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

Tower, Edward. “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).

Gilbert, John, Tanigawa Takahiko, Krit Linananda, Edward Tower, and Alongkorn Tuncharoenlarp. “The deadweight cost of war: An illustrative CGE.” Economics of Peace and Security Journal 6, no. 2 (July 2011): 34–40.

Tower, E., and W. Zheng. “Ranking mutual fund families: Minimum expenses and maximum loads as markers for moral turpitude.” International Review of Economics 55, no. 4 (October 6, 2008): 315–50. https://doi.org/10.1007/s12232-008-0052-7. Full Text


Gilbert, John, and Edward Tower. “Large Country Version of the HOS Model from Chapter 14 of Gilbert and Tower (2013),” November 9, 2012.

Gilbert, John, and Edward Tower. “Small Country Version of the HOS Model from Chapter 12 of Gilbert and Tower (2013),” November 9, 2012.