Nobel For Economics Awarded To Americans
Three American professors have won the Nobel prize for economics for developing new methods to study trends in asset markets.
Eugene Fama, Lars Peter Hansen and Robert Shiller, through their separate research, laid the foundation of the current understanding of asset prices, the Royal Swedish Academy of Sciences said.
While it is hard to predict whether stock or bond prices will go up or down in the short term, it is possible to foresee movements over periods of three years or longer, the academy said.
"These findings, which might seem surprising and contradictory, were made and analysed by this year's laureates," it said.
The behaviour of asset prices is key to decisions such as savings, house buying and national economic policy, the academy added.
"Mis-pricing of assets may contribute to financial crises and, as the recent global recession illustrates, such crises can damage the overall economy."
Mr Fama, 74, and Mr Hansen, 60, are associated with the University of Chicago, while Mr Shiller, 67, is a professor at Yale University.
Mr Shiller, an economist famous for having warned against bubbles in technology stocks and housing, said he reacted with "disbelief" when he received the telephone call from the academy.
"A lot of people have told me they hoped I would win it, but I'm aware there are so many other worthy people that I had discounted it, so I would say no, I did not expect it," he told reporters in Stockholm by telephone.
American researchers have dominated the economics awards in recent years - the last time there was no American among the winners was in 1999.
The economics prize, officially called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was established in 1968.
It was not part of the original group of awards set out in Mr Nobel's will.
The Nobel committees have now announced all six of the annual $1.2m (£750,000) awards for 2013.
The awards will be presented to the winners amid royal pageantry on December 10, the anniversary of Mr Nobel's death in 1896.