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Truman Fassett Bewley (born July 19, 1941) is an American economist. He is the Alfred Cowles Professor of Economics at Yale University.[1] Originally specializing in mathematical economics and general equilibrium theory, since the late 1990s Bewley has gained renown for his work on sticky wages.[2] In Bewley's 1999 book Why Wages Don't Fall During a Recession,[3] hundreds of interviews with executives, labor leaders, and other professionals establish morale as an important factor in why businesses are reluctant to decrease employee compensation at times of low demand.

Truman F. Bewley
Born (1941-07-19) July 19, 1941 (age 78)
Alma materUniversity of California, Berkeley
Scientific career
FieldsMathematical economics
InstitutionsYale University
Doctoral advisorCalvin C. Moore
Doctoral studentsDean Corbae
Stephen Morris
James A. Robinson

In general equilibrium theory, Bewley (1972) established key existence results for models with infinitely many goods.[4]

Due to Bewley (1977),[5] Bewley is the namesake of Bewley models, the class of incomplete markets general equilibrium models in which agents face idiosyncratic income shocks and achieve partial insurance via, for example, a risk-free bond or capital.[6][7] Aiyagari (1994),[8] Huggett (1993),[9] and Krusell and Smith (1998)[10] are examples of Bewley models, each with many hundreds of citations according to Google Scholar.

Bewley was elected a fellow of the American Academy of Arts and Sciences in 2005.[11] In 2012 he was elected a distinguished fellow of the American Economic Association.


  1. ^
  2. ^ "Why Wages Do Not Fall in Recessions," The Economist, February 26, 2000:
  3. ^ Bewley, Truman F. (1999). Why Wages Don't Fall During a Recession. Harvard University Press.
  4. ^ Bewley, T. (1972). "Existence of Equilibria in Economies with Infinitely many Commodities". Journal of Economic Theory. 4 (3): 514–40. doi:10.1016/0022-0531(72)90136-6.
  5. ^ Bewley, Truman F. (1977). "The Permanent Income Hypothesis: A Theoretical Formulation". J. Econ. Theory. 16 (2): 252–92. doi:10.1016/0022-0531(77)90009-6.
  6. ^ Bewley, Truman F. (1986). "Stationary Monetary Equilibrium with a Continuum of Independently Fluctuating Consumers" (PDF).
  7. ^ Ljungqvist, L.; Sargent, T. J. (2004). Recursive Macroeconomic Theory. The MIT Press.
  8. ^ Aiyagari, S. Rao (1994). "Uninsured Idiosyncratic Risk and Aggregate Saving" (PDF). Quarterly Journal of Economics. 109 (3): 659–84. doi:10.2307/2118417. JSTOR 2118417.
  9. ^ Huggett, Mark (1993). "The Risk-Free Rate in Heterogeneous-Agent Incomplete-Insurance Economies". J. Econ. Dyn. Control. 17 (5–6): 953–69. doi:10.1016/0165-1889(93)90024-m. hdl:2142/30021.
  10. ^ Krusell, P.; Smith, A. A., Jr. (1998). "Income and Wealth Heterogeneity in the Macroeconomy". Journal of Political Economy. 106 (5): 867–96. doi:10.1086/250034.
  11. ^ "Book of Members, 1780–2010: Chapter B" (PDF). American Academy of Arts and Sciences. Retrieved June 25, 2011.

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