John Geanakoplos
John Geanakoplos is an American economist, and the current James Tobin Professor of Economics at Yale University.
Background and education
John Geanakoplos was born to a Greek-American family of scholars. His father was the late Professor Emeritus at Yale Deno Geanakoplos, a renowned Greek-American historian of Byzantine cultural and religious history, and his mother, Effie Geanakoplos, was an instructor in psychiatry at the Yale Child Study Center. In 1970 Geanakoplos won the United States Junior Open Chess Championship. He received his B.A. in mathematics from Yale University in 1975, and his M.A. in mathematics and his Ph.D. in economics under Kenneth Arrow and Jerry Green from Harvard University in 1980. In 1980 he became an assistant professor of economics at Yale University, rising to associate professor in 1983, full professor in 1986, and the James Tobin Professor of Economics in 1994.Professional career
In 1996-2005 Geanakoplos was director of the Cowles Foundation for Research in Economics. He was a co-founder in 2002, and is still currently co-director, of the Hellenic Studies Program at Yale. He was elected a fellow of the Econometric Society in 1990, and of the American Academy of Arts and Sciences in 1999. He was awarded theSamuelson Prize in 1999, and was awarded the first Bodossaki Prize in economics in
1994 for the best economist of Greek heritage under 40. In 1990-1991 and again in
1999-2000 he directed the economics program at the Santa Fe Institute, where he remains
an external professor and chairman of the science steering committee. In 2009-2010
he testified before Congress and before the Financial Crisis Inquiry Commission. He
spent terms as visiting professor at MSRI in the University of California, Berkeley, at
Churchill College, Cambridge, at the University of Pennsylvania, at Harvard, at Stanford, and at MIT. In 1990-1994 he was a managing director of fixed income research at Kidder, Peabody & Co. He was a founding partner in 1995 of Ellington Capital Management, and remains a partner.
Research
Geanakoplos' papers in the 1980s with Paul Klemperer and Jeremy Bulow developed the concept and invented the terminology of Strategic Complements that is now commonly used in game theory, industrial organization and elsewhere.Before the Late-2000s financial crisis, Geanakoplos was known primarily for his contributions to General equilibrium theory, particularly Incomplete markets in general equilibrium theory. Geanakoplos and Polemarchakis, for example, establishes key existence and welfare results in a general incomplete markets model.
Since the onset of the Late-2000s financial crisis, Geanakoplos' work on the relationship between leverage and asset prices, "The Leverage Cycle," has been prominent in both popular and academic discussions of financial market fluctuations and regulation.
In 2009, Geanakoplos co-authored a work on credit cards and inflation through the Cowles Foundation. His co-author was the mathematical economist and fellow Yale professor Pradeep Dubey.
Videos
Yale University published Geanakoplos' Financial Theory lecture in the Yale Open Courses series.Selected publications
The following are selected publications from 1998 to date.- “Uniqueness and Stability of Equilibrium in Economies with Two Goods,”, forthcoming, Journal of Economic Theory.
- “The Credit Surface and Monetary Policy”, in Progress and Confusion: The State of Macroeconmic Policy” International Monetary Fund and Massachusetts Institute of Technology. MIT Press, :143-153.
- “Financial Innovation, Collateral and Investment,” American Economic Journal: Macroeconomics, 8: 242-284
- “Leverage and Default in Binomial Economies: A Complete Characterization”, forthcoming Econometrica, 83: 2191-2229
- “Collateral Equilibrium: I: A Basic Framework”, Economic Theory, 56: 443-492
- “Endogenous Collateral Constraints and the Leverage Cycle”, Annual Review of Economics
- “Leverage, Default, and Forgiveness: Lessons of the American and European Crises,” Journal of Macroeconomics, 39: 313-333
- “Monitoring Leverage”, in Markus K. Brunnermeier and Arvind Krishnamurthy, eds., Risk Topography: Systemic Risk and Macro Modeling, NBER, 2014, pp. 175–182 CFDP 1838, CFP 1432
- “Afriat from MinMax,” Economic Theory, 54: 443–448.
