American economists Eugene Fama, Lars Peter Hansen and Robert Shiller have jointly won the Nobel prize for economics for developing new methods to study trends in asset markets. Fama and Hansen are associated with the University of Chicago while Shiller is a professor at Yale University.
The Royal Swedish Academy of Sciences says that the trio had laid the foundations of the current understanding of asset prices. While it's difficult to predict whether stocks or bonds will go up or down in the short term, it's possible to forecast movements over three years or more. These findings, which might seem surprising and contradictory, were analysed by the laureates.
With this announcemnet, the Nobel committees have now announced all six of the annual $1.2 million awards for 2013. The economics award is not a Nobel in the same sense as are other prizes, which were created by Alfred Nobel in 1895. Sweden's central bank added the economics prize in 1968 as a memorial to Nobel.