About the Carnegie-Rochester-NYU Conference on Public Policy
The Carnegie-Rochester-NYU Conference on Public Policy (CRNYU) seeks to stimulate policy relevance and empirical research in economic science, to encourage interchange of scientific ideas among analysts with different approaches, and to generate greater understanding by academic economists of practitioners' environments.
Each conference is organized around a particular theme or topic with papers prepared by leading scholars with expertise in the area. Participants are united by their interest in the issues discussed and by their belief that analysis, evidence, and informed discussion have lasting effects on the public and its institutions. The conference receives financial support from the National Science Foundation and from its host institutions.
Conference History
The CRNYU was initiated in the early 1970s through the efforts of the Bradley Policy Research Center at the William E. Simon School of Business Administration at the University of Rochester and the Center for the Study of Public Policy at Carnegie Mellon University.
Under the leadership of the late Allan Meltzer (Carnegie Mellon University) and the late Karl Brunner (University of Rochester), the conference developed into a semi-annual event.
Subsequently, New York University's Stern School of Business joined Carnegie Mellon’s Tepper School of Business and the University of Rochester’s Simon School of Business as a host institution.
Today, the conference takes place annually in the spring of each year and rotates between each host institution.
Notable Publications
Robert Lucas’s seminal paper on the econometric evaluation of policy appeared in the first issue of the conference.
John Taylor’s paper in 1993 introduced the Taylor Rule and transformed discussion and analysis of monetary policy.
Past Conferences
May 2-3, 2025
The Tepper School of Business, Carnegie Mellon University
Pittsburgh, PA
Focused on how the rapid rise of artificial intelligence (AI) as a technology is likely to be felt in multiple aspects of society. The goal was to provide research to inform policy makers on where this technology may have effects on the economy.
Day 1 Conference Sessions (May 2, 2025)
Session I
- The Impact of AI on Global Knowledge Work
Authors: Enrique Ide (IESE), Eduard Talamas (IESE)
Discussant: Daniel Rock (Wharton)
- The Effects of AI on the Future of Work and Production
Authors: Boyan Jovanovic (NYU), Peter Rousseau (Vanderbilt)
Discussant: Hugo Hopenhayn (UCLA)
- AI vs. Data Feedback Loops and Their Impact on Market Power
Authors: Roxana Mihet (UNIL), Kumar Rishabh (UNIL), Orlando Gomes (ISCAL)
Discussant: Ben Zhang (USC)
Session II
- Automated Credit Limit Increases and Consumer Welfare
Authors: Vitaly Bord (Federal Reserve Board), Agnes Kovacs (Kings College London),
Patrick Moran (Federal Reserve Board)
Discussant: Joel Flynn (Yale)
Job Creation and Destruction by A.I. and Equilibrium Labor Market Dynamics
Authors: Ping Wang (Washington University in St. Louis and NBER), Russel Wong (FRB
Richmond)
Discussant: Carter Braxton (Wisconsin)
Day 2 Conference Sessions (May 3, 2025)
Session III
- Socially Responsible Firms and the Rollout of Transformative Artificial Intelligence
Authors: Nils Lehr (IMF), Pascual Restrepo (Yale)
Discussant: Philip Bond (Washington)
- The Rise of AI Pricing: Trends, Driving Forces, and Implications for Firm Performance
Authors: Jonathan Adams (Florida), Min Fang (Florida), Zheng Liu (FRB San Francisco),
Yajie Wang (Missouri)
Discussant: Qiaochu Wang (New York University)
- Artificial Intelligence and Cognitive Inequality
Authors: Indira Puri (NYU Stern), Laura Veldkamp (Columbia GSB)
Discussant: Karthik Sastry (Princeton)
April 26-27, 2024
Stern School of Business, New York University
New York, NY
Focused on analyzing the drivers and consequences of labor market dynamics from the perspective of workers and households.
Day 1 Conference Sessions (April 26, 2024)
Session I
Chair: Aysegul Sahin
- The Alpha Beta Gamma of the Labor Market
Authors: Victoria Gregory, FRB Saint Louis; Guido Menzio, New York University and NBER; David Wiczer, Stony Brook University
Discussant: Richard Rogerson, Princeton
- Occupational Reallocation Within and Across Firms: Implications for Labor-Market Polarization
Authors: Toshihiko Mukoyama, Georgetown University; Naoki Takayama, Hitotsubashi University; Satoshi Tanaka, University of Queensland
Discussant: Sergio Salgado, University of Pennsylvania
- Heterogeneous Job Ladders
Authors: Katarína Borovičková, FRB Richmond; Claudia Macaluso, FRB Richmond
Discussant: Gregor Jarosch, Duke
Session II
Chair: Mariacristina de Nardi
- Joint Search over the Life Cycle
Authors: Annika Bacher, BI Oslo; Philipp Grübener, Goethe University Frankfurt; Lukas Nord, FRB Minneapolis
Discussant: Alessandra Fogli, FRB Minneapolis
- How to Fund Unemployment Insurance with Informality and False Claims:
Evidence from Senegal
Authors: Abdoulaye Ndiaye, New York University; Kyle Herkenhoff, University of Minnesota; Abdoulaye Cissé, UC Berkeley
Discussant: Serdar Birinci, FRB St. Louis
Day 2 Conference Sessions (April 27, 2024)
Session III
Chair: Gianluca Violante
- Preventative vs. Curative Medicine: A Macroeconomic Analysis of Health Care over the Life Cycle
Authors: Serdar Ozkan, FRB St. Louis
Discussant: Svetlana Pashchenko, University of Georgia
- Shaping Inequality and Intergenerational Persistence of Poverty: Free College, Better Schools or Generous Transfers?
Authors: Dirk Krueger, University of Pennsylvania; Alexander Ludwig, Goethe University Frankfurt; Irina Popova, University of Bonn
Discussant: Veronica Guerrieri, University of Chicago
- Time-Averaging and Taxation
Authors: Hans A. Holter, University of Delaware; Lars Ljungqvist, New York University; Thomas J. Sargent, New York University; Serhiy Stepanchuk, University of Southampton
Discussant: Richard Blundell, University College London
November 11-12, 2022
Virtual
Papers presented at the 2022 Carnegie-Rochester-NYU conference explored the consequences of interconnectedness among firms, households, and countries for the resilience of economies and macroeconomic stabilization policies.
Day 1 Conference Sessions (November 11, 2022)
Session I
- Business Cycle Asymmetry and Input-Output Structure: The Role of Firm-to-Firm Networks
Authors: Jorge Miranda-Pinto (Central Bank of Chile), Alvaro Silva (University of Maryland), Eric R. Young (University of Virginia)
Discussant: Saki Bigio, UCLA
Session II
- Propagation of Shocks in An Input-Output Economy: Evidence From Disaggregated Prices
Authors: Shaowen Luo (Virginia Tech), Daniel Villar (Federal Reserve Board of Governors)
Discussant: Hassan Afrouzi, Columbia University
Session III
- Stress Relief?: Financial Structures and Resilience to the Covid Shock
Authors: Kristin Forbes (MIT Sloan, NBER, and CEPR), Christian Friedrich (Bank of Canada and CEPR), Dennis Reinhardt (Bank of England)
Discussant: Bernard Herskovic, UCLA
Session IV
Information Frictions and Real Rigidities in Production Networks
Authors: Thomas Pellet (Northwestern University), Alireza Tahbaz-Salehi (Northwestern University and CEPR)
Discussant: Luigi Iovino, Bocconi University
Day 2 Conference Sessions (November 12, 2022)
Session I
- Coordinated Firm-Level Work Processes and Macroeconomic Resilience
Authors: Moritz Kuhn (University of Bonn), Jinfeng Luo (University of Pennsylvania), Iourii Manovskii (University of Pennsylvania), Xincheng Qiu (University of Pennsylvania)
Discussant: Benjamin Pugsley, University of Notre Dame
Session II
- Trade and Diffusion of Embodied Technology: An Empirical Analysis
Authors: Stephen Ayerst (International Monetary Fund), Faisal Ibrahim (University of Toronto), Gaelan MacKenzie (Bank of Canada), Swapnika Rachapalli (UBC Sauder)
Discussant: Simone Lenzu, NYU Stern
November 12-13, 2021
Virtual
Papers presented at the 2021 Carnegie-Rochester-NYU conference explored how to remove impediments to economic mobility and ensuring fair access to economic opportunities is a central concern for citizens and policymakers. This conference features research papers that analyze the causes, consequences, and policy implications of barriers to mobility across the income and wealth distribution.
Day 1 Conference Sessions (November 12, 2021)
Session I
- What is the Source of the Intergenerational Correlation in Earnings?
