Edward C. Prescott

AAA

DEFINITION of 'Edward C. Prescott'

The winner of the 2004 Nobel Memorial Prize in Economics, along with Finn Kydland, for his macroeconomic analysis of the business cycle and economic policy. His 1982 paper, co-authored with Kydland, challenged the Keynesian view of the business cycle. Prescott and Kydland are also famous for a 1977 paper on the time consistency problem in economic policymaking.

INVESTOPEDIA EXPLAINS 'Edward C. Prescott'

Born in New York in 1940, Edward Prescott earned his Ph.D. in economics from Carnegie-Mellon University. Prescott was the Senior Monetary Advisor in the Research Department at the Federal Reserve Bank of Minneapolis, a research associate at the National Bureau of Economic Research and a professor of economics at Arizona State University as of 2010. He has also taught at the University of Minnesota, Northwestern University, Carnegie-Mellon University, the University of Pennsylvania and the University of Chicago.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects ...
  3. Economist

    An expert who studies the relationship between a society's resources ...
  4. New Keynesian Economics

    The modern macroeconomic school of thought that evolved from ...
  5. Fintech

    Fintech is a portmanteau of financial technology that describes ...
  6. Rothschild

    A prominent family of German bankers that established banking ...
RELATED FAQS
  1. How can individuals or businesses handle transaction costs for economic externalities?

    Externalities, also known as external economies, and transaction costs are two significant and evolving issues in contemporary ... Read Full Answer >>
  2. How can a change in fiscal policy have a multiplier effect on the economy?

    A change in fiscal policy has a multiplier effect on the economy because fiscal policy affects spending, consumption and ... Read Full Answer >>
  3. How do you calculate the marginal propensity to consume?

    The standard formula for calculating the marginal propensity to consume, or MPC, is marginal consumption divided by marginal ... Read Full Answer >>
  4. How is the 80-20 rule (Pareto Principle) used in management?

    The 80-20 rule, also known as the Pareto principle, is meant to express a philosophy about identifying inputs. It is not ... Read Full Answer >>
  5. What is the theory of asymmetric information in economics?

    The theory of asymmetric information was developed in the 1970s and 1980s as a plausible explanation for common phenomena ... Read Full Answer >>
  6. How is a market failure prevented with regard to public goods?

    It was once commonly accepted that any public good constituted a market failure and provided necessary and sufficient conditions ... Read Full Answer >>
Related Articles
  1. Economics

    Understanding Supply-Side Economics

    Does the amount of goods and services produced set the pace for economic growth? Here are the arguments.
  2. Active Trading

    Giants Of Finance: John Maynard Keynes

    This rock star of economics advocated government intervention at a time of free-market thinking.
  3. Entrepreneurship

    Adam Smith And "The Wealth Of Nations"

    Adam Smith's 1776 classic may have had the largest global impact on economic thought.
  4. Investing Basics

    Muriel Siebert: Female Finance Pioneer

    Muriel Siebert has blazed many paths for investors, but is especially relevant as the first woman to sit on the NYSE.
  5. Investing Basics

    The Intelligent Investor: Benjamin Graham

    Learn about the man who mentored Warren Buffett, who eventually became the investing "Oracle of Omaha".
  6. Economics

    Adam Smith: The Father Of Economics

    This free thinker promoted free trade at a time when governments controlled most commercial interests.
  7. Professionals

    Hetty Green: The Witch Of Wall Street

    Hetty Green was the richest woman of her time and possibly the first value investor, yet she's not remembered kindly.
  8. