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Stavros Panageas

Robert D. Beyer ’83 Term Chair in Management; Professor of Finance
“Teaching is the most rewarding job. Every year, the excitment of the new students keeps renewing my enthusiasm for economics.”
Personal Website:
Areas of Expertise:
  • Asset Pricing
  • Investment Theory
  • Macroeconomics

What's New: The Implications of Heterogeneity and Inequality for Asset Pricing

Does income, preference, or belief heterogeneity matter for asset pricing? Starting with an irrelevance theorem due to Grossman and Shiller, this survey presents a unified view of the research that has studied the connection between heterogeneity and asset prices. 

Link to the survey's website on Foundations and Trends in Finance

Presentation slides are available here



Stavros Panageas studies asset pricing and macroeconomics. Previously, he taught at the Booth School of Business of the University of Chicago, the London School of Economics, and the Wharton School of the University of Pennsylvania. He is a research associate of the National Bureau of Economic Research and he has been a visiting scholar at the Federal Reserve Bank of Minneapolis.

He has worked as a fixed income quantitative analyst for Fidelity Investments and was a co-founder and board member of AIAS NET, one of the first Greek internet service providers.

Panageas's research has appeared in prestigious academic journals such as American Economic Review, Econometrica, Journal of Political Economy, Journal of Finance, Journal of Financial Economics, Review of Financial Studies and Journal of Monetary Economics. He is currently an associate editor of the Journal of Finance, the Journal of Financial Economics, and the Critical Finance Review. His work has been presented at leading universities and conferences worldwide.

Panageas is the recipient of the 2012 Smith-Breeden Prize for the best capital markets paper in the Journal of Finance, the Utah Winter Finance Conference Best Paper Award, the Four nations Cup, a Rodney White Research Grant, two Geewax, Terker Prizes in Investment Research from the Rodney L. White Center for Financial Research, and a Paul Alther Prize for the best undergraduate thesis at the University of St. Gallen.

Panageas earned a Lizentiat in economics from the University of St. Gallen in 1997 and a Ph.D. in economics from the Massachusetts Institute of Technology in 2005. He joined the Anderson faculty in 2016.


Ph.D. Economics, 2005, Massachusetts Institute of Technology

Lizentiat Economics, 1997, University of St. Gallen

Journal Publications

Nominated for the Smith Breeden Prize - Lead Article in the Journal of Finance

  1. Precautionary Saving in a Financially-Constrained Firm", joint with A.B.Abel. January 2022, accepted at the Review of Financial Studies
  2. "Heterogeneity and Asset Prices: An Intergenerational Approach", joint with N. Garleanu, 2022, forthcoming Journal of Political Economy
  3. An Analytic Framework for Interpreting Investment Regressions in the Presence of Financial Constraints", joint with Andrew B. Abel. 2021, forthcoming, Review of Financial Studies
  4. What to Expect When Everyone is Expecting: Self-Fulfilling Expectations and Asset Pricing Puzzles", joint with N. Garleanu, Journal of Financial Economics, 140 (1), p. 54-73, April 2021
  5. "Impediments to Financial Trade: Theory and Applications" (joint with Nicolae Garleanu and Jianfeng Yu) 2019 (9) Review of Financial Studies
  6. Financial Entanglement: A theory of Incomplete Integration, Leverage, Crashes, and Contagion’’, (joint with Nicolae Garleanu and Jianfeng Yu) 2015, American Economic Review 105(7), 1979-2010 Online Appendix

    2013 Four Nations Cup - Winner

  7. Young, Old, Conservarive and Bold. The implications of finite lives and heterogeneity for Asset Pricing’’, (joint with Nicolae Garleanu), 2015, Journal of Political Economy, 123(3), 670-685. (File includes online appendix)
  8. Optimal Inattention to the Stock Market with Information Costs and Transactions Costs,” 2013 (joint with Andrew B. Abel and Janice C. Eberly), Econometrica, (Online Link), July 2013, Vol. 81, No.4, 1455-1481 Extended Appendix
  9. Technological Growth and Asset Pricing” (joint with Nicolae Garleanu and Jianfeng Yu), Journal of Finance, August 2012, Vol. 67, Issue 4, pp. 1265-1292 Extended Appendix

    Winner of the 2012 Smith Breeden Prize (First Place)

  10. Displacement Risk and Asset Returns’’, 2011 (joint with Nicolae Garleanu and Leonid Kogan), Journal of Financial Economics, September 2012, Vol. 105, Issue 3, pp. 491-510. Extended Appendix

    Winner of the 2011 Utah Winter Finance Conference Best Paper award.

  11. Optimal taxation in the presence of bailouts’’, Journal of Monetary Economics, 2010, 57(1), pp. 101-116
  12. Bailouts, the incentive to manage risk, and financial crises,”Journal of Financial Economics, 2010, 95(3) , pp. 296-311
  13. “High-Water Marks: High Risk Appetites? Convex Compensation, Long Horizons, and Portfolio Choice” (joint with M. Westerfield) Journal of Finance 2009, 64 (1) , pp. 1-36
  14. Hedging Sudden Stops and Precautionary Contractions,” (joint with R. Caballero) Journal of Development Economics2008, 85 (1-2) , pp. 28-57
  15. Optimal Inattention to the Stock Market” (joint with Andrew B. Abel and Janice Eberly), American Economic Review, P&P, May 2007, 2, pp. 244-249
  16. “Saving and Investing for Early Retirement: A Theoretical Analysis,” (joint with E. Farhi), Journal of Financial Economics, 2007, 83 (1), pp. 87-122. Extended Appendix

    Winner of the Geewax, Terker Prize in Investment Research, Rodney L. White Center for Financial Research, 2005
    Finalist for the Paul A. Samuelson Award

  17. “Contingent Reserves Management: An Applied Framework”, 2005, (joint with R. Caballero) in Economia Chileana, 8(2),pp. 45-56

Book Chapters

  1. "Pensions: Arresting a Race to the Bottom" (2017) (joint with P. Tinios) in "Beyond Austerity: Reforming the Greek Economy" Edited by C. Meghir, C. Pissarides, D. Vayanos, N. Vettas, MIT Press

Working Papers

  1. "Cross-Subsidization of Bad Credit in a Lending Crisis", joint with N. Artavanis, B.J. Lee, and Margarita Tsoutsoura (draft coming soon)
  2. "Value without Employment", joint with S. Barkai. July 2020
  3. "Social Distancing, Vaccination, and the Paradoxical Optimality of an Endemic Equilibrium", joint with A. B. Abel. August 2021
  4. Finance in a time of Disruptive Growth", (Preliminary - may contain errors) joint with N. Garleanu. April 2018
  5. Pension Design in the Presence of Systemic Risk,” July 2014

    Geewax, Terker Prize in Investment Research, Rodney L. White Center for Financial Research, 2007

  6. A Global Equilibrium Model of Sudden Stops and External Liquidity Management.” (joint with R. Caballero), September 2007
  7. The Neoclassical Theory of Investment in Speculative Markets,” , December 2005
  8. The real effects of stock market mispricing at the aggregate: Theory and Empirical Evidence” (joint with E. Farhi), mimeo. M.I.T. and the Wharton School, December 2004

My personal website can be found here: