Photo of Andrew B Abel

Andrew B Abel

Ronald A. Rosenfeld Professor

Research Interests: macroeconomics, asset pricing, monetary economics, saving and investment, social security, costly observations and transactions

Links: Personal Website

Contact Information

Address: 2315 Steinberg-Dietrich Hall, Philadelphia, PA 19104
Email: abel@wharton.upenn.edu
Office: (215) 898-4801

Overview

Education

PhD, Massachusetts Institute of Technology, 1978; AB, Princeton University, 1974

Career and Recent Professional Awards; Teaching Awards

Fellow, Econometric Society, 1991; John Kenneth Galbraith Award, Harvard University, 1984; MBA Core Curriculum Cluster Award, 1996-97

Academic Positions Held

Wharton: 1986-present (named Ronald A. Rosenfeld Professor, 2003; Robert Morris Professor of Banking, 1989-2003; Ronald O. Perelman Professor of Finance, 1988-89; Amoco Term Professor of Finance, 1986-88). Previous appointments: Harvard University; University of Chicago. Visiting appointments: Tel Aviv University; The Hebrew University of Jerusalem

Other Positions

Research Associate, National Bureau of Economic Research, 1983-; Member, Long-Term Modeling Group, Congressional Budget Office, 2001; Member Panel of Economic Advisers, Congressional Budget Office, 2001-2005; Member, Technical Panel on Assumptions and Methods, Social Security Advisory Board, 1999; Visiting Scholar, Federal Reserve Bank of Philadelphia, 1989-92, 1996; Economic Consultant, Bank of Portugal, 1976

Professional Leadership 2005-2009

Advisory Board, Carnegie-Rochester Conference Series on Public Policy, 1990-present.

