Albert Marcet

Institut d’Anàlisi Econòmica & Fundació Markets, Organizations and Votes in Economics

Social & Behavioural Sciences

* PhD in Economics U. of Minnesota, 1987 * Assistant professor, Carnegie Mellon University, 1986-1991 * Full Professor, Universitat Pompeu Fabra, 1990-2004 * Research Professor, IAE-CSIC, 2004-2009 * Full Professor, London School of Economics, 2009-2011

Research interests

RECURSIVE CONTRACTS In social sci. it is common to find models of dynamic stochastic optimization with forward-looking constraints, e.g., in models of optimal policy or optimal contracts. These models are not amenable to a standard Bellman equation treatment. We propose a new way of formulating recursively these dynamic optimization problems. Our approach has a very wide range of applications. ASSET PRICES AND LEARNING Asset prices show huge fluctuations over time that are hard to reconcile with actual fundamentals. We explore those agents that behave rationally and have an empirically plausible model of asset prices. We explain stock and housing price fluctuations. DEBT MANAGEMENT The European debt crisis highlights the importance of choosing appropriately the bond portfolio issued by governments (debt management). Fiscal sustainability may depend on what bonds mature and when. We analyze the optimal combination of bond maturities that should be issued over the business cycle.

Selected publications

– Adam K, Marcet A & Beutel J 2017, ‘Stock Price Booms and Expected Capital Gains‘, American Economic Review, 107, 8, 2352 – 2408.

Selected research activities

Invited talks

‘Stock Price Booms and Expected Capital Gains’

  • Emory University, 2 March, 2017.
  • Federal Reserve Bank of Minneapolis, 25 April, 2017.
  • Cambridge University, 30 May, 2017

‘Government Debt Management, the Long and the Short of it’

  • Federal Reserve Bank of Atlanta, 28 Feb, 2017.
  • University of Chicago, 21 April, 2017.
  • 8-th Macroeconomics Workshop, Shanghai University of Finance and Economics, Keynote Speaker, 17-19 June, 2017

‘Optimal Policy with General Signal Extraction”

  • University College of London, 25 october, 2017.


Conferences organised

  • Workshop on Health Economics: New Technologies, Adoption and Hospital Management, 28 Nov, MOVE Foundation, Barcelona.
  • XII REDg Workshop in Quantitative Economics, MOVE Foundation, 22-23 Set., Barcelona.
  • Macro Winter Workshop in Bellaterra, 17 March, IAE-CSIC.