University of Chicago professors Eugene F. Fama and Lars Peter Hansen have been awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2013.
The Royal Swedish Academy of Sciences honored Fama and Hansen, along with Robert J. Shiller of Yale University, “for their empirical analysis of asset prices.” This research helps to explain how and why the prices of stocks and bonds change over time.
The work the Nobel honors had roots in the 1960s, when Fama and his collaborators made pivotal contributions concerning the difficulty of predicting stock prices in the short run.
“These findings not only had a profound impact on subsequent research but also changed market practice,” notes the Nobel announcement for the 2013 prize.
“Using this method, Hansen and other researchers have found that modifications of these theories go a long way toward explaining asset prices,” the Nobel announcement says.
More than two dozen scholars associated with the University have been awarded the Nobel Memorial Prize in Economics, including four current faculty members: Profs. Roger Myerson (who won in 2009), James Heckman (2000), Robert E. Lucas Jr. (1995), and Gary Becker (1992).
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