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  1. Directory
  2. Faculty
  3. John Donaldson

John Donaldson

Mario J. Gabelli Professor of Finance
Economics Division
Columbia Business School
Areas of Expertise
Globalization, Macroeconomics
Contact
Office: 523 Kravis
Phone: (212) 8544436
E-mail: [email protected]
Links
Personal Website
Curriculum Vitae

Professor Donaldson teaches courses in basic finance and options. He focuses on business cycles and asset pricing, with a particular emphasis on the real side of the economy’s impact on equilibrium pricing of financial assets. His work has appeared in numerous professional journals, including the Journal of Economic Dynamics and Control, Econometrica, the Journal of Economic Theory and the Journal of Monetary Economics.

Education
BS, Lafayette, 1970; MS, Carnegie Mellon, 1972; MS, 1974; PhD, 1976
Joined CBS
1977

All Activities

  • Research
  • Teaching
  • Awards and Honors
  • Press
  • CaseWorks
  • Journal articles
  • Working papers
  • Articles
  • Books
  • Chapters
Journal Article
Donaldson, John and Jean-Pierre Danthine
. “Executive Compensation: A General Equilibrium Perspective.”
Review of Economic Dynamics
vol.
18
, no.
2
(April 01, 2015):
269
.
Explore Further about Executive Compensation: A General Equilibrium Perspective
Journal Article
Donaldson, John, Natalia Gershun, and Marc Giannoni
. “Unpleasant General Equilibrium Implications of Executive Incentive Compensation Contracts.”
Journal of Economic Theory
vol.
148
, no.
1
(January 01, 2013):
31
-
63
.
Explore Further about Unpleasant General Equilibrium Implications of Executive Incentive Compensation Contracts
Journal Article
Donaldson, John, George Constantinides, and Rajnish Mehra
. “Junior is Rich: Bequests as Consumption.”
Economic Theory
vol.
32
, no.
1
(July 01, 2007):
125
-
155
.
Explore Further about Junior is Rich: Bequests as Consumption
Journal Article
Donaldson, John, George Constantinides, and Rajnish Mehra
. “Junior Must Pay: Pricing the Implicit Put in Privatizing Social Security.”
Annals of Finance
vol.
1
, no.
1
(January 01, 2005):
1
-
34
.
Explore Further about Junior Must Pay: Pricing the Implicit Put in Privatizing Social Security
Journal Article
Donaldson, John, Alessandro Citanna , Herakles Polemarchakis, Paolo Siconolfi , and Stephen Spear
. “General Equilibrium, Incomplete Markets and Sunspots: A Symposium in Honor of David Cass: Guest Editors' Introduction.”
Economic Theory
vol.
24
, no.
3
(October 01, 2004):
465
-
468
.
Explore Further about General Equilibrium, Incomplete Markets and Sunspots: A Symposium in Honor of David Cass: Guest Editors' Introduction
Journal Article
Donaldson, John, Hany Guirguis, Jean-Pierre Danthine, and Christos Giannikos
. “On the Consequence of State Dependent Preferences for the Pricing of Financial Assets.”
Finance Research Letters
vol.
1
, no.
3
(September 01, 2004):
143
-
153
.
Explore Further about On the Consequence of State Dependent Preferences for the Pricing of Financial Assets
Journal Article
Donaldson, John and Jean-Pierre Danthine
. “A Note on NNS Models: Introducing Physical Capital and Avoiding Rationing.”
Economics Letters
vol.
77
, no.
3
(November 01, 2002):
433
-
437
.
Explore Further about A Note on NNS Models: Introducing Physical Capital and Avoiding Rationing
Journal Article
Donaldson, John, George Constantinides, and Rajnish Mehra
. “Junior Can't Borrow: A New Perspective on the Equity Premium Puzzle.”
The Quarterly Journal of Economics
vol.
117
, no.
1
(February 01, 2002):
269
-
296
.
Explore Further about Junior Can't Borrow: A New Perspective on the Equity Premium Puzzle
Journal Article
Donaldson, John and Jean-Pierre Danthine
. “Labour Relations and Asset Returns.”
The Review of Economic Studies
vol.
69
, no.
1
(January 01, 2002):
41
-
64
.
Explore Further about Labour Relations and Asset Returns
Journal Article
Donaldson, John and Jean-Pierre Danthine
. “Non Falsified Expectations and General Equilibrium Asset Pricing: The Power of the Peso.”
The Economic Journal (London)
