The 2013 Nobel Prize in economics has been awarded
The Nobel Prize in Economics founded by the Swedish National Bank was awarded on Monday. This year three American economists, Eugene F. Fama, Lars Peter Hansen and Robert J. Schiller received the prestigious award. All three scientists achieved outstanding results in their empirical analysis of asset prices.
- Eugene F. Fama: Born in 1939 in Boston, graduated from University of Chicago, later earned his PhD and MBA degree. In his research he highlighted the difficulties in stock price forecasting. His important achievement was the investigation of the effects of new information on stock prices. He was the first to state in the 60’s that new information is quickly digested by the market and adjusted in stock prices.
- Lars Peter Hansen: Born in 1952, currently teaching at the University of Chicago. He is associated with the development of the statistical methodology related to the rational analysis of asset pricing. In his practical work he primarily investigated the interactions between the financial sector and the real economy.
- Robert J. Schiller: Born in 1946 in Detroit, currently teaching at Yale University. Throughout his career he investigated the relationship between stock price movements and dividend payouts. According to his main statement the fluctuation of stock prices is much greater than that of dividend payouts. In his book, Irrational Exurbance, he predicted the recession that came after 2007.
The winners of the award were selected from such prominent scientists as Joshua Angrist, David E. Card and Alan B. Krueger who investigated the field of empirical macroeconomics or Sir David F. Hendry, M. Hashem Pesaran and Peter C. B. Phillips who researched time-series modelling. Sam Peltzman and Richard A. Posner received a nomination for their achievements in the research of the effects of regulation in economics.