the larry sjaastad letters, i · 1. abrantes-metz, rosa maria 2002 before and after the emu:...

THE LARRY SJAASTAD LETTERS, I

Compiled

by

Kenneth W. Clements and

MoonJoong Tcha

June 2004

Economic Research Centre School of Economics and Commerce The University of Western Australia

ii

CONTENTS

Preface v Table 1: PHD Students Supervised at Chicago by Larry Sjaastad vii Figure 1: PHD Students Supervised at Chicago by Larry Sjaastad xiv Table 2: Letters from Well-Wishers: Alphabetical xv Table 3: Letters from Well-Wishers: Geographical xviii Letters from Well-Wishers xxi

iv

PREFACE Larry Sjaastad is an unusual person. As the beloved teacher of and adviser to economics students at

The University of Chicago, and other places around the world, he has directly shaped the professional lives

of a large number of former students. As a researcher, he is widely known for his path-breaking work on

migration, trade policy and exchange rates, work that has had much influence in academic and policy circles.

To younger economists starting out their careers, Larry has been a trusted mentor who has generously

assisted many. To others, Larry has been a valued colleague who could always be relied upon for support

and durable advice. As a commentator on research in Chicago workshops, Larry was always one of the best

with witty and incisive comments and suggestions (especially if he felt the presenter was talking nonsense!).

After 42 years on the Chicago faculty, Larry is about to retire from teaching, and this book marks

that special occasion by presenting letters to Larry from former students, colleagues and friends. We

contacted as many people as possible who we thought might be interested in contributing a letter; we are

conscious, however, that our coverage has not been complete and apologise in advance to those unavoidably

overlooked. We received an overwhelming response and received a large number of letters from all corners

of the globe, letters that reveal tremendous insights into Larry as a person, his activities, and the warmth and

esteem with which he is held. This book contains the letters.

Given the prominence of students to Larry’s activities over the past four decades, before turning to

the letters it is appropriate to list the names of the Chicago PhD students that he supervised. Table 1

provides this list, as well as the titles of the students’ dissertations, while Figure 1 plots the outstanding stock

of students accumulated over the period. The substantial diversity of the topics of the theses is a genuine

reflection of the breadth of Larry’s expertise in economics. While Larry has expressed to us typical modesty

about supervising 139 of perhaps the most demanding PhD students in the world, such an achievement is no

less than incredible.

The creation of this book has been a most rewarding experience that provided the opportunity for us to

renew contact with colleagues and friends from long ago. We greatly appreciate the cooperation of all

contributors in making the book possible. In carrying out this work, we received excellent research assistance

from Mei Han. We would also like to acknowledge help of Izan, the assistance in locating people that we

received from Jorge Garcia-Garcia, John Panzer, and Sebel Yelton, and the advice from Glenn Ackerman and

Paul Godek. We acknowledge the financial support for this project provided by the Economic Research Centre

at The University of Western Australia.

Larry, we hope you enjoy the letters.

Kenneth W Clements Perth, Western Australia

MoonJoong Tcha Seoul, S. Korea

vi

TABLE 1

PHD STUDENTS SUPERVISED AT CHICAGO BY LARRY SJAASTAD

Name Year Thesis Title

1. Abrantes-Metz, Rosa Maria 2002 Before and After the EMU: Financial Integration, Monetary Policy and Welfare Changes 2. Ackerman, Glenn 1994 Renters, Homeowners, Politics, and Tiebout 3. Aguilera, Nelly 2000 Measuring Aggregate Price Levels 4. Almansi, Aquiles 1986 Essays on Incentive Problems in International Credit Markets 5. Almonacid, Ruben D. 1971 Nominal Income, Output and Prices in the Short Run

6. Annunziato, Paolo 1992 Pricing Practices in Markets With Product Differentiation: The Case of the Automobile Industry in Europe 7. Ardito, Nicolas 1971 Costs and Social Benefits of Agricultural Research in Mexico 8. Auernheimer, Leonardo 1973 Essays of the Pure Theory of Inflation 9. Avishur, Arieh 1994 The Effect of the Privatization of British Telecom on Efficiency; A Dual Approach

10. Balino, Tomas T. T. 1977 Argentine Monetary and Banking Reform of 1946

11. Baranes, Amos 1989 Changes in the Tax Saving From Taxable Acquisitions and Tax-Free Reorganization Over Time 12. Barcinski, Alexandre 2001 An Empirical Investigation of the Secondary Market of Sovereign Bonds 13. Bender, Bruce 1976 The Determinants of Housing Abandonment 14. Bender, John 1985 Technology, Unskilled Labor, and the Decline of New England Cotton Textiles 15. Bolanos, Rodrigo 1982 Optimal Operation and Investment in a Predominantly Hydroelectric System With Water Storage Capacity

16. Burns, Joseph M. 1967 The Real Sector in a Theory of Finance With Special Emphasis on Financial Innovation, the Costs of Finance, and Economic Growth17. Byerts, William 1975 Panama and the World Inflation 18. Canales-Kriljenko, Jorge Ivan 1996 The Peruvian Hyperinflation 19. Castaneda, Tarsicio 1979 Fertility, Child Schooling and the Labor Force Participation of Mothers in Colombia, 1977 20. Carstens, Agustin 1985 A Study on the Mexico Peso Forward Exchange Market

(Continued on next page)

vii

TABLE 1 (Continued)



21. Carvalho, Jose 1972 Production, Investment and Expectations: A Study of the United States Cattle Industry 22. Chang, Keun Ho 1994 A Model of the Tax Structure of U. S. State Government 23. Chen, Chau - Nan 1970 Flexible Bimetallic Exchange Rates and Optimum Currency Areas: A Theory of Bimetallism 24. Cheng, Kevin 2002 Economic Implications of China's Population in the 21st Century 25. Choi, Soon-Young 2002 The Chonsei Housing Rental Market of Korea

26. Chua, Vicent 1989 Estimating Congestion and Scale Economies for Public Goods 27. Chun, Suk-Kyu 1995 Trade Liberalization, Capital inflows, and Economies of Scale: A General Equilibrium Approach 28. Clements, Kenneth W. 1977 The Trade Balance in Monetary General Equilibrium 29. Corbo, Mario 1974 Schooling Experience and Wages in Santiago, Chile 30. Cordomi, Manuel 1969 A Study of the Production of Sugar in Tucuman, Argentine

