David Romer
Encyclopedia
David Romer is the Herman Royer Professor of Political Economy at the University of California, Berkeley
, the author of a standard textbook in graduate macroeconomics
as well as many influential economic papers, particularly in the area of New Keynesian economics
. He is also the husband and close collaborator of Council of Economic Advisers
former Chairwoman Christina Romer
.
from Princeton University
in 1980, graduating as the valedictorian
of his class, and worked as a Junior Staff Economist at the Council of Economic Advisers
during 1980-1981, before beginning his Ph.D.
at the Massachusetts Institute of Technology
, which he completed in 1985. His undergraduate thesis research was published in the Review of Economics and Statistics
. Upon completion of his doctorate, he started working as an assistant professor at Princeton University
. In 1988 he moved to University of California, Berkeley
and was promoted to full professor in 1993.
.
In more recent work, Romer has worked with Christina Romer on fiscal and monetary policy
from the 1950s to the present, using notes from the meetings of the Federal Open Market Committee
(FOMC) and the materials prepared by Fed staff to study how the Federal Reserve makes its decisions. His work suggests that some of the credit for the relatively stable economic growth in the 1950s should lie with good policy made by the Federal Reserve, and that the members of the FOMC could at times have made better decisions by relying more closely on forecasts made by the Fed professional staff.
Most recently, the Romers have focused on the impact of tax policy on government and general economic growth. This work looks at the historical record of US tax changes from 1945–2007, excluding "endogenous" tax changes made to fight recessions or offset the cost of new government spending. It finds that such "exogenous" tax increases, made for example to reduce inherited budget deficits, reduce economic growth (though by smaller amounts after 1980 than before). Romer and Romer also find "no support for the hypothesis that tax cuts restrain government spending; indeed ... tax cuts may increase spending. The results also indicate that the main effect of tax cuts on the government budget is to induce subsequent legislated tax increases."
He has also written papers on some unusual subjects for a macroeconomist, such as “Do Students Go to Class? Should They?”, and “Do Firms Maximize? Evidence from Professional Football.”
Executive Committee, the recipient of an Alfred P. Sloan
Foundation Research Fellowship, a fellow of the American Academy of Arts and Sciences
, and a three-time recipient of Berkeley's Graduate Economic Association's distinguished teaching and advising awards. Professor Romer is co-director of the Program in Monetary Economics at the National Bureau of Economic Research
, and is a member of the NBER Business Cycle Dating Committee.
He is the author of "Advanced Macroeconomics," a standard graduate macroeconomics text, and he is an editor of the Brookings Papers on Economic Activity
.
He is known at Berkeley for offering graduate students his "Chicken Soup for Economists," including such advice as "A model should be as simple as possible while still showing the effect we are interested in", "Cite others' work appropriately", "A good paper almost always contains a viewpoint, a lever, and hard work," and "If you find yourself thinking 'But that's how the game is played,' slap yourself. If that doesn't work, take up sheep farming."
, who was his classmate at MIT and is his colleague in the Economics Department at University of California, Berkeley
. They have adjoining offices in the department, and collaborate on much of their research. The couple have three children together.
He has a brother, Evan. Greg Mankiw served as best man at their wedding (Romer served as best man at Mankiw's wedding).
University of California, Berkeley
The University of California, Berkeley , is a teaching and research university established in 1868 and located in Berkeley, California, USA...
, the author of a standard textbook in graduate macroeconomics
Macroeconomics
Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of the whole economy. This includes a national, regional, or global economy...
as well as many influential economic papers, particularly in the area of New Keynesian economics
New Keynesian economics
New Keynesian economics is a school of contemporary macroeconomics that strives to provide microeconomic foundations for Keynesian economics. It developed partly as a response to criticisms of Keynesian macroeconomics by adherents of New Classical macroeconomics.Two main assumptions define the New...
. He is also the husband and close collaborator of Council of Economic Advisers
Council of Economic Advisers
The Council of Economic Advisers is an agency within the Executive Office of the President that advises the President of the United States on economic policy...
former Chairwoman Christina Romer
Christina Romer
Christina D. Romer is the Class of 1957 Garff B. Wilson Professor of Economics at the University of California, Berkeley and a former Chair of the Council of Economic Advisers in the Obama administration...
.
Education and early career
After graduating from Amherst Regional High School in Amherst, Massachusetts in 1976, he obtained his bachelor's degreeBachelor's degree
A bachelor's degree is usually an academic degree awarded for an undergraduate course or major that generally lasts for three or four years, but can range anywhere from two to six years depending on the region of the world...
from Princeton University
Princeton University
Princeton University is a private research university located in Princeton, New Jersey, United States. The school is one of the eight universities of the Ivy League, and is one of the nine Colonial Colleges founded before the American Revolution....
in 1980, graduating as the valedictorian
Valedictorian
Valedictorian is an academic title conferred upon the student who delivers the closing or farewell statement at a graduation ceremony. Usually, the valedictorian is the highest ranked student among those graduating from an educational institution...
of his class, and worked as a Junior Staff Economist at the Council of Economic Advisers
Council of Economic Advisers
The Council of Economic Advisers is an agency within the Executive Office of the President that advises the President of the United States on economic policy...
during 1980-1981, before beginning his Ph.D.
Ph.D.
A Ph.D. is a Doctor of Philosophy, an academic degree.Ph.D. may also refer to:* Ph.D. , a 1980s British group*Piled Higher and Deeper, a web comic strip*PhD: Phantasy Degree, a Korean comic series* PhD Docbook renderer, an XML renderer...
at the Massachusetts Institute of Technology
Massachusetts Institute of Technology
The Massachusetts Institute of Technology is a private research university located in Cambridge, Massachusetts. MIT has five schools and one college, containing a total of 32 academic departments, with a strong emphasis on scientific and technological education and research.Founded in 1861 in...
