Robert Barro | |
|---|---|
| Born | (1944-09-28)September 28, 1944 (age 81) New York City, U.S. |
| Spouse | Rachel McCleary |
| Academic background | |
| Education | California Institute of Technology (BS) Harvard University (PhD) |
| Doctoral advisor | Zvi Griliches |
| Academic work | |
| Discipline | Macroeconomics |
| School or tradition | New classical macroeconomics |
| Institutions | Harvard University |
| Doctoral students | Zvi Hercowitz Xavier Sala-i-Martin Xavier Gabaix George-Marios Angeletos Emi Nakamura Michael Kremer |
| Notable ideas | Ricardian equivalence hypothesis Economic growth Time consistency |
| Website | |
Robert Joseph Barro (born September 28, 1944) is an Americanmacroeconomist and thePaul M. Warburg Professor of Economics atHarvard University.[1] Barro is considered one of the founders ofnew classical macroeconomics, along withRobert Lucas Jr. andThomas J. Sargent.[2] He is currently a senior fellow atStanford University'sHoover Institution and co-editor of the influentialQuarterly Journal of Economics.[3]
Barro graduated with a B.S. inphysics from theCalifornia Institute of Technology in 1965, where he was a student ofRichard Feynman, but he realized he "wouldn't be close to the top in those fields."[4] He then turned to economics and earned a Ph.D. fromHarvard University in 1970.[5] He first reached wide notice with a 1974 paper, "Are Government Bonds Net Wealth?" It argued that under certain assumptions, present governmental borrowing would be matched by increased bequests to future generations to pay future taxes expected to pay down the government bonds; thus a lowering of currenttaxes, financed by the issuance ofgovernment bonds, would have no effect on the public'sspending on consumer goods. The paper was in direct response toAlan Blinder andRobert Solow's results, which had implied that the long term implications of government borrowing would be compensated for by thewealth effect. The paper is among the most cited inmacroeconomics. Its implications of hisRicardian equivalence are still being debated.
Barro collaborated withHerschel Grossman to produce the influential 1971 article "A General Disequilibrium Model of Income and Employment",[6] which for many years held the distinction of being the most cited article published in theAmerican Economic Review.[7] The article explored the idea thatdisequilibrium in one market can have spillover effects to another market, creating a distinction between notional demand andeffective demand. Barro and Grossman expanded on their work and produced the classic textbookMoney, Employment, and Inflation in 1976.[8]
In 1976, he authored another influential paper, "Rational expectations and the role ofmonetary policy" in which he argued that information asymmetries would cause real effects as rational economic actors in response to uncertainty but not in response to expected monetary policy changes. In it and other essays, he investigated the real effects of monetary changes through which he could significantly contribute to the clarification of the exact circumstances of the validity of thepolicy-ineffectiveness proposition. While he has revisited the topic since then and critically appraised the paper, it was important in integrating the role of money into neoclassical economics and into the synthesis of general equilibrium and macroeconomic models.[9]
In 1983, he applied theinformation asymmetry argument to the role of central banks and concluded that central banks, to have credibility in inflation fighting, must be locked into inflation targets that they cannot violate to reduce unemployment. In the 1970s, economistArthur Okun developed the concept of theMisery Index, whichJimmy Carter publicized during his1976 presidential campaign, andRonald Reagan did the same in his1980 presidential campaign. Numerous sources incorrectly credit Barro with this because of the similarity of name with his own "Barro Misery Index." Barro's version first appeared in a 1999BusinessWeek article.[10]
His 1984Macroeconomics textbook remains a standard for explaining the subject, and his 1995 book, withColumbia University economistXavier Sala-i-Martin, onEconomic Growth, is a widely cited and read graduate-level textbook on the theory and evidence concerning long-run economic growth. Barro's research in the 1990s was focused mainly on the theoretical and empirical determinants of growth: he gave fundamental contributions to the theory of endogenous growth, with particular attention to the links between innovation and public investment on one side and growth on the other side. He was a pioneer in the econometric analysis of the main factors associated with growth in the modern era.[11]
Barro served as Vice President of theAmerican Economic Association in 1998, and served on its executive committee from 1987 to 1990.[5] He has been a research associate at the NBER since 1978.[5] He was elected aFellow of theEconometric Society in 1980, and was elected to theAmerican Academy of Arts and Sciences in 1988.[12][13]
Another often-cited work is a 1988 paper that he coauthored withGary Becker, "A Reformulation of the Economic Theory of Fertility" published in theQuarterly Journal of Economics, which is influential in thinking about "infinite time horizon" modelling.
Subsequently, Barro began investigating the influence of religion and popular culture on political economy by working with his wife,Rachel McCleary.
Barro believes that theKeynesian multiplier is less than one. He believes that for every dollar the government borrows and spends, spending elsewhere in the economy falls by almost the same amount.[14]
Barro's work has been central to many of the economic and public policy debates of the last 30 years, including business cycle theory, growth theory, theneoclassical synthesis and public policy. Barro received anhonorary doctorate fromUniversidad Francisco Marroquin.[15] TheResearch Papers in Economics (RePEc) project ranked him as the fifth most influential economist in the world, as of March 2016, based on his academic contributions.[16]
Finally, Barro has been an outspoken opponent of stimulus spending, calling Obama'sstimulus bill "garbage" and "the worst bill since the 1930s."[17][18][19]
Robert Barro is married toRachel McCleary. Together they have made critical contributions to the field of religion and economics. McCleary holds a doctorate from theUniversity of Chicago and teaches at Harvard. Barro has four children: Jennifer, Lisa, Jason, andJosh, who is a journalist.