31. Damus, Roberto S. 1979 A Two-Part Ramsey-Optimum Railroad Tariff 32. Della-Paolera, Gerardo 1988 How the Argentine Economy Performed During the International Gold Standard: A Reexamination 33. De Nicola, Carlo 1995 The Benefits of Economic Integration Among European Countries 34. Devereux, John 1989 The Incidence of Commercial Policy in Developing Countries: Theory and Evidence 35. Dick, Andrew 1989 Imperfect International Competition in Innovation and Product Markets: Theoretical Implications With an Empirical Application

36. Dougan, William R. 1981 The Political Economy of Protection 37. Durkin, John 1991 Theory and Evidence on Scale, Trade, Structural Change and Economic Development 38. Elias, Victor J. 1969 Estimates of Value Added, Capital and Labor in Argentine Manufacturing 1935-1963 39. Erceg, Christopher 1993 A Dynamic General Equilibrium Model of the Housing Market 40. Fernandez, Carlos 1999 Inflation and Welfare in an Endogenously Growing Economy


viii

TABLE 1 (Continued)



41. Fontaine, Ernesto 1964 The Sugar Beet Industry in Chile: A Cost Benefit Analysis 42. French-Davis, Richardo 1971 Economic Policies and Stabilization Programs, Chile 1952-1969 43. Garcia, Valeriano F. 1973 A Critical Inquiry into Argentine Economic History, 1946-1970 44. Garcia, Daniel David 1998 The Argentine Labor Market: History and Theory 45. Garcia-Garcia, Jorge 1976 A History of Economic Policies in Colombia: 1953-1970

46. Ge, Zening 1996 Real Growth Targeting, Money Supply and Fluctuations in the Transitional Chinese Economy 47. Genel, Julio A. 1977 On the State's Strategy for Financial Development: The Problem of Noninflationary Financing in Mexico 48. Gil Diaz, Francisco 1982 Three Essays on the Taxation of Capital 49. Godek, Paul 1983 Aspects of the Positive Theory of Trade Restrictions 50. Gomez, Javier 1995 Three Cases Studies on Exchange Rates

51. Gonclaves, Antonio 1974 The Problem of Stopping Inflation 52. Gressel, Daniel 1984 The Effects of Trade Policy, Size of Government and Inflation on Growth Rates in Less Developed countries 53. Griffes, Peter Hoyt 1993 Risk Sharing in Electricity Generation: The Case of Jointly Owned Plants 54. Guedes, Paulo 1978 Fiscal Policy, Public Debt and External Indebtness in Non-Monetary Two Sector Open Growth Models 55. Gutierrez, Mario 1987 Essays of the System of National Accounts in LDC's

56. Hachette, Dominique 1973 Revaluation of the Escudo and Distribution of Income 57. Hansen, Ronald 1982 Cost and Benefits of Innovation and Regulation in the Pharmaceutical Industry 58. Haroun, Mansour 1994 Mortgage Choice and Asset Pricing 59. Harvath, Michael 1994 The Use of Categorical Programs for Income Redistribution 60. Hernandez, Lilana 2001 Sterilization of Capital Inflows: Its Impact on Market Liquidity and Currency Collapses


ix

TABLE 1 (Continued)



61. Hernandez, Luis Mario 2000 An Essay on City Sizes and Urbanization Processes 62. Hsu, David 1995 Inter-Area Differences in Wages: Theory and Evidence 63. Hur, Seok-kyun 2002 Two Essays in Financial Decision-Making 64. Hurtado, Carlos 1986 The Real Exchange Rate and Its Relationship to Capital Flows, Public Deficits, and Portfolio Choice in a Small Economy 65. Johnson, Andrew 1997 Taxation and Economic Growth: An International Comparison

66. Joun, Han Gun 1994 Family Member Quality and Housing Demand 67. Juan Ramon, V. Hugo 1988 External Shocks and Fluctuations in the Domestic Real Rate of Interest 68. Kahn, Peter 1981 Short Run Effects of Trade Liberalization 69. Kim, Chong Sup 1991 Deficits, Debt Capitals, Flight, and Finite Horizons--An Exercise in the Theory of the Second Best 70. Kim, Inchul 1981 A Partial Adjustment Approach to the Balance of Payment in Korea: Theory and Evidence

7 71. Kim, June Dong 1991 The Incidence of Protection: The Korean Case and Some International Comparisons 72. Kitti, Carole 1973 Patent Policy and the Optimal Timing of Innovations 73. Koerner, Craig Martin 2000 Explaining Industry Level R and D Expenditures with a Stock of Knowledge Variables 74. Le, Thuan-nghi 1997 Co-Movements Between Consumption and Output Growth in the Open Economy 75. Lee, Shi Young 1994 Essays on the Latin American Debt Crisis

76. Lee, Taiki 2000 The Asian Crisis and Stock Market Co-Movements: The US Market Effects on the Korean and Japanese Markets 77. Lee, Ungkeun Augustine 1996 Factor Mobility and the Demand for Trade Liberalization in the United States 78. Lefton, Norman 1972 The Demand for Real Cash Balances and the Expected Permanent and Contemporaneous Rates of Inflation 79. Liao, Szu-Lang 1994 Real Estate Investment and Pricing: The Role of Transaction Costs 80. Lizondo, Jose 1979 Three Essays in International Economics


x

TABLE 1 (Continued)



81. Lo Passo, Francesco 1994 Italian State Owned Enterprises: An Empirical Study of Changes in Agency Cost 82. Longoni, Carlos 1970 A Study in Economic Growth: The Brazilian Case 83. Loser, Claudio 1971 The Intensity of Trade Restrictions in Argentina: 1939-68 84. Luders, Rolf 1968 A Monetary History of Chile: 1925-58 85. Mankin, Wyatt 1971 Home Ownership and Race

86. Marquez -Ruarte, Jorge 1975 The Two-Sector Model of Production 87. Martinez, Miguel E. 1970 The Trans-Andean Highway: A Cost-Benefit Case Study 88. May, Josef 1968 An Adjustment Mechanism Based on Anticipations in a Macro-Economic Model 89. McGrew, Wesley 1988 Budget Deficits in an Open Economy: Effects on Real Exchange Rates, Interest Rates, and Investment 90. Medina, Juan Jorge 1987 Protection, True Protection, and Aggregate Protection

91. Metz, Albert 2002 Estimating the Tax Shelter Value of Commercial Office Real Estate: Consequence of the Tax Reform Act of 1986 92. Miller, Suzanne 1996 Public-Private Competition: The Case of Phoenix 93. Milner, Humphrey H. 1975 Puerto Rican Growth: A Two-Stage CES Production Function 94. Miranda, Kenneth 1986 Manufactured Export Performances in Developing Countries: A Sectoral Trade Model Approach 95. Moura, Marcelo 2000 An Essay on the Effects of Government Deficits on Equilibrium Real Exchange Rates and Stock Prices

