FAIRFIELD COUNTY, Conn. -- A second Nobel Laureate this year calls Connecticut home.
"For their empirical analysis of asset prices,” the Royal Swedish Academy of Sciences awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for 2013 to:
- Robert J. Shiller, of Yale University in New Haven.
- Eugene F. Fama, of the University of Chicago, and
- Lars Peter Hansen, of the University of Chicago.
The laureates were honored for their work in asset markets, a statement said.
"There is no way to predict the price of stocks and bonds over the next few days or weeks. But it is quite possible to foresee the broad course of these prices over longer periods, such as the next three to five years. These findings, which might seem both surprising and contradictory, were made and analyzed by this year’s Laureates, Eugene Fama, Lars Peter Hansen and Robert Shiller," according to Nobelprize.org.
"If prices are nearly impossible to predict over days or weeks, then shouldn’t they be even harder to predict over several years? The answer is no," the statement said Shiller discovered in the early 1980s. "He found that stock prices fluctuate much more than corporate dividends, and that the ratio of prices to dividends tends to fall when it is high, and to increase when it is low. This pattern holds not only for stocks, but also for bonds and other assets."
To read more about the Nobel Prize in Economics, visit the official website. You can hear from the prize winner in the above, when he says asset markets is not just about making money. He takes questions about the government shutdown and discusses his body of work.
This is Yale's second Nobel Prize winner this month. Dr. James Rothman, a professor Biomedical Sciences, and professor and chair of the Department of Cell Biology at Yale University, was named the Nobel prize-winner in medicine along with his colleagues Thomas C. Südhof and Randy W. Schekman, last week. Read more about his prize here on The Daily Voice.