Janice C. Eberly
Janice C. Eberly

James R. and Helen D. Russell Professor of Finance
Faculty Director, Kellogg Public-Private Initiative (KPPI)

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 served as the Assistant Secretary for Economic Policy at the U.S. Treasury from 2011 to 2013 after being confirmed by the U.S. Senate. In that capacity she was the Chief Economist at the Treasury, leading the Office of Economic Policy in analysis of the U.S. and global economies and financial markets and development of policy recommendations on micro and macroeconomic issues.

Professor Eberly's research focuses on finance and macroeconomics. Her work studies firms' capital budgeting decisions and household consumption and portfolio choice. She also examines the interaction of these spending and investment choices with the macroeconomy. Her current research emphasizes household finance and intangible investment. Her work has been published in the American Economic Review, the Journal of Political Economy, Econometrica, and the Quarterly Journal of Economics, among other academic journals. 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 Senior Associate Editor of the Journal of Monetary Economics. Previously Professor Eberly served on the staff of the President's Council of Economic Advisors and on the advisory committees of the Bureau of Economic Analysis (BEA) and the Congressional Budget Office (CBO). She was elected to the Executive Committee of the American Economic Association in 2008.

Professor Eberly was elected a Fellow of the American Academy of Arts and Sciences in 2013 and is Editor of the Brookings Papers on Economic Activity. She has won numerous awards for her teaching, including Chairs' Core Teaching Awards and Outstanding Professor Awards from the Executive Master's Program. She is a member of the Board of the TIAA-CREF mutual funds since 2018 and is Academic Director of the CEO Perspectives Program (Kellogg's most senior executive education program), a joint venture between the Kellogg School of Management, Corporate Leadership Center and Chicago Booth School of Business. Professor Eberly 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
PhD, 1991, Economics, Massachusetts Institute of Technology
BS, 1986, University of California, Davis, President's Medal (Valedictorian)

Academic Positions
James R. and Helen D. Russell Professor of Finance, Kellogg School of Management, Northwestern University, 2007-present
Academic Director, Certificate Programs for Undergraduates, Kellogg School of Management, Northwestern University, 2007-2011
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
Assistant Secretary for Economic Policy and Chief Economist, U.S. Treasury, 2011-2013
Panel of Economic Advisors, Congressional Budget Office, 2010-2011
Advisory Board, Bureau of Economic Analysis, U.S. Department of Commerce, 2009-2011
Board of Directors, Federal Home Loan Bank of Chicago, 2009-2011
Elected Member of the Executive Committee, American Economic Assocation, 2008-2010
Advisory Board Member, Carnegie-Rochester Conference Series on Public Policy, 2003-2011
Board of Directors, Access Group Inc., 2003-2011
Junior Economist, Council of Economic Advisers, 1989-1990

Honors and Awards
Elected Fellow, American Academy of Arts and Sciences
Top Professor Award, Executive Manager's Program - NU, Kellogg
Top Professor Award, Executive Manager's Program - NU, Kellogg
Top Professor Award, Executive Manager's Program - NU, Kellogg
Top Professor Award, Executive Manager's Program - NU, Kellogg
Top Professor Award, Executive Manager's Program - NU, Kellogg
Top Professor Award, Executive Manager's Program - NU, Kellogg
Chairs Core Teaching Award, Kellogg School of Management, 1999, 2001, 2006
Alfred P. Sloan Research Fellow, Alfred P. Sloan Foundation, 1995-1999

Editorial Positions
Editor, Brookings Papers on Economic Activity, 2015
Associate Editor, American Economic Review, 2004-2010
Senior Associate Editor, Journal of Monetary Economics, 1999-2011

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

Eberly, Janice C. and Nicolas Crouzet. Forthcoming. Intangibles, Investment, and Efficiency. American Economic Review Papers and Proceedings.
Eberly, Janice C. and Lewis Alexander. Forthcoming. Investment Hollowing Out. IMF Economic Review.
Eberly, Janice C. and Gene Amromin. 2016. Education Financing and Student Lending. Annual Review of Financial Economics. 8: 1-27.
Eberly, Janice C. and Arvind Krishnamurthy. 2014. Efficient Credit Policies in a Housing Debt Crisis. Brookings Papers on Economic Activity.
Eberly, Janice C., Andrew Abel and Stavros Panageas. 2013. Optimal Inattention to the Stock Market with Information Costs and Transactions Costs. Econometrica. 81(4): 1455-1481.
Eberly, Janice C.. 2013. Reaching the Middle Class. Issues in Science and Technology, National Academy of Sciences.
Eberly, Janice C.Sergio Rebelo and Nicolas Vincent. 2012. What Explains the Lagged Investment Effect?. Journal of Monetary Economics. 59(4): 370-380.
Abel, Andrew B and Janice C. Eberly. 2012. Investment, Valuation, and Growth Options. Quarterly Journal of Finance. 2(1)
Abel, Andrew B and Janice C. Eberly. 2011. How Q and Cash Flow Affects Investment without Frictions: An Analytic Explaination. Review of Economic Studies. 78(4): 1179-1200.
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 & Proceedings. 97(2): 244-249.
Eberly, Janice C.. 2005. The Rise in Firm-Level Volatility: Causes and Consequences, Comments. NBER Macroeconomics Annual.
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.
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.
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.
Eberly, Janice C. and Jan A. Van Mieghem. 1997. Multifactor Dynamic Investment Under Uncertainty. Journal of Economic Theory. 75(8): 345-387.
Eberly, Janice C.. 1997. International Evidence on Investment and Fundamentals. European Economic Review. 75(2): 1055-1078.
Abel, Andrew B and Janice C. Eberly. 1996. Optimal Investment with Costly Reversibility. Review of Economic Studies. 63(4): 581-593.
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.
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, vol. 84, United Kingdom; Boston, MA: Edward Elgar Publishing, 1999.
Eberly, Janice C.. 1994. Adjustment of Consumers' Durables Stocks: Evidence from Automobile Purchases. Journal of Political Economy. 102(3): 403-436.
Eberly, Janice C.. 1993. On Irreversibility and Aggregate Investment: Comment. NBER Macroeconomics Annual. 8: 303-312.
Working Papers
Eberly, Janice C.Gene Amromin and John Mondragon. 2016. The Housing Crisis and the Rise in Student Loans.
Eberly, Janice C. and Kartik Athreya. 2013. The Supply of College-Educated Workers: The Roles of College Premia, College Costs, and Risk.
Eberly, Janice C. and Neng Wang. 2010. Reallocating and Pricing Illiquid Capital: Two Productive Trees.
Book Chapters
Eberly, Janice C.. 2015. "Government Debt Management at the Zero Lower Bound." In The $13 Trillion Question, edited by David Wessel, Brookings Institution.
Eberly, Janice C.. 2014. "Defining the Reemerging Role of Fiscal Policy." In Rethinking Macro Policy, edited by George Akerlof, Olivier Blanchard, David Romer, and Joseph Stiglitz, Cambridge, MA: MIT Press.
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.
Conference Proceedings
Eberly, Janice C. and Phillip Swagel. 2014. "Fiscal Balancing Act." In Economic Growth and Policy, Clinton Global Initiative.
Eberly, Janice C.. 2010. "Unwinding Emergency Federal Reserve Liquidity Programs and Implications for Economic Recovery." U.S. House of Representatives.

Print Teaching
Teaching Interests
Corporate finance, macroeconomics
Full-Time / Evening & Weekend MBA
Macroeconomic Policy and Global Capital Markets (FINC-473-0)

**This course was formerly known as FINC-941-0**

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 (FINCX-473-0)