Alexander Michaelides

Alexander Michaelides

Professor of Finance

Imperial College Business School

Imperial College London

South Kensington Campus

London SW7 2AZ

E-Mail: a[dot]michaelides at


Research Interests:

Macro-Finance (Heterogeneous Agent Models, Portfolio Choice, Asset Pricing).

Household Finance

At Google Scholar

Author page at ssrn

Working Papers


    • "Private Information in Currency Markets" (with Andreas Milidonis and George Nishiotis), Journal of Financial Economics, 2019, 131, pp. 643-665.

    • "Stock Market Mean Reversion and Portfolio Choice over the Life Cycle" (with Yuxin Zhang), Journal of Financial and Quantitative Analysis, 2017, 52(3), 1183-1209.

    • "The Adverse Effects of Systematic Leakage Ahead of Official Sovereign Debt Rating Announcements" (with Andreas Milidonis, George Nishiotis and Panayiotis Papakyriakou), Journal of Financial Economics, 2015, 116 (3), pp. 536-547.

    • "Cyprus: From boom to bail-in" Economic Policy, 2014, 29 (80), pp. 639-689. A longer, working paper version of this paper is "What Happened in Cyprus?"

    • "Fiscal Policy and Asset Prices with Incomplete Markets" (with Francisco Gomes and Valery Polkovnichenko), The Review of Financial Studies, 2013, 26(2), 531-566.

    • “Can the Life Insurance Market Provide Evidence for a Bequest Motive?” (with Joachim Inkmann), The Journal of Risk and Insurance, 2012, Vol. 79, No. 3, 671-695.

    • "Winners and Losers in Housing Markets" (with Nobuhiro Kiyotaki and Kalin Nikolov), Journal of Money, Credit and Banking, April 2011, Vol. 43, 2-3, pp. 255-296.

    • "How Deep is the Annuity Market Participation Puzzle?" (with Joachim Inkmann and Paula Lopes), The Review of Financial Studies, January 2011, Vol. 24, 1, pp. 279-319.

    • "Evidence on the Insurance Effect of Redistributive Taxation" (with Charles Grant, Christos Koulovatianos and Mario Padula), Review of Economics and Statistics, November 2010, Vol. 92, No. 4: 965–973.

    • "Optimal Savings with Taxable and Tax-Deferred Accounts" (with Francisco Gomes and Valery Polkovnichenko), Review of Economic Dynamics, October 2009, 12, pp. 712-735.

    • "A Comment on Diagnostic Tools for Counterfactual Inference" (with Nicholas Sambanis). Political Analysis, 2009, 17:89-106.

    • "Asset Pricing with Limited Risk Sharing and Heterogeneous Agents" (with Francisco Gomes), Review of Financial Studies, 2008, 21(1): 415-448.

    • "Rare Events and Annuity Market Participation" (with Paula Lopes). Finance Research Letters, June 2007, Vol.4, No.2, pp. 82-91.

    • "Optimal Life-Cycle Asset Allocation: Understanding the Empirical Evidence" (with Francisco Gomes). Journal of Finance, April 2005, Vol. LX, No.2, pp. 869-904.

    • "International Portfolio Choice, Liquidity Constraints and the Home Equity Bias Puzzle" Journal of Economic Dynamics and Control, December 2003, 28(3), pp. 555-594.

    • "Portfolio Choice with Internal Habit Formation: A Life-Cycle Model with Uninsurable Labor Income Risk" (with Francisco Gomes) Review of Economic Dynamics, October 2003, 6(4), pp. 729-766.

    • "A Reconciliation of Two Alternative Approaches towards Buffer Stock Saving" Economics Letters, April 2003, 79 (1), pp. 137-143.

    • "Portfolio Choice and Liquidity Constraints" (with Michael Haliassos), International Economic Review, February 2003, Vol. 44, No.1, pp. 143-177.

    • Parallelization, Optimization, and Performance Analysis of Portfolio Choice Models,” with Ahmed Abdelkhalek (University of Toronto) and Angelos Bilas (University of Toronto). In the Proceedings of the 30th International Conference on Parallel Processing. Valencia, Spain. September 3-7, 2001.

    • "Does Buffer Stock Saving Explain the Smoothness and Excess Sensitivity of Consumption?" (with Sydney Ludvigson), The American Economic Review, 91 (3), June 2001, pp. 631-647.

    • "New Evidence on the Effects of U.S. Monetary Policy on Exchange Rates" , (with Sarantis Kalyvitis), Economics Letters, 71 (2), May 2001, pp. 255-263.

    • "Estimating the Rational Expectations Model of Speculative Storage: A Monte Carlo Comparison of Three Simulation Estimators," (with Serena Ng), Journal of Econometrics, June 2000, Volume 96, (2), pp. 231-266.


The Cyprus Bail-in, May 2016, (co-edited with A. Orphanides), Imperial College Press (World Scientific).

Chapters in Books

    • Asset and Debt Participation of Households: Opportunities and Challenges in Eliminating Borders. 2019. Chapter in book co-edited by F. Allen, E. Faia, M. Haliassos and K. Langenbucher. Capital Markets Union and Beyond, MIT Press.

    • Case Study on Cyprus for World Bank Case Studies pre and post BRRD (Bank Recovery and Resolution Directive), 2016.

    • Calibration and Computation of Household Portfolio Models (with Michael Haliassos). 2002. Chapter 2 of a volume on Household Portfolios, edited by Luigi Guiso, Michael Haliassos and Tullio Japelli. MIT Press, pp. 55-101.

Co-edited Special Issues

Calvet, L., M. Haliassos, and A. Michaelides (Editors), Special Issues on Household Finance, Journal of Pension Economics and Finance, Cambridge University Press, October 2015.