Truman Bewley
Encyclopedia
Truman Fassett Bewley is an American economist. He is the Alfred Cowles Professor of Economics at Yale University
. Originally specializing in mathematical economics
and General equilibrium theory, since the late 1990s Bewley has gained renown for his work on sticky wages. In Bewley's 1999 book Why Wages Don't Fall During a Recession, hundreds of interviews with executives, labor leaders, and other professionals establish morale as an important factor in why businesses are reluctant to decrease employee compensation at times of low demand.
In General equilibrium theory, Bewley (1972) established key existence results for models with infinitely many goods.
Due to Bewley (1977), Bewley is the namesake of Bewley models, the class of incomplete markets
general equilibrium models in which agents face idiosyncratic income shocks and achieve partial insurance via, for example, a risk-free bond
or capital.. Aiyagari (1994), Huggett (1993), and Krusell
and Smith (1998) are examples of Bewley models, each with many hundreds of citations according to Google Scholar
. He was elected a Fellow of the American Academy of Arts and Sciences
in 2005.
Yale University
Yale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...
. Originally specializing in mathematical economics
Mathematical economics
Mathematical economics is the application of mathematical methods to represent economic theories and analyze problems posed in economics. It allows formulation and derivation of key relationships in a theory with clarity, generality, rigor, and simplicity...
and General equilibrium theory, since the late 1990s Bewley has gained renown for his work on sticky wages. In Bewley's 1999 book Why Wages Don't Fall During a Recession, hundreds of interviews with executives, labor leaders, and other professionals establish morale as an important factor in why businesses are reluctant to decrease employee compensation at times of low demand.
In General equilibrium theory, Bewley (1972) established key existence results for models with infinitely many goods.
Due to Bewley (1977), Bewley is the namesake of Bewley models, the class of incomplete markets
Incomplete markets
In economics, incomplete markets refers to markets in which the number of Arrow–Debreu securities is less than the number of states of nature...
general equilibrium models in which agents face idiosyncratic income shocks and achieve partial insurance via, for example, a risk-free bond
Risk-free bond
A risk-free bond is a theoretical bond that repays interest and principal with absolute certainty. The rate of return would be the risk-free interest rate. In practice, government bonds are treated as risk-free bonds, as governments can raise taxes or indeed print money to repay their domestic...
or capital.. Aiyagari (1994), Huggett (1993), and Krusell
Per Krusell
Per Lennart Krusell, born 1959, is a Swedish macroeconomic theorist who currently teaches at Princeton University and at the Institute for International Economic Studies in Stockholm...
and Smith (1998) are examples of Bewley models, each with many hundreds of citations according to Google Scholar
Google Scholar
Google Scholar is a freely accessible web search engine that indexes the full text of scholarly literature across an array of publishing formats and disciplines. Released in beta in November 2004, the Google Scholar index includes most peer-reviewed online journals of Europe and America's largest...
. He was elected 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...
in 2005.