96. Mudd, Shannon 1994 The Structure of Trade in a Model of Quality-Differentiated Goods and Human Capital 97. Musalem, Alberto R. 1971 The Demand for Money and the Balance of Payments of Colombia, 1950-1966 98. Nielson, Mark 1993 Investigation Costs and the Effects of Own Variance on Security Prices 99. Noer, John 1988 Essays on International Arbitrage and Market Efficiency

100. Novaes, Rudem 1974 Foreign Investment in Brazil - An Economic Analysis


xi

TABLE 1 (Continued)



101. Pang, Xinbang 2003 Two Essays on Foreign Trade in China 102. Panzer, John 1989 Aspects of the Political Economy of Protection 103. Petrei, Amalio H. 1971 Rates of Return to Physical Capital in Manufacturing Industries in Argentina 104. Pou, Pedro 1978 Money and the Balance of Payments: The Experience of Argentina and Brazil 105. Rapoport, Alan 1975 The Protective Policies of Panama: An Empirical Study

106. Reca, Lucio G. 1967 The Price and Production Duality Within Argentine Agriculture, 1923-1965 107. Riboud, Mischelle 1977 An Analysis of Earnings Distribution in France 108. Rivera, Luis A. 1992 Essays on Trade, Techniques, and Economic Growth 109. Saieh, Alvaro 1980 Behavior of Monetary Variables in Fixed Exchange Rate Economics 110. Sanchez, Fernando 1983 Tax Incentives to Investment for the Promotion of Industry: The Mexican Experience

111. Sapelli, Claudio 1985 Government Policy and the Uruguayan Beef Sector 112. Scacciavillani, Fabio 1993 Long Memory Processes in Speculative Markets 113. Schenone, Osvaldo 1973 A Dynamic Analysis of Taxation 114. Schickele, Sandra 1977 The Social Opportunity Cost of Urban Labor in the United States 115. Schwartz, Aba 1968 Migration and Life Span Earnings in the U. S.

116. Selowsky, Marcelo 1967 Education and Economic Growth: Some International Comparisons 117. Shampine, Allan 1996 An Evaluation of Technology Diffusion Models and Their Implications 118. Sowell, Thomas 1968 Say's Law and the General Glut Controversy 119. Tao, Ran 2002 Urban and Rural Household Taxation in China: Measurement, Economic Analysis and Policy Implications 120. Tcha, MoonJoong 1992 Altruism and Migration--Korea and the United States


xii

TABLE 1 (Continued)



121. Teubal, Morris F. D. 1967 Inflation, Unemployment and Economic Growth 122. Thomas, Vinod 1977 The Welfare Cost of Pollution Control With Special Alternatives 123. Toribio, Juan Jose 1970 On the Monetary Effects of Repressed Inflation 124. Tullio, Giuseppe 1977 Monetary Equilibrium and Balance of Payment Adjustment: An Empirical Test of the U. S. Balance of Payments 125. Verstraete, Juan 1975 An Investment Function for Belgium

126. Viana, Luis 1987 Real Exchange Rates and Real Interest Rates During Liberalization, Boom, and Crisis: The Cases of Uruguay and Chile, 1976-82 127. Videla, Pedro Luis 1994 Stabilization Policies for a Small Economy in a World of Flexible Exchange Rates 128. Visaruthvong, Chonlathan 1997 Tax Evasion and Penalty Structure 129. Vora, Ankur 2003 Impact of Foreign Direct Investment on Developing Country Credit Markets 130. Wada, Kenji 1999 Essay in Public Finance

131. Wisecarver, Daniel 1974 Three Essays in the Theory of Applied Welfare Economics 132. Yelten, Sibel 2000 Real Effects of Movements in Nominal Exchange Rates 133. Yepez G., Rigoberto Ariel 1995 Pricing Policies for the Natural Gas Industry in Mexico 134. Yoshino, Joe Akira 1993 Money and Banking Regulation: The Welfare Costs of Inflation 135. Yuravlivker, David 1982 The Real Exchange Rate in Developing Countries

136. Yver, Raul 1971 The Investment Behavior and the Supply Response of the Cattle Industry in Argentina 137. Zablotsky, Edgardo 1992 The Economic Theory of Autocracy: A Public Good Approach to Military Coups d'Eat 138. Zapata, Juan 1970 Externalities and Ground Water Use 139. Zhan, Shiqiang 2000 Trends in Regional Disparities and Economic Growth in China

xiii

FIGURE 1


020406080

100120140160

1964 1970 1976 1982 1988 1994 2000Year

Num

ber o

f Stu

dent

s

xiv

TABLE 2

LETTERS FROM WELL-WISHERS: ALPHABETICAL

Name Position Page

1. Ackerman, Glenn Economist, The CNA Corporation 1

2. Almansi, Aquiles Senior Financial Economist, LCSFF, World Bank 2

3. Aguilera, Nelly 4

4. Anderson, Kym Professor of Economics, University of Adelaide, and World Bank 5

5. Bender, Bruce Professor, University of Wisconsin at Milwaukee 6

6. Blackhurst, Richard Professor, Graduate Institute of International Studies, Geneva 8

7. Boadway, Robin Professor of Economic Theory, Queen’s University 9

8. Bolanos, Rodrigo General Manager, Stock Exchange of Costa Rica 10

9. Carbajo, Alfonso Chief Economist, Confederation of Savings Banks 11

10. Chen, Dongling Senior Economist, Shanghai Municipal Government 13

11. Clements, Kenneth Professor of Economics, UWA 14

12. Connolly, Michael Professor and Chair, Economics, University of Miami 16

13. Corbet, Hugh President, Cordell Hull Institute 17

14. Decarli, Edgardo 18

15. Devereux, John Professor, Queens College 19

16. Dougan, Bill Professor, Department of Economics, Clemson University 21

17. Douglas, Hernán Cortés Professor, Catholic University of Chile 22

18. Easton, Stephen Professor of Economics, Simon Fraser University 24

19. Elias, Victor Professor, National University of Tucuman 25

20. Favaro, Edgardo Lead Economist, Economic Policy Unit, World Bank 27

21. Fontaine, Ernesto Professor of Economics, Pontifica University Catolica de Chile 29

22. Friedman, Milton Senior Research Fellow, Hoover Institution 30

23. Garcia, Valeriano F. CEO, Washington International Advisors 31

24. Garcia-Garcia, Jorge Economist, World Bank 32

25. Garcia-Mujica, Jorge 34

26. Genberg, Hans Professor, Graduate Institute of International Studies, Geneva 35

27. Gil Diaz, Francisco Minister of Finance, Mexico 36

28. Ghosh, Robin Senior Honorary Research Fellow, UWA 37

29. Gomez, Javier Investigador Pricipal, Banco De La Republica, Colombia 38

30. Godek, Paul Senior Vice President, Economists Incorporated 39


xv

TABLE 2 (Continued)


