Skip to main content

Nobel Prize for economics awarded to 3 Americans

By Ben Brumfield and Michael Pearson, CNN
October 14, 2013 -- Updated 1250 GMT (2050 HKT)
Yale University professor Robert Shiller, famous for his warnings of the housing and Internet bubbles, is one of three Americans who were awarded the Nobel Prize in economics on Monday, October 14. The Nobel committee recognized Shiller and University of Chicago professors Eugene Fama and Lars Peter Hansen for their work on the pricing of financial assets. Yale University professor Robert Shiller, famous for his warnings of the housing and Internet bubbles, is one of three Americans who were awarded the Nobel Prize in economics on Monday, October 14. The Nobel committee recognized Shiller and University of Chicago professors Eugene Fama and Lars Peter Hansen for their work on the pricing of financial assets.
HIDE CAPTION
Nobel Prize winners of 2013
Nobel Prize winners of 2013
Nobel Prize winners of 2013
Nobel Prize winners of 2013
Nobel Prize winners of 2013
Nobel Prize winners of 2013
Nobel Prize winners of 2013
Nobel Prize winners of 2013
Nobel Prize winners of 2013
Nobel Prize winners of 2013
Nobel Prize winners of 2013
Nobel Prize winners of 2013
Nobel Prize winners of 2013
Nobel Prize winners of 2013
<<
<
1
2
3
4
5
6
7
8
9
10
11
12
13
14
>
>>
STORY HIGHLIGHTS
  • NEW: Robert Shiller warned about stock and housing bubbles, CNN Money reports
  • Yale's Shiller and two University of Chicago economists worked on predicting asset prices
  • Their work "laid the foundation for the current understanding of asset prices," committee says
  • "Finance drives modern civilization," Shiller says

(CNN) -- Groundbreaking research that reshaped the way economists and investors look at how markets work has earned three American professors the Nobel Prize in economics, the Royal Swedish Academy of Sciences announced Monday.

Eugene F. Fama and Lars Peter Hansen of the University of Chicago and Robert J. Shiller of Yale University received the prize "for their empirical analysis of asset prices," the Nobel committee said.

According to the committee, the economists' research "laid the foundation for the current understanding of asset prices."

Their research showed that while it is difficult to predict asset prices in the short term, prices can be predicted in broad terms over longer periods, such as three to five years, according to the academy.

What Nobel Peace Prize winners do
Nobel Peace Prize decision criticized

Their work resulted in the emergence of stock index funds -- collections of assets designed to mimic the results of broader stock indexes, such as the Dow Jones Industrial. Such funds are often staples of retirement and individual investment accounts.

Shiller warned about the 1990s-era "stock bubble" and about high home prices before the decline in housing values that greatly contributed to the recession from which the U.S. economy continues to recover, CNN Money reported Monday.

Reached by phone during the news conference announcing the award, Shiller said "disbelief" was the only way to describe his reaction.

"A lot of people have told me they hoped I would win it, but I am aware that there are so many other worthy people that I had discounted it," he said.

He said economics has broad applications to improving human welfare.

"Finance drives modern civilization," Shiller said. "I want to see finance developed further to benefit mankind."

The economics award was not among the original prizes created in 1895 by Swedish industrialist Alfred Nobel to honor work in physics, medicine, chemistry, literature and peace. The Central Bank of Sweden added it as a category in memory of the industrialist. The first prize was awarded in 1969.

Most of the recipients of the Nobel in economics have been born in the United States.

Nobel highlights Syria with Peace Prize to chemical weapons watchdog

Nobel medical prize goes to 2 Americans, 1 German

Canada's Alice Munro, 'master' of short stories, wins Nobel Prize in literature

Nobel Prize in chemistry awarded for work that led to complex computing

'God particle' theorists receive Nobel Prize in physics

ADVERTISEMENT
Part of complete coverage on
July 30, 2014 -- Updated 1818 GMT (0218 HKT)
While aspects of the fighting in Gaza resemble earlier clashes, this time feels different, writes military analyst Rick Francona.
July 30, 2014 -- Updated 1438 GMT (2238 HKT)
The death of an American from Ebola fuels fears of the further global spread of the virus.
July 30, 2014 -- Updated 1206 GMT (2006 HKT)
Nearly two weeks after MH17 was blown out of the sky, Dutch investigators have yet to lay eyes on the wreckage. How useful will it be now?
July 30, 2014 -- Updated 1510 GMT (2310 HKT)
The U.S. and EU are imposing new sanctions on Moscow -- but will they have any effect?
This looks like a ghost ship, but it's actually the site of a tense international standoff between the Philippines and China.
July 26, 2014 -- Updated 1555 GMT (2355 HKT)
The reported firing of artillery from Russian territory is a sign Vladimir Putin has escalated the Ukraine battle, says CNN's military analyst Rick Francona.
July 27, 2014 -- Updated 0846 GMT (1646 HKT)
The young boy stops, stares, throws ammunition casings at the reporter's feet without a word.
July 26, 2014 -- Updated 0048 GMT (0848 HKT)
Sure, Fido is a brown Lab. But inside, he may also be a little green.
July 28, 2014 -- Updated 1303 GMT (2103 HKT)
Photograph of an undisclosed location by Patrycja Makowska
Patrycja Makowska likes to give enigmatic names to the extraordinarily beautiful photographs she shoots of crumbling palaces.
July 23, 2014 -- Updated 0804 GMT (1604 HKT)
When the Costa Concordia and its salvage convoy finally depart Giglio, the residents will breathe a sigh of relief -- and shed a tear.
CNN joins the fight to end modern-day slavery by shining a spotlight on its horrors and highlighting success stories.
Browse through images from CNN teams around the world that you don't always see on news reports.
ADVERTISEMENT