Ricardo Caballero

Professor of Economics, MIT

Ricardo J. Caballero is the Ford International Professor of Economics, a director of the World Economic Laboratory at the Massachusetts Institute of Technology, and an NBER Research Associate.  Caballero was the Chairman of MIT's Economics Department (2008-2011).  His teaching and research fields are macroeconomics and finance. His current research looks at the macroeconomic implications of reduced risk tolerance and safe asset shortages, global capital markets, speculative episodes and financial bubbles, and systemic crises prevention mechanisms. He has also written about aggregate consumption and investment, exchange rates, externalities, growth, price rigidity, dynamic aggregation, dynamic reallocation, networks, and complexity.

Caballero has an extensive list of publications in all major academic journals. Among his major awards, he was the winner of the 2002 Frisch Medal of the Econometric Society for “Explaining Investment Dynamics in U.S. Manufacturing: A Generalized (S,s) Approach”, Econometrica, 67(4), July 1999 (joint work with Eduardo Engel);  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), 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.


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