Lars Peter Hansen
Born: 26 October 1952, Urbana, IL, USA
Affiliation at the time of the award: University of Chicago, Chicago, IL, USA
Prize motivation: "for their empirical analysis of asset prices"
Field: econometrics, financial economics
Prize share: 1/3
Lars Peter Hansen was born in Champaign, Illinois in the United States and studied at Utah State University in Logan, where his father was a professor of biochemistry. He received his Ph.D. from the University of Minnesota in Minneapolis and St Paul in 1981. He then moved to the University of Chicago, where he has worked ever since. Lars Peter Hansen is married with one son.
For many of us, the rise and fall of stock prices symbolizes economic development. Eugene Fama demonstrated that stock price movements are impossible to predict in the short-term, while Robert Shiller discovered that stock prices can be predicted over a longer period. In 1982, Lars Peter Hansen developed a statistical method for testing this type of theory. He demonstrated that Robert Shiller's results could not be fully explained within the then-current models and Lars Peter Hansen's method is now used within all economics research.