Authors: George-Levi Gayle (Washington University), Limor Golan (Washington University), Mehmet A. Soytas (Ozgeyin University)
Discussant: Corina Boar (New York University)
Session II
- Intergenerational Mobility Begins Before Birth
Authors: Ananth Seshadri (University of Wisconsin), Anson Zhou (University of Wisconsin)
Discussant: Martha Bailey (UCLA)
Session III
- Students’ Heterogeneous Preferences and the Uneven Spatial Distribution of Colleges
Authors: Chao Fu (University of Wisconsin), Junjie Guo (University of Wisconsin), Adam J. Smith (University of Wisconsin), Alan Sorensen (University of Wisconsin)
Discussant: Adam Kapor (Princeton University)
Session IV
Homeownership Segregation
Authors: Nirupama Kulkarni (CAFRAL), Ulrike Malmendier (University of California-Berkeley)
Discussant: Raven Molloy (Board of Governors, Federal Reserve)
Day 2 Conference Sessions (November 13, 2021)
Session I
- Female Entrepreneurship and Financial Frictions
Authors: Marta Morazzoni (UPF), Andrea Sy (UPF)
Discussant: Pete Klenow (Stanford University)
Session II
- Technical Change and the Demand for Talent Power
Authors: Julieta Caunedo (Cornell University), Elisa Keller (University of Exeter)
Discussant: Sophie Osotimehin (University of Quebec at Montreal)
November 13-14, 2020
Virtual
Papers presented at the 2020 Carnegie-Rochester-NYU conference explored how globalization and technical advances are restructuring markets, contributing to increased concentration and the rise of superstar firms. This conference seeks proposals exploring the macroeconomic and policy implications of market power in the twenty-first century.
Day 1 Conference Sessions (November 13, 2020)
Session I
- Government Policies in a Granular Global Economy
Authors: Cecile Gaubert (Berkeley), Oleg Itskhoki (UCLA), and Maximilian Vogler (Princeton)
Discussant: Ezra Oberfield (Princeton)
Session II
- Concentration in International Markets: Evidence from US Imports
Authors: Alessandra Bonfiglioli (Queen Mary University of London & CEPR), Rosario Crinò (Università Cattolica del Sacro Cuore, CEPR & CESifo), and Gino Gancia (Queen Mary University of London & CEPR)
Discussant: Stephen Redding (Princeton)
Session III
- The Dynamic Effects of Antitrust Policy on Growth and Welfare
Authors: Laurent Cavenaile (University of Toronto), Murat Alp Celik (University of Toronto),
and Xu Tian (University of Toronto)
Discussant: Thomas Phillipon (NYU Stern)
Session IV
- Market Concentration, Firm Heterogeneity, and Search Complementarities
Authors: Jesús Fernández-Villaverde (University of Pennsylvania), Federico Mandelman (Federal Reserve Bank of Atlanta), Yang Yu (Shanghai University of Finance and Economics), and Francesco Zanetti (Uni- versity of Oxford)
Discussant: Michael Peters (Yale)
Day 2 Conference Sessions (November 14, 2020)
Session I
- Some Unpleasant Markup Arithmetic: Production Function Elasticities and their
Estimation from Production Data
Authors: Steve Bond (University of Oxford), Arshia Hashemi (University of Chicago),
Greg Kaplan (University of Chicago & NBER), and Piotr Zoch (University of Chicago)
Discussant: Jan De Loecker (KU Leuven, NBER, & CEPR)
Session II
- Monetary Policy, Customer Capital, and Market Power
Authors: Monica Morlacco (USC) and David Zeke (USC)
Discussant: François Gourio (Federal Reserve Bank of Chicago)
Session III
- Regulation and Security Design in Concentrated Markets
Authors: Ana Babus (Washington University in St. Louis & CEPR) and Kinda Hachem (University of Virginia & NBER)
Discussant: Marzena Rostek (University of Wisconsin)
Session IV
- Low Interest Rates, Deposit Market Power, and Bank Risk-Taking
Authors: Toni M. Whited (University of Michigan & NBER), Yufeng Wu (University of Illinois), and Kairong Xiao (Columbia University)
Discussant: Skander Van den Heuvel (Federal Reserve Board)
November 15-16, 2019
Pittsburgh, PA
Labor migration is a central concern for citizens, policymakers, and businesses in both origin and destination countries. CRNYU Fall 2019 explored the implications of migration policy for growth, inequality, and welfare.
Papers presented analyzed the consequences of emigration for economies in the midst of debt crises, the implications of the recent wave of Syrian refugees for Germany’s economy, the impact of work visa policy on authorized immigration into the U.S., and the role of rural to urban migration in driving Chinese growth. Other contributions examined foundational issues in the design and evaluation of migration policy.
Day 1 Conference Sessions (November 15, 2019)
Session I: Macroeconomic Impacts of Migration
Chair: Ali Shourideh
- Migration and Sovereign Default Risk
Authors: George Alessandria (University of Rochester), Yan Bai (University of Rochester), and Minjie Deng (University of Rochester)
Discussant: Pablo Guerron (Boston College)
- Should Germany Build a New Wall? Macroeconomic Lessons from the 2015-20(?) Refugee Wave
Authors: Christopher Busch (MOVE, Universitat Autònoma de Barcelona), Zainab Iftikhar (University of Frankfurt), Dirk Krueger (University of Pennsylvania), Alexander Ludwig (University of Frankfurt) and Irina Popova (University of Frankfurt)
Discussant: Tommaso Porzio (University of California San Diego)
Session II: Migration Policy Design: Theory and Evidence
Chair: Chris Sleet
- What is the Optimal Immigration Policy? Migration, Jobs, and Welfare
Authors: Joao Guerreiro (Northwestern University), Sergio Rebelo (Northwestern University) and Pedro Teles (Universidade Católica Portuguesa)
Discussant: Ali Shourideh (Carnegie Mellon University)
- The Effect of Increased Work Visas on Unauthorized Immigration
Authors: Brian K. Kovak (Carnegie Mellon University) and Rebecca Lessem (Carnegie Mellon University)
Discussant: Kelly Bishop (Arizona State University)
Day 2 Conference Sessions (November 16, 2019)
Session III: Internal Migration and Development
Chair: Laurence Ales
- The Effect of Migration Policy on Growth, Structural Change, and Regional Inequality in China
Authors: Tongtong Hao (University of Toronto), Ruiqi Sun (Tsinghua University), Trevor Tombe (University of Calgary) and Xiaodong Zhu (University of Toronto)
Discussant: Jessica Leight (American University)
- Migration Policy and Observational Returns to Rural-Urban Migration in the Developing World
Authors: David Lagakos (University of California San Diego), Samuel Marshall (Yale University), Ahmed Mushfiq Mobarak (Yale University), Corey Vernot (Yale University) and Michael E. Waugh (New York University)
Discussant: Todd Schoellman (Minneapolis Federal Reserve)
November 9-10, 2018
Pittsburgh, PA
Papers presented at the 2018 Carnegie-Rochester-NYU conference explored the implications of corporate tax reform for entrepreneurial activity and investment, the impact of state tax exemption reform on the location choices of top earners, and the disparate impact of federal tax hikes across states. The papers presented at the conference will be published in the July 2019 issue of the Journal of Monetary Economics.
Day 1 Conference Sessions (November 9, 2018)
Session I
Chair: Christopher Sleet
- Loss-Offset Provisions in the Corporate Tax Code and the Misallocation of Capital
Authors: Baris Kaymak and Immo Schott
Discussant: Venky Venkateswaran
- Heads I Win, Tails You Loose: Asymmetric Taxes, Risk Taking and Innovation
Authors: James Albertus, Brent Glover, Oliver Levine
Discussant: Eva Carceles
Session II
Chair: Ali Shourideh
- The Impact of the Tax Cut and Jobs Act on the Spatial Distribution of High Productivity Households
Authors: Daniele Coen-Pirani and Holger Sieg
Discussant: Rebecca Lessem
- State Level Implications of Federal Tax Policies
Authors: Chang Liu and Noah Williams
Discussant: Karel Mertens
Day 2 Conference Sessions (November 10, 2018)
Session III
Chair: Laurence Ales
- Reviving American Entrepreneurship? Tax Reform and Business Dynamism
Authors: Petr Sedlacek and Vincent Sterk
Discussant: Gian Luca Clementi
- Taxation and the Life-Cycle of Firms
Authors: Andres Erosa and Beatrix Gonzalez
Discussant: Sebastian Dyrda
November 10-11, 2017
Pittsburgh, PA
Day 1 Conference Sessions (November 10, 2017)
Session I
Chair: Sevin Yeltekin
- Computerizing Industries and Routinizing Jobs: Explaining Trends in Aggregate Productivity
Authors: Peter Sangmin Aum, Sang Yoon (Tim) Lee, Yongseok Shin
Discussant: Matthias Kehrig
- Short-Run Pain, Long-Run Gain? Recessions and Technological Transformation
Authors: Alexandr Kopytov, Nikolai Roussanov and Mathieu Taschereau-Dumouche
Discussant: Henry Siu
Session II
Chair: Christopher Sleet
- New Technologies and the Labor Market
Authors: Enghin Atalay, Phai Phongthiengtham, Sebastian Sotelo and Daniel Tannenbaum
Discussant: Brad Hershbein
Big and Bigger: Big Data in Finance and the Growth of Large Firms
Authors: Juliane Begenau, Maryam Farboodi and Laura Veldkamp
Discussant: Bryan Routledge
Day 2 Conference Sessions (November 11, 2017)
Session III
Chair: Burton Hollifield
- Why Has I.T. Grown? Structural Transformation and the Rise of Information Technology
Authors: Giovanni Gallipoli and Christos A. Makridis
Discussant: Benjamin Pugsley
- Should We Fear the Robot Revolution?
