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Three U.S. Economists Share Nobel Prize For Economics

The winners, who "laid the foundation for the current understanding of asset prices," will share the $1.2 million prize among themselves.

[Image: Flickr user quinn.anya]

Three economists, two from the University of Chicago, and one from Yale, whose "empirical analysis of asset prizes" have transformed the way the stock markets work, have won the Nobel Prize for Economics. Eugene F. Fama, Lars Peter Hansen, and Robert J. Shiller have all come up with separate theories on asset price analysis.

Eugene Fama, of the University of Chicago, predicted back in the 1960s that new information helped shaped share prices, which were difficult to predict in the short term. His Illinois colleague, Lars Peter Hansen, developed a statistical method that allowed theories on asset pricing to be tested. And Yale's Robert Shiller revealed that share prices fluctuate more than corporate dividends do. The individual share of the Nobel booty works out at $400,000 for each winner.