Department of Economics and the College
Lawrence Schmidt’s research is at the intersection of finance and macroeconomics, with a particular emphasis on asset pricing. His work seeks to offer a richer picture of risks faced by financial market participants—households, institutional investors, and financial intermediaries—and shed new light on underlying economic mechanisms linking financial markets with the real economy. A central object of interest in Schmidt’s current research is the risks and returns to human capital: individuals’ claims to future labor and/or entrepreneurial business income. In a recent paper, he studies the impact of large, uninsurable labor market shocks such as job loss on the expected returns on risky assets such as stocks.
His research has won multiple awards, including the Applied Quantitative Research (AQR) Top Finance Graduate Award, which recognizes the most promising PhD graduates in financial economics.
Schmidt received his PhD and MA degrees in economics from the University of California, San Diego, and a BA in economics-mathematics from the University of California, Santa Barbara. Prior to his graduate studies, he worked in economic consulting as a senior consultant in the Disputes and Investigations division of Navigant Consulting, Inc.