Authors: Andrew Berg, Ed Buffie, Felipe Zanna
Discussant: Doug Hanley
November 11-12, 2016
Pittsburgh, PA
Day 1 Conference Sessions (November 11, 2016)
Session I
Chair: Marvin Goodfriend
- The Global Rise of Corporate Saving
Authors: Peter Chen, Loukas Karabarbounis and Brent Neiman
Discussant: Andrea Eisfeldt
- Bank Liabilities Channel
Authors: Vincenzo Quadrini
Discussant: Egon Zakrajsek
Session II
Chair: Burton Hollifield
- Network Reactions to Banking Regulations
Authors: Selman Erol and Guillermo Ordonez
Discussant: Maryam Farboodi
- Liquidity Regulation, Extended Repo, and the Real Economy
Authors: Franklin Allen and Douglas Gale
Discussant: Douglas Diamond
Day 2 Conference Sessions (November 12, 2016)
Session III
Chair: Sevin Yeltekin
- Redemption Risk and Procyclical Cash Hoarding by Asset Managers
Authors: Stephen Morris, Ilhyock Shim and Hyun Song Shin
Discussant: Itay Goldstein
- Dealer Balance Sheets and Bond Liquidity Provision
Authors: Tobias Adrian, Nina Boyarchenko and Or Shachar
Discussant: Marco Di Maggio
November 13-14, 2015
Pittsburgh, PA
Day 1 Conference Sessions (November 13, 2015)
Session I
Chair: Marvin Goodfriend
- Income Inequality and Asset Prices under Redistributive Taxation
Authors: Lubos Pastor and Pietro Veronesi
Discussant: Philippe Mueller
- The Intended and Unintended Consequences of Financial-Market Regulations: A General Equilibrium Analysis
Authors: Adrian Buss, Bernard Dumas, Raman Uppal and Grigory Vilkov
Discussant: Johan Walden
Session II
Chair: Burton Hollifield
- Credit Market Frictions and Political Failure
Authors: Madhav Aney, Maitreesh Ghatak and Massimo Morelli
Discussant: Guillermo Ordonez
- Bailouts, Moral Hazard and Banks’ Home Bias for Sovereign Debt
Authors: Gaetano Gaballo and Ariel Zetlin-Jones
Discussant: Charlie Kahn
Day 2 Conference Sessions (November 14, 2015)
Session III
Chair: Mark Bils
- Lending on Hold: Regulatory Uncertainty and Bank Credit Standards
Authors: Stefan Gissler, Doriana Ruffino and Jeremy Oldfather
Discussant: Nancy Wallace
- Phasing Out the GSEs
Authors: Vadim Elenev, Tim Landvoigt and Stijn Van Nieuwerburgh
Discussant: Jack Favilukis
November 14-15, 2014
Pittsburgh, PA
Day 1 Conference Sessions (November 14, 2014)
Session I
Chair: Marvin Goodfriend
- When Does a Central Bank’s Balance Sheet Require Fiscal Support?
Authors: Marco Del Negro and Christopher Sims
Discussant: Ricardo Reis
- A Probability-Based Stress Test of Federal Reserve Assets and Income
Authors: Jens Christensen, Jose Lopez and Glenn Rudebusch
Discussant: David Archer
Session II
Chair: Bennett McCallum
- On the Stability of Money Demand
Authors: Juan Pablo Nicolini and Robert E. Lucas Jr.
Discussant: Peter Ireland
- Collateral Scarcity, Inflation, and the Policy Trap: A New Monetarist Perspective
Authors: David Andolfatto and Stephen Williamson
Discussant: Huberto Ennis
Day 2 Conference Sessions (November 15, 2014)
Session III
Chair: Thomas Cooley
- Speculative Runs on Interest Rate Pegs
Authors: Marco Bassetto and Christopher Phelan
Discussant: Tim Fuerst
- Monetary Policy, Bond Returns and Debt Dynamics
Authors: Antje Berndt and Sevin Yeltekin
Discussant: Carolin Pflueger
November 15-16, 2013
Pittsburgh, PA
Day 1 Conference Sessions (November 15, 2013)
Session I
Chair: Marvin Goodfriend
- On the Social Usefulness of Fractional Reserve Banking
Authors: V. V. Chari and Christopher Phelan
Discussant: Ed Nosal
- Regulatory Capture in Banking and Consequences for Financial Market Regulation: A First Look at the Evidence
Authors: David Lucca, Amit Seru and Francesco Trebbi
Discussant: Ed Kane
Session II
Chair: Thomas Cooley
- Testing Macro-prudential Stress Tests: The Risk of Regulatory Risk Weights
Authors: Viral Acharya, Robert Engle and Diane Pierret
Discussant: Deborah Lucas
- Predatory Trading and Credit Freeze
Authors: Jennifer La’O
Discussant: Richard Lowery
Day 2 Conference Sessions (November 16, 2013)
Session III
Chair: Bennett McCallum
- Liquidity Provision, Interest Rates and Unemployment
Authors: Guillaume Rocheteau and Antonio Rodriguez-Lopez
Discussant: Nicolas Petrosky-Nadeau
- Can Moral Hazard Be Avoided? The Banque de France and the Crisis of 1889
Authors: Pierre Cyrille Hautcoeur, Angelo Riva and Eugene N. White
Discussant: Stefano Ugolini
November 9-10, 2012
Pittsburgh, PA
Day 1 Conference Sessions (November 9, 2012)
Session I
Chair: Marvin Goodfriend
- Systemic Sovereign Credit Risk: Lessons from the US and Europe
Authors: Andrew Ang and Francis A. Longstaff
Discussant: Hui Chen
- Local Deficits and Aggregate Stabilization: Evidence from US States
Authors: Gerald Carlino and Robert P. Inman
Discussant: David E. Wildasin
Session II
Chair: Thomas Cooley
- The American Recovery and Reinvestment Act: Solely a Government Jobs Program?
Authors: Timothy G. Conley and Bill Dupor
Discussant: Henning Bohn
- The Impact of Unions on Municipal Elections and Fiscal Policies in US Cities
Authors: Holger Sieg and Yu Wang
Discussant: Laura Feiveson
Day 2 Conference Sessions (November 10, 2012)
Session III
Chair: Burton Hollifield
- Vertical Fiscal Imbalances and Fiscal Performance in Advanced Economies
Authors: Luc Eyraud and Lusine Lusinyan
Discussant: Daniele Coen Pirani
- Tax-Subsidized Underpricing: Issuers and Underwriters in the Market for Build America Bonds
Authors: Dario Cestau, Richard Green and Norman Schurhoff
Discussant: Erik R. Sirri
November 11-12, 2011
Pittsburgh, PA
Day 1 Conference Sessions (November 11, 2011)
Session I
Chair: Marvin Goodfriend
- The Market Price of Fiscal Uncertainty
Authors: Max Croce, Thien T. Nguyen and Lukas Schmid
Discussant: Tasos Karantounias
- Robust Ramsey Problems
Authors: Lars Hansen and Tom Sargent
Discussant: Sevin Yeltekin
Session II
Chair: Christopher Sleet
- Monetary Policy under Financial Uncertainty
Authors: Noah Williams
Discussant: Chris Sims
- Robustly Optimal Monetary Policy in a Microfounded Model
Authors: Klaus Adam and Mike Woodford
Discussant: Pierpaolo Benigno
Day 2 Conference Sessions (November 12, 2011)
Session III
Chair: Stan Zin
- Capital Flows in Times of Crisis: Flight to Quality or Flight from Uncertainty?
