Luis Garicano is a Professor of Economics and Strategy at the London School of Economics where he heads the MSc in Economics and Management Programme (although on sabbatical leave for the academic year 2014-2015). He was previously an Assistant, Associate and Full Professor of Economics and Strategy at the Booth School of Business of the University of Chicago, and has held visiting positions among others at MIT’s Sloan School and at the London Business School. He is also a Research Fellow at the CEPR and an affiliate at the Center for Economic Performance.
His research focuses on the determinants of economic performance at the firm and economy-wide levels, on the consequences of globalization and information technology for economic growth, inequality and productivity, and on the architecture of institutions and economic systems to minimize incentive and bounded rationality problems. His empirical and theoretical research has been published in the leading economics journals including, among others, the American Economic Review, the Journal of Political Economy, the Quarterly Journal of Economics and the Review of Economic Studies. In 2007, he received the Banco Herrero prize to the best economist in Spain under 40 years old.
Apart from academic research, over the last few years he has been heavily involved in policy issues related to the Euro crisis, specifically in Spain, where he has undertaken applied, policy relevant research, on the economic reforms necessary in Spain, producing documents among others on the Spanish Savings Banks, the Spanish labor market, the productivity of the Spanish economy, and the reforms required to adjust the health and pensions systems to the demographic changes that Spain is experiencing. He has summarized this work in a pair of books including a recent book, "El dilema de España" (2014) which has reached the top of the non fiction lists. He was an editor till August 2013 and co-founder of Nadaesgratis, the leading blog in Spanish on economic affairs.Since January 2012, he has been a board member at Liberbank, a medium size Spanish bank resulting from the merger of several savings banks. He is also a member of the Advisory board of the Rafael del Pino foundation. He has previously worked at the European Commissions Statistical Office (Eurostat) and at McKinsey and Co.
Current areas of research include:
- His research studies broadly the causes of productivity differences between countries and between firms within countries. A first question within this line of research is what is the the role played in explaining producitivity differences between countries by regulatory and policy obstacles to optimal organization of firms. For example, current work with CEP members John van Reenen and Claire Lelarge estimates the impact of size-dependent regulations in France on output and employment in this country.
- A second question within this broad research line is what explains at a micro level organizational success and failure. In a forthcoming paper in the Journal of Economic Literature with Luis Rayo, Garicano reviews this literature and uses its insights to explain a wide range of well known business failures and successes. Garicano is turning this research into a monograph.
- A final question within this broad research question is what is the impact of information technology on firm performance. For example, on research with CEP member John Van Reenen, Nick Bloom and Raffaella Sadun forthcoming in Managerment Science, Garicano studies the distinct impact of communication technologies and information technologies on firm performance.