The Sveriges Riksbank Nobel Prize in Freshwater Economics for 2013 goes to Eugene Fama6 October, 2013 at 11:45 | Posted in Economics | 7 Comments
In a post last year yours truly wrote about the decision of The Royal Swedish Academy of Sciences to award The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for 2012 to Alvin Roth and Lloyd Shapley. I complained that the prize committee once again confirmed that neoclassical economic theory today basically is in the story-telling business whereby economic theorists create make-believe analogue mathematical models of the real economic system.
This year I’m sure the prize committee will show how in tune with the times it is and award the prize to Eugene Fama.
1) Well, he’s a Chicago economist and a champion of rational expectations and efficient markets.
2) Nowadays freshwater economists seem to be the only ones eligible for the prize.
3) An economist who has described the notion that finance theory was at fault as “a fantasy” and argued that “financial markets and financial institutions were casualties rather than causes of the recession” has to appeal to a prize committee with a history of awarding theories and economists totally lacking any real world relevance.