Authors: Anna Orlik
Discussant: Itamar Drechsler
- Robust Policymaking in the Face of Sudden Stops
Authors: Eric Young
Discussant: Cristina Arellano
November 12-13, 2010
Pittsburgh, PA
Day 1 Conference Sessions (November 12, 2010)
Session I
Chair: Marvin Goodfriend
- Mechanics of a Graceful Exit: Interest on Reserves and Segmentation in the Federal Funds Market
Authors: Morten L. Bech and Elizabeth Klee
Discussant: Craig Furfine
- A Model of Liquidity Hoarding and Term Premia in Interbank Markets
Authors: Viral Acharya and David Skeie
Discussant: Huberto Ennis
Session II
Chair: Christopher Sleet
- Complexity, Concentration and Contagion
Authors: Prasanna Gai, Andrew Haldane and Sujit Kapadia
Discussant: Andrew Lo
- Monetary Policy and Corporate Default
Authors: Harjoat Bhamra, Adlai Fisher, and Lars-Alexander Kuehn
Discussant: Joao Gomes
Day 2 Conference Sessions (November 13, 2010)
Session III
Chair: Mark Bils
- Did the Federal Reserve's MBS Purchase Program Lower Mortgage Rates?
Authors: Diana Hancock and Wayne Passmore
Discussant: Burton Hollifield
- Securitization Markets and Central Banking: An Evaluation of the Term Asset-Backed Securities Loan Facility (TALF)
Authors: Sean Campbell, Daniel Covitz, William Nelson, and Karen Pence
Discussant: Suresh Sundaresan
Current
Accounting Mini-Conference
The Carnegie Mellon Accounting Mini-Conference brings together experts to delve into topics such as carbon bookkeeping, accounting entropy, and asymmetric information.
Advances in Macro-Finance Conference
The Advances in Macro-Finance Conference, jointly sponsored by the Tepper School and the Laboratory for Aggregate Economics and Finance at the University of Santa Barbara, brings together scholars working at the intersection of Macroeconomics and Finance.
Carnegie-Rochester-NYU Conference
The Carnegie-Rochester Conference on Public Policy was created in the early '70s to stimulate research and collaboration. Held semi-annually, the conference focuses on a single theme for presentations and papers.
Technology, Sustainability, and Business Forum
A joint effort between the Tepper School of Business and the Wilton E. Scott Institute for Energy Innovation at Carnegie Mellon, this conference discusses the latest research and trends impacting sustainability topics.
Faculty Seminars
This database includes academic seminars which cover a wide range of disciplines, and are sponsored by several higher education institutions in Pittsburgh, including Carnegie Mellon University and the University of Pittsburgh.
Previous
Commodity and Energy Markets Association (CEMA) Annual Meeting
The CEMA Annual Meeting is a benchmark academic conference, gathering researchers and practitioners engaged in the study or application of economics, finance, mathematics, operations, and risk management in commodity and energy markets.
Finance Theory Group Meeting
The goal of the Finance Theory Group (FTG) is to foster and promote theoretical research in the areas of corporate finance, financial institutions, and financial markets. The FTG holds two regular meetings every year, where members and fellows meet to present and discuss their work. Members and fellows of the FTG are researchers from leading institutions, who work primarily on the theory of corporate finance, financial institutions, and financial markets.
Machine Learning Summer Workshop
Machine learning is impacting the business world and the business research community. The CMU Summer Workshop on Machine Learning was intended to introduce junior researchers to the cutting-edge machine learning methods and their applications in the marketing and information systems research, and open up common ground for future discussions among researchers who are using or wish to use machine learning methods in their research.
SFS Cavalcade North America
The Society for Financial Studies (SFS) Finance Cavalcade conference is a joint project of the Review of Financial Studies, the Review of Corporate Finance Studies, and the Review of Asset Pricing Studies. One of the premier academic finance conferences in North America, the SFS Cavalcade covers all areas of finance with a format of 55 minutes per paper with eight-to-eleven parallel sessions spanning three days.
INTERSECT@CMU Conference
Carnegie Mellon University hosted an annual INTERSECT@CMU Conference. Past conferences have covered healthcare, sustainability, and the pandemic's long-term global effects.
Tepper School faculty are among the world’s most admired thought leaders asking the intrepid questions that matter to today’s marketplace. Our faculty produce research that advances business practice in relevant ways — pioneering new knowledge that redefines the ways society, economies, industry, and organizations compete and thrive.
Support of our academic missions, faculty and research are represented by:
- Investments in endowed faculty positions to attract and retain talented intellectual leadership at the senior faculty level.
- Pledges to research professorships and fellowships that enable mid-career faculty to pursue novel ideas, approaches, or collaborations grounded in the innovative spirit of the Tepper School and university mission.
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In order to continue moving forward as an academic pacesetter, the Tepper School leadership team works closely with alumni, students, faculty, staff, and corporate partners on gifts and investments that transform both the academic experience as well as the practice of 21st-century management principles.
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Motivated by supply chain, finance, technology, and health care applications, the Quantum Technologies Group at the Tepper School aims to turn quantum computing as a service into industrial reality, help design practical quantum communication networks, and develop quantum-inspired hardware.
Quantum and quantum-inspired algorithms offer dramatically new possibilities to tackle practical problems previously considered intractable. Right now.
Sridhar R. Tayur, Ford Distinguished Research Chair and University Professor of Operations Management, leads the Quantum Technologies Group at the Tepper School.
Moonshot: Quantum Computing
A brief history of quantum physics and its application to quantum computing.
Quantum Computing and Integer Optimization: An Overview
An introductory lecture on the use of quantum computing in Non-Linear Integer Optimization.
Quantum Integer Programming
Introductory Quantum Integer Programming for the Operations Research/Operations Management community (Cornell, April 2020).
Five Starter Pieces: Quantum Information Science Via Semidefinite Program
A brief introduction to five fundamental problems in Quantum Information Science that are especially well-suited to be formulated as Semi-definite Programs. (INFORMS, November 2022).
Quantum Areas of Research
The research of the Quantum Technologies Group (QTG) at the Tepper School focuses on the creation of radically different types of algorithms to optimize complex large-scale industrial problems startlingly faster, with the ultimate desired outcome of commercialized algorithms that are easily accessible for practical application.
We are also exploring unconventional hardware, studying practical issues in quantum communications, and analyzing other quantum technologies (such as sensing) by framing fundamental problems in quantum information science as semidefinite programs.
QTG research takes place in five parallel areas:
- Solving practical problems using novel quantum and quantum-inspired algorithms.
- Developing robust and efficient processes of translating a mathematical algorithm into physical instructions executed by the hardware — known as compilers — for quantum computers.
- Understanding and enhancing quantum speedup: How and why speed is increased, and by how much.
- Quantum Communication: (a) How much classical information can be securely and reliably sent over a quantum channel in presence of inevitable buffering? (b) How to design high throughput quantum switches with high fidelity entanglement?
- Hardware: How well can Photonic Ising Machines (PIM) solve benchmark combinatorial problems such as Max-Cut and Number Partitioning Problem?
More on Quantum Computing
Solving Practical Problems
Our Quantum and Quantum-inspired (classical) algorithms are novel approaches to tackle complex models that arise in areas such as finance, supply chain management, and health care.
- For Business Executives: Make Your Business Quantum-Ready Today [pdf]
- For Research Scholars: Quantum annealing research at CMU: algorithms, hardware, applications
- For Practitioners and Researchers: A Systematic Mapping Study on Quantum and
Quantum-inspired Algorithms in Operations Research [pdf]
- For Students and Beginners: Five Starter Problems: Solving Quadratic Unconstrained Binary Optimization Models on Quantum Computers [pdf]
By creatively advancing methods from geometry of numbers, computational integer programming, and algebraic geometry, QTG research has:
- Solved instances of real-world finance problems in seconds that can take hours by classical best-in-class commercial solvers, by developing hybrid quantum-classical algorithms and testing them on the D-Wave and Toshiba's Simulated Bifurcation Machine (SBM).
- Developed the Graver-Augmented Multi-Seed algorithm (GAMA), a Quantum-inspired classical algorithm that is two (and three) orders of magnitude faster than commercial best-in-class solvers. GAMA has been applied to solve problems in supply chain management involving integrated production, inventory, and logistics. These work on standard computer hardware and do not require access to digital annealers or quantum hardware.
A Quantum-inspired algorithm (executed on Toshiba SBM) improved Sharpe Ratio by increasing return while reducing risk.
Twenty quantum solutions provided higher returns (profit and loss, blue dots) and Sharpe ratios (red dots) than solutions (normalized as red dashed line) in use.
Twenty quantum solutions provided lower average (blue dots) and lower maximum daily (red dots) risk exposure than solutions (dashed blue and red lines) in use.
Quantum-inspired Bi-level algorithm for Disaster Preparation
In the aftermath of a sudden catastrophe, First Responders (FRs) strive to reach and rescue immobile victims. Simultaneously, civilians use the same roads to evacuate, access medical facilities and shelters, or reunite with their relatives, via private vehicles. The goal is to reserve lanes that simultaneously allow access by FR to help needy victims while allowing those that can self-evacuate to do so efficiently without using these reserved lanes. Our quantum-inspired algorithm outperforms classical state of the art methods (such as Branch & Bound) on real-world instances.