Research


  • Andrew B Abel, Janice C. Eberly (2011), How Q and Cash Flow Affect Investment with Frictions: An Analytic Explanation, The Review of Economic Studies, 78 (4), 1179-1200.
  • Andrew B Abel, Ben S. Bernanke, Dean Croushore, Macroeconomics, 7th edition (2011).
  • Andrew B Abel, Janice C. Eberly, Stavros Panageas (Working), Optimal Inattention to the Stock Market with Information Costs and Transactions Costs.    Abstract
  • Andrew B Abel, "Equity Premia with Benchmark Levels of Consumption: Closed-Form Results". In Handbook of the Equity Risk Premium, edited by Rajnish Mehra, (2008), 117 - 157.
  • Andrew B Abel, Janice C. Eberly, Stavros Panageas (2007), Optimal Inattention to the Stock Market, American Economic Review, 97 (2), 244 - 249.  Abstract
  • Andrew B Abel (2005), Optimal Taxation When Consumers Have Endogenous Benchmark Levels of Consumption, The Review of Economic Studies, 72 (1), 21 - 42.  Abstract
  • Andrew B Abel, "Comment on Michael Hurd: "Bequests: By Accident or by Design?"". In Death and Dollars: The Role of Gifts and Bequests in America, edited by Alicia H. Munnell, Annika Sunden, (2003), 118 - 126.
  • Andrew B Abel (2003), The Effects of a Baby Boom on Stock Prices and Capital Accumulation in the Presence of Social Security, Econometrica, 71 (2), 551 - 578.  Abstract
  • Andrew B Abel (2002), An Exploration of the Effects of Pessimism and Doubt on Asset Returns, Journal of Economic Dynamics and Control, 26 (7-8), 1075 - 1092.  Abstract
  • Andrew B Abel (2002), On the Invariance of the Rate of Return to Convex Adjustment Costs, Review of Economic Dynamics, 5 (3), 586-601.
  • Andrew B Abel (2001), Will Bequests Attenuate the Predicted Meltdown in Stock Prices When Baby Boomers Retire?, Review of Economics and Statistics, 8 (4), 589 - 595.  Abstract
  • Andrew B Abel, "The Social Security Trust, the Riskless Interest Rate, and Capital Accumulation". In Risk Aspects of Investment-Based Social Security Reform, edited by John Y. Campbell, Martin S. Feldstein, (2001), 153 - 193.
  • Andrew B Abel (2001), The Effects of Investing Social Security Funds in the Stock Market When Fixed Costs Prevent Some Households from Holding Stocks, American Economic Review, 91 (1), 128 - 148.  Abstract
  • Andrew B Abel, Janice C. Eberly (1999), The Effects of Irreversibility and Uncertainty on Capital Accumulation, Journal of Monetary Economics, 44 (3), 339 - 377.  Abstract
  • Andrew B Abel, "Comment on Chapters 2, 3, and 4". In The Costs and Benefits of Price Stability, edited by Martin S. Feldstein, (1999), 180 - 191.
  • Andrew B Abel (1999), Risk Premia and Term Premia in General Equilibrium, Journal of Monetary Economics, 43 (1), 339-377.
  • Andrew B Abel, Janice C. Eberly (1998), The Mix and Scale of Factors with Irreversibility and Fixed Costs of Investment, Carnegie-Rochester Conference Series on Public Policy, 48, 101-135.
  • Andrew B Abel, Janice C. Eberly (1998), The Mix and Scale of Factors with Irreversibility and Fixed Costs of Investment, Carnegie-Rochester Conference Series on Public Policy, 48, 101-135.
  • Andrew B Abel, Janice C. Eberly (1997), An Exact Solution for the Investment and Market Value of Firm Facing Uncertainty, Adjustment Costs, and Irreversibility, Journal of Economic Dynamics and Control, 21 (4-5), 831-852.
  • Andrew B Abel, "Comment on Martin Feldstein: "The Costs and Benefits of Going from Low Inflation to Price Stability"". In Reducing Inflation: Motivation and Strategy, edited by Christina D. Romer, David H. Romer, (1997), 156 - 166.
  • Andrew B Abel, Janice C. Eberly (1996), Optimal Investment with Costly Reversibility, The Review of Economic Studies, 63 (4), 581-593.
  • Andrew B Abel, Avinash Dixit, Janice C. Eberly, Robert S. Pindyck (1996), Options, the Value of Capital, and Investment, Quarterly Journal of Economics, 111 (3), 753-777.
  • Andrew B Abel, Janice C. Eberly (1994), A Unified Model of Investment under Uncertainty, American Economic Review, 84 (1), 1369-1384.
  • Andrew B Abel (1994), Exact Solutions for Expected Rates of Return under Markov Regime Switching: Implications for the Equity Premium Puzzle, Journal of Money, Credit, and Banking, 26 (3), 345-361.
  • Andrew B Abel, Laurence J. Kotlikoff, "Intergenerational Altruism and the Effectiveness of Fiscal Policy--New Tests Based on Cohort Data". In Savings and Bequests, edited by Toshiaki Tachibanaki, (1994), 167 - 196.
  • Andrew B Abel, George J. Mailath (1994), Financing Losers in Competitive Markets, Journal of Financial Intermediation, 3 (2), 139-165.
  • Andrew B Abel (1992), Can the Government Roll Over Debt Forever, Business Review - Federal Reserve Bank of Philadelpha, 3-18.
  • Andrew B Abel (1992), Comments on J. Bradford DeLong and Lawrence H. Summers: Equipment Investment and Economic Growth: How Strong is the Nexus?, Brookings Papers on Economic Activity, 1992:2, 200-205.
  • Andrew B Abel, B. Douglas Bernheim (1991), Fiscal Policy with Impure Intergenerational Fiscal Policy, Econometrica, 59 (6) 1687-1711.
  • Andrew B Abel (1991), The Equity Premium Puzzle, Business Review - Federal Reserve Bank of Philadelpha, 3-14.
  • Andrew B Abel (1991), Some Observations on Demographics and Saving: A Comment, Carnegie-Rochester Conference Series on Public Policy, 34, 157-162.
  • Andrew B Abel (1990), Asset Prices under Habit Formation and Catching Up with the Joneses, American Economic Review, Papers and Proceedings, 80 (2), 38-42.
  • Andrew B Abel, "Consumption and Investment". In Handbook of Monetary Economics, Volume II, edited by Benjamin M. Friedman, Frank Hahn, (1990), 725 - 778.
  • Andrew B Abel (1989), Birth, Death, and Taxes, Journal of Public Economics, 39 (1) 1-15.
  • Andrew B Abel, N. Gregory Mankiw, Lawrence H. Summers, Richard Zeckhauser (1989), Assessing Dynamic Efficiency: Theory and Evidence, The Review of Economic Studies, 56 (1), 1-20.
  • Andrew B Abel (1988), Stock Prices under Time-Varying Dividend Risk: An Exact Solution in an Infinite-Horizon General Equilibrium Model, Journal of Monetary Economics, 22 (3), 375-393.
  • Andrew B Abel (1988), The Implications of Insurance for the Efficacy of Fiscal Policy, Journal of Risk and Insurance, 55 (2), 339-378.
