Linda L. Tesar (born c. 1961) is a professor of economics and director of graduate studies at the

University of Michigan College of Literature, Science, and the Arts The University of Michigan College of Literature, Science, and the Arts (LSA) is the liberal arts and sciences school of the University of Michigan in Ann Arbor. Established in 1841 with seven students and two teachers, the college is current ...

(LSA), the liberal arts and sciences school of the

University of Michigan , mottoeng = "Arts, Knowledge, Truth" , former_names = Catholepistemiad, or University of Michigania (1817–1821) , budget = $10.3 billion (2021) , endowment = $17 billion (2021)As o ...

in Ann Arbor. She is also a research associate at the

National Bureau of Economic Research The National Bureau of Economic Research (NBER) is an American private nonprofit research organization "committed to undertaking and disseminating unbiased economic research among public policymakers, business professionals, and the academic c ...

and the Editor-in-Chief of the

IMF Economic Review The IMF Economic Review (IMFER) is a peer-reviewed scientific journal published by Palgrave Macmillan on behalf of the International Monetary Fund (IMF), whose main research publication it is. The ''IMF Economic Review'' has a focus on open economy ...

. She has been a visitor in the Research Departments of the

International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster globa ...

, the

Federal Reserve Board of Governors The Board of Governors of the Federal Reserve System, commonly known as the Federal Reserve Board, is the main governing body of the Federal Reserve System. It is charged with overseeing the Federal Reserve Banks and with helping implement the mon ...

and the

Federal Reserve Bank of Minneapolis Federal or foederal (archaic) may refer to: Politics General *Federal monarchy, a federation of monarchies *Federation, or ''Federal state'' (federal system), a type of government characterized by both a central (federal) government and states or ...

. In the past, she has also served on the academic advisory council to the

Federal Reserve Bank of Chicago The Federal Reserve Bank of Chicago (informally the Chicago Fed) is one of twelve regional Reserve Banks that, along with the Federal Reserve Board of Governors, make up the United States' central bank. The Chicago Reserve Bank serves the Sevent ...

. From 2014 to 2015, Tesar served as Senior Economist on the

Council of Economic Advisers The Council of Economic Advisers (CEA) is a United States agency within the Executive Office of the President established in 1946, which advises the President of the United States on economic policy. The CEA provides much of the empirical resea ...

. Her field of specialization is in

international finance International finance (also referred to as international monetary economics or international macroeconomics) is the branch of financial economics broadly concerned with monetary and macroeconomic interrelations between two or more countries. Inter ...

international trade International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services. (see: World economy) In most countries, such trade represents a significant ...

and

macroeconomics Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics dealing with performance, structure, behavior, and decision-making of an economy as a whole. For example, using interest rates, taxes, and ...

, with significant research in the international transmission of business cycles and fiscal policy, the benefits of global risk-sharing, capital flows to emerging markets, the impact of exchange rate exposure, international

tax competition Tax competition, a form of regulatory competition, exists when governments use reductions in fiscal burdens to encourage the inflow of productive resources or to discourage the exodus of those resources. Often, this means a governmental strategy ...

and the challenges facing the euro area. Her research has been published in the

American Economic Review The ''American Economic Review'' is a monthly peer-reviewed academic journal published by the American Economic Association. First published in 1911, it is considered one of the most prestigious and highly distinguished journals in the field of ec ...

, the

Journal of International Economics The ''Journal of International Economics'' is a peer-reviewed academic journal in the field of economics. The journal publishes articles on both theoretical and empirical aspects of international economics. Various topics covered include trade pat ...

, the

Review of Financial Studies ''The Review of Financial Studies'' is a peer-reviewed academic journal covering the field of finance. It is published by Oxford University Press on behalf of the Society for Financial Studies. It was established following discussions at the 19 ...

and the

Journal of Monetary Economics The ''Journal of Monetary Economics'' is a peer-reviewed academic journal covering research on macroeconomics and monetary economics. It is published by Elsevier and was established in October 1973 by Karl Brunner and Charles I. Plosser. Beginn ...

