Photo of Joao F. Gomes

Joao F. Gomes

Howard Butcher III Professor of Finance

Research Interests: macroeconomics and financial markets, corporate investment and financing

Links: CV

Contact Information

Address: 2329 Steinberg-Dietrich Hall, 3620 Locust Walk, Philadelphia, PA 19104
Office: (215) 898-3666



PhD, University of Rochester, 1997; MA University of Rochester, 1996; BA, New University of Lisbon, Portugal, 1991

Academic Positions Held

Wharton: 1997-present (named James G. Campbell, Jr. Associate Professor of Finance in 2008)

Professor Gomes expertise is in the areas of macroeconomics and financial markets where he has taught several courses to undergraduate, MBA and doctoral students both at Wharton and around the world.

His recent research covers the determinants of the corporate investment and financing decisions of firms and the links to movements in financial markets, and to monetary and fiscal policies. He has also examined the role of financial leverage in determining the cost of capital, the causes of performance variation across asset classes, and the quantitative importance of financial market imperfections on corporate decisions and economic cycles.

Professor Gomes’ research has been presented and discussed at major academic conferences and seminar series around the world and is published in the top rated academic journals in both economics and finance.  He has won several awards including the Smith Breeden Prize for Best Asset Pricing Paper published in the Journal of Finance, with a study on the links between leverage and returns, and was nominated for the Brattle Prize for Best Corporate Finance Paper in the same journal, with earlier work on the performance of conglomerates.

Professor Gomes's previous appointments include a professorship at the London Business School. In addition, he has visited several other universities and research centers, including the University of British Columbia in Canada, the New University of Lisbon in Portugal, and the Federal Reserve Bank of Minneapolis. Early in his career he has also served as an ad-hoc economic advisor to the Ministry of Industry of Portugal.


  • Joao F. Gomes (Work In Progress), Leverage and Equity Risk: Better Estimates.
  • Joao F. Gomes (Work In Progress), The Macroeconomic Implications of Corporate Income Taxes.
  • Vito Gala, Joao F. Gomes (Working), Beyond Q: Investment without Asset Prices.  Abstract
  • Joao F. Gomes, Vito Gala (Under Review), Beyond Q: Investment Without Asset Prices.    Abstract  Related Materials
  • Yasser Boualam, Joao F. Gomes, Colin Ward (Draft), Understanding the Behavior of Distressed Stocks.  Abstract
  • Joao F. Gomes, Lukas Schmid (Under Revision), Equilibrium Credit Spreads and the Macroeconomy;.    Abstract
  • Joao F. Gomes, Lukas Schmid (2010), Levered Returns, Journal of Finance, 2010.  Abstract
  • Joao F. Gomes, Leonid Kogan, Motohiro Yogo (2009), Durability of Output and Expected Stock Returns, Journal of Political Economy, 117 (5), 941 - 986.  Abstract  Related Materials
  • Joao F. Gomes, Amir Yaron, Lu Zhang (2006), Asset Pricing Implications of Firms' Financing Constraints, Review of Financial Studies, Vol. 19 (No. 4), 1321 - 1356.  Abstract  Related Materials
  • Joao F. Gomes, Amir Yaron, Lu Zhang (2004), Asset Prices and Business Cycles with Costly External Finance, Review of Economic Dynamics, 2004.  Abstract
  • Joao F. Gomes, Dmitry Livdan (2004), Optimal Diversification: Reconciling Theory and Evidence, Journal of Finance, 2004.  Abstract
  • Joao F. Gomes, Leonid Kogan, Lu Zhang (2003), Equilibrium Cross-Section of Returns, Journal of Political Economy, 2003.  Abstract
  • Joao F. Gomes, Frank Schorfheide, Yongsung Chang (2002), Learning By Doing as a Propagation Mechanism, American Economic Review, 2002.  Abstract
  • Joao F. Gomes (Draft), Financing Investment - Technical Appendix.    Related Materials
  • Joao F. Gomes, Jeremy Greenwood, Sergio Rebelo (2001), Equilibrium Unemployment, Journal of Monetary Economics, 2001.  Abstract
  • Joao F. Gomes (2001), Financing Investment, American Economic Review, 2001.  Abstract

Awards And Honors

In The News


I teach several courses on macroeconomics and financial markets to Masters and Doctoral level students. I also teach in several of Wharton's Executive Education programs



  • FNCE101 - Monetary Economics and the Global Economy

    This is an intermediate-level course in macroeconomics and the global economy, including topics in monetary and international economics. The goal is to provide a unified framework for understanding macroeconomic events and policy, which govern the global economic environment of business. The course analyzes the determinants and behavior of employment, production, demand and profits; inflation, interest rates, asset prices, and wages; exchange rates and international flows of goods and assets; including the interaction of the real economy with monetary policy and the financial system. The analysis is applied to current events, both in the US and abroad. During the spring semester there are honors sections of FNCE 101 offered. The seats in the honors sections are awarded through an application process. Please go to for additional information.

  • FNCE396 - Finance in Europe

    This is a short seminar on finance in Europe. Its objective is to bring students, academics and several industry experts together to study financial markets, practice, and institutions in Europe. Course Content: The course will primarily examine following areas: 1.Current challenges in European markets and Euro zone 2.Political economy of European Union 3.Alternative Investments 4.Investment Banking & Cross Border Mergers and Acquisitions We will cover the above topics by studying practice and transactions in Europe with a comparison to USA and rest of the world. This is a half unit course and it is designed for Wharton MBAs. Exceptionally motivated undergraduate students are also welcome to take the course.

  • FNCE613 - Macroeconomics and the Global Economic Environment

    This course is required for 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.

  • FNCE924 - Intertemporal Macroeconomics and Finance

    This is a doctoral level course on macroeconomics, with special emphasis on intertemporal choice under uncertainty and topics related to finance. Topics include: optimal consumption and saving, the stochastic growth model, q-theory of investment, (incomplete) risk sharing and asset pricing. The course will cover and apply techniques, including dynamic programming, to solve dynamic optimization problems under uncertainty. Numerical solution methods are also discussed.

  • FNCE937 - Applied Quantitative Methods in Finance

    This is an advanced course in quantitative theory applied to macro and finance models. It is intended for doctoral students in finance, economics and related fields. The course focuses on four broad theoretical literatures: (i) firm investment and growth; (ii) corporate, household and sovereign debt; (iii) asset pricing in general equilibrium; and (iv) equilibrium macro models with a financial sector. My approach is to develop and discuss in detail a unified framework that is suited to address most topics, usually covering a few central topics and the core papers. We then discuss the more recent literature, highlighting how authors combine and expand upon the core ideas. This part of the course usually relies on regular student presentations.