Martin Feldstein

Martin Feldstein
Born	Martin Stuart Feldstein 11/25/1939
Birthplace	New York City, U.S.
Died	6/11/2019 Boston, Massachusetts, U.S.
Nationality	American
Occupation	Economist, professor, policy adviser
Title	George F. Baker Professor of Economics, Harvard University
Known for	Chair of the Council of Economic Advisers (1982–1984), president of the National Bureau of Economic Research (1978–2008)
Education	DPhil, Nuffield College, Oxford
Awards	John Bates Clark Medal (1977), Bradley Prize (2004)

Martin Stuart Feldstein (November 25, 1939 – June 11, 2019) was an American economist who shaped public policy debates in the United States for more than four decades. He held the George F. Baker Professorship of Economics at Harvard University from 1969 until his death and served as president and chief executive officer of the National Bureau of Economic Research (NBER) from 1978 to 2008, a tenure of nearly thirty years that transformed the organization into one of the most influential economic research institutions in the world. From 1982 to 1984, Feldstein served as chairman of the Council of Economic Advisers under President Ronald Reagan, where his outspoken warnings about the dangers of large federal budget deficits brought him into public conflict with the administration he served. Described by the Centre for Economic Policy Research as "one of the most important applied economists of the last half-century," Feldstein made substantial contributions to the fields of public economics and macroeconomics, particularly in the areas of taxation, Social Security, health care economics, and international capital flows.

Early Life

Martin Stuart Feldstein was born on November 25, 1939, in New York City. He grew up in the city during the post-war era, a period of substantial economic expansion and evolving public policy in the United States. Details about his family background and upbringing remain limited in public sources, though his early intellectual development would lead him toward the study of economics at the undergraduate level.

Feldstein demonstrated academic aptitude from an early age. He attended Harvard University for his undergraduate education, where he earned a Bachelor of Arts degree. His time at Harvard introduced him to the rigorous study of economics and established the institutional connection that would define much of his professional life. After completing his undergraduate studies, Feldstein pursued graduate work abroad at Nuffield College, Oxford, in England, where he earned both a Bachelor of Letters (BLitt) and a Doctor of Philosophy (DPhil). His doctoral research was supervised by W. M. Gorman, a distinguished economist known for contributions to microeconomic theory and consumer demand analysis.

Feldstein's education at Oxford exposed him to the British tradition of applied economics and empirical research methods, which would profoundly shape his approach to scholarship. The combination of his American undergraduate training at Harvard and his British graduate education gave him a distinctive intellectual perspective that emphasized the practical policy implications of economic theory. He returned to the United States to begin his academic career, joining the Harvard economics faculty at a remarkably young age.

Education

Feldstein's formal education spanned two of the English-speaking world's most distinguished universities. He received his Bachelor of Arts degree from Harvard University before crossing the Atlantic to study at Nuffield College, Oxford, one of the graduate-only colleges of the University of Oxford. At Oxford, he completed both a BLitt and a DPhil in economics under the supervision of W. M. Gorman. His doctoral work laid the foundation for his career-long focus on the intersection of economic theory and public policy, particularly in the domains of taxation and public finance. The methodological rigor he developed at Oxford, combined with his exposure to the empirical traditions of American economics, positioned him to become a leading figure in the emerging field of applied public economics.

Career

Academic Career at Harvard

Feldstein joined the Harvard University economics department in 1967 and was appointed the George F. Baker Professor of Economics in 1969, a position he held for the rest of his life—a span of fifty years. At Harvard, Feldstein established himself as one of the most productive and influential economists of his generation. His research output was prolific, and he became known for his ability to combine rigorous empirical analysis with clear policy prescriptions.

His early work at Harvard focused on health care economics, examining how insurance arrangements affected the demand for medical services and the overall cost of health care. He argued that the tax exclusion for employer-provided health insurance led to overinsurance and excessive health care spending, a thesis that would remain central to health care policy debates for decades. His market-based approach to health care reform, including proposals for restructuring health insurance through voucher-like mechanisms, continued to influence policy discussions well after his death.