- Research: A Quantum-Inspired Bi-level Optimization Algorithm for the First Responder Network Design Problem [pdf]
- MyAmpleLife Blog: Quantum GAGA
Discovery of Altered Cancer Pathways
Current research is testing hybrid quantum-classical and Graver-Augmented Multi-Seed algorithm in the area of cancer genomics, to identify altered driver pathways in Gliobalstoma Multiforme and Acute MyeLoid Leukemia, using data from The Cancer Genome Atlas.
- Research: Quantum and Quantum-inspired Methods for de novo Discovery of Altered Cancer Pathways
- MyAmpleLife Blog: Mathematics for Cancer Genomics: A Ridiculously Short Introduction
Cancer genomics application of quantum and quantum-inspired computing
Quantum Machine Learning for Image Classification
Early diagnosis of pneumonia is crucial to increase the chances of survival and reduce the recovery time of the patient. Chest X-ray images, the most widely used method in practice, are challenging to classify. Our aim is to develop a quantum machine learning tool that can accurately classify images as belonging to normal or infected individuals.
- Research: Pneumonia detection by binary classification: classical, quantum, and hybrid approaches for support vector machine (SVM)
- My AmpleLife Blog: 2021 Tayur Prize
Image on the left shows a normal chest X-ray, whereas the one on the right shows lungs with pneumonia opacity
Compiling on Quantum Computers
To solve practical problems on a real quantum computer, we must translate the real-world problem into something that can be understood by the physical hardware — a process known as compiling.
There are two dominant computational models for quantum computing:
- Circuit (Gate) models, with hardware from Google, IBM, and Rigetti.
- Adiabatic Quantum Computing (AQC) with hardware from D-Wave.
QTG has developed two novel algorithms for compiling quantum circuits.
QTG has also developed a systematic computational approach to prepare a polynomial optimization problem for AQC.
Current QTG research on compiling enhances methods for Gate/circuit chips to account directly for the noise, incorporating models into our algorithms directly and adapts computational methods from Mixed-Integer Linear Programming to create open-source compilers for AQC.
Compiling on a quantum computer: Embedding problem graph onto D-Wave (Pegasus).
Compiling on IBM quantum computer.
Understanding Quantum Speedup
Where does quantum speedup really come from? How can we enhance the speedup of quantum (and hybrid) algorithms? This is an exciting and deep area of research.
QTG research has helped provide algorithmic guidelines that enable further speedup in AQC.
- Research: Enhancing the Efficiency of Adiabatic Quantum Computations
- Research: Homological Description of the Quantum Adiabatic Evolution With a View Toward Quantum Computations
- MyAmpleLife Blog: The Next Quantum Revolution
Understanding quantum speedup through evolution of anticrossings and spectral gap.
Quantum Communication
Quantum queue-channels arise naturally in the context of buffering in quantum networks. We study the important practical case of symmetric Generalized Amplitude Damping, and extend our results to Unital qubit queue-channels: We show that the maximum classical capacity can be achieved without entanglement (in encoding and decoding)! We also study how to improve quantum switches using entanglement distillation optimally.
- Research: Unital Qubit Queue-channels: Classical Capacity and Product Decoding [.pdf]
- My Ample Life Blog: Buffering of Flying Qubits
- Research: Optimal Entanglement Distillation Policies for Quantum Switches [.pdf]
Maximum capacity in queue-channel due to inevitable buffering.
Hardware
Photonic Ising Machines (PIMs) offer alternatives to quantum annealing and simulated annealing. An NP-hard problem is cast as a quadratic unconstrained binary optimization (QUBO) where the final spin configuration in the Ising model is adiabatically arrived at as a solution to a Hamiltonian, given a known set of interactions between spins.
The temporal multiplexed Ising machine uses the bistable response of an electro-optic modulator to mimic the spin up and down states and solves the Max-Cut problem on par with Gurobi for up to 1000 spins.
The spatial photonic Ising machine easily partitions an array of 2^14 integers, vastly outperforming both Gurobi and the state-of-the-art D-Wave annealer.
- Research: Optimization With Photonic Wave-Based Annealers
- MyAmpleLife Blog: 2020 Tayur Prize
Results for a problem instance of size 16384 spins. The periodic sudden dips in the cost function are a signature of the adiabatic tuning of the coupling constants. As shown in the plot on the bottom right of the figure, the fidelity escapes a local minima fairly easily, allowing us to sample a large energy landscape. Further, we can see that the number of accepted flips is lower than the number of rejected flips. Insets on the colourmaps shown in the left show an expanded view of a section of 10 × 10 spins.
Tepper School Quantum Computing Group Collaborators
More than a century ago, Alfred Nobel — Swedish scientist, inventor and entrepreneur — bequeathed his fortune in service of a high-minded purpose. He directed the awarding of prizes to those individuals conferring the “greatest benefit on mankind” in a number of cultural and scientific fields. The Nobel Prizes are still considered the most prestigious honors given in their respective disciplines.
Four decades after Nobel’s last wishes were carried out, a gift from William Larimer Mellon allowed the Carnegie Institute of Technology to establish the Graduate School of Industrial Administration, since renamed the Tepper School of Business. The university’s vision was to create a leading research institution with a revolutionary interdisciplinary focus, integrating the social sciences and introducing an analytic, scientific approach. The pioneers from that era created a new standard for business management education and the Tepper School continues as a leader today.
The groundbreaking research of these great minds spans the study of bounded rationality, labor models, corporate finance and more. It has had influential impact on academic thought, corporate behavior and governmental policy.
Awarded prize in 2013
Lars Peter Hansen was born in Champaign, Illinois, in 1952. He completed undergraduate studies at Utah State University, earning a B.S. in mathematics and political science in 1974. He continued his studies at the University of Minnesota where he earned a Ph.D. in economics in 1978. He joined the faculty at Carnegie Mellon University’s Graduate School of Industrial Administration (Tepper School of Business) in 1978 and demonstrated his brilliance as a researcher, beginning work on new analytical methods that have become widely utilized throughout economics. He joined the faculty at the University of Chicago in 1981 and was the David Rockefeller Distinguished Service Professor of Economics at the time of his Nobel Prize recognition.
Hansen was awarded the 2013 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel along with two distinguished research colleagues, Eugene F. Fama, the Robert R. McCormick Distinguished Service Professor of Finance at the University of Chicago, and Robert J. Shiller, the Sterling Professor of Economics at Yale University, “for their empirical analysis of asset prices.”
During his first few years at CMU, Hansen published several path-breaking papers that had lasting influence in econometrics, macro-economics and finance. One of the most influential of these was titled “Generalized Instrumental Variables Estimation of Nonlinear Rational Expectations Models,” co-authored by former faculty member Kenneth J. Singleton. This research was celebrated in 2007 at CMU during a special conference on its 25th anniversary, titled “Advances in Theory-Based Estimation.” He also has been recognized for work with Ravi Jagannathan, Ph.D. ’83 that created the “Hansen–Jagannathan Bound,” an important theorem in financial economics.
Hansen says of Carnegie Mellon:
In a 2007 interview, conducted jointly with Singleton, Hansen expressed that coming to Carnegie Mellon University in 1978 was a “very good choice.” He credits individuals including Dennis Epple, who headed the school’s junior recruiting committee at the time, as being able to recognize the potential in his research, even though it was not very far along at the time.
Hansen described the environment at Carnegie Mellon as being dynamic, having an “incredible junior faculty” who were very interactive, eager to learn and to explore academic areas outside their own. He said, “I could go learn finance from people like Scott Richard and I could learn economic dynamics from people like Milton Harris and Rob Townsend and they were also willing to learn. So there was lots of interaction ... I gained a lot from that.”
Awarded prize in 2011
Thomas John Sargent (born July 19, 1943) is an American economist and the W.R. Berkley Professor of Economics and Business at New York University. Sargent is a renowned economist specializing in macroeconomics, monetary economics, and time series econometrics. As of 2024, he is ranked as the 38th most-cited economist globally, a testament to his significant contributions to the field. He earned his B.A. from the University of California, Berkeley in 1964, being the University Medalist as Most Distinguished Scholar in Class of 1964, and his Ph.D. from Harvard in 1968. During his postdoctoral work, he served as a Research Affiliate at the Tepper School of Business.
As of 2024, he ranks as the 38th most cited economist in the world. He was awarded the Nobel Memorial Prize in Economics in 2011.
Sargent wrote about his time at the Tepper School:
"I am humbled to be recognized by the Tepper School and be part of a storied legacy of other respected researchers who have won the Nobel Prize in Economics,” Sargent said. “The year I spent at Carnegie Tech (now Carnegie Mellon) changed my life in so many ways.”