. Tesar is actively engaged in efforts to improve the climate for women and underrepresented minorities in the economics discipline. She is a long-time member of the American Economic Association's Committee and has mentored junior faculty at various universities. She has also served on the board of the

’s Advance program, with the objective of improving institutional climate and supporting good practice in faculty recruitment, retention, and leadership. She participates in the national Women in Macroeconomics initiative and is a regularly invited speaker on gender issues in economics.

Education and work

Tesar earned her B.A. of International Relations and B.S. of Economics in 1984 from the

University of Minnesota The University of Minnesota, formally the University of Minnesota, Twin Cities, (UMN Twin Cities, the U of M, or Minnesota) is a public university, public Land-grant university, land-grant research university in the Minneapolis–Saint Paul, Tw ...

, both of which she graduated with honours. After completing her undergraduate education, she worked as a research assistant for one year at the

Brookings Institution The Brookings Institution, often stylized as simply Brookings, is an American research group founded in 1916. Located on Think Tank Row in Washington, D.C., the organization conducts research and education in the social sciences, primarily in ec ...

. She continued her education at the

University of Rochester The University of Rochester (U of R, UR, or U of Rochester) is a private research university in Rochester, New York. The university grants undergraduate and graduate degrees, including doctoral and professional degrees. The University of Roc ...

, where she received her M.A and Ph.D. in Economics in 1988 and 1990 respectively. She joined the faculty at the

University of California, Santa Barbara The University of California, Santa Barbara (UC Santa Barbara or UCSB) is a Public university, public Land-grant university, land-grant research university in Santa Barbara County, California, Santa Barbara, California with 23,196 undergraduate ...

for 7 years before she became a professor in the Department of Economics at the

in 1997, where she served as Department Chair from 2007 to 2011. She is currently director of the doctoral program at Michigan, as well as the head of admissions.

Selected scholarship

The Collapse of International Trade During the 2008-2009 Crisis: In Search of the Smoking Gun (2010)

Together with Andrei A. Levchenko and Logan T. Lewis, Tesar explores the collapse in international trade during the most recent global recession. They analyse disaggregated data on U.S. imports and exports to shed light on the anatomy of the collapse. They find that the recent reduction in trade relative to overall economic activity is far larger than in previous downturns. During the examination of data, a 40% shortfall is revealed in quantities and prices of both domestic absorption and imports, relative to what would be predicted by a simple import demand relationship. They find that sectors used as intermediate inputs experienced significantly higher percentage reductions in both imports and exports while exploring a sample of imports and exports disaggregated at the 6-digit

NAICS The North American Industry Classification System or NAICS () is a classification of business establishments by type of economic activity (process of production). It is used by government and business in Canada, Mexico, and the United States of A ...

level. They also find support for compositional effects: sectors with larger reductions in domestic output had larger drops in trade. In contrast to the climate of opinion, they did not find support for the hypothesis that trade credit played a role in the recent trade collapse.

The Value of Control in Emerging Markets (2010)

This paper studies the economically large and statistically significant increase in acquiring firm's stock price when a developed country multinational firm acquires majority control of a firm in an emerging market. Along with

Anusha Chari Anusha Chari is an Indian-American economist who is a professor of economics and finance at the University of North Carolina at Chapel Hill, where she directs the Modern Indian Studies Initiative. She is also a research associate of the National ...

and Paige P. Ouimet, Tesar explores two decades (1986–2006) in which developed-market acquirers experienced positive and significant abnormal returns of 1.16%, on average, over a three-day event window. it is revealed that these positive acquirer returns and dollar value gains are unique to emerging-market mergers, and the gains are not replicated when the same acquirers take over firms in developed markets. The stock price increase is significantly more in two scenarios: the weaker the contracting environment in the emerging market and for industries with high asset intangibility.