, which he completed in 1985. His undergraduate thesis research was published in the Review of Economics and Statistics
Review of Economics and Statistics
The Review of Economics and Statistics is a peer-reviewed scientific journal specializing in applied quantitative economics, now called econometrics. It was founded in 1917 and first published as The Review of Economic Statistics in 1919...
. Upon completion of his doctorate, he started working as an assistant professor at Princeton University
Princeton University
Princeton University is a private research university located in Princeton, New Jersey, United States. The school is one of the eight universities of the Ivy League, and is one of the nine Colonial Colleges founded before the American Revolution....
. In 1988 he moved to University of California, Berkeley
University of California, Berkeley
The University of California, Berkeley , is a teaching and research university established in 1868 and located in Berkeley, California, USA...
and was promoted to full professor in 1993.
Research
Romer's early research made him one of the leaders of the New Keynesian economicsNew Keynesian economics
New Keynesian economics is a school of contemporary macroeconomics that strives to provide microeconomic foundations for Keynesian economics. It developed partly as a response to criticisms of Keynesian macroeconomics by adherents of New Classical macroeconomics.Two main assumptions define the New...
.
In more recent work, Romer has worked with Christina Romer on fiscal and monetary policy
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment...
from the 1950s to the present, using notes from the meetings of the Federal Open Market Committee
Federal Open Market Committee
The Federal Open Market Committee , a committee within the Federal Reserve System, is charged under United States law with overseeing the nation's open market operations . It is the Federal Reserve committee that makes key decisions about interest rates and the growth of the United States money...
(FOMC) and the materials prepared by Fed staff to study how the Federal Reserve makes its decisions. His work suggests that some of the credit for the relatively stable economic growth in the 1950s should lie with good policy made by the Federal Reserve, and that the members of the FOMC could at times have made better decisions by relying more closely on forecasts made by the Fed professional staff.
Most recently, the Romers have focused on the impact of tax policy on government and general economic growth. This work looks at the historical record of US tax changes from 1945–2007, excluding "endogenous" tax changes made to fight recessions or offset the cost of new government spending. It finds that such "exogenous" tax increases, made for example to reduce inherited budget deficits, reduce economic growth (though by smaller amounts after 1980 than before). Romer and Romer also find "no support for the hypothesis that tax cuts restrain government spending; indeed ... tax cuts may increase spending. The results also indicate that the main effect of tax cuts on the government budget is to induce subsequent legislated tax increases."
He has also written papers on some unusual subjects for a macroeconomist, such as “Do Students Go to Class? Should They?”, and “Do Firms Maximize? Evidence from Professional Football.”
Career
He is a member of the American Economic AssociationAmerican Economic Association
The American Economic Association, or AEA, is a learned society in the field of economics, headquartered in Nashville, Tennessee. It publishes one of the most prestigious academic journals in economics: the American Economic Review...
Executive Committee, the recipient of an Alfred P. Sloan
Alfred P. Sloan
Alfred Pritchard Sloan, Jr. was an American business executive in the automotive industry. He was a long-time president, chairman, and CEO of General Motors Corporation...
Foundation Research Fellowship, a fellow of the American Academy of Arts and Sciences
American Academy of Arts and Sciences
The American Academy of Arts and Sciences is an independent policy research center that conducts multidisciplinary studies of complex and emerging problems. The Academy’s elected members are leaders in the academic disciplines, the arts, business, and public affairs.James Bowdoin, John Adams, and...
, and a three-time recipient of Berkeley's Graduate Economic Association's distinguished teaching and advising awards. Professor Romer is co-director of the Program in Monetary Economics at the National Bureau of Economic Research
National Bureau of Economic Research
The National Bureau of Economic Research is an American private nonprofit research organization "committed to undertaking and disseminating unbiased economic research among public policymakers, business professionals, and the academic community." The NBER is well known for providing start and end...
, and is a member of the NBER Business Cycle Dating Committee.
He is the author of "Advanced Macroeconomics," a standard graduate macroeconomics text, and he is an editor of the Brookings Papers on Economic Activity
Brookings Papers on Economic Activity
The Brookings Papers on Economic Activity is a journal of economics published twice a year by the Brookings Institution Press. BPEA commenced publication in 1970 under the editorship of Arthur Okun and George Perry, and since then has been ranked as a leading journal in the field...
.
He is known at Berkeley for offering graduate students his "Chicken Soup for Economists," including such advice as "A model should be as simple as possible while still showing the effect we are interested in", "Cite others' work appropriately", "A good paper almost always contains a viewpoint, a lever, and hard work," and "If you find yourself thinking 'But that's how the game is played,' slap yourself. If that doesn't work, take up sheep farming."
Family
He is married to Christina RomerChristina Romer
Christina D. Romer is the Class of 1957 Garff B. Wilson Professor of Economics at the University of California, Berkeley and a former Chair of the Council of Economic Advisers in the Obama administration...
, who was his classmate at MIT and is his colleague in the Economics Department at University of California, Berkeley
University of California, Berkeley
The University of California, Berkeley , is a teaching and research university established in 1868 and located in Berkeley, California, USA...
. They have adjoining offices in the department, and collaborate on much of their research. The couple have three children together.
He has a brother, Evan. Greg Mankiw served as best man at their wedding (Romer served as best man at Mankiw's wedding).
External links
- http://elsa.berkeley.edu/~dromer/index.shtml
- http://www.minneapolisfed.org/pubs/region/08-09/romers.pdf
- Fourth-down analysis met with skepticism