Work on asset prices won US trio 2013 Nobel Economics Prize
Stockholm - Eugene F Fama and Lars Peter Hansen, both of the University of Chicago, and Robert J Shiller, of Yale University, won the 2013 Nobel Prize in Economics Sciences for their work in analysing asset prices.
Eugene Fama is known as the father of the efficient market hypothesis. Along with collaborator Kenneth French, he designed the Fama-Fench three-factor model of asset pricing, which helps investors assess market prices more accurately than the more traditional capital asset pricing model.
Hansen developed a statistical method that tests the theories of asset pricing. A well-known macro-economist, Hansen has focused on pinpointing linkages between financial and real sectors of the economy.
Shiller's work focuses on investors' reactions to fluctuations in stock prices and corporate dividend. He is also well-known for his contributions to the Case-Schiller home price indices and his warnings about excessive pricing in the US house market ahead of the subprime financial crisis in 2007-08.//DPA