Border Effect or Country Effect? Seattle May Not Be So Far from Vancouver After All (2009)

"Border effect refers to asymmetries in trade patterns between cities and regions of different countries that share a national border and those that are located in the same country. Usually, trade volume is much lesser between the former cities and regions."

Yuriy Gorodnichenko Yuriy Gorodnichenko () is an economist and Quantedge Presidential professor at the University of California, Berkeley. Gorodnichenko is also a visiting scholar at the Federal Reserve Bank of San Francisco, a faculty research associate at the Nati ...

and Tesar re-examines the evidence on the border effect in this paper. They argue that if there is cross-country heterogeneity in the distribution of price differentials within a country, then there is no clear reference point from which to set a standard for the effect of the border. Due to the lack of a structural model or natural experiment, it is not possible to separate the "border" effect from the effect of trading with a country with different distribution of prices. This paper aims to prove that the "border effect" identified by Engel and Rogers (1996) is driven entirely by the difference in the distribution of prices in United States and Canada.

Trade, Production Sharing, and the International Transmission of Business Cycles (2008)

Ariel Burstein, Christopher Kurz and Tesar conclude in this paper that countries that are more engaged in production sharing exhibit higher bilateral manufacturing output correlations. They analyze data on trade flows between US multinationals and their affiliates, as well as trade between the United States and Mexican

maquiladora A (), or (), is a word that refers to factories that are largely duty free and tariff-free. These factories take raw materials and assemble, manufacture, or process them and export the finished product. These factories and systems are present t ...

s to measure production-sharing trade and its connection with the business cycle. They develop a quantitative model of international business cycles that generates a positive link between the extent of vertically integrated production-sharing trade and internationally synchronized business cycles. A key assumption that is made in the creation of the model is a relatively low elasticity of substitution between home and foreign inputs in the production of a vertically integrated good.

