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Professor Larry Sjaastad, a distinguished economics scholar and valued supporter of The University of Western Australia's Business School , has died aged 77. Among his other achievements, he will be remembered for his contributions to research and teaching at the UWA Business School.

Professor Sjaastad was a professor of economics at the University of Chicago for over 40 years, with expertise in international economics, public finance and economic development.

During his career, he visited UWA 14 times over a period of about 25 years.

Winthrop Professor Ken Clements, a former student of Professor Sjaastad and the Head of Economics at the UWA Business School, praised Professor Sjaastad's contribution to the field of economics. ‘His commitment to students, teaching and research leaves a legacy of literally hundreds of economists around the world, practicing what they learnt from Larry,' said Professor Clements.

‘Larry loved conferences and seminars. He excelled in intense, high-level debate and was the one who asked the tough questions (and usually had the answers). Everyone talked about Larry's comments and remembered them long afterwards. He was not shy in revealing in public his special dislike for pomposity, especially if it was coming from an allegedly big name who was talking nonsense. This irreverence for authority endeared Larry to Australian colleagues in particular.

‘Larry's economic intuition was legendary and he had the special talent of being able to simplify complex economic arguments to make them transparent and appealing to all. A good example was his famous "shift coefficient", the share of import protection borne by the country's own exporters. This explained clearly why countries that tax imports tend to have languishing export sectors. In the 1980s, exporters in Latin America and Australia -- farmers and miners -- were quick to realise the significance of this research for them.'

During his visits to UWA, Professor Sjaastad taught, provided advice, carried out research, and helped recruit staff and place students. He also carried out influential research on commodity prices (including gold), exchange rates and international trade policy.

Professor Clements recalled Professor Sjaastad's last visit to the UWA Business School: ‘Larry's last visit to UWA was in 2004, when he spoke at a conference organised by Associate Professor Abu Siddique on "Free Trade Agreements." To indicate in no uncertain terms his disapproval of these agreements as they could end up hurting some countries, Larry relentlessly referred to them as "discriminatory" trade agreements.

‘At this conference, to mark his retirement from formal teaching at Chicago, he was presented with Dear Larry, a book of personal letters from 72 former students and friends from around the world. These letters reflected on Larry's many professional contributions and spoke of the great warmth and talent of this exceptional person.'

Professor Sjaastad studied electrical engineering at North Dakota Agricultural College and economics at the University of Chicago. He received his doctorate in economics in 1961.

While at the University of Chicago, Professor Sjaastad became the first field director of the Argentine project, spending more than two years at the National University of Cuyo in Mendoza, Argentina.

‘He was very important in bringing modern economic thinking to the problems faced by many countries in Latin America, and showing how one could use that thinking to improve what they were doing,' said Gary Becker, Nobel laureate and University of Chicago professor of business, economics and sociology.

Professor Sjaastad's name is recorded on the Honour Board in the UWA Business School's foyer, in recognition of his generous donation to the School.

Professor Larry Sjaastad died on May 2, 2012.

Media references

Catherine Vogel (UWA Business School) +618 6488 7340
Verity Chia (UWA Business School) +618 6488 1346