Edward C. Prescott

Edward C. Prescott (2004)

Edward Christian Prescott (born December 26, 1940 in Glenn Falls , New York , USA ) is an American economist . For his contributions to dynamic macroeconomics , he and Finn E. Kydland received the Swedish Reichsbank's Prize for Economics in 2004 in memory of Alfred Nobel .

Life

Kydland and Prescott examined why the economy does not develop evenly, but why phases of upswing are repeatedly followed by phases of recession . In essence, they come to the conclusion that the responsibility for this lies in the intermittent development of new technologies. This changes prices , productivity and wages and thus triggers business cycles . Another area of investigation concerns the influence of monetary and economic policy on these cycles. Here they come to the conclusion: "The more credible politics and the National Bank are, the more stable the respective economic development is." The committee emphasized that the essential importance of the results for the practice of many countries with regard to monetary and economic policy was a decisive factor in the award the price had.

In his methodological-theoretical work, Prescott was able to make an important contribution in the field of time series analysis with the Hodrick-Prescott filter named after him . The Hodrick-Prescott filter enables the smooth component ( trend ) to be filtered out of a time series overlaid with seasonal and random variables . This method is used in empirical business cycle research. Prescott co-published the Equity Premium Puzzle with Rajnish Mehra .

He teaches at Arizona State University Tempe and is employed by the Federal Reserve Bank of Minneapolis . In 1992 Prescott was elected to the American Academy of Arts and Sciences , and in 2008 to the National Academy of Sciences . For 2015 he was awarded the Adam Smith Prize .

literature

Edward Prescott , in: Internationales Biographisches Archiv 51/2004 of December 18, 2004, in the Munzinger archive ( beginning of the article freely available)

Broadcast reports

Edward Prescott in conversation with Dieter Kassel: "The West could experience a boom" - Nobel laureate criticizes failure of politics , Deutschlandfunk - "Economy & Society" from August 20, 2014

Web links

Commons : Edward C. Prescott - Collection of Images, Videos and Audio Files

Literature by and about Edward C. Prescott in the catalog of the German National Library
Curriculum Vitae as PDF
Information from the Nobel Foundation on the 2004 award ceremony for Edward C. Prescott

Individual evidence

^ Rajnish Mehra, Edward C. Prescott: The Equity Premium: A Puzzle . In: Journal of Monetary Economics . No. 15 , 1985, pp. 145–161 ( academicwebpages.com (PDF; 779 kB)).
^ Rajnish Mehra, Edward C. Prescott: The equity premium in retrospect . In: NBER Working Paper . Cambridge, MA 2003 ( academicwebpages.com (PDF; 291 kB)).

personal data
SURNAME	Prescott, Edward C.
ALTERNATIVE NAMES	Prescott, Edward Christian (full name)
BRIEF DESCRIPTION	American economist
DATE OF BIRTH	December 26, 1940
PLACE OF BIRTH	Glenn Falls , New York , USA

[1] Rajnish Mehra, Edward C. Prescott: The Equity Premium: A Puzzle . In: Journal of Monetary Economics . No. 15 , 1985, pp. 145–161 ( academicwebpages.com (PDF; 779 kB)).

[2] Rajnish Mehra, Edward C. Prescott: The equity premium in retrospect . In: NBER Working Paper . Cambridge, MA 2003 ( academicwebpages.com (PDF; 291 kB)).