Publications

Working papers

* Christopher L. House, Christian Proebsting, Linda L. Tesar (2019) ''Regional Effects of Exchange Rate Fluctuations.'' NBER Working Paper No. 26071 * Christopher L. House, Christian Proebsting, Linda L. Tesar (2018) ''Quantifying the Benefits of Labor Mobility in a Currency Union''. NBER Working Paper No. 25347 * Ron Alquist, Nicolas Berman, Rahul Mukherjee, Linda Tesar (2018) ''Financial Constraints, Institutions, and Foreign Ownership.'' NBER Working Paper No. 24241 * Christopher L. House, Christian Proebsting, Linda L. Tesar (2017) ''Austerity in the Aftermath of the Great Recession.'' NBER Working Paper No. 23147 * Christopher L. House, Linda L. Tesar (2015) ''Greek Budget Realities: No Easy Options.'' NBER Working Paper No. 21688 * Enrique G. Mendoza, Linda L. Tesar, Jing Zhang (2014) ''Saving Europe?: The Unpleasant Arithmetic of Fiscal Austerity in Integrated Economies.'' NBER Working Paper No. 20200 * Ron Alquist, Rahul Mukherjee, Linda Tesar (2013) ''Fire-sale FDI or Business as Usual?'' NBER Working Paper No. 18837 * Yun Jung Kim, Linda Tesar, Jing Zhang (2012) ''The Impact of Foreign Liabilities on Small Firms: Firm-Level Evidence from the Korean Crisis.'' NBER Working Paper No. 17756 * Andrei Levchenko, Logan Lewis, Linda L. Tesar (2010) ''The Role of Financial Factors in the Trade Collapse: A Skeptic's View.'' Working Papers from Research Seminar in International Economics No 616 * Ariel Burstein, Christopher Kurz, Linda L. Tesar (2008) ''Trade, Production Sharing, and the International Transmission of Business Cycles.'' NBER Working Paper No.13731 * Yuriy Gorodnichenko,Linda L. Tesar (2005) ''A Re-Examination of the Border Effect.'' NBER Working Paper No.11706 * Sebastian Auguste, Kathryn Dominguez, Herman Kamil, Linda L. Tesar (2005) ''Cross-Border Trading as a Mechanism for Implicit Capital Flight: ADRs and the Argentine Crisis.'' Working Papers from Research Seminar in International Economics No 533 * Kathryn Dominguez, Linda L. Tesar (2005) ''International Borrowing and Macroeconomic Performance in Argentina.'' NBER Working Paper No.11353 * Anusha Chari, Paige P. Ouimet, Linda L. Tesar (2004) ''Acquiring Control in Emerging Markets: Evidence from the Stock Market.'' NBER Working Paper No.10872 * Anusha Chari, Paige P. Ouimet, Linda L. Tesar (2004) ''Enhancing the Benefits for India and Other Developing Countries in the Doha Development Agenda Negotiations.'' Working Papers from Research Seminar in International Economics No 511 * Enrique Mendoza, Linda L. Tesar (2004) ''Winners and Losers of Tax Competition in the European Union.'' Working Papers from Research Seminar in International Economics No 508 * Enrique Mendoza, Linda L. Tesar (2003) ''A Quantitative Analysis of Tax Competition v. Tax Coordination under Perfect Capital Mobility.'' NBER Working Paper No.9746 * Enrique G. Mendoza, Linda L. Tesar (1995) ''Supply-Side Economics in a Global Economy.'' NBER Working Paper No. 5086 * Enrique G. Mendoza, Assaf Razin, Linda L. Tesar (1994) ''Computing Effective Tax Rates on Factor Incomes and Consumption: An International Macroeconomic Perspective.'' CEPR Discussion Papers No. 866 * Enrique G. Mendoza, Assaf Razin, Linda L. Tesar (1994) ''Effective Tax Rates in Macroeconomics: Cross-Country Estimates of Tax Rates on Factor Incomes and Consumption.'' NBER Working Paper No. 4864 * Linda L. Tesar, Ingrid M. Werner (1994) ''International Equity Transactions and U.S. Portfolio Choice.'' NBER Working Paper No. 4611 * Linda L. Tesar, Ingrid M. Werner (1992) ''Home Bias and the High Turnover.'' NBER Working Paper No. 4218 * Alan C. Stockman, Linda L. Tesar (1990) ''Tastes and Technology in a Two-Country Model of the Business Cycle: Explaining International Comovements.'' NBER Working Paper No. 3566

