Professor of Economics at IESE Business School PhD in Economics from the University of Minnesota

(1)

Javier D´ıaz-Gim´enez

Prof. D´ıaz-Gim´enez has dedicated most of his professional life to doing research, teaching, and advising in macroeconomics. His recent research explores the macroeconomic consequences of fiscal policy and pension system reforms. He has published the results of his research in some of the leading professional journals such as the Journal of Political Economy and the Journal of Monetary Economics, and he has coauthored two articles with Edward C. Prescott, who was awarded the Nobel Prize in Economics in 2004. He is also the author of the undergraduate textbookMacroeconom´ıa: Primeros Conceptos (Macroeconomics: Primary Concepts).

Prof. D´ıaz-Gim´enez has consulted for the Spanish Ministry of Industry and, briefly, for the Economic Bureau of the President of Spain. He has also served in the strategic committee of Consulnor, and he is an economic commentator at the Cadena Cope, one of Spain’s nationwide radio networks.

(2)

Javier D´ıaz Gim´enez December 2010

Personal Data

Address: IESE Business School; Camino del Cerro del ´Aguila, 3; 28023 Madrid (Spain) E-mail address: jdiaz@iese.edu

Phone: 609 97 86 77

Education

1990: Ph.D. in Economics, University of Minnesota (U.S.A.).

1983: Licenciado en Cc. Econ´omicas y Empresariales, Universidad Aut´onoma de Madrid (Spain).

Academic Positions

2010–: Professor of Economics, IESE Business School (Spain).

2008–09: Visiting Professor of Economics, IESE Business School (Spain).

1998–08: Associate Professor of Economics, Universidad Carlos III de Madrid (Spain). 2001–08: Teaching Associate, IESE Business School (Spain).

1990–98: Assistant Professor of Economics, Universidad Carlos III de Madrid (Spain). 1989–90: Visiting Professor of Economics, Universidad Complutense de Madrid (Spain).

Professional Activity

2010–: Occasional Investment Strategy Advisor for Morgan Stanley. 2009–: Member of the Strategic Committee of Consulnor.

2009–: Weekly participant in the Economic Panel of the Cope Radio Network.

2008–: Frequent appearences in both national and international media (television, radio, newspapers) to discuss the economy.

2004: Advisor to Miguel Sebastián Gascón, Chairman of the Economic Office of the President. 1993–95: Advisor Arturo González Romero, Chariman of the Research Department of the Ministery of Industry and Energy.

Publications

A. Articles

1. “Facts on Inequality in the United States: A 2007 Update” joint with A. Glover and J.-V. R´ıos-Rull. Quarterly Review(Federal Reserve Bank of Minneapolis). Forthcoming.

2. “Delaying retirement in Spain” joint with J. D´ıaz-Saavedra. Review of Economic Dynamics 12: 147–167 (2009).

3. “Nominal debt as a burden on monetary policy” joint with G. Giovannetti, R. Marimon y P. Teles Review of Economic Dynamics 11: 493–514 (2008).

4. “Economic inequality in Spain: The European Community Household Panel Dataset” joint with S. Budr´ıa. Spanish Economic Review 9: 1–38 (2007).

5. “The demographic and educational transitions and the Spanish public pension system” joint with Juli´an D´ıaz-Saavedra. Moneda y Cr´edito. 222: 223–270 (2006).

6. “Accounting for earnings and wealth inequality” joint with A. Casta˜neda and J.-V. R´ıos-Rull. Journal of Political Economy111: 818–857 (2003).

7. “New facts on the distributions of earnings, income and wealth in the U.S.” joint with S. Budr´ıa, V. Quadrini and J.-V. R´ıos-Rull. Quarterly Review (Federal Reserve Bank of Minneapolis) 26: 2–35, (2002).

8. “Exploring the income distribution dynamics” joint with A. Casta˜neda and J.-V. R´ıos-Rull. Journal of Monetary Economics42: 93–130 (1998).

(3)

9. “Borrowing constraints in economies with household capital and banking” joint with L. Puch. Investigaciones Econ´omicas XXII (3): 469–499 (1998).

10. “Real returns on government debt: a general equilibrium quantitative exploration” joint with E. C. Prescott. European Economic Review41: 115–37 (1997).