Name Position Page

31. Harberger, Arnold Professor, Department of Economics, UCLA 40

32. Hause, John Professor, Department of Econ. State Univ. of NY at Stony Brook 42

33. Hogbin, Geoff Writer on economic issues 43

34. Hur, Seok-Kyun Economist, Korea Development Division 46

35. Hurtado, Carlos 47

36. Hyde, John Retired Politician and Think-Tank Director 48

37. Ivan, Jorge 49

38. Juan-Ramon, Hugo Deputy Division Chief, IMF Institute 50

39. Kim, Inchul Professor, Dept. of Economics, Sungkyunkwan University 51

40. Kim, June Dong Senior Research Fellow, KIEP 52

41. Kitti, Carole Program Examiner, Office of Management and Budget 54

42. Krueger, Anne First Deputy Managing Director, IMF 55

43. Lefton, Norman President, Lefton Enterprises Inc. 56

44. Lo Passo, Francesco Associate Director, NERA Economic Consulting 57

45. Loser, Claudio Visiting Senior Fellow, Inter-American Dialogue 59

46. Lothian, James Professor, Fordham University 60

47. Lucas, Robert Professor, University of Chicago 62

48. Manzur, Meher Associate Professor, Curtin University of Technology 63

49. Meltzer, Allan Professor, Carnegie Mellon University 64

50. Miller, Paul Professor of Economics, UWA 65

51. Miranda, Kenneth Investment Advisor, IMF 66

52. Mundell, Robert University Professor, Columbia University 67

53. Musalem, Alberto R. Lead Economist, MNSHD, The World Bank 68

54. Pang, Xianbang 69

55. Panzer, John Sector Manager, International Trade Dept., World Bank 70

56. Rapoport, Alan Senior Analyst, National Science Foundation 72

57. Rodriguez, Carlos President, Universidad del CEMA 73

58. Saieh, Alvaro Chairman, Corp Group 74

59. Scacciavillani, Fabio Vice President, FX Metrix 76

60. Schenone, Osvaldo 77


xvi

TABLE 2 (Continued)


Name Position Page

61. Schneider, Heinz Retired Director, UBS Investment Banking 79

62. Siddique, Abu Senior Lecturer, UWA 81

63. Shampine, Allan Vice President, Lexecon Inc. 82

64. Sokol, Jose Lead Economist, World Bank 83

65. Tcha, MoonJoong Associate Professor, UWA and KDI 84

66. Telser, Lester Professor Emeritus-Economics, University of Chicago 86

67. Tolley , George Professor, University of Chicago 87

68. Toribio, Juan Director en Madrid, Universidad de Navarra 88

69. Visaruthvong, Chonlathan Ministry of Finance, Thailand 89

70. Weber, Juerg Senior Lecturer, UWA 90

71. Yelten, Sibel Economist, Asia Pacific Department, IMF 91

72. Zablotsky, Edgardo Vice Rector, Universidad del CEMA 92

xvii

TABLE 3

LETTERS FROM WELL-WISHERS: GEOGRAPHICAL

Name City Page

Argentina

1. Elias, Victor Tucuman 25

2. Rodriguez, Carlos Buenos Aires 73

3. Schenone, Osvaldo Mendoza 77

4. Zablotsky, Edgardo Buenos Aires 92

Australia

5. Anderson, Kym Adelaide 4

6. Clements, Kenneth Perth 14

7. Ghosh, Robin Perth 37

8. Hogbin, Geoff Sydney 43

9. Hyde, John Perth 48

10. Manzur, Meher Perth 63

11. Miller, Paul Perth 65

12. Siddique, Abu Perth 81

13. Tcha, MoonJoong Perth 84

14. Weber, Juerg Perth 90

Canada

15. Boadway, Robin Kingston 9

16. Easton, Stephen Vancouver 24

Chile

17. Douglas, Hernán C. Santiago 22

18. Fontaine, Ernesto Santiago 29

19. Garcia-Mujica, Jorge Santiago 34

20. Saieh, Alvaro Santiago 74

Colombia

21. Gomez, Javier Bogotá 38

Costa Rica

22. Bolanos, Rodrigo San Jose 10

Italy

23. Lo Passo, Francesco Rome 57


xviii

TABLE 3 (Continued)


Name City Page

Korea

24. Hur, Seok-Kyun Seoul 46

25. Kim, Inchul Seoul 51

26. Kim, June Dong Seoul 52

Mexico

27. Aguilera, Nelly Mexico City 5

28. Gil Diaz, Francisco Mexico City 36

29. Hurtado, Carlos Mexico City 47

People’s Republic of China

30. Chen, Dongling Shanghai 13

Spain

31. Carbajo, Alfonso Madrid 11

32. Toribio, Juan Madrid 88

Switzerland

33. Blackhurst, Richard Geneva 8

34. Genberg, Hans Geneva 35

35. Schneider, Heinz Basel 79

Thailand

36. Visaruthvong, Chonlathan Bangkok 89

UK

37. Scacciavillani, Fabio London 76

USA

38. Ackerman, Glenn Alexandria, VA 1

39. Almansi, Aquiles Washington, DC 2

40. Bender, Bruce Milwaukee, WI 6

41. Connolly, Michael Coral Gables, FL 16

42. Corbet, Hugh Washington, DC 17


xix

TABLE 3 (Continued)


Name City Page No.

