This award provides support to Dr. N. Gregory Mankiw under the National Science Foundations's Presidential Young Investigator Awards program. The objectives of this program are to provide research support to the Nation's most outstanding and promising young science and engineering faculty. The awards are intended to improve the capability of U.S. academic institutions to respond to the demand for highly qualified science and engineering personnel for academic and industrial research and teaching. Dr. Mankiw has already made significant research contributions to the field of economics, and he has the potential to become a leader in academic research and education. This award will allow the investigator to pursue his research interests in the study of macroeconomic issues and questions. Much of Dr. Mankiw's empirical research involves the application of time-series analysis and other econometric techniques to a variety of topics. Among the topics are testing the permanent income hypothesis, investigating the term structure of interest rates, studying stock market volatility, and studying the demand for money and the effect of real interest rates on consumer spending. At the theoretical level, Dr. Mankiw is especially interested in investigating the importance of capital market imperfections for macroeconomic issues. In addition, he will also explore the interaction between macroeconomics and industrial organization, and the role of imperfect competition in explaining both price rigidity and the impact of fiscal policy on aggregate expenditures.
