The Economic prize was established as a memorial to Nobel
Three American professors have been awarded the 2013 Nobel Prize in Economics.
Eugene Fama, Lars Peter Hansen and Robert Shiller were declared winners on Monday for developing, separately, methods to study trends in stock, bond and housing markets.
The Royal Swedish Academy of Sciences said their works had made possible the current understanding of asset prices, and improved how people invest.
“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,” the academy said in a statement.
Fama, 74, and Hansen, 60, teach at the University of Chicago. Shiller, 67, is a professor at Yale University.
Shiller is famous for having warned against bubbles in technology stocks and housing.
“People told me they thought I might win. I discounted it. Probably hundreds have been told that,” he was quoted as saying to news agency, Associated Press.
The Nobel committees have now announced all six of the annual $1.2 million awards for 2013. Four other Americans won Nobel prizes this year in medicine and chemistry.
The economics award is not a Nobel Prize in the same sense as the medicine, chemistry, physics, literature and peace prizes, which were created by Swedish industrialist Alfred Nobel in 1895.
Sweden’s central bank established the economics prize in 1968 as a memorial to Nobel.
The economics awards have been dominated by American researchers since 1999.
The 2013 Nobel science prizes awarded research on how molecules move around inside a cell, particle physics and computer modelling of chemical reactions.
In literature, Canadian short-story writer Alice Munro won the prize. The Organization for the Prohibition of Chemical Weapons was awarded the Nobel Peace Prize.
All awards will be presented to the winners amid royal pageantry on December 10, the anniversary of Nobel’s death in 1896.