Edward C. Prescott
Edward C. Prescott | |
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Nobel Prize in Economics (2004) | |
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Edward Christian Prescott (December 26, 1940 – November 6, 2022) was an American economist. He received the
Biography
Early life
Prescott was born in Glens Falls, New York, to Mathilde Helwig Prescott and William Clyde Prescott. In 1962, he received his bachelor's degree in mathematics from Swarthmore College, where he was a member of the Delta Upsilon fraternity. He then received a master's degree from Case Western Reserve University in operations research in 1963, and a PhD in economics at Carnegie Mellon University in 1967.
Career
From 1966 to 1971, Prescott taught at the University of Pennsylvania. He then returned to Carnegie Mellon until 1980, when he moved to the University of Minnesota, where he taught until 2003. In 1978, he was a visiting professor at the University of Chicago, where he was named a Ford Foundation Research Professor. In the following year, he visited Northwestern University and stayed there until 1982.[6][7] From 2003 on he taught at Arizona State University.
Prescott was an economic advisor at the
The
Nobel Prize
Prescott and Finn Kydland received the
Additionally Prescott and Kydland felt that the policy makers due to their relationship with government suffered from a credibility issue. The reason for this dynamic is that the political process is designed to fix problems and benefit its citizens today. Prescott and Kydland demonstrated this with a simple yet convincing example. In this example they take an area that has been shown likely to flood (a flood plain) and the government has stated that the "socially optimal outcome" is to not have houses be built in that area and therefore the government states that it will not provide flood protection (dams, levees, and flood insurance) rational agents will not live in that area. However, rational agents are forward planning creatures and know that if they and others build houses in the flood plain the government which makes decisions based on current situations will then provide flood protection in the future. While Prescott never used these words he was describing a moral hazard.[11]
The second paper, written in 1982, "Time to Build and Aggregate Fluctuations," Prescott and Kydland argued that shifts in supply typically caused by changes and improvements in technology accounted for "Not only long term increases in living standards but also to many of the short term fluctuations in business cycles." To study this hypothesis Prescott established a model to study the change in output, investment, consumption, labor productivity, and employment, between the end of the
Political activity
In January 2009 Prescott, along with more than 250 other economists and professors,
His late writings focused on the negative effect of taxes on the economy in Europe.
Honours and awards
- United States National Academy of Sciences(2008)
- Nobel Memorial Prize in Economic Sciences (2004)
- Erwin Plein Nemmers Prize in Economics, Northwestern University (2002)
- Fellow, American Academy of Arts and Sciences (1992)
- Fellow, Econometric Society(1980)
- Alexander Henderson Award, Carnegie Mellon (1967)
References
- ^ Timothy J. Kehoe Workshop
- ^ a b "Economist Rankings at IDEAS – Top 10% Authors, as of February 2013". Research Papers in Economics. February 2013. Retrieved March 9, 2013.
- ^ Risen, Clay (23 November 2022). "Edward C. Prescott, 81, Dies; Won Nobel for Studying Business Cycles". The New York Times.
- ^ "Edward C Prescott (1940–2022): Economist, Teacher, Mentor and Friend". University of Minnesota – College of Liberal Arts. Retrieved 8 November 2022.
- ^ "Edward Prescott, Nobel Prize Winning Economist, Dies at 81". Bloomberg. 7 November 2022. Retrieved 8 November 2022.
- ^ "Edward C. Prescott – Autobiography". Nobelprize.org. Retrieved October 19, 2010.
- ^ "Staff Faculty – Directory – W. P. Carey School of Business". Wpcarey.asu.edu. July 8, 2010. Retrieved October 19, 2010.
- ^ "Staff Details: Edward C. Prescott, Senior Monetary Advisor". Federal Reserve Bank of Minneapolis. Archived from the original on 9 May 2013. Retrieved 1 September 2014.
- ^ "Finn E. Kydland – 2004 Nobel Prize in Economics". Ucsb.edu. Archived from the original on October 15, 2010. Retrieved October 19, 2010.
- ^ Australian National University
- ^ "Archived copy" (PDF). Archived from the original (PDF) on 2014-08-11. Retrieved 2016-05-18.
{{cite web}}
: CS1 maint: archived copy as title (link) - ^ "web-041003.dvi" (PDF). Archived from the original (PDF) on June 26, 2009. Retrieved October 19, 2010.
- ^ "Archived copy" (PDF). Archived from the original (PDF) on 2014-05-14. Retrieved 2016-05-18.
{{cite web}}
: CS1 maint: archived copy as title (link) - ^ "Archived copy" (PDF). cato.org. Archived from the original (PDF) on 3 February 2009. Retrieved 11 January 2022.
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: CS1 maint: archived copy as title (link) - ^ "House OKs Stimulus Without Any Votes From Republicans". Archived from the original on January 30, 2009. Retrieved 2009-02-18.
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: CS1 maint: bot: original URL status unknown (link)
Further reading
- Greenwood, Jeremy (1994). "Modern Business Analysis (A Report to the Nobel Prize Committee)". Rcer Working Papers. Rochester Center for Economic Research, WP 520.
- Lucas, Robert E Jr.; Prescott, Edward C. (1971). "Investment Under Uncertainty". Econometrica. 39 (5): 659–681. JSTOR 1909571.
- Kehoe, T. J., and E. C. Prescott, editors, Great Depressions of the Twentieth Century, Federal Reserve Bank of Minneapolis, 2007.
- Rules Rather than Discretion: The Inconsistency of Optimal Plans by Finn Kydland|Kydland and E. C. Prescott
- Prescott, Edward C.; Mehra, Rajnish (1980). "Recursive Competitive Equilibrium: The Case of Homogeneous Households". Econometrica. 48 (6): 1365–79. JSTOR 1912812.
- Time to Build and Aggregate Fluctuations, by Finn Kydland and E. C. Prescott Archived 2022-11-12 at the Wayback Machine
- Mehra, Rajnish; Edward C. Prescott (1985). "The Equity Premium: A Puzzle" (PDF). Journal of Monetary Economics. 15 (2): 145–161. .
- Kydland, Finn; E. C. Prescott (1990). "Business Cycles: Real Facts and a Monetary Myth". Federal Reserve Bank of Minneapolis Quarterly Review: 3–18.
- Prescott, Edward C. 'More Time on the Job', in The 4% Solution: Unleashing the Economic Growth America Needs, edited by Brendan Miniter. New York: Crown Business. 2012.
- Farquhar, Elizabeth (Summer 2006). "Power of the Prize". ASU Research Magazine: 46–48.
External links
- Federal Reserve Bank of Minneapolis
- Edward C. Prescott on Nobelprize.org contains the Nobel Prize Lecture 8 dec 2004 The Transformation of Macroeconomic Policy and Research
- "Edward C. Prescott (1940– )". The Concise Encyclopedia of Economics. Library of Economics and Liberty (2nd ed.). Liberty Fund. 2008.