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Andrei Shleifer

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466:) is an important determining factor for a country's development, most of all financial development. The 1998 "Law and Finance" article by Rafael La Porta, Florencio Lopez-de-Silanes, Andrei Shleifer, and Robert Vishny (known as LLSV) documented that countries with stronger legal protections of investors are less likely to have a few shareholders that control the firm, which they interpreted as showing that small equity investors are willing to provide capital without control when they have stronger legal protection against managers stealing or wasting the money that these investors provide. LLSV then extended their analysis with related papers published in 1997 examining "Legal Determinants of External Finance," in 2000 examining "Investor Protection and Corporate Governance" and "Agency Problems Dividend Problems Around the World," and in 2002 in "Investor Protection and Corporate Valuation." The dividends paper documented that countries with stronger shareholder protection tend to have more dividends paid to shareholders. An alternative explanation that they examined is that companies pay dividends in order to develop a reputation for returning cash to shareholders, so that they can issue more equity in the future. The evidence generally supports the investor protection explanation. 31: 408:. In 1994 Shleifer, along with Josef Lakonishok and Robert Vishny, published an article "Contrarian Investment, Extrapolation, and Risk" in which they addressed why value stocks had historically outperformed growth stocks. The article documented that, using a variety of measures of risk, a portfolio of growth stocks was riskier, on average, than a portfolio of value stocks. 412:
misvaluation to be corrected. This is especially true for a hedge fund for which its investors might withdraw their money if the hedge fund temporarily has disappointing returns, forcing the fund to buy an overvalued asset that it has shorted, or to sell an undervalued asset that it has bought. In
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The Clark medal citation described him as a "superb economist, working in the old Chicago tradition of building simple models, emphasizing basic economic mechanisms, and carefully looking at the evidence.... A recurring theme of his research is the respective role of markets, institutions, and
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In 1997, he and Robert Vishny published "The Limits to Arbitrage" that addressed efficient markets. The article notes that investors who bet against a major overvaluation or undervaluation are exposing themselves to substantial risks if there is uncertainty about how long it will take for the
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In 1997, the U.S. Agency for International Development (USAID) canceled most of its funding for the Harvard project after investigations showed that top HIID officials Andrei Shleifer and Jonathan Hay had used their positions and insider information to profit from investments in the Russian
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In August 2005, Harvard University, Shleifer and the Department of Justice reached an agreement under which the university paid $ 26.5 million to settle the five-year-old lawsuit. Shleifer was also responsible for paying $ 2 million worth of damages, though he did not admit any wrongdoing.
518:'s Russian aid project from its inauguration in 1992 until 1997. Some people associated with the project made Russian investments, and he settled a lawsuit from the U.S. government for such a violation of HIID's contract. Shleifer was also a direct advisor to 310:
ranked him as the second top economist in the world in 2011, and the top economist in 2024. He is also listed as #1 on the list of "Most-Cited Scientists in Economics & Business". On Google Scholar, as of 2024 he had over 400,000 citations.
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as a major breakthrough which ended a "long slump in development theory". Shleifer's political economy work includes his 1993 article "Corruption" and his 1994 article "Politicians and Firms", both coauthored with Robert Vishny.
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in 1999 for his seminal works in three fields: corporate finance (corporate governance, law and finance), the economics of financial markets (deviations from efficient markets), and the
2461: 545:. Shleifer was also tasked with establishing a stock market for Russia that would be a world-class capital market. In 1996 complaints about the Harvard project led Congress to launch a 365:; he has said that the course made him realize he was not destined to be a mathematician, but the experience gave him a future co-author. Shleifer also met his mentor and professor, 506:, with Lakonishok becoming the CEO and running the day-to-day operations of the firm. As of February 2006, it managed about $ 50 billion. Shleifer sold his ownership stake in 2003. 469:
Shleifer has also written influential papers on political economy, the economics of transition, and economic development, collaborating with his former colleagues in Chicago,
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investigation, which stated that the Harvard Institute for International Development (HIID) was given "substantial control of the U.S. assistance program.”
