Gaballo, Gaetano

Associate Professor

EESC HEC Paris, France



Max Weber alumnus

Department of Economics

Cohort(s): 2010/2011

Ph.D. Institution

University of Cambridge, United Kingdom


I am a Macroeconomist with research interests in informational frictions and learning in the context of DSGE models.
The main objective of my recent research is to demonstrate how uncertainty on expectations of others can sustain non-fundamental volatility, even if agents are assumed rational and perfectly informed on the objective features of the economy.
Currently, I am developing the concept of rational exuberance equilibria (REX). These equilibria feature aggregate volatility and necessarily cross-sectional variance of individual expectations. They exist in economies where typical sunspot equilibria do not exist and are learnable under adaptive learning schemes.
I am also interested in the trade-off between market competition and expectational stability and related policy recommendations. I expect to extend my research to the concrete case of the electricity market.
After being a visiting Ph.D. student at the University of Cambridge for the academic year 2007-2008, and at the University of St. Andrews for the Fall Term 2008, I obtained my Ph.D. in Economics from the University of Siena in September 2009. My dissertation, ‘Behavioural Uncertainty, Expectations and Learning in Macroeconomics’, was examined by Professors Nicola Dimitri (University of Siena), George W. Evans (University of Oregon) and Roger Guesnerie (College de France).
In 2009 I received the Best Ph.D. Paper Award from the Society of Computational Economics. Over the academic year 2009-2010 I have been at Columbia University as Robert Solow Postdoc Fellow, under the guidance of Professor Michael Woodford.
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