Feldstein's research on taxation examined how tax policy affected saving, investment, and economic behavior more broadly. He produced influential studies on the deadweight loss of taxation, the effects of capital gains taxes, and the relationship between tax policy and capital formation. His work in this area drew on the neoclassical economic tradition and emphasized the importance of incentive effects in evaluating tax policy.

Perhaps his most controversial academic contribution was his research on Social Security. Feldstein argued that the pay-as-you-go structure of the Social Security system reduced private saving and capital accumulation, thereby lowering long-term economic growth. He advocated for partial privatization of Social Security, proposing that workers be allowed to invest a portion of their payroll taxes in individual retirement accounts. These ideas, collected in his edited volume Privatizing Social Security published by the University of Chicago Press in 1998, generated substantial debate among economists and policymakers.

Feldstein also made significant contributions to the study of international economics. In a notable 1997 article in Foreign Affairs, he warned that the European Monetary Union (EMU) could generate international conflict, arguing that a single currency for diverse European economies would create economic and political tensions. This prediction proved prescient during the European sovereign debt crisis of 2010–2012, when precisely the kinds of tensions Feldstein had described emerged between Northern and Southern European member states.

As a professor, Feldstein was renowned for his undergraduate course Economics 1010b (Public Economics) at Harvard, which introduced a generation of students to the economic analysis of government policy. He was described as an influential mentor and teacher, and his former students went on to occupy prominent positions in academia, government, and the private sector. Among his doctoral students were Jeffrey Liebman and Raj Chetty, both of whom became distinguished economists in their own right.

Leadership of the National Bureau of Economic Research

Feldstein's appointment as president and chief executive officer of the National Bureau of Economic Research in 1978 marked the beginning of a transformative era for the organization. He served in this role from 1978 to 2008, with an interruption from 1982 to 1984 when he served in the Reagan administration.

Under Feldstein's leadership, the NBER grew from a relatively small research organization into the preeminent institution for empirical economic research in the United States. He expanded the Bureau's network of affiliated researchers, ultimately building a community of more than 1,400 economists at universities across the country. He created new research programs in areas including health economics, aging, education, international trade, and corporate finance, broadening the NBER's scope beyond its traditional focus on business cycle measurement.

Feldstein also oversaw the NBER's Summer Institute, an annual gathering that became one of the most important events in the economics profession, drawing hundreds of researchers to present and discuss new work. The Summer Institute and the NBER's working paper series, which Feldstein expanded significantly, became central mechanisms for the dissemination of cutting-edge economic research.

The NBER's Business Cycle Dating Committee, which determines the official dates of U.S. recessions, gained particular public prominence during Feldstein's tenure. In March 2008, Feldstein publicly stated that he believed the United States was entering a recession, a judgment that preceded the official determination and the full onset of the financial crisis later that year.

Feldstein's nearly three-decade leadership of the NBER was itself a significant accomplishment in institution-building within the economics profession. After stepping down as president in 2008, he continued to serve as president emeritus until his death in 2019.

Chairman of the Council of Economic Advisers

In October 1982, Feldstein was appointed chairman of the Council of Economic Advisers (CEA) by President Ronald Reagan, succeeding Murray Weidenbaum. He served in this position until July 1984, when he was succeeded by Beryl Sprinkel.

Feldstein's tenure at the CEA was marked by a high-profile conflict between his economic analysis and the policy priorities of the Reagan administration. As chairman, Feldstein warned repeatedly that the combination of large tax cuts and increased military spending was producing unsustainable federal budget deficits. His deficit hawk stance placed him at odds with other senior administration officials who argued that economic growth would eventually close the budget gap—a position associated with supply-side economics.

The public nature of Feldstein's disagreements with the administration was unusual for a CEA chairman, a position that typically operates within the framework of the president's economic agenda. Feldstein's willingness to voice his concerns openly, including through the CEA's Economic Report of the President, drew criticism from some within the administration but earned him respect among many economists and commentators who shared his concerns about fiscal discipline.

Feldstein departed the CEA in July 1984 and returned to Harvard and the NBER. Despite the tensions during his service, his time in government reinforced his stature as an economist who prioritized analytical rigor over political convenience. His warnings about budget deficits would prove to be a recurring theme in subsequent decades of fiscal policy debate.