  • Andrew B Abel, "Fiscal Policies and International Financial Markets: Comment". In International Aspects of Fiscal Policies, edited by Jacob A. Frenkel, (1988), 217 - 221.
  • Andrew B Abel, "An Analysis of Fiscal Policy under Operative and Inoperative Bequest Motives". In Economic Effects of the Government Budget, edited by Elhanan Helpman, Assaf Razin, Efraim Sadka, (1988), 91 - 106.
  • Andrew B Abel, Olivier J. Blanchard, "Investment and Sales: Some Empirical Evidence". In Dynamic Econometric Modelling, edited by William A. Barnett, Ernst R. Berndt, Halbert White, (1988), 269 - 296.
  • Andrew B Abel, Mark Warshawsky (1988), Specification of the Joy of Giving: Insights from Altruism, Review of Economics and Statistics, 70 (1), 145-149.
  • Andrew B Abel (1987), Operative Gift and Bequest Motives, American Economic Review, 77 (5), 1037-1047.
  • Andrew B Abel, "The Ricardian Equivalence Theorem". In The New Palgrave: A Dictionary of Economic Theory and Doctrine, Vol r, edited by John Eatwell, Murray Milgate, Peter Newman, (1987), 174 - 179.
  • Andrew B Abel, "Aggregate Savings in the Presence of Private and Social Insurance". In Macroeconomics and Finance: Essays in Honor of Franco Modigliani, edited by Rudiger Dornbusch, Stanley Fischer, John Bossons, (1987), 131 - 157.
  • Andrew B Abel, "Anticipated Tax Changes and the Timing of Investment: Comment". In The Effects of Taxation of Capital Accumulation, edited by Martin S. Feldstein, (1987), 196 - 200.
  • Andrew B Abel (1987), Optimal Monetary Growth, Journal of Monetary Economics, 19 (3), 437-450.
  • Andrew B Abel (1986), Capital Accumulation and Uncertain Lifetimes with Adverse Selection, Econometrica, 54 (5), 1079-1097.
  • Andrew B Abel (1986), Comment on Kotlikoff, Shoven, and Spivak, Journal of Labor Economics, 4 (3) part 2, S208-S215.
  • Andrew B Abel (1986), The Failure of Ricardian Equivalence under Progressive Wealth Taxation, Journal of Public Economics, 30 (1), 117-128.
  • Andrew B Abel, Olivier J. Blanchard (1986), The Present Value of Profits and the Cyclical Variability of Investment, Econometrica, 54 (2), 249-273.
  • Andrew B Abel (1985), Precautionary Saving and Accidental Bequests, American Economic Review, 75 (4), 777-791.
  • Andrew B Abel (1985), Dynamic Behavior of Capital Accumulation in a Cash-in-Advance Model, Journal of Monetary Economics, 16 (1), 55-71.
  • Andrew B Abel (1985), A Stochastic Model of Investment, Marginal q, and the Market Value of the Firm, International Economic Review, 26 (2), 305-322.
  • Andrew B Abel (1985), Inventories, Stock-outs and Production Smoothing, The Review of Economic Studies, 52 (2), 283-293.
  • Andrew B Abel, "R & D and the Market Value of the Firm: A Note". In R & D, Patents and Productivity, edited by Zvi Griliches, (1984), 261 - 269.
  • Andrew B Abel (1984), The Effects of Uncertainty on Investment and the Expected Long-Run Capital Stock, Journal of Economic Dynamics and Control, 7 (1), 39-53.
  • Andrew B Abel (1983), Energy Price Uncertainty and Optimal Factor Intensity: A Mean-Variance Analysis, Econometrica, 51 (6), 1839-1845.
  • Andrew B Abel (1983), Tax Neutrality in the Presence of Adjustment Costs, Quarterly Journal of Economics, 98 (4), 705-712.
  • Andrew B Abel (1983), Market Structure and the Durability of Goods, The Review of Economic Studies, 50 (4), 625-637.
  • Andrew B Abel, Olivier J. Blanchard (1983), An Intertemporal Model of Saving and Investment, Econometrica, 51 (3), 675-692.
  • Andrew B Abel, "Comment on 'Financing Private Business in an Inflationary Context: The Experience of Argentina between 1976 and 1980'". In Financial Policies and the World Capital Market, edited by Pedro Aspe, Rudiger Dornbusch, (1983), 183 - 185.
  • Andrew B Abel, Frederic S. MIshkin (1983), On the Econometric Testing of Rationality-Market Efficiency, Review of Economics and Statistics, 65 (2), 318-323.
  • Andrew B Abel (1983), Optimal Investment under Uncertainty, American Economic Review, 73 (1) 228-233.
  • Andrew B Abel, Frederic S. MIshkin (1983), An Integrated View of Tests of Rationality, Market Efficiency and the Short-Run Neutrality of Monetary Policy, Journal of Monetary Economics, 11 (1), 3-24.
  • Andrew B Abel (1982), Accelerated Depreciation and the Efficacy of Temporary Fiscal Policy: Implications for an Inflationary Economy, Journal of Public Economics, 19 (1), 23-47.
  • Andrew B Abel (1982), Dynamic Effects of Permanent and Temporary Tax Policies in a q Model of Investment, Journal of Monetary Economics, 9, 353-373.
  • Andrew B Abel (1981), A Dynamic Model of Investment and Capacity Utilization, Quarterly Journal of Economics, 96 (3), 379-403.
  • Andrew B Abel (1981), Taxes, Inflation, and the Durability of Capital, Journal of Political Economy, 89 (3) 548-560.
  • Andrew B Abel (1981), Dynamic Adjustment in a Putty-Putty Model: Implications for Testing the Putty-Clay Hypothesis, International Economic Review, 22 (1), 19-36.
  • Andrew B Abel (1980), Empirical Investment Equations: An Integrative Framework, Carnegie-Rochester Conference Series on Public Policy, 12, 39-91.
  • Andrew B Abel (1980), Reply to Prescott's Comments, Carnegie-Rochester Conference Series on Public Policy, 12, 103-105.
  • Andrew B Abel, Rudiger Dornbusch, John Huizinga, Alan Marcus (1979), Money Demand during Hyperinflation, Journal of Monetary Economics, 5 (1), 97-104.
  • Andrew B Abel, Investment and the Value of Capital, Garland Publishing Company (1978).
  • Andrew B Abel (1978), Tax Incentives to Investment: An Assessment of Tax Credits and Tax Cuts, New England Economic Review, 54-66.
  • Andrew B Abel, Luis M.C.P. Beleza (1978), Input-Output Pricing in a Keynesian Model as Applied to Portugal, Journal of Development Economics, 5, 125-138.
  • Andrew B Abel, Luis M.C.P. Beleza, Jeffrey A. Frankel, Raymond Hill, Paul R. Krugman (1977), A Model of the Portuguese Economy, Economia, 1 (1).
  • Andrew B Abel (1975), A Comparison of Three Control Algorithms as Applied to the Monetarist-Fiscalist Debate, Annal of Economic and Social Measurement, 4 (2).

