Stockholm - The 2013 Nobel Prize for economics was awarded Monday to three US economists “for their empirical analysis of asset prices,” the Royal Swedish Academy of Sciences announced.
Research by Eugene F Fama, Lars Peter Hansen and Robert J Shiller has helped the understanding of prices in financial markets like stocks and bonds, and those used for index funds, the academy stated.
Shiller expressed “disbelief” on learning of his win.
“Disbelief, that is the only way to put it,” the Yale University economist said in a conference call from New Haven, Connecticut.
“People have told me that I would win it, but I'm aware that there are so many other worthy people that I would say, 'No, I did not expect it,'“ he added.
Shiller said he was “attracted to economics because it deals with really important problems. It's a vigorous discipline.”
Eugene Fama is known as the father of the efficient market hypothesis.
Along with collaborator Kenneth French, he designed the Fama-Fench three-factor model of asset pricing, which helps investors assess market prices more accurately than the more traditional capital asset pricing model.
Hansen developed a statistical method that tests the theories of asset pricing.
A well-known macroeconomist, Hansen has focused on pinpointing linkages between financial and real sectors of the economy.
Both Fama and Hansen work at the University of Chicago.
Shiller's work focuses on investors' reactions to fluctuations in stock prices and corporate dividend. He is also well-known for his contributions to the Case-Shiller home price indices and his warnings about excessive pricing in the US housing market ahead of the subprime financial crisis in 2007-08.
The prize is worth 8 million kronor (1.2 million dollars). - Sapa-dpa