Journal articles

* Yuriy Gorodnichenko, Enrique G. Mendoza, Linda L. Tesar (2012) ''The Finnish Great Depression: From Russia with Love.'' American Economic Review, vol. 102, issue 4, 1619–44 * Andrei Levchenko, Logan Lewis, Linda L. Tesar (2011) ''The "Collapse in Quality" Hypothesis.'' American Economic Review, vol. 101, issue 3, 293-97 * Andrei Levchenko, Logan Lewis, Linda L. Tesar (2010) ''The Collapse of International Trade during the 2008–09 Crisis: In Search of the Smoking Gun.'' IMF Economic Review, vol. 58, issue 2, 214-253 * Anusha Chari, Paige P. Ouimet, Linda L. Tesar (2010) ''The Value of Control in Emerging Markets.'' Review of Financial Studies, vol. 23, issue 4, 1741-1770 * Yuriy Gorodnichenko, Linda L. Tesar (2009) ''Border Effect or Country Effect? Seattle May Not Be So Far from Vancouver After All.'' American Economic Journal: Macroeconomics, vol. 1, issue 1, 219-41 * Ariel Burstein, Christopher Kurz, Linda L. Tesar (2008) ''Trade, Production Sharing, and the International Transmission of Business Cycles''. Journal of Monetary Economics, vol. 55, issue 4, 775-795 * Sebastian Auguste, Kathryn Dominguez, Herman Kamil, Linda L. Tesar (2006) ''Cross-Border Trading as a Mechanism for Capital Flight: ADRs and the Argentine Crisis.'' Journal of Monetary Economics, vol. 53, issue 7, 1259-1295 * Kathryn Dominguez, Linda L. Tesar (2006) ''Exchange Rate Exposure.'' Journal of International Economics, vol. 68, issue 1, 188-218 * Enrique Mendoza, Linda L. Tesar (2005) ''Why hasn't tax competition triggered a race to the bottom? Some quantitative lessons from the EU.'' Journal of Monetary Economics, 2005, vol. 52, issue 1, 163-204 * Patrick F. Rowland and Linda L. Tesar (2004) ''Multinationals and the Gains from International Diversification.'' Review of Economic Dynamics, vol. 7, issue 4, 789-826 * Kathryn Dominguez, Linda L. Tesar (2001) ''A Re-Examination of Exchange Rate Exposure.'' American Economic Review, vol. 91, issue 2, 396-399 * Kathryn Dominguez, Linda L. Tesar (2001) ''Trade and Exposure.'' American Economic Review, vol. 91, issue 2, 367-370 * Enrique G. Mendoza, Linda L. Tesar (1998) ''The International Ramifications of Tax Reforms: Supply-Side Economics in a Global Economy.'' American Economic Review, vol. 88, issue 1, 226-45 * Henning Bohn, Linda L. Tesar (1996) ''U.S. Equity Investment in Foreign Markets: Portfolio Rebalancing or Return Chasing?'' American Economic Review, 1996, vol. 86, issue 2, 77-81 * Linda L. Tesar (1995) ''Evaluating the Gains from International Risksharing.'' Carnegie-Rochester Conference Series on Public Policy, vol. 42, issue 1, 95-143 * Linda L. Tesar, Ingrid M. Werner (1995) ''Home Bias and High Turnover.'' Journal of International Money and Finance, vol. 14, issue 4, 467-492 * Alan Stockman, Linda L. Tesar (1995) ''Tastes and Technology in a Two-Country Model of the Business Cycle: Explaining International Comovements.'' American Economic Review, vol. 85, issue 1, 168-85 * Linda L. Tesar, Ingrid M. Werner (1995) ''U.S. Equity Investment in Emerging Stock Markets.'' World Bank Economic Review, vol. 9, issue 1, 109-29 * Enrique Mendoza, Assaf Razin, Linda L. Tesar (1994) ''Effective Tax Rates in Macroeconomics: Cross-country Estimates of Tax Rates on Factor Incomes and Consumption.'' Journal of Monetary Economics, vol. 34, issue 3, 297-323 * Linda L. Tesar (1993) ''International Risk-sharing and Non-traded Goods.'' Journal of International Economics, vol. 35, issue 1-2, 69-89 * Linda L. Tesar (1991) ''Savings, Investment and International Capital Flows.'' Journal of International Economics, vol. 31, issue 1-2, 55-78

Chapters

* Linda L. Tesar (2008) ''Production Sharing and Business Cycle Synchronization in the Accession Countries.'' NBER International Seminar on Macroeconomics 2006, pp 195–238 * Kathryn Dominguez, Linda L. Tesar (2007) ''International Borrowing and Macroeconomic Performance in Argentina.'' Capital Controls and Capital Flows in Emerging Economies: Policies, Practices, and Consequences, pp 297–348 * Linda L. Tesar, Rene M. Stulz, Stephen Friedman, George N. Hatsopoulos (1999) ''The Role of Equity Markets in International Capital Flows.'' International Capital Flows, pp 235–306 * Linda L. Tesar, Ingrid M. Werner (1994) ''International Equity Transactions and U.S. Portfolio Choice.'' The Internationalization of Equity Markets, pp 185–227

References

{{DEFAULTSORT:Tesar, Linda 1961 births Living people American women economists University of Michigan faculty 21st-century American women