Princeton Authors Receive 2013 Nobel Prize in Economics


Lars Peter Hansen
University of Chicago
Robert J. Shiller

Yale University

Congratulations to Professors Lars Peter Hansen of the University of Chicago and Robert J. Shiller of Yale University on winning, along with economist Eugene F. Fama, the 2013 Nobel Prize in Economics, announced yesterday.

Lars Hansen is co-author with fellow Nobel laureate Thomas Sargent of the 2007 book, Robustness, and also with Professor Sargent of Recursive Models of Dynamic Linear Economies, forthcoming this December.

Commenting on Robustness David Kreps noted, “Hansen and Sargent were among the cadre of macroeconomists who challenged conventional (Keynesian) wisdom, and they are at it again, in a book that sparkles with ideas and analysis of fundamental problems in dynamic macroeconomics. The specific results reported here are, of course, interesting but this book is so much more: for young and ambitious economic theorists, this book is like the California gold fields in 1848.”

Robert Shiller is author of several PUP books, the first being his 2000 classic, Irrational Exuberance, followed in 2003 by The New Financial Order, in 2008 by The Subprime Solution, in 2009 by Animal Spirits, co-written with fellow Nobelist George Akerlof, and most recently, in 2012 by Finance and the Good Society.

Robert Shiller’s  Irrational Exuberance, which presaged the bursting of the stock market bubble in spring 2000, was the first original hardback Princeton University Press book to make the New York Times Bestseller List.  A global success, Irrational Exuberance was published in 17 translated editions around the world.  Timely as the first edition of Irrational Exuberance was, its second edition, published in the spring of 2005, was equally prescient in warning the world of the overheating of the housing bubble.  Housing and the mortgage finance debacle was the subject of Shiller’s 2008 book, The Subprime Solution.

Much as Shiller’s market analysis is represented in books such as Irrational Exuberance and The Subprime Solution, his imagination as a policy architect is on full display in his 2003 book, The New Financial Order, in which he explores how financial institutions can be engineered for the purpose of covering the biggest social risks, from homes through cities through careers and livelihoods.  In his 2012 book, Finance and the Good Society, Shiller provides the next generation of finance professionals with a tutorial on the challenges facing the investment community in the coming years framed in the context of technologically driven financial capitalism.

Finally, Shiller along with co-author economist George Akerlof, enlarges the foundations of the field of behavioral economics in the 2009 book, Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism.

Commenting on Shiller’s great work, Irrational Exuberance, Paul Krugman noted that, “Robert Shiller has done more than any economist of his generation to document the less rational aspects of financial markets.”



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