Timothy J. Kehoe

Professor of Economics, University of Minnesota

and Adviser, Federal Reserve Bank of Minneapolis

Real GDP per working-age person in the United States, 1900–2005

Compare U.S. economic growth over the period 1900-2005 to a 2 percent per year trend. Notice how trivial business cycle fluctuations are in comparison to the 1929-39 Great Depression. We need new tools to study great depressions. A book, edited by Tim Kehoe and Ed Prescott, provides these tools. Gonzalo Fernández de Córdoba and Tim have written a short paper explaining how studying great depressions of the past is essential for understanding the current financial crisis. (Click here for a version in Spanish.) Click here for an article by Caroline Baum in the Bloomberg News in March 2009 about the relevance of this paper for the U.S. financial crisis.

Tim Kehoe received his B.A. in Economics and Mathematics from Providence College in 1975 and his Ph.D. from Yale University in 1979. He has taught at Wesleyan University, the Massachusetts Institute of Technology, and the University of Cambridge in England. Since 1987 Tim has been a Professor in the Department of Economics at the University of Minnesota where he is currently Distinguished McKnight University Professor. He is also an adviser at the Federal Reserve Bank of Minneapolis.  His research and teaching focus on the theory and application of general equilibrium models. Tim has advised the Spanish government on the impact of joining the European Community in 1986, the Mexican government on the impact of joining NAFTA in 1994, and the Panamanian government on the impact of unilateral foreign trade and investment reforms in 1998. He is married to Jean O'Brien-Kehoe, an Associate Professor in the Department of History at the University of Minnesota.

	Research		Teaching
	Publications		Computation
	Curriculum Vitae		Personal
		Data

Recent Papers

Ed Prescott and Tim have edited a book related to the Great Depressions Project that they have been running at the Federal Reserve Bank of Minneapolis since 2000. Click here for the slides for a brief presentation on the Great Depressions Project. Click here for an interview with Ed and Tim by the EconomicDynamics Newsletter about the Great Depressions Project. Click here for an article by Caroline Baum in the Bloomberg News in March 2009 about the relevance of this project for the U.S. financial crisis. Recently, Peter Temin wrote a review of the book that appeared in the Journal of Economic Literature.  Click here for Ed and Tim's response. Peter Temin seems to want to keep the argument going.

Here are some papers related to the Great Depressions Project:

• "The Current Financial Crisis: What Should We Learn from the Great Depressions of the Twentieth Century?" with Gonzalo Fernández de Córdoba.
• "A Decade Lost and Found:  Mexico and Chile in the 1980s" with Raphael Bergoeing, Patrick J. Kehoe, and Raimundo Soto.  (Description of the data and MS Excel file with all of the data.)
• "Great Depressions of the Twentieth Century" with Edward C. Prescott.  (Description of the data and MS Excel file with all of the data.)
• "Is Switzerland in a Great Depression?" with Kim J. Ruhl.  (Description of the data and MS Excel file with all of the data.)
• "Modeling Great Depressions:  The Depression in Finland in the 1990s" with Juan Carlos Conesa and Kim J. Ruhl. (Description of the data and MS Excel file with all of the data.)
• "Policy-Driven Productivity in Chile and Mexico in the 1980s and 1990s"  with Raphael Bergoeing, Patrick J. Kehoe, and Raimundo Soto.
• "Recent Great Depressions:  Aggregate Growth in New Zealand and Switzerland" with Kim J. Ruhl. (Description of the data and MS Excel file with all of the data.)
• "Using the General Equilibrium Growth Model to Study Great Depressions:  A Reply to Temin" with Edward C. Prescott.  (Description of the data and MS Excel file with all of the data.)
• "What Can We Learn from the 1998-2002 Depression in Argentina?"  (Description of the data and MS Excel file with all of the data.)

Here are some other papers:

• "Bankruptcy and Collateral in Debt Constrained Markets" with David K. Levine.
• "Demographics in Dynamic Heckscher-Ohlin Models:  Overlapping Generations versus Infinitely Lived Consumers" with Claustre Bajona.
• "How Important is the New Goods Margin in International Trade?" with Kim J. Ruhl. (Zip file with all of the data.)
• "Real Exchange Rate Movements and the Relative Price of Nontraded Goods" with Caroline M. Betts.   (Description of the data and MS Excel file with all of the data and MS Excel file with bilateral trade data.)

• "Sudden Stops, Sectoral Reallocations, and the Real Exchange Rate" with Kim J. Ruhl.  (Description of the data and MS Excel file with all of the data.)

• "Tradability of Goods and Real Exchange Rate Fluctuations" with Caroline M. Betts.
• "Trade, Growth, and Convergence in a Dynamic Heckscher-Ohlin Model" with Claustre Bajona.
• "Trade Theory and Trade Facts" with Raphael Bergoeing.

For more papers go here.  

Archive of research papers from the Federal Reserve Bank of Minneapolis

File format
Files posted to this site are in Adobe Acrobat (.pdf) format.
You can get Adobe's Acrobat Reader from Adobe's Web site at no charge.  

Some Links

Students on the 2008–09 job market

• Ayse Erdogan, Assistant Professor, Rochester Institute of Technology.
• Turkmen Goksel, Assistant Professor, Ankara University.
• Miguel Ricuarte, Senior Economist, División de Estudios, Banco Central de Chile.
• Katherine Schmeiser, Assistant Professor, Mount Holyoke College.
• Ina Simonovska, Assistant Professor, University of California-Davis.
• Radoslaw Stefanski, Postdoctoral Research Fellow, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
• Yelena Tuzova, Economist, ECOPA (Economic Policy Analysis).

Other people

• Cristina Arellano, University of Minnesota

• Costas Arkolakis, Yale University
• Raphael Bergoeing, Universidad de Chile
• Caroline Betts, University of Southern California
• Michele Boldrin, Washington University in St. Louis
• Juan Carlos Conesa, Universitat Autònoma de Barcelona
• Carlos Garriga, Federal Reserve Bank of St. Louis
• Mark J. Gibson, Washington State University
• Patrick J. Kehoe, Federal Reserve Bank of Minneapolis and University of Minnesota
• Omar Licandro, European University Institute
• David K. Levine, Washington University in St. Louis
• Enrique G. Mendoza, University of Maryland
• Edward C. Prescott, Federal Reserve Bank of Minneapolis and Arizona State University
• Franck Portier, Université Toulouse I Sciences Sociales
• Ananth Ramanarayanan, Federal Reserve Bank of Dallas
• Carmen M. Reinhart, University of Maryland
• José-Víctor Ríos-Rull, University of Minnesota
• Kim J. Ruhl, Stern School , New York University
• Jing Zhang, University of Michigan

 Organizations

• Centre de Recerca en Economia del Benestar, Universitat de Barcelona
• Department of Economics, University of Minnesota
• Quantitative Macroeconomics and Real Business Cycle Homepage
• Society for Economic Dynamics

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URL: http://www.econ.umn.edu/~tkehoe/

© 2000, 2009 by the Regents of the University of Minnesota.

All rights reserved.  
The construction of this web site was supported by the National Science Foundation under Grants No. 96-18370, 00-96364, 05-20517.  
The views and opinions expressed in this page are strictly those of the page author. The contents of this page have not been reviewed or approved by the University of Minnesota.

Comments to:  tkehoe@umn.edu
Last modified: Thursday 14 May 2009 13:58