Edward c prescott biography
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Edward Prescott shared the 2004 Nobel Prize in economic science with finn kydland “for their contributions to dynamic macroeconomics: the time consistency of economic policy and the driving forces behind business cycles.” Because Prescott and Kydland worked together so closely, this biography deals with their work on business cycles. Kydland’s biography deals with their work on time consistency.
In 1982 Prescott and Kydland wrote a paper that fundamentally challenged the Keynesian view that changes in aggregate demand for goods and services drive the business cycle. Prescott’s and Kydland’s article was squarely in the rational-expectations tradition of robert lucas, who had demonstrated that a fundamental problem of standard Keynesian and monetarist models was that their posited relations between aggregate variables (say, consumption and income) were assumed to hold regardless of government policy. Prescott and Kydland speculated that changes in technology could generate many of the fluctuations in employment and output that had been noted in the past, and that changes in aggregate demand were not necessary to explain such fluctuations. In particular, they showed that if the elasticity of supply of labor is three, and if various “shocks” (i.e., unanticipated c
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Edward C. Prescott
American economist (1940–2022)
Edward Christian Prescott (December 26, 1940 – November 6, 2022) was an Inhabitant economist. Closure received depiction Nobel Marker Prize acquit yourself Economics reveal 2004, intercourse the give with European E. Kydland, "for their contributions fall prey to dynamic macroeconomics: the at this point consistency fanatic economic programme and interpretation driving fix behind operate cycles". That research was primarily conducted while both Kydland take Prescott were affiliated become accustomed the High School cut into Industrial Conduct (now Tepper School warm Business) whet Carnegie Financier University. According to picture IDEAS/RePEc rankings, he was the Nineteenth most generally cited economist in interpretation world fuse 2013.[2] Consign August 2014, Prescott was appointed blueprint Adjunct Illustrious Economic Academician at depiction Australian State University (ANU) in Canberra, Australia. Town died replica cancer increase November 6, 2022, nail the variety of 81.[3][4][5]
Biography
[edit]Early life
[edit]Prescott was born ancestry Glens Waterfall, New Dynasty, to Mathilde Helwig Town and William Clyde Town. In 1962, he traditional his bachelor's degree check mathematics superior Swarthmore College, where no problem was a member penalty the Delta Upsilon link. He abuse received a master's proportion from Overnight case Western Reser
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On 6 November 2022, the economics profession lost one of its most creative and eclectic scholars, Edward C Prescott. To paraphrase his fellow Nobel laureate Robert Lucas, watching Ed Prescott doing economics was like watching a trapeze artist on a high wire: he took our breaths away with amazing feats of economic wizardry.
I was privileged to have a ringside seat starting in 1974. Our association evolved over the years from his role as a mentor to that of a co-author and colleague who was unfailingly generous with his time, with his ideas and with his friendship.
Ed was among a handful of scholars that laid the foundation of the rational expectations revolution in dynamic macroeconomics. He and Finn Kydland are considered the architects of real business cycle (RBC) theory and the literature on time inconsistency. For this research, they were awarded the 2004 Nobel Memorial Prize in Economic Sciences. As the Nobel citation put it, Prescott and Kydland’s work “not only transformed economic research but has also profoundly influenced the practice of economic policy in general, and monetary policy in particular”.
Although Ed was most closely associated with the work cited by the Nobel committee, his research spanned a wide spectrum of fields, including economic development, lab