The prize also is shared with Lars Peter Hansen of the University of Chicago and Robert J. Shiller of Yale University. Fama is celebrated for his groundbreaking research on efficient markets and his model for calculating stock returns.
Eugene Fama and his wife Sally celebrate at the Nobel festivities in Stockholm.
Professor Eugene Fama starts his morning on Monday, October 14, as one of three recipients of the 2013 Nobel Memorial Prize in Economic Sciences for their empirical analysis of asset prices. (Photo by Robert Kozloff)
Professor Eugene Fama prepares for the news conference in his Harper Center office. (Photo by Robert Kozloff)
The newest Nobel laureates in Economic Sciences enter the Rothman Winter Garden at Chicago Booth, where members of the UChicago faculty, staff, and student body await their arrival. (Photo by Robert Kozloff)
A crowd of enthusiastic supporters from the University community gather in the Rothman Winter Garden in the Charles M. Harper Center at the University of Chicago Booth School of Business. (Photo by Robert Kozloff)
Professor Eugene Fama addresses a crowd at the October 14 news conference. (Photo by Robert Kozloff)
Provost Tom Rosenbaum (right) joins Nobel laureates Eugene Fama (left) and Lars
Peter Hansen (center) on the stage just before the news conference gets underway.
(Photo by Robert Kozloff)
The University of Chicago announced the news at a press conference on October 14, 2013, at Chicago Booth's Harper Center. Watch Highlights »
The accomplishments of Fama and Hansen were reviewed in a November 4, 2013, University of Chicago panel discussion, The Work Behind the Prize. Watch the Panel Discussion »
The Royal Swedish Academy of Sciences awarded the 2013 Nobel Prize in Economic Sciences to Fama, along with Lars Peter Hansen of UChicago and Robert J. Shiller of Yale University, “for their empirical analysis of asset prices.” Read the announcement.
This path-breaking research helps to explain how and why the prices of stocks change over time. Fama’s work demonstrated that new information is very quickly incorporated into the market, making it difficult to predict short-term changes in asset prices. Hansen developed a statistical method for testing rational theories of asset pricing like those advanced by Fama and Shiller.
Fama is the Robert R. McCormick Distinguished Service Professor of Finance at the University of Chicago Booth School of Business. He is among nine Chicago Booth faculty members to receive the Nobel Prize in Economic Sciences since 1968.
Eugene Fama is well-known for organizing the knowledge on efficient markets. His first critical contribution to the theory is his 1970 paper "Efficient Capital Markets: A Review of Theory and Empirical Work," which inspired numerous academic papers that sought to test the validity of the efficient markets theory.
Fama began his career at the University of Chicago as a student in 1960, and has taught at Chicago Booth since 1963. During his 50 years at Booth, he has been instrumental in the foundation and growth of the Fama-Miller Center for Research in Finance and the Center for Research in Security Prices.
More information on Eugene Fama:
"Americans Win Economics Nobel for Market Insights," The Wall Street Journal
"A Nobel for the Random Walk of Stock Prices," The Wall Street Journal
"Fama’s Nobel Work Shows Active Managers Fated to Lose," Bloomberg
"Economists Clash on Theory, but Will Still Share the Nobel," The New York Times
"Nobel for Eugene Fama a win for free-market Chicago School of economics," Chicago Tribune editorial
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