11. “Uninsured idiosyncratic risk, liquidity constraints and aggregate fluctuations”Economic Theory 10: 463–82 (1997).

12. “Dimensions of inequality: facts on the U.S. distributions of earnings, income and wealth” joint with V. Quadrini and J.-V. R´ıos-Rull. Quarterly Review (Federal Reserve Bank of Minneapolis) 21: 3–21 (1997).

13. “Banking in computable general equilibrium economies” joint with E. C. Prescott, F. Alv´arez and T. Fitzgerald. Journal of Economic Dynamics and Control16: 533–559 (1992).

B. Books and Chapters of Books

1. “La subida del impuesto sobre el valor añadido en España: demasiado cara y demasiado pronto” joint with J. C. Conesa, J. D´ıaz-Saavedra y J. Pijoan-Mas inLa Crisis de la Econom´ıa Española, 523–547. Fedea Monograf´ıas (2010).

2. “España, Japón y los peligros de una contracción fiscal prematura” joint with R. A. Braun in La Crisis de la Econom´ıa Española, 471–515. Fedea Monograf´ıas (2010).

3. “Eppur si Muove! Spain: growing without a model” joint with M. Boldrin y J. I. Conde-Ruiz inLa Crisis de la Econom´ıa Espa˜nola, 165–235. Fedea Monograf´ıas (2010).

4. “Modelos y Métodos en la Macroeconom´ıa Dinámica”. Chapter I.7 of the VolumeSobre la Econom´ıa y sus Métodos of theEnciclopedia Iberoamericana de Filosof´ıa. Forthcoming.

5. “Linear quadratic approximations: an introduction”. Chapter 2 ofComputational Methods for the Study of Dynamic Economies, 13–29. R. Marimon and A. Scott, editors. Oxford University Press. Oxford (1999).

6. Macroeconom´ıa: Primeros Conceptos. 476 pages. Antoni Bosch Editor. Barcelona (1999).

C. Work in Progress

1. “Gender Differences and the Timing of First Marriages” joint with E. Giolito. Second revise and resubmit to the International Economic Review (2010).

3. “Parametric Reforms of the Spanish Pension System” joint with J. D´ıaz-Saavedra. First revise and resubmit toSERIEs (2010).

2. “Investment Expensing and Progressivity in Flat Tax Reforms” joint with Josep Pijoan-Mas. Un-published manuscript (2010).

4. “Illustrating the Quantity Theory of Money” joint with R. Kirkby. Unpublished manuscript (2010). 5. Macroeconom´ıa Para Casi Todos joint with G. Jacobs. Unpublished manuscript (2010).

(4)

JAVIER D´IAZ GIM´

ENEZ

March 2009

ACAD´

EMIC, RESEARCH, TEACHING, AND SERVICE HISTORY

PERSONAL DATA

Name: D´IAZ GIM ´ENEZ, JAVIER.

Place and Date of Birth: Madrid, February 1, 1960.

Home Address: Calle Hernani no_{68, 4}o_{A, 28020 Madrid (Spain)} Tel´ephone: +34 635 96 76 94.

Work Address: IESE Business School; Camino del Cerro del ´Aguila, 3; 28023 Madrid (Spain). Current Position: Visiting Professor of Economics

A. ACADEMIC HISTORY

EDUCATION

College Degrees

1983: Bachelor in Economics by the Facultad de Ciencias Econ´omicas and Empresariales of the Uni-versidad Aut´onoma de Madrid.

Graduate Degrees

1990: Ph.D. in Economics by the Department of Economics of the University of Minnesota.

PhD Dissertation

1989: “Business Cycle Fluctuations and the Cost of Insurance in Computable Heterogeneous Agent Monetary Economies” advised by Edward C. Prescott and defended in front of the Department of Economics of the University of Minnesota.

VISITS TO EDUCATIONAL INSTITUTIONS

2008–09: I visited the Department of Economics of the IESE Business School. 1997–98: I visited el Department of Economics of the Universidad Pompeu Fabra.

(5)

SCHOLARSHIPS AND AWARDS

1988–89: Walter W. Heller Outstanding Teaching Award. Department of Economics. University of Minnesota.

1988–89: Sloan Foundation Grant on Open Economies and Macroeconomics. Department of Economics. University of Minnesota.

