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Janice C Eberly

FINANCE
John L. and Helen Kellogg Professor of Finance

Print Overview
Janice Eberly is the John L. and Helen Kellogg Professor of Finance and former Chair of the Finance Department. Before joining the Kellogg faculty, she was a faculty member in Finance at the Wharton School of the University of Pennsylvania.

Professor Eberly's research focuses on finance and macroeconomics. Her work studies firms' capital budgeting decisions and household consumption and portfolio choice. She further examines the interaction of these spending and investment choices with the macroeconomy. Her current research emphasizes household finance and the cost of updating wealth portfolios, while other work focuses on the difficulties and implications of reallocating capital across sectors. She has received a Sloan Foundation research fellowship and grant funding from the National Science Foundation.

An Associate Editor of the American Economic Review, the Journal of Monetary Economics, and Macroeconomic Dynamics, Professor Eberly is also an associate of the National Bureau of Economic Research, and has been a visiting scholar at several Federal Reserve Banks and the Federal Reserve Board of Governors. She also served on the staff of the President's Council of Economic Advisors and is an elected member of the Executive Committee of the American Economic Association.

Professor Eberly has won numerous awards for her teaching, including most recently the Chairs' Core Teaching Award in 2001 and 2006 and the Outstanding Professor Award from the Executive Master's Program in 2002 and 2008. She received her Ph.D. in Economics from MIT.



Areas of Expertise
Corporate Capital Structure
Macroeconomics (Includes: Monetary Economics, Federal Reserve, Interest Rates)
Monetary Policy (Monetary Economics, Federal Reserve, Interest Rates)
Real Options (Investments)
  • Recent Media Coverage

    Economist Intelligence Unit: Executive Briefing: Don’t Look Now - 12/16/2008

    Bloomberg: Friedman's Chicago Tosses Texts as Crisis Generates Confusion - 10/14/2008

    BusinessWeek Online: The Major Attraction of a Business Minor - 3/9/2007

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Print Vita
Education
PhD, 1991, Economics, Massachusetts Institute of Technology
BS, 1986, University of California, Davis, President's Medal (Valedictorian)

Academic Positions
Academic Director, Certificate Programs for Undergraduates, Kellogg School of Management, Northwestern University, 2007-present
John L. and Helen Kellogg Distinguished Professor of Finance, Kellogg School of Management, Northwestern University, 2002-present
Chair of the Finance Department, Kellogg School of Management, Northwestern University, 2005-2007
John L. and Helen Kellogg Associate Professor of Finance, Kellogg School of Management, Northwestern University, 2000-2002
Associate Professor of Finance, Kellogg School of Management, Northwestern University, 1998-2002
Associate Professor of Finance, The Wharton School, University of Pennsylvania, 1997-1998
Assistant Professor of Finance, The Wharton School, University of Pennsylvania, 1991-1997
Junior Economist, Council of Economic Advisers, Executive Office of the President, 1989-1990

Other Professional Experience
Board member , Carnegie-Rochester Conference Series on Public Policy, 2003-present
Elected Member of the Executive Committee, American Economic Assocation, 2008-2010
Junior Economist, Council of Economic Advisers, 1989-1990

Editorial Positions
Associate Editor, American Economic Review, 2004-Present
Associate Editor, B.E. Journal of Macroeconomics, 2000-Present
Associate Editor, Journal of Monetary Economics, 1999-Present
Associate Editor, Review of Economics and Statistics, 2003-Present
Associate Editor, European Economic Review, 2003-2007
Associate Editor, Macroeconomic Dynamics, 2000-2007

 
Print Research
Research Interests
Capital budgeting and real options; financial frictions; household finance, portfolio choice, and consumption