43. Decarli, Edgardo McLean, VA 18

44. Devereux, John New York, NY 19

45. Dougan, Bill Clemson, SC 21

46. Favaro, Edgardo Washington, DC 27

47. Friedman, Milton Stanford, CA 30

48. Garcia, Valeriano F. Washington, DC 31

49. Garcia-Garcia, Jorge Washington, DC 32

50. Godek, Paul Washington, DC 39

51. Harberger, Arnold Los Angeles, CA 40

52. Hause, John New York, NY 42

53. Ivan, Jorge Washington, DC 49

54. Juan-Ramon, Hugo Washington, DC 50

55. Kitti, Carole Washington, DC 54

56 Krueger, Anne Washington, DC 55

57. Lefton, Norman Edwardsville, IL 56

58. Loser, Claudio Washington, DC 59

59. Lothian, James New York, NY 60

60. Lucas, Robert Chicago, IL 62

61. Meltzer, Allan Pittsburgh, PA 64

62. Miranda, Kenneth Washington, DC 66

63. Mundell, Robert New York, NY 67

64. Musalem, Alberto R. Washington, DC 68

65. Pang, Xianbang Albany, GA 69

66. Panzer, John Washington, DC 70

67. Rapoport, Alan Arlington, TX 72

68. Shampine, Allan Chicago, IL 82

69. Sokol, Jose Washington, DC 83

70. Telser, Lester Chicago, IL 86

71. Tolley, George Chicago, IL 87

72. Yelten, Sibel Washington, DC 91

xx

Letters from Well-Wishers

4

To: Professor Larry Sjaastad From: Nelly Aguilera Date: March 8, 2004 I was lucky to attend professor Sjaastad course on Public Finance and to having him as part of my dissertation committee. In the classroom, and also in the comments he made to my dissertation, Professor Sjaastad always reminded me about the importance of the fundamentals of Economics and their implication for policy design. I would like to thank professor Sjaastad his support during the elaboration of my dissertation, and I wish him the best in the coming years. Nelly Aguilera Ph.D. 2000

5

________________________________________________________________________________________________________________________ Centre for International Economic Studies, University of Adelaide SA 5005, Australia

Telephone: +61 8 8303 4712 Facsimile +61 8 8223 1460 [email protected] http://www.adelaide.edu.au/cies

3 September 2004

Professor Larry Sjaastad Department of Economics University of Chicago Chicago Il 60637 Dear Larry, I found it hard to believe you have already had three score years and ten until I saw your list of dissertation advisees – and now I can hardly believe you could have squeezed anything else but supervising into the past 40+ years! In my time at Chicago (1974-75, before transferring to sunny Stanford to complete my PhD), I had the benefit of doing only one subject with you. But you were nonetheless very influential in my early work as a trade economist. Especially important was your 1984 TPRC Thames Essay, written jointly with Ken Clements, because it laid out so clearly the GE case against protection that exporters could use in their counter-lobbying to governments. I have cited it many a time, and still do. Also important in Australian discussions, following the floating of our currency, has been your 1990 paper on exchange rates and commodity prices. Those ideas will be included in what I take with me to Washington in May, when I join the World Bank’s research group. With very best wishes for a wonderful and well-deserved retirement! Sincerely, Kym Anderson Professor, School of Economics and Foundation Executive Director, CIES

6

School of Business Administration

April 12, 2004 Professor Larry Sjaastad Department of Economics University of Chicago 1126 E. 59th St. Chicago, IL 60637 Dear Larry, It is hard to believe that you are retiring. It seems not that long ago that you were on my dissertation committee. Time moves very fast. I want to thank you for your concern and for the time that you gave to me. I remember when I was nearing the end of writing my dissertation, and you invited me to your house to go over the latest draft. In particular I recall that you had an idea for a theoretical footnote. We spent a couple of hours developing that footnote, although you really did the developing and I did the learning. It was a long evening going through the draft, but we did have liquid refreshments to keep us going. I also remember when a group of us studying for the public finance prelim went to your office to ask you some questions. As usual you answered the questions that we asked and also answered the additional questions that you thought we should have asked in order to get a more complete understanding of the topic. I have one little anecdote which for some reason I have told to only a few people. Although I had the typical degree of nervousness about taking the micro core exam in the summer of my first year, I was quite nervous about taking the macro core exam. Our study group decided not to meet on the day before the macro core, perhaps in the hope that a little respite from going through the old exams would do us some good. I spent the afternoon going through my class notes for Milton Friedman's money course (back then it was numbered 331) and macro course (332). Although I did not register for your macro course (332), I had sat in on it because Rachel McCulloch said that it would be valuable to do so (and it was). That evening before the macro core I went through my class notes for your 332 course. For some reason that to this day I cannot comprehend, I became almost obsessed with your presentation of Martin Bailey's analysis of the balanced budget multiplier. I probably spent more than an hour fixating on it. I do not believe that ex ante my allocation of time was optimal, but ex post it was quite fortunate. One of the forty-point problems was precisely on Bailey's analysis. It took me less than ten minutes of that four-hour exam to get what I believe to be the full forty points. I had the remaining three hours

7

and fifty minutes (and I needed all of it) to work on the remaining two hundred points of questions on the exam.

You are what a friend of mine once described as a real economist as opposed to a second-order condition economist. I have found since leaving Chicago that the world is populated with not nearly as many real economists as I had imagined when I was a student at Chicago. The extent to which I am a real economist I owe to you and to the other real economists at Chicago who by personal contact, teaching, and example influenced me in ways that were often too subtle for me to recognize at the time. I suspect that you must have mixed feelings about retirement after spending over forty years on the faculty at Chicago. Keep in mind that you have helped and positively influenced more students in more ways than you can imagine. You are not only a real economist but also a real person, and the students that have known you know this. Regards,

Bruce Bender

13

Dr. Chen Dongling Economic Commission Shanghai Municipal Government Room 1007, 200 People’s Ave. 200085 Shanghai P.R. China

February 10, 2004 Professor Larry Sjaastad, Department of Economics The University of Chicago Dear Professor Sjaastad: I understand that you will be retiring in 2004. For 40 years of service at the University of Chicago and in the area of economics, hundreds of students and colleagues have benefited substantially from your teaching and research work. I am one of those who have obtained invaluable professional training from you. I first met you at the University of Western Australia where you were working on papers regarding commodity prices and exchange rates. I was then deeply attracted and moved by your hard-working attitude, very sophisticated economic models and methodologies. I learned RATS programming from you. I still remember your patience when you explained the tough parts of your program. In 1993, you arranged for me to take up a position as a Post Doctoral Fellow at the Department of Economics, The University of Chicago. I greatly appreciated the experience learning the most advanced economic theories and methodologies in the world. I could also remember fondly the help you gave my family settling into life in the USA. I greatly appreciate all you have done for me and my family. Other than students, many of the scholars and others all over the world have received you help and learned from your teaching and research. Last November, I met Dr. Augusto Lopea-Claros, the Chief Economist of the World Economic Forum, at the Economic Forum, Shanghai International Industrial Fair. We talked about you and he said that he could still recall your excellent presentation in Chile.

