Per Lennart Krusell, born 1959, is a

Swedish Swedish or ' may refer to: Anything from or related to Sweden, a country in Northern Europe. Or, specifically: * Swedish language, a North Germanic language spoken primarily in Sweden and Finland ** Swedish alphabet, the official alphabet used by ...

macroeconomic 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, an ...

theorist who is currently the Torsten and Ragnar Soderberg Chair in Economics and the

Institute for International Economic Studies The Institute for International Economic Studies (IIES) is a Swedish research institute at Stockholm University, founded in the early 1960s. The main objective is to produce outstanding research for publication in leading international journals. The ...

Stockholm University Stockholm University ( sv, Stockholms universitet) is a public research university in Stockholm, Sweden, founded as a college in 1878, with university status since 1960. With over 33,000 students at four different faculties: law, humanities, ...

, as well as Centennial Professor of Economics at the

London School of Economics , mottoeng = To understand the causes of things , established = , type = Public research university , endowment = £240.8 million (2021) , budget = £391.1 milli ...

. Until recently, he was a professor of economics at

Princeton University Princeton University is a private research university in Princeton, New Jersey. Founded in 1746 in Elizabeth as the College of New Jersey, Princeton is the fourth-oldest institution of higher education in the United States and one of the ...

and, before that, held positions 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 ...

, the

University of Pennsylvania The University of Pennsylvania (also known as Penn or UPenn) is a Private university, private research university in Philadelphia. It is the fourth-oldest institution of higher education in the United States and is ranked among the highest- ...

, and

Northwestern University Northwestern University is a private research university in Evanston, Illinois. Founded in 1851, Northwestern is the oldest chartered university in Illinois and is ranked among the most prestigious academic institutions in the world. Charte ...

. He received numerous awards and grants, most recently the 2007 Söderberg Prize and a 2.1 Million Euro 2008 senior research grant from the European Research Council. Krusell's research has focused on macroeconomics, broadly defined, with particular contributions in the areas of technological change, inequality, political economy, macroeconomic policy, and labor economics. He is currently pursuing a long-term project on the interactions between global climate change and the economy. He is especially known for developing the most widely used computational

algorithm In mathematics and computer science, an algorithm () is a finite sequence of rigorous instructions, typically used to solve a class of specific problems or to perform a computation. Algorithms are used as specifications for performing ...

for calculating macroeconomic equilibrium under

rational expectations In economics, "rational expectations" are model-consistent expectations, in that agents inside the model are assumed to "know the model" and on average take the model's predictions as valid. Rational expectations ensure internal consistency i ...

in economies with

heterogeneous agents In economic theory and econometrics, the term heterogeneity refers to differences across the units being studied. For example, a macroeconomic model in which consumers are assumed to differ from one another is said to have heterogeneous agents. ...

and aggregate uncertainty when financial markets are incomplete. His work with Jeremy Greenwood and Zvi Hercowitz on

investment-specific technological progress Investment-specific technological progress refers to progress that requires investment in new equipment and structures embodying the latest technology in order to realize its benefits. To model the influence of technological change upon production t ...

has also been extremely influential. Krusell was elected a member of the

Royal Swedish Academy of Sciences The Royal Swedish Academy of Sciences ( sv, Kungliga Vetenskapsakademien) is one of the royal academies of Sweden. Founded on 2 June 1739, it is an independent, non-governmental scientific organization that takes special responsibility for prom ...

in 2003. Since 2003, he is a member of the Prize Committee for The Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel, and its chair since 2011. He served as the president of the

European Economic Association The European Economic Association (EEA) is a professional academic body which links European economists. It was founded in the mid-1980s. Its first annual congress was in 1986 in Vienna and its first president was Jacques Drèze. The current pres ...

in 2020.

Influential Publications

1. ''"Long-Run Implications of Investment-Specific Technological Progress", American Economic Review, June 1997, (with Jeremy Greenwood and Zvi Hercowitz).'' Casual empiricism suggests that technological progress is often embodied in the form of new and improved capital goods. Many examples come to mind: computers, robots, cell phones and the like. The paper analyzes the role of this type of technological change in U.S. economic growth. The results suggest that

accounts for the major part of U.S. economic growth over the postwar period.Some history for this research is here: http://hdl.handle.net/1802/2375 2.''"The Role of Investment-Specific Technological Change in the Business Cycle", European Economic Review, 2000, (with Jeremy Greenwood and Zvi Hercowitz).'' This research incorporates the notion of

into a business cycle model.

References

1959 births Living people Swedish economists Fellows of the Econometric Society Members of the Royal Swedish Academy of Sciences Computational economists Princeton University faculty Stockholm University faculty Labor economists Fellows of the European Economic Association {{Sweden-economist-stub

Influential Publications

See also

References