Htown Harry
Thinks s/he gets paid by the post
- Joined
- May 13, 2007
- Messages
- 1,525
The Nobel economics committee has awarded the 2013 prize to Robert Schiller, Eugene Fama and Lars Peter Hansen.
Schiller and Fama's work is often cited here on ER.org, so we must be an insightful bunch. On the other hand, so far I've read three explanations of Hansen's work and I still don't have a clue about his methods.
The Nobel committee's fact sheet:
http://www.nobelprize.org/nobel_pri...ureates/2013/popular-economicsciences2013.pdf
Schiller and Fama's work is often cited here on ER.org, so we must be an insightful bunch. On the other hand, so far I've read three explanations of Hansen's work and I still don't have a clue about his methods.
The Nobel committee's fact sheet:
http://www.nobelprize.org/nobel_pri...ureates/2013/popular-economicsciences2013.pdf
There is no way to predict whether the price of stocks and bonds will go up or down over the next
few days or weeks. But it is quite possible to foresee the broad course of the prices of these assets
over longer time periods, such as, the next three to five years. These findings, which may seem both
surprising and contradictory, were made and analyzed by this year’s Laureates, Eugene Fama, Lars
Peter Hansen and Robert Shiller.
Fama, Hansen, and Shiller have developed new methods for studying asset prices and used them
in their investigations of detailed data on the prices of stocks, bonds and other assets. Their methods
have become standard tools in academic research, and their insights provide guidance for the
development of theory as well as for professional investment practice. Although we do not yet fully
understand how asset prices are determined, the research of the Laureates has revealed a number of
important regularities that are helping us to arrive at better explanations.