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The Harvard Crimson: "Was Shleifer Screwed? - Sure, he had to pay a $ 2 million settlement—but he also got mad loot from Harvard" By Zachary M. Seward
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Wedel, Janine. Shadow Elite: How the World's New Power Brokers Undermine Democracy, Government, and the Free Market. New York: Basic, 2009.
443:, Shleifer has also made significant contributions to the study of corporate governance. In particular, Shleifer and Vishny's 1997 article 2426: 816: 2043: 847: 1469:"Harvard Defendants Pay Over $ 31 Million to Settle False Claims Act Allegations, Reports... -- re> BOSTON, Aug. 3 /PRNewswire/ --" 2411: 2391: 2386: 1313: 553:
securities markets. Among other things, the Institute for a Law Based Economy (ILBE) was allegedly used to assist Shleifer's wife,
369:, during his undergraduate education at Harvard. The two went on to be co-authors, joint grant recipients, and faculty colleagues. 1425: 1500: 732: 1832: 1516:
Book review in Finance and Development (An IMF publication) of "Without a Map: Political Tactics and Economic Reform in Russia"
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During the early 1990s, Andrei Shleifer, a native Russian speaker, headed a Harvard project under the auspices of the
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La Porta, Rafael; Lopez-de-Silanes, Florencio; Shleifer, Andrei; Vishny, Robert (February 2000).
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La Porta, Rafael; Lopez-de-Silanes, Florencio; Shleifer, Andrei; Vishny, Robert (December 1998).
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focused on the big differences across countries in the use of bank debt versus equity financing.
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La Porta, Rafael; Lopez-de-Silanes, Florencio; Shleifer, Andrei; Vishny, Robert (June 2002).
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La Porta, Rafael; Lopez-de-Silanes, Florencio; Shleifer, Andrei; Vishny, Robert (July 1997).
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La Porta, Rafael; Lopez-de-Silanes, Florencio; Shleifer, Andrei; Vishny, Robert (2000).
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theory), which claims that the legal tradition a country adheres to (such as
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When Genius Failed: The Rise and Fall of Long-Term Capital Management
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in 1986 at the age of 25. As a freshman at Harvard, Shleifer took
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He has held a tenured position in the Department of Economics at
358: 523: 320: 54: 557:, who operated a hedge fund that speculated in Russian bonds. 272: 1524: 307: 87: 878:"Harvard professor loses honorary title in ethics violation" 1424:. Institutional Investor. February 27, 2006. Archived from 266: 2462:
MIT School of Humanities, Arts, and Social Sciences alumni
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Inefficient Markets: An Introduction to Behavioral Finance
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in 1982. Following this, he went to graduate school in
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Boycko, Maxim; ——; Vishny, Robert (1995).
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Lakonishok, Josef; Shleifer, Andrei; Vishny, Robert.
