Professor Truman Bewley, Director of Graduate Studies

        Education: Bachelor’s in History, Cornell University; Doctorates in Mathematics and Economics, UC Berkeley  

        Professional Career: Associate Professor at Harvard, Tenure at Northwestern, at Yale for the past 27 years

        Hobbies: Spending time with family, reading “The Adventures of Tintin” comics

     Professor Bewley interviewed over three hundred businessmen, union leaders and unemployment counselors in the early ‘90s recession for his initial data set. Professor Bewley concluded that pay cuts have two primary effects: saving jobs and lowering employee morale. He found that the second effect largely overshadows the first; satisfied workers prove more dedicated and efficient, which explains why companies are so hesitant to cut wages at times of recession. Instead, firms turn to layoffs over pay cuts because of a lower impact on company morale: pay cuts hit everybody while lay-offs single out individuals. On Why Wages, MIT Nobel Laureate Robert Solow wrote, “To call this book a breath of fresh air is an understatement. The direct insights are fascinating, and Truman Bewley's use of them is sharp and insightful. Labor economists and macroeconomists have a lot to think about.”

     Professor Bewley’s current research examines how companies determine and set their prices, whether in a recession economy or otherwise. His approach studies how firms price discriminate in different markets under diverse circumstances. With 517 interviews conducted as of October, Professor Bewley seems well on his way to publishing his next book.

     In regard of the current economic crisis, Professor Bewley believes that the stimulus was necessary and could have been bigger; the problem with the stimulus package was that money could not be spent fast enough to maximize its effect on the market. “So what else could be done?" we asked. His response was to increase the immediate stimulus benefits by investing funds in state and local governments. Bewley suggested steering away from classic 'road-building' national projects and look towards immediate and lasting issues such as education at the state and local level. Being from California, we could not agree more.

     Professor Bewley, in his role as Director of Graduate Studies in Economics, has helped systemize the requirements for earning a graduate degree in Economics. He has taught a number of courses, including classes on General Equilibrium and Macroeconomic Theory.