Awarded prize in 2010
Dale Thomas Mortensen was born in Enterprise, Oregon, and spent much of his childhood in a small foresting town in the beautiful Hood River Valley. Inspired by both analytical problem-solving and social history, he attended Oregon’s Willamette University on a full scholarship, earning an undergraduate degree in economics. Mortensen went on to earn his Ph.D. from Carnegie Mellon University’s Graduate School of Industrial Administration in 1967. He joined the faculty of Northwestern University in 1965 and remained there until his death in 2014.
Mortensen was jointly awarded the Nobel Prize in Economic Sciences in 2010 with Christopher Pissarides of the London School of Economics and Peter Diamond of the Massachusetts Institute of Technology “for their analysis of markets with search frictions.”
Mortensen’s work involved the development of a revolutionary quantitative method for analyzing labor markets. He incorporated the concept of search friction, or the time and money required for workers and employers to “match,” as well as the uncertainty and time lapse involved in decision-making. His models demonstrated, for example, that unemployment exists concurrent with job vacancies, and that recessionary job destruction occurs quickly while job creation can be slow, meaning rising employment can lag economic recovery. Mortensen’s insight has proven applicable to numerous other markets, including housing, monetary theory and even marriage. Mortensen’s work, in combination with that of Pissarides and Diamond, is known today as the Diamond-Mortensen-Pissarides model — the dominant method with which economists analyze labor markets.
Mortensen wrote of Carnegie Mellon:
It was an innovative program that emphasized an analytic as well as interdisciplinary approach to the study of economics and management. ... Herbert Simon ... taught us how to think about social phenomena and how to represent those thoughts in a mathematical model. We were also introduced to the wonders ... of the digital computer and taught how to apply it to real computational problems that arose in management using the recently developed methods of linear, non-linear and dynamic programming. We were instructed in the new behavioral approach to the theory of organizations in general by Jim March and Herb Simon and the application of that theory to the analysis of the firm in particular by Richard Cyert and Jim March. ... Carnegie Tech was an amazing place at the time. New ideas of all kinds were in the air. They were not always consistent with each other, as in the case of the conflict between John Muth’s suggestion about how to model expectations as “rational” and Simon’s notion of “bounded rationality.” We students benefited from the lively debates among the faculty. ... In my last two years, I took courses from Robert Lucas and Oliver Williamson with fellow student Ed Prescott, all of whom are now Laureates. In retrospect, it was obviously a very special educational experience.
Awarded prize in 2009
Oliver Eaton Williamson was born in 1932 in Superior, Wisconsin. Interested in math and science, he enrolled in the engineering program at Ripon University, in a combined program with the Massachusetts Institute of Technology. After earning an undergraduate degree, he worked for three years before beginning doctoral studies at Stanford University’s Graduate School of Business. He soon discovered a fascination with economics. After learning of the unique interdisciplinary program in economics and organizational theory at the Carnegie Institute of Technology, he transferred to the Graduate School of Industrial Administration, earning his Ph.D. in 1963. He began as a faculty member at the University of California, Berkeley that fall. He subsequently held other appointments, returning to UC, Berkeley in 1988.
Williamson was jointly awarded the Nobel Prize in Economic Sciences in 2009 with Elinor Ostrom of Indiana University “for his analysis of economic governance, especially the boundaries of the firm.”
Williamson examined the firm, an entity that had previously been considered merely a “black box,” highlighting the real and complex way that companies operate. He developed “transactions cost economics” to study how variations in a company’s exchanges influence its ultimate organization. He demonstrated that, contrary to widely held belief, a very large corporation might be the most efficient structure, helping to inform the debate on “when should decision power be controlled inside an organization, and when should decisions be left to the market.” Williamson discovered that his work had broad application to transactions, organizations and both the private and public sectors. He has influenced the analysis of issues spanning antitrust policy to Eastern European investment.
Williamson writes of Carnegie Mellon:
On the advice of another new appointment to the business school, Charles Bonini, I came to learn about and became intrigued with the interdisciplinary program in economics and organization theory at Carnegie ... where I found my niche: the combination of economics and organization theory, as taught by the small but remarkable faculty of the Graduate School of Industrial Administration, to classes with a small but remarkable group of students. Seven Nobel Prizes in Economics have since been awarded to faculty and students at GSIA in its halcyon years. Jacques Drèze, who was a visitor, speaks for me and many others in his observation that “Never since have I experienced such intellectual excitement.”
Jointly awarded prize in 2004
Prescott and Kydland were jointly awarded the Nobel Prize in Economic Sciences “for their contributions to dynamic macroeconomics: the time consistency of economic policy and the driving forces behind business cycles.” The pair’s pioneering research changed macroeconomic thinking, specifically regarding economic policy and business cycles. They put forth the concept of “time-inconsistency,” in that governments will suffer credibility loss by a public that realizes later decisions may contradict earlier policy. For example, a government that does not enforce a drug patent in an effort to reduce its eventual monopoly price will experience a reduction in innovation. Their work on business cycles challenged the prevailing opinion that these cycles were driven by demand. They demonstrated that historical fluctuations in output and employment could be explained by changes in technology and learned that “business cycle fluctuations are the optimal response to real shocks. The cost of a bad shock cannot be avoided, and policies that attempt to do so will be counterproductive, particularly if they reduce production efficiency.”
Edward C. Prescott was born in Glen Falls, New York in 1940. He received his undergraduate degree in mathematics from Swarthmore College, then went on to earn his master’s degree in operations research from Case Western Reserve University. He received his Ph.D. in economics from Carnegie Mellon’s Graduate School of Industrial Administration in 1967. After teaching at the University of Pennsylvania, he returned to Carnegie Mellon as a faculty member until 1980, when he accepted a position at the University of Minnesota. He is currently a faculty member at Arizona State University.
Prescott writes of Carnegie Mellon:
I truly enjoyed my graduate school days at GSIA. I arrived there as a student the same year Robert E. Lucas Jr. ... arrived as a freshly minted assistant professor. I did not take many economics courses at GSIA, but the capital theory of Bob Lucas was important, as was the growth theory course that Mike Lovell and Mort Kamien taught. I took a number of courses outside of GSIA, and the one taught by Allen Newell, one of the fathers of artificial intelligence, was exciting. The reason I took Newell’s course was that I found what Herbert A. Simon ... said about artificial intelligence fascinating. Herb was a person who forced you to think and to take clean positions. With exceptional minds like these around, GSIA was an intellectually exciting place to be.
There was considerable interaction between the younger faculty and the graduate students. Bob Lucas, a junior faculty member, and I became lifelong friends.
Finn E. Kydland was born in the small farming town of Gjesdal, Norway, in 1943. He received his undergraduate degree from the Norwegian School of Economics (NHH) with the intention of becoming a business manager. He instead accepted a research assistant position offered by his economics professor and accompanied him to Carnegie Mellon’s Graduate School of Industrial Administration in 1969. While there, Kydland elected to pursue his doctorate in economics, which he earned in 1973. He taught at NHH until 1977, then took a faculty position at Carnegie Mellon, which he held until 2004. He is currently on the faculty of the University of California, Santa Barbara.
Kydland writes of Carnegie Mellon:
I still remember vividly when Sten Thore first took me to the Graduate School of Industrial Administration (GSIA) at Carnegie Mellon University. We entered the building through the back entrance and immediately, on the back steps, met two professors. ... One was Herb Simon. ... GSIA was (and is) unusual in at least two ways. One was the small class size, which promoted a cooperative environment among the students. Also, there was relatively little course work. Most of the material taught was foundational, with emphasis on tools to put the student right on the research frontier. ... In August 1971, I happened to run into a new professor.... He introduced himself to me as Ed Prescott and asked what I was working on. Evidently, he liked what I told him. ... [He] insisted on becoming the chairman of my committee. ... Thus started in earnest years of productive and much-appreciated interaction with Prescott.
Awarded prize in 1995
Robert Emerson Lucas, Jr. was born in Yakima, Washington, in 1937 and raised in nearby Seattle. With an interest in math and science, he planned to become an engineer. The University of Chicago, however, had offered him a scholarship and had no engineering school. He became a history major, eventually entering a doctoral program at the University of California. Upon discovering a fascination with economics, he returned to Chicago, where he earned his Ph.D. in 1964. Lucas began a faculty position in 1963 at Carnegie Mellon’s Graduate School of Industrial Administration. He returned to the University of Chicago in 1974, the position he holds today.
Lucas was awarded the Nobel Prize in Economic Sciences in 1995 “for having developed and applied the hypothesis of rational expectations, and thereby having transformed macroeconomic analysis and deepened our understanding of economic policy.”
Lucas revolutionized macroeconomic study with work that led to the Nobel prize-winning research of Finn Kydland and Edward Prescott. Lucas put forth the theory of “rational expectations,” in which a rational public develops expectations regarding fiscal and monetary policy. Results of policy will then depend on these expectations and whether the government acts in accordance with them. He also introduced what is known as the “Lucas Critique,” which states that macroeconomic models based on a certain set of expectations will be rendered useless regarding future predictive ability should those expectations change. For example, “anticipated changes in money growth have very different effects from unanticipated changes.”