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Professor of Economics. Previously, he taught at the
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Fellows of the American Academy of Arts and Sciences
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(1997). 854: 875: 663: 404:, where he has contributed to the field of 2058: 2044: 1547: 1533: 29: 2397:American people of Russian-Jewish descent 1440: 784: 782: 628: 626: 1448:"Who Taught Crony Capitalism to Russia?" 1343: 1283: 1219: 1062:"Legal Determinants of External Finance" 791:"Andrei Shleifer and J. Bradford DeLong" 748: 632: 593: 292:economist and Professor of Economics at 1314:"Andrei Shleifer, Clark medal citation" 788: 636:The business cycle and the stock market 602:. Oxford, UK: Oxford University Press. 2369: 846:: CS1 maint: archived copy as title ( 779: 623: 2472:Soviet emigrants to the United States 2039: 1528: 93:Massachusetts Institute of Technology 876:Bombardieri, Marcella (2006-10-14). 2467:Scientists from Rochester, New York 1344:Strahler, Steven (August 5, 2006). 526:, who managed the Rosimushchestvo ( 489: 13: 2427:Fellows of the Econometric Society 1489:Faculty page at Harvard University 1284:Shleifer, Andrei (November 1994). 972:"A Survey of Corporate Governance" 789:Bhayani, Paras D. (June 4, 2007). 707:"Economist Rankings | IDEAS/RePEc" 509: 14: 2488: 1482: 2412:Economists from New York (state) 2392:21st-century American economists 2387:20th-century American economists 445:A Survey of Corporate Governance 400:Shleifer's earliest work was in 253: 1461: 1386: 1337: 1306: 1277: 1234: 1213: 1173: 1133: 1093: 1053: 1013: 963: 916: 890: 749:Shleifer, Andrei (2024-04-24). 288:; born February 20, 1961) is a 1554: 1293:Quarterly Journal of Economics 1250:Quarterly Journal of Economics 1106:Journal of Financial Economics 809: 767: 742: 723: 699: 678: 657: 1: 686:"Economist Rankings at IDEAS" 617: 1319:. aeaweb.org. Archived from 1026:Journal of Political Economy 666:"The Age of Milton Friedman" 579:. Cambridge, MA: MIT Press. 494:In 1994 Shleifer co-founded 7: 382:Graduate School of Business 10: 2493: 2452:Law and economics scholars 2447:Harvard University faculty 1269:: CS1 maint: url-status ( 1205:: CS1 maint: url-status ( 1165:: CS1 maint: url-status ( 1125:: CS1 maint: url-status ( 1085:: CS1 maint: url-status ( 1045:: CS1 maint: url-status ( 441:Florencio Lopez de Silanes 2442:Harvard University alumni 2407:Economics journal editors 2074: 2009: 1846: 1698: 1580: 1564: 1422:"How Harvard Lost Russia" 925:"The Limits of Arbitrage" 633:Shleifer, Andrei (1986). 547:General Accounting Office 531: 454:(also sometimes known as 242: 231: 220: 206: 192: 160: 144: 130: 112: 107: 103: 79: 69: 37: 28: 21: 2457:American macroeconomists 1350:Crain's Chicago Business 564: 341:, obtaining his BA from 1916:Stephany Griffith-Jones 1518:by Andrei Shleifer and 1286:"Politicians and Firms" 594:—— (2000). 522:, then vice-premier of 395: 314: 302:economics of transition 237:IDEAS / RePEc 2067:John Bates Clark Medal 1728:John Kenneth Galbraith 979:The Journal of Finance 929:The Journal of Finance 298:John Bates Clark Medal 225:John Bates Clark Medal 2402:Behavioral economists 2127:Hendrik S. Houthakker 1346:"LSV Locks Down Fund" 543:Russian privatization 386:University of Chicago 139:University of Chicago 125:Development economics 2417:Education economists 1818:Pavlina R. Tcherneva 739:ISI Web of Knowledge 496:LSV Asset Management 462:or various types of 452:legal origins theory 390:Princeton