2000 years ago, Confucius, the most famous Chinese mentor, advocated never being sick when studying, and never being tired when educating people. You are certainly one of those outstanding mentors. You are retiring, but you will never be sick and never be tired, I believe. With best wishes. Sincerely yours,

14

Chair of Economics Program Professor Kenneth W Clements 03 September 2004 Professor Larry A Sjaastad Department of Economics The University of Chicago 1126 East 59th Street Chicago, Il 60637 Dear Larry

Almost 30 years to the day, when I was at the Reserve Bank of Australia in Sydney, I received a welcome phone call from Chicago. It was from you to inform me that my application to do a PhD at Chicago was successful. That was the start of an extremely productive and close collaboration between the two of us that has spanned three decades and several continents. I have learnt so much from you, you have been so helpful and tolerant of my quirks, and I have much to thank you for.

The Department of Economics at Chicago is one of the most outstanding centres of economic research in the world. It is possibly less well known that quality teaching is also greatly valued at Chicago, and when I was there all the stars excelled in the classroom. Even within this demanding environment, your style of teaching was uniquely brilliant -- analytical, but accessible, with many examples from current problems in Latin America and elsewhere in the world. It was clear to all that here was someone who could make economics understandable, lively and really make it sing like no other to provide unique insights into the way the world worked. Another clearly identifiable part of your approach was your support for students. No question was too elementary, as long as it came from someone who genuinely wanted to learn. Related to this is the way that you defend students, current and past, in public who were struggling against strident opposition, sometimes coming from allegedly big names. I can attest from personal experience how much that support is valued! I also remember fondly the good advice you gave me on my thesis research, and the confidence that you showed in me when I was trying to land a job. The University of Western Australia has greatly benefited from your visits to teach and carry out research. Perth must be about the furthest place in the world from Chicago, with a door-to-door travel time of about 30 hours. Some years ago before I lost count, I worked out that you had travelled from Chicago to Perth no less than 10 times. All those frequent flyer points! At UWA you helped us with teaching and research, and to establish excellent contacts with Chicago. Your visits to Perth led directly to our recruiting MoonJoong Tcha, a former student of yours who was recently promoted here to Associate Professor, Bob Mundell visiting for one of the PhD Conferences, and Dongling Chen, a PhD graduate from here, spending a year at

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Chicago as a post-doc. I hope that your retirement from teaching at Chicago means that you will have more time to visit UWA again. Perhaps because of your agricultural background in South Dakota, or because of the similarities with Latin America, you seemed to develop a strong interest in Australia, its economy and its politics. Who could ever forget your work on protection that the WA mining industry and the farmers liked so much, the analysis of gold prices and exchange rates, the path-breaking research on the Australian dollar as a commodity currency, and your forays into journalism including the famous item in The Australian newspaper on the Capri, a new Ford sports car launched with great fanfare, that you demonstrated was the creation of corporate welfare of a most gruesome kind. Also, in the late 1980s you were the first person I heard say that Alan Bond, the then successful Perth entrepreneur, was something less than a hero. You were right of course, and several years later Bond’s name came down from the top of the tallest building in town, and he spent some time as a guest of Her Majesty getting a vertical suntan. (However, I always found it difficult to completely believe the explanation that your judgement was based on seeing a photo of Bondy that featured prominently his expensive new teeth!) In addition to your professional skills, you are of course well known for your irreverence for authority (which sits well with your Australian friends), and your great sense of style and fun. But perhaps your most distinctive personal characteristic is your honesty and integrity. When advice is sought from you, you never provide easy answers that allowed for the short-term fix; rather it is wisdom of special sort that has long-term durability. Thanks also for being such a dear friend to my family. Your visits to our home in Perth were so memorable and so much fun for Izan, Kathryn and me. Finally, my letter would be incomplete without a few words about your dedication to and love for Irene. Following her tragic stroke in 1985, you have always been there to look after her and your commitment has been a model to all to see. Izan and I wish you and Irene all best wishes for the future. Sincerely yours

Kenneth W Clements

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May 2, 2004 Professor Larry A. Sjaastad Department of Economics 1126 E. 59th Street Chicago, IL 60637 Dear Larry, In my second year of the Ph.D. program at Chicago, I took your graduate macro-economics course. While most were doing a graphical version of the Hicksian cross, you did the comparative static analysis of fiscal and monetary policy in a general equilibrium model. We learned to appreciate the importance of the sign and the relative magnitude of different elasticities. I used your modeling for a good ten or twenty years when teaching graduate macro-economics. What I liked so much about your approach was its search for an empirical basis - for applications. We crossed paths a great deal at the Hautes Etudes Internationales in Geneva, but the work that had the greatest impact on me was an applied political economy piece in Spanish that is hard to find but much coveted: Politica Comercial y la Proteccion en el Uruguay published by the Central Bank of Uruguay in 1977. This was a masterful work of applied trade theory using Harberger welfare triangles, which I had learned my first semester at Chicago. You published with your Uruguayan colleagues Jorgé Caumont and Juan José Anichini. Jaimé de Melo of the University of Geneva and I followed your footsteps in Montevideo in the 1980s and 1990s, also trying to pin down the effects of protectionism in a small economy. You had paved the path for our welfare analysis of protectionism in automobiles, the use of reference prices rather than f.o.b. prices for customs valuation, and the myriad of domestic content and assembly schemes that the Uruguayan government had inflicted upon the economy. We modeled our World Bank Publication Essays on the Effects of Protectionism on a Small Country : The Case of Uruguay in 1994 after your Central Bank publication. Parenthetically, we were tempted to call it One-hundred Years of Protectionism, but they had actually managed more than that. If imitation is the sincerest form of flattery, I plead guilty to that. As a friend, I have admired your grace under pressure. Your devotion and dedication bring you honor and respect. Since my wife and I were recently tested by cancer, but are in remission, I understand the importance of having someone with you who really cares. Godspeed in your next endeavors. Yours sincerely, Michael Connolly Professor and Chair, Economics