Lucas writes of Carnegie Mellon:
In 1963 Richard Cyert, the new dean of the Graduate School of Industrial Administration ... offered me a faculty position. I had met Allan Meltzer and Leonard Rapping ... and I knew GSIA would be a stimulating and congenial place for me. GSIA’s leading intellectual figure was Herbert Simon. ... During my years there, Carnegie Mellon had a remarkable group of economists interested in dynamics and the formation of expectations. Foremost, of course, was John Muth. ... It would be hard to think of a better group of colleagues, given my interests in economic dynamics.
At Carnegie, I became involved in two collaborations, both of which bore immediate fruit and also influenced my thinking for years afterward. One of these was a project with Leonard Rapping. ... Edward Prescott had come to GSIA as a doctoral student in the same year I joined the faculty. ... During this brief period my whole point of view of economic dynamics took form ... in a way that has served me well ever since.
Awarded prize in 1990
Merton H. Miller was born in Boston, Massachusetts, in 1923. He earned an undergraduate degree in economics from Harvard University in 1944, then worked as a government economist until he enrolled in the doctoral program at Johns Hopkins University in 1949. He served on the faculty at Carnegie Mellon’s Graduate School of Industrial Administration from 1953 to 1961, moving on to the University of Chicago, where he remained.
Miller was jointly awarded the Nobel Prize in Economic Sciences with Harry M. Markowitz and William F. Sharpe “for their pioneering work in the theory of financial economics.” Miller’s groundbreaking work with Franco Modigliani resulted in the “Modigliani-Miller theorem.” This posited that in perfect, frictionless capital markets, firm value would depend solely on its investment policy, and would be independent of its financing (capital structure) and payout (dividend) policies.
Miller wrote of Carnegie Mellon:
I went to Carnegie Institute of Technology ... whose Graduate School of Industrial Administration was the first and most influential of the new wave of research-oriented U.S. business schools. Among my colleagues at Carnegie were Herbert Simon ... and Franco Modigliani. ... Modigliani and I published the first of our joint M&M papers on corporation finance in 1958 and we collaborated on several subsequent ones until well into the mid-1960s.
Awarded prize in 1985
Franco Modigliani was born in Rome, Italy, in 1918. He entered the University of Rome at 17 to study law and received his doctor juris in 1939. Fearing war, he immigrated to the U.S. that same year, arriving in New York just days before WWII began. He was granted a fellowship to the New School for Social Research, studying at night while selling books during the day. He began teaching in 1941 and completed his doctorate in 1944. After a number of appointments, he joined the faculty at Carnegie Mellon’s Graduate School of Industrial Administration in 1952. In 1962, he became a faculty member at the Massachusetts Institute of Technology, where he remained.
Modigliani was awarded the Nobel Prize in Economic Sciences “for his pioneering analyses of saving and of financial markets.” He developed the “life-cycle theory,” stating that individuals store wealth during their working years to consume during their old age. The theory helped to explain varied savings rates in differing populations. He also did groundbreaking work with Merton Miller, developing the “Modigliani-Miller theorem.” This posited that in perfect, frictionless capital markets, firm value would depend solely on its investment policy and would be independent of its financing (capital structure) and payout (dividend) policies.
Modigliani wrote of Carnegie Mellon:
My association with Carnegie, which lasted [from 1952] until 1960, was a very productive one. In addition to completing the two basic papers setting the foundations for the “Life Cycle Hypothesis,” I collaborated on a book dealing with the problem of optimal production smoothing and wrote the two essays with Miller on the effect of financial structure and dividend policy on the market value of a firm. I also published a paper with E. Grunberg on the predictability of social events when the agent reacts to prediction, which later was to provide one of the pillars for the “theory of rational expectations.” All of these contributions represented, to some extent, the coming to fruition of seeds started during my research on “Expectations and Business Fluctuations.”
Awarded prize in 1978
Herbert A. Simon was born in Milwaukee, Wisconsin, in 1916. As a child reading his uncle’s psychology and economics books, he became interested in the idea that human behavior could be scientifically examined. He enrolled at the University of Chicago with the goal of becoming a “mathematical social scientist,” earning his undergraduate degree and doctorate in political science in 1936 and 1943, respectively. Following work at the University of California, Berkeley and the Illinois Institute of Technology, he came to Carnegie Mellon University in 1949 to help establish the Graduate School of Industrial Administration. He remained at Carnegie Mellon until his death in 2001.
Along with the Nobel Prize, Simon won many other awards for his work, including the A.M. Turing Award and the National Medal of Science. While his research spanned computer science, psychology, business administration and economics, his primary interest was in human decision-making. He is regarded as a founder of the field of artificial intelligence.
Simon was awarded the Nobel Prize in Economic Sciences “for his pioneering research into the decision-making process within economic organizations.” He questioned the prevailing view of rational decision-making and simple profit maximization, arguing that because gathering information is costly and difficult, decision-makers and firms ‘satisfice,’ or accept the best that they think is possible.
Simon wrote of Carnegie Mellon:
In 1949, Carnegie Institute of Technology received an endowment to establish a Graduate School of Industrial Administration. I left Chicago for Pittsburgh to participate with G.L. Bach, William W. Cooper and others in developing the new school. Our goal was to place business education on a foundation of fundamental studies in economics and behavioral science. We were fortunate to pick a time for launching this venture when the new management science techniques were just appearing on the horizon, together with the electronic computer. As one part of the effort, I engaged with Charles Holt, and later with Franco Modigliani and John Muth. ... Meanwhile, however, the descriptive study of organizational decision-making continued as my main occupation, in this case in collaboration with Harold Guetzkow, James March, Richard Cyert and others. ... About 1954, [Allen Newell] and I conceived the idea that the right way to study problem-solving was to simulate it with computer programs. Gradually, computer simulation of human cognition became my central research interest.
Artificial Intelligence and Business Initiative
Shaping What’s Next in Business AI
The Tepper School of Business is building on a tradition of innovation by redefining how artificial intelligence (AI), analytics, and human ingenuity shape the future of business.
Curriculum That Leads in the Age of AI
AI is intrinsically embedded into the curriculum of our academic programs, from our rigorous business and economics majors to STEM-designated master’s degrees to executive education programs in AI, Analytics, & Technology. Every Tepper School student learns to leverage AI technology and data analysis to enhance human creativity and innovation.
Center for Intelligent Business (CIB)
Led by Professor Tim Derdenger, the CIB provides thought leadership and research to help organizations unlock practical and scalable innovations where AI, analytics, and human expertise meet.
The CIB equips leaders with tools to make ethical and transformative decisions in data-rich environments through collaborative education, industry research, and data-centric strategy. Research initiatives include generative AI, collaborative AI, distributed ledgers, and other emerging business technologies.