University 211:Legal origins theory 167:Sendhil Mullainathan 2217:Lawrence H. Summers 2199:Sanford J. Grossman 2169:Martin S. Feldstein 2085:Kenneth E. Boulding 2023:Keynesian economics 1572:John Maynard Keynes 1376:|archive-date= 402:financial economics 378:Whipple V. N. Jones 337:. He then studied 329:Rochester, New York 2175:Joseph E. Stiglitz 2157:Franklin M. Fisher 1723:James K. Galbraith 1660:Arthur Melvin Okun 1494:2013-03-25 at the 1372:|archive-url= 1186:Journal of Finance 1146:Journal of Finance 1066:Journal of Finance 903:Journal of Finance 776:September 29, 2005 735:2015-09-24 at the 575:Privatizing Russia 406:behavioral finance 374:Harvard University 343:Harvard University 294:Harvard University 155:Franklin M. Fisher 135:Harvard University 117:Behavioral finance 84:Harvard University 16:American economist 2364: 2363: 2181:A. Michael Spence 2151:Dale W. Jorgenson 2145:Marc Leon Nerlove 2115:Lawrence R. Klein 2079:Paul A. Samuelson 2033: 2032: 1921:Nobuhiro Kiyotaki 1866:Olivier Blanchard 1823:Anthony Thirlwall 1650:Franco Modigliani 1600:James Duesenberry 1506:Citation rankings 1022:"Law and Finance" 751:"Andrei Shleifer" 688:. Ideas.repec.org 664:Andrei Shleifer. 609:978-0-19-829227-2 586:978-0-262-02389-4 540: 327:and emigrated to 319:He was born to a 246: 245: 183:Ulrike Malmendier 121:Law and economics 48:February 20, 1961 2484: 2295:Matthew Gentzkow 2193:Jerry A. Hausman 2187:James J. Heckman 2109:Kenneth J. Arrow 2060: 2053: 2046: 2037: 2036: 2021: 1996:Michael Woodford 1986:Lawrence Summers 1941:Maurice Obstfeld 1911:Robert J. Gordon 1833:Sidney Weintraub 1813:G. L. S. Shackle 1549: 1542: 1535: 1526: 1525: 1477: 1476: 1471:. Archived from 1465: 1459: 1458: 1456: 1455: 1444: 1438: 1437: 1435: 1433: 1418: 1409: 1408: 1406: 1405: 1396:. 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Vishny 414:Roger Lowenstein 367:Lawrence Summers 349:, acquiring his 334:Charlie's Angels 290:Russian-American 284: 279: 278: 275: 274: 271: 268: 265: 262: 259: 197:Lawrence Summers 171:Matthew Gentzkow 151:Peter A. Diamond 74:Russian American 51: 47: 45: 33: 19: 18: 2492: 2491: 2487: 2486: 2485: 2483: 2482: 2481: 2367: 2366: 2365: 2360: 2283:Amy Finkelstein 2235:Andrei Shleifer 2229:Kevin M. Murphy 2211:Paul R. Krugman 2163:Daniel McFadden 2121:Robert M. Solow 2091:Milton Friedman 2070: 2064: 2034: 2029: 2028: 2027: 2026: 2025: 2018: 2005: 1981:Joseph Stiglitz 1976:Andrei Shleifer 1966:Julio Rotemberg 1896:Stanley Fischer 1881:Richard Clarida 1876:Guillermo Calvo 1842: 1838:L. Randall Wray 1828:William Vickrey 1803:Steven Pressman 1758:Nicholas Kaldor 1738:Myron J. Gordon 1700:Post-Keynesians 1694: 1610:Trygve Haavelmo 1576: 1560: 1553: 1520:Daniel Treisman 1496:Wayback Machine 1485: 1480: 1467: 1466: 1462: 1453: 1451: 1446: 1445: 1441: 1431: 1429: 1428:on July 5, 2014 1420: 1419: 1412: 1403: 1401: 1392: 1391: 1387: 1375: 1371: 1370: 1361: 1360: 1354: 1352: 1342: 1338: 1329: 1327: 1323: 1316: 1312: 1311: 1307: 1297: 1295: 1288: 1282: 1278: 1262: 1261: 1254: 1252: 1245: 1239: 1235: 1226: 1224: 1218: 1214: 1198: 1197: 1190: 1188: 1178: 1174: 1158: 1157: 1150: 1148: 1138: 1134: 1118: 1117: 1110: 1108: 1098: 1094: 1078: 1077: 1070: 1068: 1058: 1054: 1038: 1037: 1030: 1028: 1018: 1014: 991:10.2307/2329497 974: 968: 964: 941:10.2307/2329555 921: 917: 907: 905: 895: 891: 874: 867: 862: 855: 839: 838: 832: 830: 826: 819: 817:"Archived copy" 815: 814: 810: 801: 799: 796:Harvard Crimson 787: 780: 772: 768: 759: 757: 747: 743: 737:Wayback Machine 728: 724: 715: 713: 711:ideas.repec.org 705: 704: 700: 691: 689: 684: 683: 679: 670: 668: 662: 658: 648: 646: 639: 631: 624: 620: 610: 587: 567: 555:Nancy Zimmerman 520:Anatoly Chubais 512: 510:Russian Project 492: 471:Kevin M. Murphy 456:law and finance 433:Rafael La Porta 427:With coauthors 424:1998 collapse. 