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Professor Larry Sjaastad Dear Larry, I have learnt that you are retiring from teaching soon, and it is a great pleasure for me to write to you on this occasion. I have not seen you in a long time, but I have cherished memories of you going back a few decades. I first met you about 40 years ago when you were a young teacher in Mendoza, Argentina. The first class was quite an experience for the other students and me. It started with your listing of a very long bibliography, something that was not in itself that unusual. What was unusual, however, was your command of the bibliography, which you immediately demonstrated by going over each item giving us your detailed comments. We clearly saw that you had not taken the job lightly. As shown in this and other courses you taught over the course of two years, you were constantly studying, researching and exploring, and we, your students, were extraordinarily benefiting from a shared journey of discovery. A subject that immediately comes to mind from one of your first courses is the discussion of the relative efficiency of fiscal and monetary policy under fixed and flexible exchange rates, for which you provided tools of analysis that were as relevant then as they are now. Illustrations with practical examples were your trademark, and my favorite was your example of a stopped watch as an unbiased estimator of time, although particularly inefficient. Of course, one special attraction of those classes was that they were taught in Spanish, and I should say that yours at that time was “obviosamente” “Spanglish”. In the mid-sixties I had the privilege of being again one of your students, this time in Chicago. Your wonderful performance as a teacher continued there, although my sense of awe had faded somewhat because I had gotten used to the good stuff. Moreover, you were also a friend of these students so far away from home, and I remember particularly fondly a Christmas party at your home together with a small group of other Latin American students. It snowed a lot during our stay, and our car got stuck in your back yard. Then and there you gave us a lesson on how to drive on the snow, and demonstrated how to do it! In Mendoza again, in the late sixties, you were of invaluable help in suggesting topics and providing guidance for research. In later years I saw you only briefly in Uruguay and in the International Monetary Fund in the mid-seventies, but I was not surprised to hear from time to time fond comments from younger professionals who had been your students in Chicago. In short, after so many years, I feel fortunate to have had such a wonderful teacher. Sincerely,

Edgardo Decarli 8015 Falstaff Rd Mc Lean, VA 22102, USA, tel. 703-790-1321

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Larry Sjaastad

Larry Sjaastad remains a formative influence on generations of Chicago students

through his teaching, mentoring and research. My first encounter with Larry was Eco 331, in

the Spring Semester of 1983. Like so many others, I had come to Chicago lured by the

prospect of studying at the department made famous by the likes of Milton Friedman and

George Stigler. Taking his class, I remember at the time being most impressed by Larry's

ability to smoke and teach simultaneously. Looking back from a vantage of two decades, I

realize I learned more in his class than any other. Most importantly, I learned that economics

mattered and was worth taking seriously. A lesson amplified in later classes by Larry and his

partners in crime Arnold Harberger, the late D. Gale Johnson and George Tolley.

Some few years later, Larry chaired my dissertation and I got to know him better. As

an advisor, Larry was helpful and encouraging. He was generous with his suggestions and

with his time. When I was on the job market, Larry's efforts on my behalf also went above

and beyond the call of duty. I remember, for example, Larry getting my interview schedule

so he could call the chair at the most opportune time during a campus visit. As you can see,

my professional obligations to Larry go deep.

Reading through Larry's Vita and the list of his students, I am astonished by how

much he has accomplished. In terms of a body of research that stands the test of time such as

his work on migration, inflation, the opportunity cost of government borrowing and, finally, a

subject close to my heart, the real exchange rate. In terms of producing hundreds of graduate

students who ended up in every imaginable area of academia, business and government

working in every corner of the world. In the end, however, any recitation of Larry's

professional achievements does not provide a full measure of the man. In the first place, it

leaves out Larry's enumerable acts of kindness to students and colleagues. Furthermore, it

misses his character. Larry has Catholic tastes and interests. He is a great raconteur and

wonderful company with a bottomless well of stories and yarns. Over the years he used these

qualities to make the economics department a warmer and more humane place than it

otherwise would have been.

Larry's retirement is a milestone. He is a vital link to the vibrant department that

changed economics and perhaps the world. I am sad to see Larry leave because I know he

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cannot be replaced. I wish him well for his long and happy retirement. I also express my

deep gratitude for all he has given his students and his profession. We will not see his like

again.

All of us have our favorite Larry Sjaastad stories. In conclusion here is one of mine.

A number of years ago, I invited Larry to Miami for a seminar. After dinner, Larry, a newly

minted assistant professor from MIT and I adjourned to a bar in Coral Gables for liquid

refreshment. We left when it closed carrying my junior colleague. But that is not the point of

the story. Rather, during those hours of talk and debate Larry had managed to change the

assistant professors view of the world and how it worked. Permanently, as it turned out. Put

simply, during a long and distinguished career Larry Sjaastad has always made a difference.

He has always been on the side of the angels. We can ask no more from any man.

I close with George Eliot's summation of Dorothea, the lines that end Middlemarch."

....But the effect of her being on those around her was incalculably diffusive: for the growing

good of the world is partly dependent on unhistoric acts; and that things are not so ill with

you and me as they might have been, is half owing to the number who lived faithfully..." This

applies to Larry Sjaastad, teacher, economist and citizen of the world.

John Devereux

Queens College. New York.

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PONTIFICIA UNIVERSIDAD CATOLICA DE CHILE Professor Larry S. Sjaastad Department of Economics University of Chicago Chicagi, Illinois 60637 Larry, amigo mío: An occasion of remembrance attests to our human condition. In a simple yet meaningful ritual your students, your friends, are gathered together to convey to you how important you, Larry, have been in our lives. Larry, the teacher, the friend. For an antofagastino kid in his early twenties, the journey to Chicago was not only my first experience abroad but one that I have always treasured. Fortunate enough to have in my core courses the best teachers, Friedman and Sjaastad, 331 and 332, Griliches and Sjaastad, 301, 302, I soon realized we were studying in the best school of economics in the world. You, Larry, were one of the strongest pillars. I still remember your comment when you handed my 332 exam back: "You read too much". I could go on with recollections of those years in Chicago, the pre-Nobel years, where we felt we few, a bunch of kids had had the good fortune of going to a place of such intellectual strength and sprit de corps and become part of a revolution against salt-water errors and follies. But I shall postpone it. Reminiscences made one feel so deliciously aged, or so said that bloody communist. Larry, my friend. We shared great moments in Chicago, in Geneva, in Interlaken, in Santiago, in Caracas. Each place I associate with unending conversations and each with a suitable drink. Chicago was gin and tonic; Geneva, kir; Interlaken, wine; Santiago, scotch; Caracas, all of the above. And Caracas reminds me where we caught McK in fraganti. But we not only had intellectual fun when together, we shared great moments, we laughed a lot; your particular sense of humor found a brother in mine. We met our wives at about the same time, and I still remember you dancing with Irene in Interlaken and I with Cecilia. This act is a renewed opportunity to appreciate how much I owe you, Larry, and the wonderful moments we shared together, many of which need to be left out completely from a letter like this for decency's sake. This day imparts both a sense of scale as well as specific details to situate our friendship. It is a rare kir to be savored It has been wonderful to know you and to be your friend. As I was writing this letter I remembered these words, included here with slight changes from the original:

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He which hath no stomach to this fight, Let him depart; his passport shall be made, And crowns for convoy put into his purse; We would not die in that man’s company That fears his fellowship to die with us. This day is called the feast of Larry: He that outlives this day and comes safe home, Will stand a tip-toe when this day is nam’d, And rouse him at the name of Larry. He that shall see live this day, and see old age, Will yearly on the vigil feast his neighbours, And say, “To-morrow is the Day of Larry”: Then will he strip his sleeve and show his scars, And say, “these wounds I had on Larry’s day.” Old men forget: yet all shall be forgot, But he’ll remember with advantages What feats he did that day. Then shall our names, Familiar in his mouth as household words, Larry the King, Harry and Bob, Alito and T.W., Fogel and Zvi, Milton and George, Be in their flowing cups freshly remember’d. This story shall the good man teach his son; And Larry’s day shall ne'er go by, From this day to the ending of the world, But we in it shall be remembered; We few, we happy few, we band of brothers; For he to-day that sheds his blood with me Shall be my brother; be he ne’er so vile This day shall gentle his condition: And gentlemen in the Midway, now a-bed Shall think themselves accurs’d they were not here, And hold their manhoods cheap whiles any speaks That fought with us upon Larry’s day. All your students know, Larry, you have the stomach and the brains for the fight. Carinos for Irene.

Un abrazo,

Hernán Cortés Douglas Catholic University of Chile Vicuna Mackenna 4860

SANTIAGO, CHILE

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Dear Larry, I cannot imagine that it has been 34 years. I still recall the clarity with which you expressed the macroeconomics that was so hard for those of us with limited training. It was a revelation and you were the magician. I confess I used many of your ideas when I taught my own macroeconomics courses. But I guess that is what happens to good teachers: their ideas are promptly cribbed by their students. At least that is how I rationalize my theft! Of course I also fondly recall your “sipping whiskey” in Geneva when we met a couple of years later. It was a little more important to me perhaps than to you as it really signaled my coming of age – accepted as a colleague by a former teacher. Rich stuff to the new Ph. D. You were warm and eager to talk shop. I hope you realize the impact of these “little” things. I remain, Warmly, Steve Easton Professor of Economics Simon Fraser University

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Professor Larry A. Sjaastad Department of Economics The University of Chicago Chicago, Illinois U.S.A. Dear Professor Sjaastad,

I am very pleased to add my letter of gratitude to the ones of the other former students of yours as a testimony for the big job you made in giving to us a powerful tool to approach economics and life.

Your extension and research works could be easily appreciated making a quantitative analysis of the 138 Ph. D Thesis that you helped to develop and end up in excellent shape. Looking geographically we see that the students involved in this comes 58 from Latin America, 40 from North America, 21 from Asia, 9 from Europe and 3 from Oceania. They belong to 25 different countries, leaded by U.S. and Argentina with 39 and 26 respectively, and Chile, Mexico and Korea with 9 each one. The subjects of the thesis covered 23 fields, leaded by International Finance with 27, Trade with 15 and Public Finance, Inflation and Growth with 12 each one. They also include topics in Urban Economics, Technology, Labor, Industrial Organization, Finance, Agriculture, Project Evaluation, Regulation, Banking, Income Distribution, Econometrics, Political Economy and Macroeconomics. Looking at in detail to the topics covered one can see that in most of them you were pushing its frontier of knowledge that kept their current interest Paying tribute to your own Ph. D thesis you kept migrating through different fields permanently generating a huge amount of human and social capital

Your human capital approach to migration had a major influence in the fields of labor, demography, and growth, providing a fresh look even right now to the new approaches in growth, convergence, and economic development Just with this contribution you got a place among the big economist. But you added more as to the sources and externalities of technology, exchange rate theory, and debt crisis analysis. One of your fights was to give the monopoly to the open economy approach to macroeconomics even for an economy as big as the U.S., and it looks that your odds on the Marks and the Euro were confirmed.

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In Argentina, during your management of the so called

Programa Cuyo, you played a crucial role in the organization of the Annual Meetings of the Economic Research Centers of all over the country since 1964, which then consolidated the federal functioning of the Argentine Economic Association. The University of Tucuman February, in 2004 had a clear view of the very important contributions that you did for the development of Economics, the economic profession in our country and for the Economics program at our University. This recognition led to confer the Doctor Honors Causa to you in 1993, a distinction that we gave to Arnold C. Harberger, Rolf R. Mantel, and James Durbin only.

In my case you started to help my work since 1964 when I first met you at Mendoza to discuss my Ph. D thesis proposal. Then back in Chicago in 1968 you became a very active member of my thesis Committee and pushed to me to put at end to the thesis and saved me from the pressure of the other members, Gregg Lewis and Al Harberger, to continue for ever. You also were very kind to support my activities at Tucuman, visiting to us to offer Seminars or short courses and to support the request of our graduates to do Ph. D studies at the University of Chicago.

It comes to my memory some events that I will like to recall in this occasion. In 1969 you provided to me a cradle for my new daughter Cecilia which I passed to Geraldo Langoni for his daughter too (now a good economist). My mother in law were shocked when you took off your shoes to put your foot over a chair in a dinner at my apartment In a trip from Cordoba to Tucuman by bus you did not want to sit at my side taking the chance to have a better partner which did not occur. I and my wife were impressed by the paragraph taken from the Indians of the Dakota’s region which the priest read in your marriage to Irene at the IMF resort in Maryland.

I wish you and Irene the best for the years to come. I appreciate very much the friendship that you and Irene gave to me and my family over the years. Thank you.

Best regards.

Sincerely yours.

Victor J. Elias

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Javier Gómez Carrera 7 14-78 P. 11 Investigador Principal Tel. (571) 343 0521 Fax (571) 342 1804 E-Mail [email protected] 17 March 2004 Larry, Thank you for guiding me when I entered the U of Chicago, while I was studying, and when I finished my studies. Thank you for having been my thesis advisor. The thesis was the best preparation I could have had to become the applied empirical economist I am. The cointegration that I learnt with you while writing my thesis has been useful in the papers I have written in the subsequent years and my professional life still consists of international economics, RATS and impulse response functions. Larry, your support during my thesis work is something I will never be able to thank you for enough. You support was there in the good times, but above all, in the difficult times. Thank you. To that support I owe a lot of what I am as an economist today. Best wishes in the years to come for you and for all your loved ones. Javier Gómez

the larry sjaastad letters, i · 1. abrantes-metz, rosa maria 2002 before and after the emu:...

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