vol.
109
, no.
458
(October 01, 1999):
607
-
635
.
Explore Further about Non Falsified Expectations and General Equilibrium Asset Pricing: The Power of the Peso
Journal Article
Donaldson, John, Jean-Pierre Danthine, and Thore Johnsen
. “Productivity Growth, Consumer Confidence, and the Business Cycle.”
European Economic Review
vol.
42
, no.
6
(June 01, 1998):
1113
-
1140
.
Explore Further about Productivity Growth, Consumer Confidence, and the Business Cycle
Journal Article
Donaldson, John and Jean-Pierre Danthine
. “Methodological and Empirical Issues in Real Business Cycle Theory.”
European Economic Review
vol.
37
, no.
1
(January 01, 1993):
1
-
35
.
Explore Further about Methodological and Empirical Issues in Real Business Cycle Theory
Journal Article
Donaldson, John, Jean-Pierre Danthine, and Rajnish Mehra
. “The Equity Premium and the Allocation of Income Risk.”
Journal of Economic Dynamics & Control
vol.
16
, no.
3-4
(July 01, 1992):
509
-
532
.
Explore Further about The Equity Premium and the Allocation of Income Risk
Journal Article
Donaldson, John and Jean-Pierre Danthine
. “Risk Sharing and the Business Cycle.”
European Economic Review
vol.
36
, no.
2-3
(April 01, 1992):
468
-
475
.
Explore Further about Risk Sharing and the Business Cycle
Journal Article
Donaldson, John, Thore Johnsen, and Rajnish Mehra
. “El Compoartamients de Ia Estructura Temporal de los Tipos de lnteres en un Modelo de Ciclos Economicos.”
Cuadernos Economicos de ICE
vol.
49
, no.
3
(January 01, 1991):
89
-
120
.
Explore Further about El Compoartamients de Ia Estructura Temporal de los Tipos de lnteres en un Modelo de Ciclos Economicos
Journal Article
Donaldson, John and Jean-Pierre Danthine
. “Efficiency Wages and the Business Cycle Puzzle.”
European Economic Review
vol.
34
, no.
7
(November 01, 1990):
1275
-
1301
.
Explore Further about Efficiency Wages and the Business Cycle Puzzle
Journal Article
Donaldson, John, Thore Johnsen, and Rajnish Mehra
. “On the Term Structure of Interest Rates.”
Journal of Economic Dynamics and Control
vol.
14
, no.
3-4
(January 01, 1990):
571
-
596
.
Explore Further about On the Term Structure of Interest Rates
Journal Article
Donaldson, John, Jean-Pierre Danthine, and Rajnish Mehra
. “On Some Computational Aspects of Equilibrium Business Cycle Theory.”
Journal of Economic Dynamics and Control
vol.
13
, no.
3
(July 01, 1989):
449
-
470
.
Explore Further about On Some Computational Aspects of Equilibrium Business Cycle Theory
Journal Article
Donaldson, John, Lance Smith, and Jean-Pierre Danthine
. “On the Superneutrality of Money in a Non-stochastic Dynamic Macroeconomic Model.”
Journal of Monetary Economics
vol.
20
, no.
3
(December 01, 1987):
475
-
499
.
Explore Further about On the Superneutrality of Money in a Non-stochastic Dynamic Macroeconomic Model
Journal Article
Donaldson, John, Lance Smith, and Jean-Pierre Danthine
. “On the Superneutrality of Money in a Stochastic Dynamic Macroeconomic Model.”
Journal of Monetary Economics
vol.
20
, no.
3
(December 01, 1987):
475
-
499
.
Explore Further about On the Superneutrality of Money in a Stochastic Dynamic Macroeconomic Model
Journal Article
Donaldson, John and Jean-Pierre Danthine
. “Inflation and Asset Prices in an Exchange Economy.”
Econometrica
vol.
54
, no.
3
(May 01, 1986):
585
-
605
.
Explore Further about Inflation and Asset Prices in an Exchange Economy
Journal Article
Donaldson, John and Thore Johnsen
. “The Structure of lntertemporal Preferences Under Uncertainty and Time Consistent Plans.”
Econometrica
vol.
53
, no.
6
(November 01, 1985):
1451
-
1458
.
Explore Further about The Structure of lntertemporal Preferences Under Uncertainty and Time Consistent Plans
Journal Article
Donaldson, John and Jean-Pierre Danthine
. “A Note on The Effects of Capital Income Taxation on the Dynamics of a Competitive Economy.”
Journal of Public Economics
vol.
28
, no.
2
(November 01, 1985):
255
-
265
.
Explore Further about A Note on The Effects of Capital Income Taxation on the Dynamics of a Competitive Economy
Journal Article
