Miguel Sidrauski
Encyclopedia
Miguel Sidrauski was an Argentine
economist
who made important contributions to the theory of economic growth
by developing a dynamic model to describe the effects of money
on long-run growth. He also published an article on exchange rate
determination. Sidrauski taught economics
at Massachusetts Institute of Technology
.
Sidrauski was born and educated in Buenos Aires
. He entered graduate studies at the University of Chicago
in 1963 and completed his PhD in 1966 under the supervision of Hirofumi Uzawa and Milton Friedman
. After completing his PhD, he was appointed as an assistant professor at MIT. He died of cancer at the age of 28, and was survived by his wife and two-month-old daughter.
Sidrauski is best known for his 1967 article, "Rational Choice and Patterns of Growth in a Monetary Economy," which was based on his PhD dissertation. The article analyses a model of a representative household
that intertemporally maximises utility
, which in turn depends on both the consumption
of goods and the holding of real balances
of money. The model implies that in steady state, capital intensity
is invariant to the rate of monetary expansion or contraction, a result that is described as superneutrality of money
.
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
who made important contributions to the theory of economic growth
Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...
by developing a dynamic model to describe the effects of money
Money supply
In economics, the money supply or money stock, is the total amount of money available in an economy at a specific time. There are several ways to define "money," but standard measures usually include currency in circulation and demand deposits .Money supply data are recorded and published, usually...
on long-run growth. He also published an article on exchange rate
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...
determination. Sidrauski taught economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
at 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...
.
Sidrauski was born and educated in Buenos Aires
Buenos Aires
Buenos Aires is the capital and largest city of Argentina, and the second-largest metropolitan area in South America, after São Paulo. It is located on the western shore of the estuary of the Río de la Plata, on the southeastern coast of the South American continent...
. He entered graduate studies at the University of Chicago
University of Chicago
The University of Chicago is a private research university in Chicago, Illinois, USA. It was founded by the American Baptist Education Society with a donation from oil magnate and philanthropist John D. Rockefeller and incorporated in 1890...
in 1963 and completed his PhD in 1966 under the supervision of Hirofumi Uzawa and Milton Friedman
Milton Friedman
Milton Friedman was an American economist, statistician, academic, and author who taught at the University of Chicago for more than three decades...
. After completing his PhD, he was appointed as an assistant professor at MIT. He died of cancer at the age of 28, and was survived by his wife and two-month-old daughter.
Sidrauski is best known for his 1967 article, "Rational Choice and Patterns of Growth in a Monetary Economy," which was based on his PhD dissertation. The article analyses a model of a representative household
Representative agent
Economists use the term representative agent to refer to the typical decision-maker of a certain type ....
that intertemporally maximises utility
Utility
In economics, utility is a measure of customer satisfaction, referring to the total satisfaction received by a consumer from consuming a good or service....
, which in turn depends on both the consumption
Consumption (economics)
Consumption is a common concept in economics, and gives rise to derived concepts such as consumer debt. Generally, consumption is defined in part by comparison to production. But the precise definition can vary because different schools of economists define production quite differently...
of goods and the holding of real balances
Pigou effect
The Pigou effect is an economics term that refers to the stimulation of output and employment caused by increasing consumption due to a rise in real balances of wealth, particularly during deflation....
of money. The model implies that in steady state, capital intensity
Capital intensity
Capital intensity is the term in economics for the amount of fixed or real capital present in relation to other factors of production, especially labor...
is invariant to the rate of monetary expansion or contraction, a result that is described as superneutrality of money
Neutrality of money
Neutrality of money is the idea that a change in the stock of money affects only nominal variables in the economy such as prices, wages and exchange rates, with no effect on real variables, like employment, real GDP, and real consumption....
.