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  • FNCE602 - Macroeconomics and the Global Economic Environment

    FNCE 602 IS USED BY WEMBA STUDENTS - Wharton MBA studets please refer to FNCE 613. This course is required of all students except those who, having prior training in macroeconomics, money and banking, and stabilization policy at an intermediate or advanced level, can obtain a waiver either by credentials or by passing an examination. The purpose of FNCE 602 is to train the student to think systematically about the current state of the economy and macroeconomic policy, and to be able to evaluate the economic environment within which business and financial decisions are made. The course emphasizes the use of economic theory to understand the workings of financial markets and the operation and impact of government policies. Specifically, the course studies the determinants of the level of national income, employment, investment, interest rates, the supply of money, inflation, exchange rates, and the formulation and operation of stabilization policies.

  • FNCE613 - Macroeconomics and the Global Economic Environment

    This course is required of all students except those who, having prior training in macroeconomics, money and banking, and stabilization policy at an intermediate or advanced level, can obtain a waiver by passing an examination. The purpose of FNCE 613 is to train the student to think systematically about the current state of the economy and macroeconomic policy, and to be able to evaluate the economic environment within which business and financial decisions are made. The course emphasizes the use of economic theory to understand the workings of financial markets and the operation and impact of government policies. Specifically, the course studies the determinants of the level of national income, employment, investment, interest rates, the supply of money, inflation, exchange rates, and the formulation and operation of stabilization policies.