WASHINGTON, D.C. – October 15, 2013 – (RealEstateRama) — Rep. Kevin Brady (R-TX), Chairman of the Joint Economic Committee of Congress, released the following statement upon the announcement of the winners of the Nobel Prize in economics.
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Rep. Kevin Brady in National News |
“I congratulate Eugene Fama, Lars Peter Hansen, and Robert Shiller for receiving the Sveriges Riksbank Prize in Economic Sciences in memory of Alfred Nobel for 2013 ‘for their empirical analysis of asset prices.’”
Dr. Fama, the father of the school of modern finance, was credited for his efficient market theory that holds financial markets are ‘informationally efficient,’ meaning investors immediately incorporate new information into asset prices. Dr. Shiller, a leader of the school of behavioral economics, was credited for his work demonstrating the role played by psychology in asset prices. Dr. Hansen was credited for developing an economic tool, the ‘Generalized Method of Moments,’ used for running regression analyses to uncover relationships among economic variables.
“The work these American economists have done in discussing the various theories of asset prices has helped explain the volatility in the market place that led to the housing bubble in 2008. These theories are important in evaluating the best way to see the warning signs before we find ourselves in another crisis. I thank them for their research and congratulate them on their award.”