Donaldson, John and Rajnish Mehra
. “Comparative Dynamics of an Equilibrium lntertemporal Asset Pricing Model.”
Review of Economic Studies
vol.
51
, no.
3
(July 01, 1984):
491
-
508
.
Explore Further about Comparative Dynamics of an Equilibrium lntertemporal Asset Pricing Model
Journal Article
Donaldson, John and Jean-Pierre Danthine
. “Investment, Stability, and Taxation in a Long Run Macro-economic Model.”
Journal of Economic Dynamics and Control
vol.
7
, (January 01, 1984):
79
-
110
.
Explore Further about Investment, Stability, and Taxation in a Long Run Macro-economic Model
Journal Article
Donaldson, John, Jean-Pierre Danthine, and Rajnish Mehra
. “On the Impact of Shock Persistence on the Dynamics of A Recursive Economy.”
European Economic Review
vol.
22
, no.
2
(July 01, 1983):
147
-
166
.
Explore Further about On the Impact of Shock Persistence on the Dynamics of A Recursive Economy
Journal Article
Donaldson, John
. “A Note on Value Maximization for Consumption Sets in I.”
Journal of Economic Theory
vol.
30
, no.
1
(June 01, 1983):
191
-
200
.
Explore Further about A Note on Value Maximization for Consumption Sets in I
Journal Article
Donaldson, John and Rajnish Mehra
. “Stochastic Growth with Correlated Production Shocks.”
Journal of Economic Theory
vol.
29
, no.
2
(January 01, 1983):
282
-
312
.
Explore Further about Stochastic Growth with Correlated Production Shocks
Journal Article
Donaldson, John
. “A Generalized Value Maximization Condition for Growth Paths with Finite Total Consumption Possibilities.”
International Economic Review
vol.
23
, no.
2
(June 01, 1982):
337
-
352
.
Explore Further about A Generalized Value Maximization Condition for Growth Paths with Finite Total Consumption Possibilities
Journal Article
Donaldson, John and Jean-Pierre Danthine
. “Stochastic Properties of Fast vs. Slow Growth Economies.”
Econometrica
vol.
49
, no.
4
(July 01, 1981):
1007
-
1033
.
Explore Further about Stochastic Properties of Fast vs. Slow Growth Economies
Journal Article
Donaldson, John and Jean-Pierre Danthine
. “Certainty Planning in an Uncertain World: A Reconsideration.”
The Review of Economic Studies
vol.
48
, no.
3
(July 01, 1981):
507
-
510
.
Explore Further about Certainty Planning in an Uncertain World: A Reconsideration
Journal Article
Donaldson, John and Larry Selden
. “A Note on the Recoverability and Uniqueness of Changing Tastes.”
Economics Letters
vol.
7
, (January 01, 1981):
105
-
112
.
Explore Further about A Note on the Recoverability and Uniqueness of Changing Tastes
Download PDF on A Note on the Recoverability and Uniqueness of Changing Tastes
Journal Article
Donaldson, John and Larry Selden
. “A Note on the Divergence Between Ex Ante and Ex Post Optimality.”
Economic Letters
vol.
9
, (January 01, 1981):
209
-
216
.
Explore Further about A Note on the Divergence Between Ex Ante and Ex Post Optimality
Journal Article
Donaldson, John and Larry Selden
. “Arrow-Debreu Preferences and the Reopening of Contingent Claims Markets.”
Economics Letters
vol.
8
, (January 01, 1981):
209
-
216
.
Explore Further about Arrow-Debreu Preferences and the Reopening of Contingent Claims Markets
Download PDF on Arrow-Debreu Preferences and the Reopening of Contingent Claims Markets
Journal Article
Donaldson, John and Larry Selden
. “On the Recoverability and Uniqueness of Changing Tastes in a Consumption-Savings Setting.”
Economic Letters
vol.
8
, (January 01, 1981):
105
-
112
.
Explore Further about On the Recoverability and Uniqueness of Changing Tastes in a Consumption-Savings Setting
Journal Article
Donaldson, John and Giulio Pontecorvo
. “Economic Rationalization of Fisheries: The Problem of Conflicting National Interest on Georges Bank.”
Ocean Development and International Law
vol.
8
, no.
2
(January 01, 1980):
149
-
169
.
Explore Further about Economic Rationalization of Fisheries: The Problem of Conflicting National Interest on Georges Bank
Working Paper
Donaldson, John and Hyung Seok E. Kim
. The Macroeconomics of Stakeholder Equilibria*. Forthcoming.