1988–89: Supercomputer Time Grant. Institute for Empirical Macroeconomics. Minneapolis, MN. 1987–88: Andreas Foundation Fellowship.

1987–88: Graudate School Fellowship. University of Minnesota. 1984–85: Fulbright-Hays Scholarship

1984–85: International Student Adviser Office Tuition Waiver. University of Minnesota. 1983–84: Bank of Spain Scholarship to participate in a graduate course econometrics.

1983–84: French Ministry of Foreign Affairs Scholarship to participate in a Diplˆome d’ `Etudes Appro-fondies program in economics.

1976–78: Spanish Ministry of Education scholarship to attend the United World College of the Atlantic (United Kingdom).

B. RESEARCH HISTORY

ARTICLES PUBLISHED IN JOURNALS WITH ANONYMOUS REFEREES

Coauthors: Javier D´ıaz-Gim´enez and J. D´ıaz-Saavedra. Title: “Delaying Retirement in Spain”

Journal: Review of Economic Dynamics 12: 147–167 (2009).

Coauthors: Javier D´ıaz-Gim´enez, G. Giovannetti, R. Marimon and P. Teles Title: “Nominal Debt as a Burden on Monetary Policy”.

Journal: Review of Economic Dynamics. 11: 493–514 (2008). Coauthors: S. Budr´ıa and Javier D´ıaz-Gim´enez

Title: “Economic Inequality in Spain: The European Community Household Panel Dataset”. Journal: Spanish Economic Review 9: 1–38 (2007).

Coauthors: A. Casta˜neda, Javier D´ıaz-Gim´enez and J.-V. R´ıos-Rull. Title: “Accounting for the U.S. Earnings and Wealth Inequality”. Journal: Journal of Political Economy111, 818–57 (2003).

Coauthors: A. Casta˜neda, Javier D´ıaz-Gim´enez and J.-V. R´ıos-Rull. Title: “Exploring the Income Distribution Dynamics”.

Journal: Journal of Monetary Economics42, 93–130, (1998). Coauthors: Javier D´ıaz-Gim´enez and Luis A. Puch.

Title: “Borrowing Constraints in Economies with Indivisible Household Capital and Banking”. Journal: Investigaciones Econ´omicas XXII (3): 469–499 (1998).

(6)

Coauthors: Javier D´ıaz-Gim´enez and E. C. Prescott.

Title: “Real Returns on Government Debt: A General Equilibrium Quantitative Exploration”. Journal: European Economic Review41, 115–37 (1997).

Author: Javier D´ıaz-Gim´enez.

Title: “Uninsured Idiosyncratic Risk, Liquidity Constraints and Aggregate Fluctuations”. Journal: Economic Theory10, 463–82 (1997).

Coauthors: Javier D´ıaz-Gim´enez, Edward C. Prescott, Fernando Alv´arez, and Terry Fitzgerald. Title: “Banking in Computable General Equilibrium Economies”.

Journal: Journal of Economic Dynamics and Control16, 533–559 (1992).

ARTICLES PUBLISHED IN JOURNALS WITHOUT ANONYMOUS REFEREES

Coauthors: Javier D´ıaz-Gim´enez and J. D´ıaz-Saavedra.

Title: “The Demographic and Educational Transitions and the Sustainability of the Spanish Public Pension System”.

Journal: Moneda and Cr´edito 222: 223–270 (2006).

Coauthors: S. Budr´ıa, Javier D´ıaz-Gim´enez, V. Quadrini, and J.-V. R´ıos-Rull. Title: “Updated Facts on the U.S. Distributions of Earnings, Income and Wealth”. Journal: Federal Reserve Bank of Minneapolis Quarterly Review 26, 2–35, (2002). Coauthors: Javier D´ıaz-Gim´enez, V. Quadrini, and J.-V. R´ıos Rull.

Title: “Dimensions of Inequality: Facts on the U.S. Distributions of Earnings, Income, and Wealth”. Journal: Federal Reserve Bank of Minneapolis Quarterly Review 21, 3–21 (1997).

Coauthors: Javier D´ıaz-Giménez and Arturo González Romero. Title: “Cambio de Tendencia en la Recesión”.

Journal: Economistas60, 358–68 (1994). Author: Javier D´ıaz-Gim´enez.

Title: Discussion of the articel “La Riqueza de las Regiones” by Xavier Sala-i-Martin. Journal: Moneda and Cr´edito198, 70–74 (1994).

