Edward Prescott

CPCOM 435C
Department of Economics
Regents' Professor/W. P. Carey Chair in Economics
Faculty
TEMPE Campus
Mailcode
9801
Faculty
Faculty
TEMPE Campus
Mailcode
9801

Biography

Ed Prescott joined the W. P. Carey School of Business as a regents professor in economics in 2003.

Prescotts research revolutionized macroeconomics by developing new methods for studying business cycle fluctuations. These methods are applicable to all areas of aggregate economics. His other prize-winning work found that the best policy plan is time inconsistency and therefore will not be followed if policymakers have discretions, and that following a policy rule mitigates the time inconsistency problem. His most recent work is titled On Financing Retirement with an Aging Population and examines the problem facing many countries including the United States: how to finance retirement consumption as the population ages. His research has been published in Journal of Political Economy, International Economic Review, and the Journal of Monetary Economics, among other leading publications.

Before joining W. P. Carey, Prescott was a visiting research professor in economics at the Australia National University. He received his bachelors degree in mathematics from Swarthmore College, his masters degree in operation research from Case Western Reserve University, and his PhD in economics from Carnegie Mellon University.

Prescott has been recognized for his industry-leading research, winning the 2004 Nobel Memorial Prize in Economics for pioneering macroeconomic theory. He was awarded the 2015 Adam Smith Award from the National Association of Business Economists, the 2011 Society for the Advancement of Economic Theory Fellow, and the 2002 Erwin Plein Nemmers Prize in Economics from Northwestern University. He also serves as the director of the Center for the Advanced Study in Economic Efficiency at the W. P. Carey School. 

 

 

 

 

Education

  • PhD  Carnegie-Mellon University, 1967
  • MS  Case-Western Reserve University, 1963
  • BA  Swarthmore College, 1962

Research Interests

  • Macroeconomics
  • General Equilibrium
  • Business Cycles
  • Monetary Policy
  • Technology Capital and the U.S. Current Account
  • Financial Intermediation and Financial Crises
  • Technology Capital Openness and Development
  • Quantity of Government Debt
  • Lifetime Aggregate Labor Supply with Endogenous Workweek Length
  • Equity Premium Without Risk

Publications

  • "Nobel Lecture: The Transformation of Macroeconomic Policy and Research," Journal of Political Economy 114, 203-35, 2006.
  • Great Depressions of the Twentieth Century, co-edited with T. J. Kehoe, Federal Reserve Bank of Minneapolis, 2007
  • Barriers to Riches, with S.L. Parente, MIT Press, 2000.
  • "Taxes, Regulations, and the Value of U.S. and U.K. Corporations," with E.R. McGrattan, Review of Economic Studies 72, 767-96, 2005.
  • "The 1929 Stock Market: Irving Fisher Was Right," with E.R. McGrattan, International Economic Review 45, 991-1009, November 2004.
  • "Technology Capital and the U.S. Current Account," with E.R. McGrattan, American Economic Review, forthcoming 2009.
  • "Why Do Americans Work So Much More Than Europeans?" Federal Reserve Bank of Minneapolis Quarterly Review 28, 2-13, July 2004.
  • "The Equity Premium: A Puzzle," with R. Mehra, Journal of Monetary Economics 15, 145-61, March 1985.
  • "Pareto Optimality and Competitive Equilibria with Adverse Selection and Moral Hazard," with R. M. Townsend,Economometrica 52, 21-45, January 1984
  • "Time to Build and Aggregate Fluctuations," with F.E. Kydland, Econometrica 50, 1345-70, November 1982 (cited for the Nobel Prize).
  • "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," with F.E. Kydland, Journal of Political Economy 85, 473-91, June 1977 (cited for the Nobel Prize).

Research Activity

Courses

Summer 2017
Course NumberCourse Title
ECN 784Internship
Spring 2017
Course NumberCourse Title
ECN 413Advanced Honors Macroeconomics
ECN 791Seminar
Summer 2016
Course NumberCourse Title
ECN 784Internship
Spring 2016
Course NumberCourse Title
ECN 413Advanced Honors Macroeconomics
ECN 791Seminar
Summer 2015
Course NumberCourse Title
ECN 784Internship
Spring 2015
Course NumberCourse Title
ECN 413Advanced Honors Macroeconomics
ECN 791Seminar
Summer 2014
Course NumberCourse Title
ECN 784Internship
Summer 2013
Course NumberCourse Title
ECN 784Internship
Spring 2013
Course NumberCourse Title
ECN 413Advanced Honors Macroeconomics
ECN 791Seminar

Honors/Awards

  • 2004 Nobel Memorial Prize in Economics
  • Regent Professor, Arizona State University
  • W. P. Carey Chair in Economics, Arizona State University
  • McKnight Presidential Chair in Economics, University of Minnesota
  • Laurea Honoris Causa in Economica, University of Rome Tor Vergata
  • Erwin Plein Nemmers Prize in Economics, Northwestern University
  • Regents' Professor, University of Minnesota
  • Fellow, American Academy of Arts and Sciences
  • Fellow, Econometric Society
  • Guggenheim Fellow
  • Brookings Economic Policy Fellow

Editorships

Research Associate

  • National Bureau of Economic Research

Co-editor

  • Economic Theory

Service

  • Senior Advisor, Federal Reserve Bank of Minneapolis

Work History

Arizona State University: 2003-present. Previous appointments: University of Minnesota; University of Chicago; Northwestern University; Carnegie-Mellon University; University of Pennsylvania. Visiting Appointments: New York University; University of California-Santa Barbara; University of Chicago; Northwestern University; Norwegian School of Business and Economics.

Expertise Areas