Explore Further about The Macroeconomics of Stakeholder Equilibria*
Download PDF on The Macroeconomics of Stakeholder Equilibria*
Working Paper
Donaldson, John and Hyung Seok Eric Kim
. Shimer Meets the Production Based Asset Pricing Crowd: Labor Search and Asset Returns. April 05, 2011.
Explore Further about Shimer Meets the Production Based Asset Pricing Crowd: Labor Search and Asset Returns
Download PDF on Shimer Meets the Production Based Asset Pricing Crowd: Labor Search and Asset Returns
Working Paper
Donaldson, John, Jean-Pierre Danthine, and Natalia Gershun
. Executive Compensation: Salary vs. Incentive Pay: An Inconvenient Truth. September 03, 2010.
Explore Further about Executive Compensation: Salary vs. Incentive Pay: An Inconvenient Truth
Download PDF on Executive Compensation: Salary vs. Incentive Pay: An Inconvenient Truth
Working Paper
Donaldson, John, Angela Maddaloni, and Rajnish Mehra
. Equilibrium Impact of Demographic Changes on Asset Prices. March 23, 2010.
Explore Further about Equilibrium Impact of Demographic Changes on Asset Prices
Working Paper
Donaldson, John and Natalia Gershun
. Some Unpleasant General Equilibrium Implications of Executive Incentive Compensation Contracts. January 01, 2010.
Explore Further about Some Unpleasant General Equilibrium Implications of Executive Incentive Compensation Contracts
Download PDF on Some Unpleasant General Equilibrium Implications of Executive Incentive Compensation Contracts
Working Paper
Donaldson, John and Jean-Pierre Danthine
. Executive Compensation and Stock Options: An Inconvenient Truth. January 01, 2008.
Explore Further about Executive Compensation and Stock Options: An Inconvenient Truth
Working Paper
Donaldson, John and Jean-Pierre Danthine
. Macroeconomic Frictions: What Have We Learned from the Real Business Cycle Research Program. January 01, 1999.
Explore Further about Macroeconomic Frictions: What Have We Learned from the Real Business Cycle Research Program
Working Paper
Donaldson, John and Jean-Pierre Danthine
. Computing Equilibria of Non-Optimal Economies. January 01, 1993.
Explore Further about Computing Equilibria of Non-Optimal Economies
Working Paper
Donaldson, John and R. Mehra
. Dynamic Decentralization. January 01, 1991.
Explore Further about Dynamic Decentralization
Working Paper
Donaldson, John and J. Dutta
. Anticipation and the Aggregation of Sector Specific Shocks. January 01, 1986.
Explore Further about Anticipation and the Aggregation of Sector Specific Shocks
Working Paper
Donaldson, John and Jean-Pierre Danthine
. The Effects of Government Spending and Monetary Growth on Security and Commodity Price Dynamics. July 01, 1984.
Explore Further about The Effects of Government Spending and Monetary Growth on Security and Commodity Price Dynamics
Book
Donaldson, John and Jean-Pierre Danthine
. Intermediate Financial Theory. 
Elsevier Science & Technology
, 2005.
Explore Further about Intermediate Financial Theory
Book
Donaldson, John and Jean-Pierre Danthine
. Intermediate Finance. 
Englewood Cliffs, N.J.
:
Prentice Hall
, 2001.
Explore Further about Intermediate Finance
Chapter
Donaldson, John and Rajnish Mehra
. “Risk Based Explanations of the Equity Risk Premium.” In
Handbook of the Equity Risk Premium
, edited by
Rajnish Mehra
,
37
-
99
.
Amsterdam
:
Elsevier B.V.
, 2008.
Explore Further about Risk Based Explanations of the Equity Risk Premium
Chapter
Donaldson, John, Jean-Pierre Danthine, and Paolo Siconolfi
. “Distribution Risk and Equity Returns.” In
Handbook of the Equity Risk Premium
, edited by
Rajnish Mehra
,
415
-
462
.
Amsterdam
:
Elsevier B.V.
, 2008.
Explore Further about Distribution Risk and Equity Returns
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Article

My Work Is My Bond? A Financial-Asset Approach to Wage Contracts Could Lessen Inequality

Read More about My Work Is My Bond? A Financial-Asset Approach to Wage Contracts Could Lessen Inequality
Article

New Study Proposes Unique Model to Address Wealth Inequality

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