BOOKS AND CHAPTERS OF BOOKS

Title: “Modelos and Métodos en la Macroeconom´ıa Dinámica”. Cap´ıtulo I.7 del Volumen Sobre la Econom´ıa and sus Métodos de laEnciclopedia Iberoamericana de Filosof´ıa.

Editors: Juan Carlos Garc´ıa-Bermejo. Publisher: En prensa.

Title: “Linear Quadratic Approximations: An Introduction”. Cap´ıtulo 2 (pgs. 13–29) de Computa-tional Methods for the Study of Dynamic Economies.

Editors: Ramon Marimon y Andrew Scott.

Publisher: Oxford University Press. Oxford (1999).

(7)

OTHER PUBLICATIONS

Coauthors: Javier D´ıaz-Gim´enez, Gordon L. Duke, Mark Johnson, and Shyam S. Sunder. Title: “Systems Development for an Experimental Economics Laboratory”.

Journal: Proceedings de la IBM ACIS University Conference, 515–20 (1987).

WORK IN PROGRESS

Coauthors: Javier D´ıaz-Gim´enez and J. D´ıaz-Saavedra Title: “ “Public Pensions in Spain: A Reform that Backfires” Journal: Unpublished manuscript.

Coauthors: Javier D´ıaz-Gim´enez and E. P. Giolito Title: “Gender Differences and Marriage Behavior”

Journal: We are revising it to send it for the third time to the International Economic Review Coauthors: Javier D´ıaz-Gim´enez and J. Pijoan-Mas.

Title: “Flat Tax Reforms in the United States: A Boon for the Income Poor”

Journal: Rejected by theAmerican Review. We are currently revising it to send it to the Review of Economic Studies.

PRINCIPAL INVESTIGATOR IN RESEARCH GRANTS

2009–11: Project Title: Estado de bienestar, econom´ıa de la familia, crecimiento econ´omico y m´etodos.

Granting Institution: Ministerio de Ciencia e Innovaci´on, no_{ECO2008-04073.}

Amount Awarded: 81.675 euros.

Principal Investigator: Javier D´ıaz Gim´enez.

2006–08: Project Title: Reforma fiscal, cultura y redistribución, ciclos económicos en la eurozona and métodos numéricos.

Granting Institution: Dirección General de Investigación del Ministerio de Educación and Ciencia, no_{SEJ2005-05831.}

2003–05: Project Title: Un Modelo Macroeconómico para la Econom´ıa Española: Reformas Fiscales, Reformas de la Seguridad Social, Pol´ıtica Monetaria y Fundamentos Metodológicos.

Granting Institution: CICYT, no_{SEC2002-04318-C02-02.}

2002–04: Project Title: Un Modelo Macroecon´omico para la Econom´ıa Espa˜nola.

Granting Institution: Fundaci´on de Estudios of Economics Aplicada (FEDEA)

Principal Investigator: Javier D´ıaz Gim´enez. 1999–02: Project Title: Temas de Macroeconom´ıa Din´amica.

Granting Institution: DGESIC, no_PB98-0139.

1999–02: Project Title: Eficiencia-desigualdad vs. ineficiencia-igualdad.

Granting Institution: Banco Santander Central Hispano (BSCH).

(8)

PARTICIPANT IN RESEARCH GRANTS

1995–98: Project Title: El Estado del Bienestar and la Econom´ıa de Mercado: Aspectos Institucionales and Pol´ıticos.

Granting Institution: DGICYT, no_PB94-0378.

Principal Investigator: Juan Urrutia Elejalde.

1993–94: Project Title: Aprendizaje Estrat´egico and Comportamiento Agregado en Entornos Econ´omicos Complejos.

Granting Institution: DGICYT, no_PB92–0246.

Principal Investigator: Jorge Muruz´abal S´aez.

1991–93: Project Title: Ensayos de Teor´ıa Aplicada and Econom´ıa Experimental.

Granting Institution: DGICYT, no_PB89–0103.

Principal Investigator: Javier Ruiz-Castillo.

1990–91: Project Title: Monetary Policy in Computable General Equilibrium Economies.

Granting Institution: National Science Foundation of the United States.

Principal Investigator: Edward C. Prescott. 1987–88: Project Title: Integraci´on Econ´omica.