Articles
Eberly, Janice C and Neng Wang. 2009. Capital Reallocation and Growth. American Economic Review: Papers and Proceedings. 99(2)
Abel, Andrew B., Janice C Eberly and Stavros Panageas. 2007. Optimal Inattention to the Stock Market. American Economic Review: Papers and Proceedings. 97(2): 244-249.
Eberly, Janice C. 2005. The Rise in Firm-Level Volatility: Causes and Consequences, Comments. NBER Macroeconomics Annual.
Abstract
Eberly, Janice C. 2002. Time-varying Risk Premia and the Cost of Capital: An Alternative Implication of the Q Theory of Investment, Comments. Journal of Monetary Economics, Carnegie-Rochester Conference Series on Public Policy. 49(1): 67-74.
Eberly, Janice C. 2000. The Stock Market and Investment in the New Economy: Some Tangible Facts and Intangible Fictions, Comments. Brookings Papers on Economic Activity. 31(1): 61-124.
Abel, Andrew B. and Janice C Eberly. 1999. The Effects of Irreversibility and Uncertainty on Capital Accumulation. Journal of Monetary Economics. 44(3): 339-377.
Abstract
Abel, Andrew B. and Janice C Eberly. 1998. The Mix and Scale of Factors with Irreversibility and Fixed Costs of Investment. Carnegie-Rochester Conference Series on Public Policy. 48: 101-135.
Abstract
Abel, Andrew B. and Janice C Eberly. 1997. An exact solution for the investment and value of a firm facing uncertainty, adjustment costs, and irreversibility. Journal of Economic Dynamics and Control. 21(4-5): 831-852.
Abstract
Eberly, Janice C. 1997. International Evidence on Investment and Fundamentals. European Economic Review. 75(2): 1055-1078.
Abstract
Eberly, Janice C and Jan A. Van Mieghem. 1997. Multifactor Dynamic Investment Under Uncertainty. Journal of Economic Theory. 75(8): 345-387.
Abstract
Abel, Andrew B. and Janice C Eberly. 1996. Optimal Investment with Costly Reversibility. Review of Economic Studies. 63(4): 581-593.
Abstract
Abel, Andrew B., Avinash Dixit, Janice C Eberly and Robert Pindyck. 1996. Options, the Value of Capital, and Investment. Quarterly Journal of Economics. 111(3): 753-777.
Abstract
Abel, Andrew B. and Janice C Eberly. 1994. A Unified Model of Investment Under Uncertainty. American Economic Review. 84(5): 1369-1384.
Reprinted in:
The Legacy of Robert Lucas, Jr., edited by Kevin D. Hoover, United Kingdom; Boston, MA: Edward Elgar Publishing, 1999.
AbstractLink
Eberly, Janice C. 1994. Adjustment of Consumers' Durables Stocks: Evidence from Automobile Purchases. Journal of Political Economy. 102(3): 403-436.
Abstract
Eberly, Janice C. 1993. On Irreversibility and Aggregate Investment: Comment. NBER Macroeconomics Annual. 8: 303-312.
Working Papers
Abel, Andrew B., Janice C Eberly and Stavros Panageas. 2009. Optimal Inattention to the Stock Market with Information Costs and Transactions Costs.
Abstract
Eberly, Janice C, Sergio Rebelo and Nicolas Vincent. 2009. Investment and Value: A Neoclassical Benchmark.
Abstract
Eberly, Janice C and Neng Wang. Reallocation and Pricing Illiquid Capital: Two Productive Trees .
Abel, Andrew B. and Janice C Eberly. 2005. Investment, Valuation, and Growth Options.
Abstract
Abel, Andrew B. and Janice C Eberly. 2002. Investment and q with Fixed Costs: An Empirical Analysis.
Abstract
Abel, Andrew B. and Janice C Eberly. 2002. Q for the Long Run.
AbstractLink
Abel, Andrew B. and Janice C Eberly. 2002. Q Theory without Adjustment Costs and Cash Flow Effects without Financing Constraints.
AbstractLink
Book Chapters
Eberly, Janice C. 2008. "Irreversible Investment." edited by Durlauf, S. and Blume, L, Palgrave McMillian, Second Edition.
Abstract

 
Print Teaching
Teaching Interests
Corporate finance, macroeconomics
Full-Time / Part-Time MBA
Finance I/II (FINC-440-0)

This course counts toward the following majors: Analytical Finance, Finance

This course combines the materials of FINC-430 and FINC-441 into an intensive one-quarter course available to One-Year students and first-year students interested in accelerating their studies of finance. Students choosing this option should expect the presentations, readings and other homework to be at least double those of the regular courses. By combining these two courses into one quarter, students are able to take more advanced finance electives during their first year and have the opportunity to include an extra finance elective in their course schedules. Please note that this course carries the weight of one course only. Prerequisites: Knowledge of (a) probability and statistics through linear regression and (b) financial accounting. Requirement (a) may be satisfied with prior or concurrent registration in DECS 434, sufficient previous course work in statistics or attending Finance I statistics tutorials (available fall quarter only). Requirement (b) may be satisfied with prior or concurrent registration in ACCT 430 or sufficient previous course work in financial accounting. MECN 430 is recommended.

Doctoral
General Seminar for PhD Candidates (FINC-520-0)
Current research in topics such as international finance, empirical finance, capital structure and financial markets are analyzed. The seminar usually requires in-class presentations by students, as well as individual research projects.

Executive MBA
Macroeconomics (MECNX-450-0)
Macroeconomics studies national and global economic activity. The course focuses on the effects of fiscal and monetary policies on GNP, interest rates, unemployment and inflation.