University of Chicago professors Eugene F. Fama and Lars Peter Hansen have been awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2013.

The Royal Swedish Academy of Sciences honored Fama and Hansen, along with Robert J. Shiller of Yale University, “for their empirical analysis of asset prices.” This research helps to explain how and why the prices of stocks and bonds 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.