenwood (University of Pennsylvania) and discussant Yongs Shin (Washington University – St. Louis)
  • Inferring Labor Income Risk from Economic Choices: An Indirect Inference Approach by Fatih Guvenen (University of Minnesota) and discussant Alisdair McKay (Boston University)
  • Moving Back Home: Insurance Against Labor Market Risk by Greg Kaplan(University of Pennsylvania) and discussant Tavneet Suri (MIT)

The workshop was the first in an ongoing series supported by the Consortium and designed to deliver on our mission of fostering productive dialogues and scholarly progress in topic areas related to the understanding of financial systems and poverty.


Read more:

Financial Underpinnings Vision Statement | List of Financial Underpinnings Workshop Participants | Savings and Financial Underpinnings of Macro Models Workshop Page