Bengt Holmstrom is the Paul A. Samuelson Professor of Economics at MIT, where he also was head of the Economics Department from 2003-2006. He holds a joint appointment with MIT’s Sloan School of Management. Holmstrom is a Fellow of the American Academy of Arts and Sciences, the Econometric Society, and an elected foreign member of the Royal Swedish Academy of Sciences and the Finnish Academy of Sciences and Letters. He is a research associate of the National Bureau of Economic Research, a member of the executive committee for the Center of Economic Policy Research, and past president of the Econometric Society.
Holmstrom’s research interests are in the fields of contracting and incentives. He has made major contributions to the theory of moral hazard and mechanism design, the theory of the firm, corporate governance, and most recently, the demand and supply of liquidity and its relationship to financial crises.
Holmstrom is a board member of the Aalto University Foundation, and a former board member of the Nokia Corporation. He is a Research Associate of NBER. In 2011, he was the President of the Econometric Society. He was awarded the Banque de France-TSE Senior Prize in Monetary Economics and Finance in 2012.
Holmstrom received his doctorate degree from Stanford University. He has served as an Associate Professor at the Kellogg Graduate School of Management at Northwestern University and as the Edwin J. Beinecke Professor of Management at Yale University’s School of Management.