Janice C Eberly

FINANCE
James R. and Helen D. Russell Professor of Finance

Print Overview
Janice Eberly is the James R. and Helen D. Russell 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.  She is also studying 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 and the CME Trust. 

Professor Eberly has been an Associate Editor of the American Economic Review and other academic journals, and is a Senior Associate Editor of  the Journal of Monetary Economics.  Professor Eberly is also a Research 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 is on the advisory committees of the Bureau of Economic Analysis (BEA) and the Congressional Budget Office (CBO).

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, 2008, 2009, and 2010. 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)
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

Other Professional Experience
Advisory 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

Grants and Awards
Executive MBA Program Outstanding Teaching Awards, Kellogg School of Management, 2010, 2009, 2008, 2002
(EMP78 (Core) 2010, EMP75 (Core) 2009, EMP72 (Core) 2008, EMP71 (Core) 2008, EMP50 (Core) 2002)

Editorial Positions
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, American Economic Review, 2004-2010
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. 99(2): 560-566.
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
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. 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
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. 1996. Optimal Investment with Costly Reversibility. Review of Economic Studies. 63(4): 581-593.
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. and Janice C Eberly. Forthcoming. How Q and Cash Flow Affects Investment without Frictions: An Analytic Explaination.
AbstractLink
Eberly, Janice C, Sergio Rebelo and Nicolas Vincent. 2012. What Explains the Lagged Investment Effect?.
Abel, Andrew B., Janice C Eberly and Stavros Panageas. 2010. Optimal Inattention to the Stock Market with Information Costs and Transactions Costs.
Abstract
Eberly, Janice C and Neng Wang. 2010. Reallocating and Pricing Illiquid Capital: Two Productive Trees .
Eberly, Janice C, Sergio Rebelo and Nicolas Vincent. 2009. Investment and Value: A Neoclassical Benchmark.
Abstract
Abel, Andrew B. and Janice C Eberly. 2005. Investment, Valuation, and Growth Options.
Abstract
Abel, Andrew B. and Janice C Eberly. 2002. Q for the Long Run.
AbstractLink
Abel, Andrew B. and Janice C Eberly. 2002. Investment and q with Fixed Costs: An Empirical Analysis.
Abstract
Book Chapters
Eberly, Janice C. 2010. "Guaranteed versus Direct Lending: the Case of Student Loans." edited by Deborah Lucas , Chicago : University of Chicago Press .
Eberly, Janice C. 2008. "Irreversible Investment." In The New Palgrave Dictionary of Economics, edited by Steven Durlauf and Lawerence Blume., London, UK: Palgrave McMillian, Second Edition.
Abstract

 
Print Teaching
Teaching Interests
Corporate finance, macroeconomics
Doctoral
Topics in Finance (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.

Full-Time / Part-Time MBA
Macroeconomic Policy and Global Capital Markets (FINC-941-0)

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

How do national economies evolve and interact in a globalized world? This course focuses on the economic forces and the policy responses that are relevant for business and investment strategies. Specific topics include the meaning and measures of national and international economic activity; what determines which emerging markets develop and grow, while others stagnate; what drives business cycles, how they are propagated globally, and how government policy responds; monetary policy decisions and their effect on financial institutions and credit markets; government liabilities and how markets react to government debt; what determines trade deficits and surpluses, and the relative strength of a currency. The course provides a high-level overview to aid business planning, investment strategies, and policy analysis.

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.