Lawrence D.W. Schmidt

Faculty

Lawrence D.W. Schmidt

About

Lawrence D. W. Schmidt is an Assistant Professor in the Finance group whose research is at the intersection of finance and macroeconomics.

His research combines theory and applied econometric approaches to offer a richer picture of risks faced by financial market participants—households, institutional investors, and financial intermediaries—and sheds new light on underlying economic mechanisms linking financial markets with the real economy. Schmidt’s research is particularly interested in understanding factors which are associated with the risk and return to investments in human capital (that is, the present discounted value of labor income), and how frictions that limit risk-sharing in the labor market affect asset prices and macroeconomic dynamics. In addition to studying the risk factors and behavior of households, his work also studied the behavior of institutional investors during financial crises. His research has appeared in the American Economic Review, the Journal of Applied Econometrics, and the Journal of Mathematical Economics, and his research has won multiple awards including the 2015 AQR Top Finance Graduate Award.

Schmidt holds a BA from the University of California, Santa Barbara, and PhD and MA degrees in Economics from the University of California, San Diego. Prior to joining the faculty at MIT Sloan, Schmidt was an Assistant Professor in the Kenneth C. Griffin Department of Economics at the University of Chicago and a senior consultant at Navigant Consulting, Inc.

 

Publications

"An Empirical Test of Pricing Kernel Monotonicity."

Beare, Brendan K., and Lawrence D. W. Schmidt. Journal of Applied Econometrics Vol. 31, No. 2 (2016): 338-356. Supplement.

"On the Dimensionality of Bounds Generated by the Shapley–Folkman Theorem."

Schmidt, Lawrence D.W. Journal of Mathematical Economics Vol. 48, No. 1 (2012): 59-63.

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