On October 14, Eugene F. Fama, Lars Peter Hansen, and Robert J. Shiller were awarded the Nobel Memorial Prize in Economic Science. Fama and Shiller are leading proponents of opposing views about the rationality of financial markets. Justin Wolfers was quoted by both the New York Times and NPR News on how the contradictory views of this year's winners "encapsulates the state of modern economics," noting:
"We have big important questions that remain largely open and we have giants bringing evidence to bear. And the answer turns out to be more complicated than markets are efficient — or markets are inefficient."
Wolfers also wrote an opinion piece for The Detroit News with Richard Holden on how the 2013 Nobel Prize selections reflect important disagreements in economic theory.
"Financial markets provide a useful reminder of just how humble we economists should be about our understanding of the world. The three winners of the 2013 Nobel Memorial Prize in Economic Sciences neatly capture this tension."
Wolfers comments on 2013 Nobel Memorial Prize in Economic Science winners
October 18, 2013