In an odd choice, the Royal Swedish Academy awarded the Nobel Prize in economics to Eugene Fama, whose life’s work shows that markets are rational in the short run, to Robert Shiller, who says that markets are often irrational over long periods, and to Peter Hansen, who developed a statistical approach to study asset prices, and thus see if markets are behaving a la Fama or a la Shiller.
Tag Archives: Nobel Prize in Economics
Nobel Prize Winners in Economics
The Nobel Prize in economics was awarded to Tom Sargent at NYU and Chris Sims at Princeton. Sargent’s work has helped us understand the impact of permanent changes in economic policy. Sim’s research has helped us measure the effect of temporary changes, or shocks, on the economy. Sims said he was going to keep his half of the $1.5 million prize money in cash for a while. I did not pick either to win.