Edward Tower

Edward Tower

Professor with Tenure

External Address: 
228C Social Sciences Bldg, Box 90097, Durham, NC 27708
Internal Office Address: 
Box 90097, Durham, NC 27708-0097
(919) 660-1818

Professor Tower specializes in finance, computable general equilibrium modeling, macroeconomics, development economics, microeconomics, and managerial economics. He conducts a majority of his research within the study of trade and development, exploring a variety of variables from tariffs, quotas, and time zone arbitrage, to equities, mutual funds, and index mutual funds. Since he began publishing his work in 1965, he has contributed over 130 articles to leading academic journals and has had several books, chapters, and papers appear in print. Some of his more recent writings include, “School Choice: Money, Race, and Congressional Voting on Vouchers,” completed in collaboration with O. Gokcekus and J. Phillips; “Rational Pessimism: Predicting Equity Returns by Tobin’s q and Price/Earnings Ratio” with M. Harney; and “Predicting Equity Returns for 37 Countries: Tweaking the Gordon Formula” with K. Reinker. Much of his work pertaining to U.S. trade policy has been used to determine congressional voting on protectionist issues based on campaign contributions. His work on financial issues has also played an important role in determining the value of the U.S. stock market. His latest studies involved an investigation of congressional voting on importation of ethical drugs and predicting returns on both foreign and U.S. equity.


  • Ph.D., Harvard University 1971
  • M.A., Harvard University 1967
  • B.A., Harvard University 1964

Wang, Y, and Tower, E. "Do Chinese Investors Get What They Don't Pay For? Expense Ratios, Loads, and the Returns to China's Open-End Mutual Funds." Economic Research Initiatives at Duke (ERID) Working Paper, no. 231 (October 27, 2016). Open Access Copy

TOWER, EDWARD, and YE, YIFANVICTOR. "How Taxes and Real Wage Inflexibility Interact to Make Trade Deficits Addictive: The Tertiary and Quaternary Burdens and Benefits of a Transfer." The Singapore Economic Review 61, no. 02 (June 2016): 1640026-1640026. (Working Paper) Full Text Open Access Copy

Tower, E. "Should the Equities in the North Carolina State Employees’ Pension Fund Be Indexed or Actively Managed?." Economic Research Initiatives at Duke (ERID) Working Paper, no. 210 (May 19, 2016). Open Access Copy

Paskalev, Z, and Yildirim, H. "A Theory of Outsourced Fundraising: Why Dollars Turn into 'Pennies for Charity'." Economic Research Initiatives at Duke (ERID) Working Paper, no. 189 (December 6, 2014). (Working Paper) Open Access Copy

Tower, E, Barry, D, and Stansky, E. "GMO's Predictions: A Useful Guide for Investors?." (June 5, 2014). (Working Paper) Open Access Copy

Tower, E. "CAPE: Using Its Variants to Predict the Returns from Investing in the S&P 500 Index." Economic Research Initiatives at Duke (ERID) Working Paper, no. 262 (September 10, 2013).


Willett, TD, and Tower, E. "The concept of optimum currency areas and the choice between fixed and flexible exchange rates." In Approaches to Greater Flexibility of Exchange Rates, 407-415. January 1, 2015.