The Nobel Prize Winners in Economic Sciences
The Nobel Prize Winners In Economic Sciences
On October 14th The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2013 was awarded jointly to Eugene F. Fama, Robert J. Shiller and Lars Peter Hansen "for their empirical analysis of asset prices". The first one of them Eugene Fama is an American economist born in 1939 and working at the University of Chicago. He is the author of the theory that asset prices perfectly reflect all available information. Fama was mainly honored for his researches done in 1960’s and his theory that asset prices are “extremely hard to predict over short horizons.” He claims that this theory was influenced by the fact that while working as an undergraduate at the Tufus University he noticed that the forecasting schemes - which he was in charge of checking - awfully failed to function. He later coined the term "efficient markets" to describe his view that asset price movements could not be predicted because prices fully reflected all available information. That theory was briefly summarized by another economist Burton Malkiel, who said “a blindfolded monkey throwing darts at a newspaper’s financial pages could select a portfolio that would do just as well as one carefully selected by experts.”. Later on that theory was tested even with the use of real monkeys and after confirming it, it has influenced the way millions of people now invest, contributing to the popularity of index funds that hold broad, diversified baskets of equities. The second winner is Robert Shiller born in 1946 and currently working at the Yale University, until now was mostly known for his research done in the early 1980’s which was introducing an important limitation on the idea that markets operate efficiently. He showed that the volatility of stock prices was greater than the volatility in corporate dividends. Moreover, he found that some of those irrational deviations fell into predictable and repeating patterns in human behavior, and
On October 14th The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2013 was awarded jointly to Eugene F. Fama, Robert J. Shiller and Lars Peter Hansen "for their empirical analysis of asset prices". The first one of them Eugene Fama is an American economist born in 1939 and working at the University of Chicago. He is the author of the theory that asset prices perfectly reflect all available information. Fama was mainly honored for his researches done in 1960’s and his theory that asset prices are “extremely hard to predict over short horizons.” He claims that this theory was influenced by the fact that while working as an undergraduate at the Tufus University he noticed that the forecasting schemes - which he was in charge of checking - awfully failed to function. He later coined the term "efficient markets" to describe his view that asset price movements could not be predicted because prices fully reflected all available information. That theory was briefly summarized by another economist Burton Malkiel, who said “a blindfolded monkey throwing darts at a newspaper’s financial pages could select a portfolio that would do just as well as one carefully selected by experts.”. Later on that theory was tested even with the use of real monkeys and after confirming it, it has influenced the way millions of people now invest, contributing to the popularity of index funds that hold broad, diversified baskets of equities. The second winner is Robert Shiller born in 1946 and currently working at the Yale University, until now was mostly known for his research done in the early 1980’s which was introducing an important limitation on the idea that markets operate efficiently. He showed that the volatility of stock prices was greater than the volatility in corporate dividends. Moreover, he found that some of those irrational deviations fell into predictable and repeating patterns in human behavior, and