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Lars Peter Hansen, 2010 BBVA Foundation Frontiers of Knowledge laureate, wins the Nobel Prize in Economics
He shares it with Eugene F. Fama and Robert J. Shiller for their analysis of asset prices.
In 2012, another two previous winners of the Frontiers of Knowledge Awards, Shinya Yamanaka (2010) and Robert Lefkowitz (2009), obtained the Nobel in Medicine and Chemistry respectively
Madrid, October 14, 2013.- The Royal Swedish Academy of Sciences announced this morning that the Nobel Prize in Economic Sciences had gone to U.S. professors Lars Peter Hansen, Eugene F. Fama and Robert J. Shiller. Lars Peter Hansen, a professor at the University of Chicago, was previously granted the 2010 BBVA Foundation Frontiers of Knowledge Award in the Economics, Finance and Management category. That now makes three Frontiers of Knowledge laureates who have gone on to receive the Nobel, the other two being Robert Lefkowitz (2009 Frontiers of Knowledge Award in Biomedicine) and Shinya Yamanaka (2010 Frontiers Award in Biomedicine). Both men won the Nobel in separate categories in 2012: Lefkowitz in Chemistry and Yamanaka in Medicine.
The contribution that won Hansen both the BBVA Foundation Frontiers of Knowledge Award and latterly the Nobel was his development of a methodology of universal application for use in testing asset pricing models, as well as in analyses of macroeconomic models and market power in economic sectors.
The laureate, in the words of the Frontiers Awards jury, “has used this approach to explore the interconnections between macroeconomic indicators and asset prices in financial markets, showing in particular how to formulate robust policies in periods of high uncertainty. His work forms the basis for much contemporary empirical research in financial economics.”
Hansen’s method helps bridge the gap between economic theories and empirical data. It can be used, for instance, to estimate risk aversion by crossing the statistical analysis of time series on saving and consumption with economic and financial indicators. His work has also been fundamental to our understanding of financial asset pricing, integrating financial market performance with macroeconomics. And indeed this kind of linkage is an enduring focus of his research: “I am currently interested in the study of how macroeconomic fluctuations and growth are reflected in the price of securities”, explained the Frontiers laureate at the time.
Jury members also stressed that Hansen’s research “has brought greater discipline to economic theory by allowing it to be tested against the empirical evidence”.
Born in 1952 in Illinois (United States), Lars Peter Hansen completed a degree in mathematics at Utah State University in 1974, and four years later obtained his PhD in economics from the University of Minnesota. Since 1984, he has occupied various professorial posts at the University of Chicago.
He has supervised numerous doctoral theses, and his book Large sample properties of generalized method of moments estimators (1982) is among the most cited publications in the economics field. Among his other well-known texts are Advances in economics and econometrics: theory and applications (2003) and Robustness (2007).
The BBVA Foundation Frontiers of Knowledge Awards: three Nobel prizewinners in just five editions
The BBVA Foundation Frontiers of Knowledge Awards, established in Spain in 2008 and open to the global society of our time, have found a firm place among the foremost international honors distinguishing scientific research and artistic creation. The qualities that have won the awards such early renown are their conceptual architecture, the stature of the institutions taking part in the nomination process and the membership of the international juries, formed by front-line researchers and experts in their respective fields. The Frontiers Awards are organized in collaboration with the Spanish National Research Council (CSIC).
Their eight categories respond to the knowledge map of the present age. As well as the fundamental knowledge that is at their core (Basic Sciences category), they honor developments in Information and Communication Technologies, interactions between biology and medicine (Biomedicine category), contributions in Ecology and Conservation Biology, Climate Change, Economics, Finance and Management and Development Cooperation, and, finally, creative and performing excellence in the music of our time (Contemporary Music category). In all these areas, the achievements they seek to reward and foster are those with the power to advance the frontiers of knowledge, that bring to bear radically new perspectives, contribute to the emergence of new fields and formal objects, or facilitate new thematic or disciplinary groupings.
For more information, contact the BBVA Foundation Communication Department on +34 91 374 5210/+34 91 537 3769 ( firstname.lastname@example.org) or visit www.fbbva.es