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Principles, Potential and Pitfalls of Generative AI
Karan Singh, Assistant Professor of Operations Research
GenAI: Implications on Business and the Workforce
R. Ravi Andris A. Zoltners Professor of Business, Professor of Operations Research and Computer Science and Director of Analytics Strategy; Laurence Ales, Professor of Economics
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Aaron Tainter
Adjunct Professor of Entrepreneurship
Abbe Depretis
Associate Teaching Professor of Business Communication
Alan Montgomery
Professor of Marketing; Director, PNC PNC Center for Financial Services Innovation
Alan Scheller-Wolf
Head, Ph.D. Program; Richard M. Cyert Professor of Operations Management
Alex Grelli
Adjunct Professor of Law and Entrepreneurship
Ali Shourideh
Associate Professor of Economics
Andre M. Sztutman
Assistant Professor of Economics
Andrew A. Li
Assistant Professor of Operations Research
Anh Nguyen
Associate Professor of Economics
Aniko Oery
Associate Professor of Economics
Anita Williams Woolley
Professor of Organizational Behavior and Theory
Ariel Zetlin-Jones
Associate Professor of Economics
Arun Venkatadr
Adjunct Professor of Management
Austin Sudbury
Associate Teaching Professor of Accounting
Beibei Li
Anna Loomis McCandless Chair and Professor of IT and Management, Heinz College
Ben Moseley
Associate Professor of Operations Research
Benjamin Collier
Assistant Teaching Professor of Business Analytics
Beth Walter
Associate Teaching Professor of Business Communication
Brandy L. Aven
Associate Professor of Organizational Theory, Strategy, and Entrepreneurship
Brent Glover
Associate Professor of Finance
Bryan Routledge
Associate Professor of Finance
Burton Hollifield
PNC Professor of Finance; Professor of Financial Economics
Carla Bevins
Associate Teaching Professor of Business Communication
Catherine Shea
Assistant Professor of Organizational Behavior and Theory
Chester Spatt
Pamela R. and Kenneth B. Dunn Professor of Finance
Chris Telmer
Associate Professor of Financial Economics
Christina Fong
Research Scientist, Department of Social and Decision Sciences, Dietrich College
Christopher Peace
Assistant Teaching Professor of Business Communication
Clara Burke
Associate Teaching Professor of Business Management Communication
Cody James Januszko
Adjunct Professor of Business Management Communication
Craig Markovitz
Distinguished Service Professor of Entrepreneurship
D. Carrington Motley
Assistant Professor of Organization Theory and Entrepreneurship
David Charles Goyette
Associate Teaching Professor of Acting and Business Communication
David L. Lamont
Associate Teaching Professor; Director, Management Games
David Major
Associate Dean, Engagement and International Partnerships; Teaching Professor of Strategy
David S. Mawhinney
Founding Executive Director, Swartz Center for Entrepreneurship; Executive Director, Donald H. Jones Center for Entrepreneurship; Teaching Professor of Entrepreneurship
Deepak Agrawal
Visiting Assistant Professor of Operations Management
Denise Rousseau
H. J. Heinz II University Professor of Organizational Behavior and Public Policy, Heinz College and Joint Appointment at Tepper School of Business
Dennis Epple
Thomas Lord University Professor of Economics
Derek Leben
Associate Teaching Professor of Business Ethics
Diane Rulke
Distinguished Service Professor of Organizational Behavior and Theory
Duane Seppi
Senior Associate Dean, Faculty; Richard C. Green Professor of Financial Economics
Emily DeJeu
Assistant Teaching Professor of Business Communication
Emily Diana
Assistant Professor of Operations Research
Erina Ytsma
Assistant Professor of Accounting
Evelyn Xiaoyue Gong
Assistant Professor of Operations Management
Fatma Kılınç-Karzan
Professor of Operations Research
Frank Demmler
Adjunct Professor of Entrepreneurship
Ganesh Mani
Adjunct Professor
Gaoqing Zhang
Heinz Professor of Accounting
Gerard Beenen
Adjunct Professor of Organizational Behavior and Theory
Guillermo Caliendo
Assistant Teaching Professor of Business Communications
Isaac Rudich
Adjunct Professor of Operations Management
James Best
Assistant Professor of Economics
James F. Albertus
Assistant Professor of Finance
Javier Peña
Bajaj Family Chair in Operations Research
Jay Hornack
Adjunct Professor of Law
Jean Oh
Assistant Professor of Organizational Theory and Entrepreneurship
Jeffrey Brashear
Distinguished Service Professor of AI and Management, Executive Director of the Center for Intelligent Business
Jeffrey Galak
Associate Professor Of Marketing
Jim Foster
Adjunct Professor of Finance
Jim Jen
Distinguished Service Professor of Entrepreneurship
JJ Xu
Adjunct Instructor of Entrepreneurship
Joe Beaman
Adjunct Professor of Management
John Gasper
Associate Dean, Undergraduate Programs; Associate Teaching Professor of Economics
John R. O'Brien
Associate Professor of Accounting and Experimental Economics, Emeritus
Juan Rivera Lebron
Distinguished Service Professor of Business Communication and Acting
Kannan Srinivasan
H.J. Heinz II Professor of Management, Marketing and Business Technologies
Karan Singh
Assistant Professor of Operations Research
Karen Clay
Teresa and H. John Heinz III Professor of Economics and Public Policy
Kate Barraclough
Vice Provost for Education; Teaching Professor of Finance
Lars-Alexander Kuehn
Professor of Finance
Laurence Ales
Senior Associate Dean, Education; Professor of Economics
Laurie Barkman
Adjunct Professor of Entrepreneurship
Laurie Weingart
Richard M. and Margaret S. Cyert Professor of Organizational Behavior and Theory
Leonard Caric
Adjunct Professor of Entrepreneurship
Linda Argote
Thomas Lord Professor of Organizational Behavior and Theory; Director, Center of Organizational Learning, Innovation and Knowledge
Linda Du
Assistant Professor of Finance
Liyan Shi
Assistant Professor of Economics
Lowell Taylor
H. John Heinz III University Professor Of Economics
Margarita Portnykh
Assistant Teaching Professor of Business Analytics and Economics
Maria Tomprou
Assistant Teaching Professor of Organizational Behavior and Theory
Martin Gaynor
E.J. Barone Professor of Economics and Health Policy, Heinz College, and by Courtesy, Tepper School of Business
Martin Michelini
Post-Doctoral Fellow, Economics, Econometrics and Data Science
Marvin Sirbu
Professor of Engineering and Public Policy; Electrical and Computer Engineering and Joint Appointment at Tepper School of Business
Mary Butler-Everson
Adjunct Professor of Technology Strategy and Product Management
Maryam Saeedi
Associate Professor of Economics
Matthew Denes
Assistant Professor of Finance
Max Friedman
Adjunct Professor of Product Management
Max Risch
Assistant Professor of Accounting
Melissa Murphy
Distinguished Service Professor of Marketing
Meredith Meyer Grelli
Managing Director and Interim Exec Director, Swartz Center for Entrepreneurship; Assistant Dean of Entrepreneurship Initiatives, School of Computer Science; Director, Project Olympus; Associate Teaching Professor of Entrepreneurship
Michael Alleruzzo
Adjunct Professor of Business Management
Michael Trick
Harry B. and James H. Higgins Professor of Operations Research; Dean, Carnegie Mellon University Qatar
Michal Lehmann
Post-Doctoral Fellow, Organizational Behavior and Theory
Ming Ming Chapman
Distinguished Service Professor of Design
Minkyung Kim
Assistant Professor of Marketing
Mohsen Foroughifar
Assistant Professor of Business Technologies
Mustafa Akan
Associate Professor of Operations Management
Nicholas Muller
Lester and Judith Lave Professor of Economics, Engineering, and Public Policy
Nick Pretnar
Adjunct Professor of Economics
Nikhil Malik
Visiting Assistant Professor of Marketing and Business Technologies
Oliver Hahl
Associate Dean, Masters Programs; Associate Professor of Organization Theory, Strategy and Entrepreneurship
Param Vir Singh
Associate Dean, Research; Carnegie Bosch Professor of Business Technologies and Marketing
Patrick Blonien
Assistant Professor of Finance
Peter Boatwright
Allan D. Shocker Professor of Marketing and New Product Development; Director of the Integrated Innovation Institute
Peter Stuettgen
Associate Teaching Professor of Marketing
Pierre Liang
Professor of Accounting
R. Ravi
Andris A. Zoltners Professor of Business; Professor of Operations Research and Computer Science
Rachitesh Kumar
Assistant Professor of Operations Management
Rahul Telang
Professor of Information Systems, Heinz College, and by courtesy, Tepper School of Business
Rebecca Lessem
Associate Professor of Economics
Rima Bhattacharyay
Assistant Teaching Professor of Strategy
Robert Kelley
Distinguished Service Professor of Management
Robert Miller
Richard M. Cyert and Morris DeGroot Professor of Economics and Statistics; Professor of Economics and Strategy
Robert T. Monroe
Teaching Professor of Business Technologies
Ronald Placone
Associate Teaching Professor of Business Management Communication, Emeritus
Rosalind Chow
Associate Professor of Organizational Behavior and Theory
Rubab Jafry O'Connor
Distinguished Service Professor of Management
Sean Ammirati
Distinguished Service Professor of Entrepreneurship
Selman Erol
Associate Professor of Economics
Serra Boranbay-Akan
Associate Teaching Professor of Economics
Sham Kekre
Distinguished Service Professor of Operations Management
Shengxing Zhang
Associate Professor of Economics
Simon Mayer
Assistant Professor of Finance
Soo-Haeng Cho
IBM Professor of Operations Management and Strategy
Sridhar Tayur
Ford Distinguished Research Chair; University Professor of Operations Management
Stephen Spear
Professor of Economics
Sunder Kekre
Vasantrao Dempo Professor; Professor of Operations Management
Sunkee Lee
Associate Professor of Organizational Theory and Strategy
Tae Wan Kim
Associate Professor of Business Ethics
Taya Cohen
Professor of Organizational Behavior and Business Ethics
Tim Derdenger
Associate Professor of Marketing and Strategy
Tim Ederer
Assistant Professor of Economics
Tong (Joy) Lu
Assistant Professor of Marketing
Tridas Mukhopadhyay
Deloitte Consulting Professor of e-Business; Professor of Business Technologies
Willem-Jan Van Hoeve
Carnegie Bosch Professor of Operations Research
Yan Huang
Associate Professor of Business Technologies
Yucheng Liang
Assistant Professor of Accounting
Zeigham Khokher
Associate Teaching Professor of Finance
Zoey Jiang
Assistant Professor of Business Technologies