Robert James Shiller American economist, academic and best-selling author Date of Birth: 29.03.1946 Country: USA

1. Biography of Robert J. Shiller
2. Academic Career
3. Contributions to Behavioral Finance
4. Recognition and Influence

Biography of Robert J. Shiller

Robert James "Bob" Shiller was born on March 29, 1946, in Detroit, Michigan. He received his Bachelor's degree from the University of Michigan in 1967, his Master of Science degree from the Massachusetts Institute of Technology (MIT) in 1968, and his Doctor of Philosophy degree from MIT in 1972.

Academic Career

Shiller began his academic career at the Wharton School, University of Pennsylvania, and the University of Minnesota before joining Yale University in 1982. He is currently a professor of economics at Yale University and a research fellow at the Yale International Center for Finance. Shiller has also been a research associate at the National Bureau of Economic Research (NBER) since 1980.

Contributions to Behavioral Finance

In 1981, Shiller published an article in the American Economic Review that challenged the efficient market hypothesis, which was the prevailing model in economics at the time. He argued that investors in a rational stock market would base stock prices on the expected future dividends discounted to their present value. His analysis of the performance of the American stock market from 1920 onwards led him to conclude that market volatility was higher than initially expected under the rational view of the future.

Shiller's work contributed to the development of behavioral finance, which gained further prominence after the stock market crash in October 1987. He included a review of research that confirmed his hypothesis that investors and stock sellers often make decisions based on emotions rather than rational calculations. His book "Irrational Exuberance" published in 2000, became a bestseller and warned that the stock market would turn into a bubble in March 2000, reaching its highest point, and would lead to a sharp decline.

Recognition and Influence

Shiller's contributions to the field of finance and economics have earned him numerous accolades. He was listed as one of the "100 most influential economists in the world" and was awarded the Deutsche Bank Prize in Financial Economics in 2009 for his research on asset price dynamics. His work has had a significant impact on economic theory and has directly influenced policy and practice in areas such as risk development, volatility in financial markets, bubbles, and crises.

In 2010, Shiller was named one of the world's leading thinkers by Foreign Policy magazine. In 2011, he was recognized as one of the 50 most influential people in global finance by Bloomberg. Shiller continues to be a highly respected economist, academic, and author, known for his groundbreaking research and insights into the behavior of financial markets.