398: 388:and briefly at 317: 282: 256: 252: 249:Andrei Shleifer 213: 201:Milton Friedman 199: 185: 181: 177: 173: 169: 162: 153: 146: 137: 123: 119: 108:Academic career 91: 65: 52: 49: 43: 41: 24: 23:Andrei Shleifer 17: 12: 11: 5: 2490: 2480: 2479: 2474: 2469: 2464: 2459: 2454: 2449: 2444: 2439: 2434: 2429: 2424: 2419: 2414: 2409: 2404: 2399: 2394: 2389: 2384: 2379: 2362: 2361: 2359: 2358: 2355:Philipp Strack 2352: 2349:Gabriel Zucman 2346: 2340: 2337:Isaiah Andrews 2334: 2328: 2322: 2316: 2313:Dave Donaldson 2310: 2307:Yuliy Sannikov 2304: 2298: 2292: 2286: 2280: 2277:Jonathan Levin 2274: 2268: 2262: 2259:Susan C. Athey 2256: 2253:Daron Acemoglu 2250: 2244: 2238: 2232: 2226: 2220: 2214: 2208: 2205:David M. Kreps 2202: 2196: 2190: 2184: 2178: 2172: 2166: 2160: 2154: 2148: 2142: 2139:Gary S. 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1741: 1739: 1736: 1734: 1731: 1729: 1726: 1724: 1721: 1719: 1716: 1714: 1713:Paul Davidson 1711: 1709: 1706: 1705: 1703: 1701: 1697: 1691: 1688: 1686: 1683: 1681: 1678: 1676: 1675:William Poole 1673: 1671: 1670:Bill Phillips 1668: 1666: 1663: 1661: 1658: 1656: 1653: 1651: 1648: 1646: 1645:Lloyd Metzler 1643: 1641: 1638: 1636: 1633: 1631: 1628: 1626: 1625:Walter Heller 1623: 1621: 1618: 1616: 1613: 1611: 1608: 1606: 1605:Robert Eisner 1603: 1601: 1598: 1596: 1593: 1591: 1588: 1587: 1585: 1583: 1579: 1573: 1570: 1569: 1567: 1563: 1559: 1556: 1550: 1545: 1543: 1538: 1536: 1531: 1530: 1527: 1521: 1517: 1514: 1512: 1509: 1507: 1504: 1502: 1499: 1497: 1493: 1490: 1487: 1486: 1474: 1470: 1464: 1449: 1443: 1427: 1423: 1417: 1415: 1400:on 2016-08-27 1399: 1395: 1389: 1381: 1365: 1351: 1347: 1340: 1326:on 2013-05-30 1322: 1315: 1309: 1298:September 20, 1294: 1287: 1280: 1272: 1266: 1255:September 20, 1251: 1244: 1237: 1223: 1216: 1208: 1202: 1191:September 20, 1187: 1183: 1176: 1168: 1162: 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207:Contributions 205: 202: 198: 195: 191: 188: 187:John Friedman 184: 180: 176: 175:Jesse Shapiro 172: 168: 165: 159: 156: 152: 149: 143: 140: 136: 133: 129: 126: 122: 118: 115: 111: 106: 102: 98: 94: 89: 85: 82: 78: 75: 72: 68: 64: 60: 56: 50:(age 63) 40: 36: 32: 27: 20: 2331:Melissa Dell 2325:Emi Nakamura 2319:Parag Pathak 2301:Roland Fryer 2271:Esther Duflo 2234: 2096: 2001:Janet Yellen 1975: 1951:Ricardo Reis 1926:Paul Krugman 1906:Mark Gertler 1871:Alan Blinder 1861:Ben Bernanke 1788:Hyman Minsky 1753:Richard Kahn 1733:Wynne Godley 1685:Robert Solow 1665:Don Patinkin 1615:Alvin Hansen 1473:the original 1463: 1452:. 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Index


Moscow
Russian SFSR
Soviet Union
Russian American
Harvard University
BA
Massachusetts Institute of Technology
PhD
Behavioral finance
Law and economics
Development economics
Harvard University
University of Chicago
Peter A. Diamond
Franklin M. Fisher
Sendhil Mullainathan
Matthew Gentzkow
Jesse Shapiro
Emily Oster
Ulrike Malmendier
John Friedman
Lawrence Summers
Milton Friedman
Legal origins theory
Big push model
John Bates Clark Medal
Information
IDEAS / RePEc
/ˈʃlfər/

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