"The Royal Swedish Academy of Science has decided to award the 2013 Nobel Prize in Economic Sciences jointly to Eugene F. Fama, Lars Peter Hansen, and Robert J. Shiller "for their empirical analysis of asset prices."
The winners were selected for finding and analysing that it is quite possible to foresee the broad course of asset prices over longer periods, such as the next three to five years, while extremely difficult to predict in the short run and that new information is very quickly incorporated into prices.
In a separate note, the academy explained that the field of empirical asset pricing is one of the largest and most active subfields in economics.
"While asset prices often seem to reflect fundamental values quite well, history provides striking examples to the contrary, in events commonly labeled as bubbles and crashes. Mispricing of assets may contribute to financial
crises and, as the recent global recession illustrates, such crises can damage the overall economy," it said.
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The winners were selected for finding and analysing that it is quite possible to foresee the broad course of asset prices over longer periods, such as the next three to five years, while extremely difficult to predict in the short run and that new information is very quickly incorporated into prices.
In a separate note, the academy explained that the field of empirical asset pricing is one of the largest and most active subfields in economics.
"While asset prices often seem to reflect fundamental values quite well, history provides striking examples to the contrary, in events commonly labeled as bubbles and crashes. Mispricing of assets may contribute to financial
crises and, as the recent global recession illustrates, such crises can damage the overall economy," it said.
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