Advisory Roles and Board Service

Beyond his academic and government positions, Feldstein served in numerous advisory capacities throughout his career. He was a member of the Group of Thirty, a Washington-based consultative body of senior financiers and academics that discusses international economic and financial matters, from 2003 onward.

Feldstein served on the boards of several major corporations, including Eli Lilly and Company, reflecting his standing at the intersection of economics and business. He also participated in the Bilderberg Meetings, the annual private conference of European and North American leaders in politics, finance, and academia, attending sessions in both 2008 and 2010.

His advisory role extended across multiple presidential administrations. While his formal government service was limited to the Reagan administration, Feldstein was consulted by policymakers of both parties on issues ranging from tax reform to Social Security restructuring to health care policy.

Personal Life

Martin Feldstein was married to Kathleen Feldstein, an economist who also had connections to the economics profession and public policy world. The couple lived in the Boston area for most of their adult lives, consistent with Feldstein's long tenure at Harvard University.

Feldstein died on June 11, 2019, in Boston, Massachusetts, at the age of 79. His death prompted tributes from across the economics profession and the political spectrum, reflecting the breadth of his influence. Colleagues, former students, and policymakers noted both his intellectual contributions and his role in mentoring successive generations of economists.

Recognition

Feldstein received numerous honors and awards over the course of his career. In 1977, the American Economic Association awarded him the John Bates Clark Medal, given to the American economist under the age of forty judged to have made the most significant contribution to economic thought and knowledge. At the time, the medal was awarded every two years, and it was considered one of the highest honors in the economics profession.

In 2004, Feldstein received the Bradley Prize from the Lynde and Harry Bradley Foundation, recognizing his contributions to economic policy and public life.

Feldstein's scholarly output placed him among the most cited economists in the world. According to the Research Papers in Economics (RePEc) rankings, he was consistently listed among the top economists globally based on citations and other measures of academic impact.

The NBER established an annual Martin Feldstein Lecture in his honor, which has become a significant event in the economics calendar. The lecture series has featured prominent economists addressing major policy questions. In 2025, N. Gregory Mankiw, the Robert M. Beren Professor of Economics at Harvard University, delivered the 17th annual Feldstein Lecture on the topic of "The Fiscal Future," a subject closely aligned with Feldstein's lifelong concerns about fiscal policy.

Legacy

Martin Feldstein's legacy rests on three interconnected pillars: his scholarly research, his institution-building at the NBER, and his influence on economic policy through both direct government service and public commentary.

As a scholar, Feldstein helped define the modern field of public economics—the study of how government policies affect economic behavior and welfare. His work on taxation, Social Security, and health care economics established frameworks that continued to structure policy debates long after the research was published. The Centre for Economic Policy Research noted that Feldstein was "one of the most important applied economists of the last half-century," citing the range and depth of his contributions to understanding the economic effects of government policy.

His leadership of the NBER represented perhaps his most enduring institutional contribution. By expanding the Bureau's research programs, building its network of affiliated scholars, and establishing the Summer Institute as a central forum for the profession, Feldstein transformed the NBER from a respected but relatively modest organization into the dominant institution for empirical economic research in the United States. The organizational model he built—a decentralized network of university-based researchers affiliated with a central institution—became a template for economic research organizations elsewhere.

Feldstein's influence as a teacher and mentor extended through the hundreds of students he trained at Harvard, many of whom rose to prominent positions. His doctoral students, including Raj Chetty and Jeffrey Liebman, carried forward his emphasis on using rigorous empirical methods to address policy-relevant questions. His undergraduate teaching also shaped the thinking of students who went on to careers in government, finance, and other fields.

His willingness to voice uncomfortable economic truths—most notably his warnings about budget deficits during the Reagan administration—established a model for the role of the economist as an independent policy voice. While this stance created political friction during his time in government, it reinforced the principle that economic analysis should inform policy regardless of partisan considerations.

The annual Martin Feldstein Lecture at the NBER, inaugurated after his death, serves as an ongoing tribute to his contributions, bringing together leading economists to address the kinds of major policy questions that animated Feldstein's career.