Nobel Prize Given in Economics

Groundbreaking research that completely changed the way economists and investors look at how markets work has earned three American professors the Nobel Prize in economics.


Eugene F. Fama and Lars Peter Hansen of the University of Chicago and Robert J. Shiller of Yale University received the prize "for their empirical analysis of asset prices," the Nobel committee said.


According to the committee, the economists' research "laid the foundation for the current understanding of asset prices."


Their research showed that while it is difficult to predict asset prices in the short term, prices can be predicted in broad terms over longer periods, such as three to five years.