Granting Institution: Comunidad Europea.

Principal Investigator: Fabio Canova.

SEMINARS AND CONFERENCES

1989–09: I usually participate in international seminars once or twice every year. Either I or my coauthors have presented different versions of everyone of my articles in various institutions.

VISITS TO RESEARCH INSTITUTIONS

1989–92: Research Visitor at the Research Department of the Federal Reserve Bank of Minneapolis. Several visits of varying length.

1988–89: Research Assistant to Shyam Sunder and Gordon L. Duke, Department of Accounting, Uni-versity of Minnesota.

RESEARCH SEXENIA (Spanish Ministry of Education) Two sexenia granted: 1995–2000 and 2001–06.

C. TEACHING HISTORY

TEACHING POSITIONS

2008–09: Visiting Professor at the Department of Economics of the IESE Business School.

1998–08: Associate Professor at the Department of Economics of the Universidad Carlos III de Madrid. 1990–98: Assistant Professor at the Department of Economics of the Universidad Carlos III de Madrid.

(9)

1989–90: Visiting Professor at the Departamento de Fundamentos del An´alisis Econ´omico II of the Universidad Complutense de Madrid.

1985–89: Teaching Associate of the Department of Economics of the University of Minnesota.

TEACHING IN PhD PROGRAMS

1990–09: Every academic year except 1996–97 and 2007–08 I have taught either the first or the third quarter of the Macroeconomics sequence in the PhD Program offered by the Department of Economics of the Universidad Carlos III de Madrid.

2000–01: I taught “Practical Computational Methods for the Study of Dynamic Economies” at the Finnish Postgraduate Program in Economics, a postgraduate program that is offered jointly by various Finnish Universities.

2000–01: I taught the course “Dynamic Macroeconomics” at the PhD Program offered by the Depar-tament of Economic Analysis of the Universidad del Pa´ıs Vasco.

1999–00: I taught the course “Dynamic Macroeconomics” at the PhD Program offered by the Depar-tament of Economic Analysis of the Universidad del Pa´ıs Vasco.

1996–97: I taught the course “Topics in Macroeconomics II: Heterogeneous Agent Economies” at the PhD Program offered by the Department of Economics of the Universitat Pompeu Fabra. 1996–97: I taught the mini-course “Linear Quadratic Approximations: An Introduction”, at the VII

Summer School of the European Economic Association that took place at the European University Institute.

TEACHING IN GRADUATE PROGRAMS

2002–09: I have taught many sections of “The Macroeconomic Environment” and of “Global Eco-nomics” in various programs offered by the IESE Business School (1 GEMBA, 3 AMP, 1 PDG, 19 PDD, and 16 Custom Programs).

2005–08: I have taught three editions of the course “Economics” in the Executive MBA offered by the Fundaci´on Bravo Murillo (Gran Canaria).

2001–07: I taught five editions of the course “Economics” in the Master Program in Technology and Management of Energy offered by the Instituto Superior de la Energ´ıa (ISE) de Madrid. 2001–06: I taught several editions of the course “The Macroeconomic Environment” in the Strategic

Management Programs of Renfe, Iberia, and BSCH organized by Euroforum.

1991–05: I taught several editions of the courses “Economic Growth” and “Macroeconomics” in several Masters Programs offered by the Universidad Carlos III de Madrid.

2000–01: I taught the course “Introduction to Computational Methods for the Study of Dynamic Economies” at the School of Economics and Finance of the Centro de Estudios Monetarios and Financieros (CEMFI).

1999–00: I taught the first part of the course “Dynamic Macroeconomic Models” at the School of Economics and Finance of the Centro de Estudios Monetarios and Financieros (CEMFI). 1997–98: I taught the course “International Economics” in the Program of International Studies offered

by the School of Diplomacy (Madrid).

1989–90: I taught the course “Microeconomics” at the Training Program of the Bank of Spain.

(10)

TEACHING IN UNDERGRADUATE PROGRAMS

1990–07: I have taught thirty sections of “Introduction to Macroeconomics”, four sections of “Inter-mediate Macroeconomics” and one section of “Advanced Macroeconomics” in various under-graduate programs offered by the Universidad Carlos III de Madrid.