- “Asymptotic Behavior of a Stochastic Discount Rate” , forthcoming, Sankhya: The Indian Journal of Statistics Advance online publication doi:10.1007/s13171-013-0037-9
- “Prizes vs. Wages with Envy and Pride,” Japanese Economic Review, 64: 98-121
- “Getting at Systemic Risk via an Agent-Based Model of the Housing Market”, American Economic Review: Papers & Proceedings, 102: 53–58
- “Leverage Causes Fat Tails and Clustered Volatility,” Quantitative Finance, 12:5: 695-707
- “Tranching, CDS, and Asset Prices: How Financial Innovation Can Cause Bubbles and Crashes”, American Economic Journal: Macroeconomics, 4: 190-225
- “Why Does Bad News Increase Volatility and Decrease Leverage” , Journal of Economic Theory, 147: 501-525
- “Incorporating Financial Features into Macroeconomics: Discussion,” in Macroeconomic Challenges: The Decade Ahead. Jackson Hole, Federal Reserve Bank of Kansas City Economic Policy Symposium, 2011
- “Markets and Contracts,” Journal of Mathematical Economics, 47: 279-288
- “Credit Cards and Inflation”, Games and Economic Behavior, 70: 325-353
- “Solving the Present Crisis and Managing the Leverage Cycle” Federal Reserve Bank of New York Economic Policy Review, August 2010, pp. 101–131
- “Reforming Social Security with Progressive Personal Accounts” In Jeffrey R. Brown, Jeffrey B. Liebman and David A. Wise, eds., Social Security Policy in a Changing Environment. University of Chicago Press, 2009, pp. 73–121
- “The Virtues and Vices of Equilibrium and the Future of Financial Economics” Complexity, 14: 11-38
- “Collateral Restrictions and Liquidity Under-Supply: A Simple Model”, Economic Theory, 35: 441-467
- “Leverage Cycles and the Anxious Economy”, American Economic Review, 98: 1211-1244
- “Overlapping Generations Model of General Equilibrium” In “The New Palgrave Dictionary of Economics“, Eds. Steven N. Durlauf and Lawrence E. Blume, Palgrave Macmillan, 2008
- “Pareto Improving Taxes”, forthcoming in Journal of Mathematical Economics, 44:7-8: 682-696
- “Determinacy with Nominal Assets and Outside Money”, Economic Theory, 27: 79-106.
- “The Inflationary Bias of Real Uncertainty and the Harmonic Fisher Equation”, Economic Theory, 28: 481–512.
- “Money and Production, and Liquidity Trap” International Journal of Economic Theory, 2: 295-317
- “Default and Punishment in General Equilibrium”, Econometrica, 73: 1-37.
- “Demography and the Long-run Predictability of the Stock Market”, Brookings Papers on Economic Activities, 1: 241–325.
- “Liquidity, Default, and Crashes: Endogenous Contracts in General Equilibrium,” Advances in Economics and Econometrics: Theory and Applications, Eighth World Conference, Volume II, Econometric Society Monographs, pp. 170–205.
- “Inside and Outside Fiat Money, Gains to Trade, and IS-LM”, Economic Theory, 21: 347–397.
- “Nash and Walras Equilibrium Via Brouwer,” Economic Theory, 21: 585–603.
- “Is Gold An Efficient Store of Value?”, Economic Theory, 21: 767–782.
- “From Nash to Walras via Shapley-Shubik”, Journal of Mathematical Economics, 39: 391–400.
- “Monetary Equilibrium with Missing Markets”, Journal of Mathematical Economics, 39: 585–618.
- “Savings and Portfolio Choice in a Two-Period, Two-Asset Economy”, American Economic Review, 92: 1185–91.
- “Competitive Pooling: Rothschild-Stiglitz Reconsidered”, The Quarterly Journal of Economics, 117: 1529–1570.
- “The Hierarchical Approach to Modeling Knowledge and Common Knowledge”, International Journal of Game Theory,, 28: 331–365.
- “Social Security Money’s Worth”. In O. Mitchell, R. Myers and H. Young, Prospects for Social Security Reform. Pension Research Council, The Wharton School, University of Pennsylvania Press, Philadelphia, 1999, pp. 79–151. Reprinted by the Pension Research Council, The Wharton School, University of Pennsylvania, 2000.
- “A Strategic Market Game with Active Bankruptcy”, Journal of Mathematical Economics, 34: 359–396.
- “A Note on the Economic Rationalization of Gun Control,”,, Economic Letters, 58: 51–53.