1989–90: I taught three sections of the the course “Introduction to Economics” in the undergraduate programs offered by the Universidad Complutense de Madrid

1985–89: I taught ten sections of the the course “Principles of Macroeconomics” offered by the College of Liberal Arts of the University of Minnesota.

PhD DISSERTATIONS ADVISED

: Kateryna Bornukova. She is currently working on the business cycle fluctuations of economies with two-people households.

2006: Juli´an D´ıaz Saavedra. “Social Security Reform in Spain”. Julian’s dissertation has resulted in two publications:

(a) D´ıaz-Gim´enez, J. and J. D´ıaz-Saavedra (2006). “The Demographic and Educational Tran-sitions and the Sustainability of the Spanish Public Pension System” Moneda and Cr´edito 222: 223–270.

(b) D´ıaz-Gim´enez, J. and J. D´ıaz-Saavedra. “Delaying Retirement in Spain”. Review of Economic Dynamics 12: 147–167.

1996: Ana Casta˜neda. “Towards a theory of the income and wealth distributions.” Co-advised with J.-V. R´ıos-Rull. Ana’s dissertation has resulted in two publications:

(a) Casta˜neda, A., J. D´ıaz-Gim´enez and J.-V. R´ıos-Rull. “Accounting for the U.S. Earnings and Wealth Inequality”. Journal of Political Economy111, 818–57 (2003).

(b) Casta˜neda, A., J. D´ıaz-Gim´enez and J.V. R´ıos-Rull. “Exploring the Income Distribution Dynamics”. Journal of Monetary Economics42, 93–130, (1998).

1995: Luis A. Puch. “Ensayos sobre econom´ıa dinámica: I. Restricciones de liquidez, II. Utilización del capital”. Codirigida con Omar Licandro. Luis’ dissertation has resulted in two publications: (a) Puch, L. A. and O. Licandro. “Are There any Special Features in the Spanish Business Cycle?”. Investigaciones Económicas XXI(2): 361-394 (1997). This article was awarded the I Fundación Empresa Pública Essay Prize.

(b) D´ıaz-Gim´enez, J. and L. A. Puch. “Borrowing Constraints in Economies with Indivisible Household Capital and Banking”. Investigaciones Econ´omicasXXII (3): 469–499 (1998).

PUBLICATIONS OF TEACHING MATERIAL

Title: Macroeconom´ıa: primeros conceptos(476 pages).

Publisher: Antoni Bosch Editor. Barcelona (1999). ISBN 84-85855-86-8. Author: Javier D´ıaz-Gim´enez.

Title: Macroeconom´ıa para Todos. Publisher: Unpublished manuscript.

TEACHING AWARDS

In 1989 I received the Walter W. Heller Outstanding Teaching Award which was granted annually to the best instructor of the Department of Economics at the University of Minnesota.

(11)

TEACHING QUINQUENIA (Spanish Ministry of Education)

Four quinquenia granted: 1985–89, 1990–94, 1995–99 and 2000–04.

D. SERVICE HISTORY

SERVICE TO THE ACADEMIC COMMUNITY

2007: Organizer of the X Summer School on Economics and Philosophy (2007) sponsored by the Urrutia Elejalde Foundation. This Summer school was part of the Summer School of the Universidad del Pa´ıs Vasco. The title of the course was “Using Dynamic Economic Models to Make Policy Recommendations”.

1994–07: Course coordinator for Principles of Macroeconomics at the Department of Economics of the Universidad Carlos III de Madrid.

1997–07: Founder and organizer of the “Madrid Macroeconomics Workshop”, a non-institutional semi-nar which intends to become a permanent discussion forum for all macroeconomic researchers located in Madrid.

1998–01: Deputy Director of Research of the Department of Economics of the Universidad Carlos III de Madrid.

1993–96: Computing Representative of the Department of Economics of the Universidad Carlos III de Madrid.

1991–92: Course coordinator for Intermediate Macroeconomics at the Department of Economics of the Universidad Carlos III de Madrid.

1990–92: Editor and designer of the Working Paper collections of the Department of Economics of the Universidad Carlos III de Madrid.

JOURNAL REFEREEING

Journal of Political Economy, American Economic Review, International Economic Review, Journal of Economic Theory,Review of Economic Dynamic,European Economic Review,Macroeconomic Dy-namics,Investigaciones Econ´omicas, and Spanish Economic Review.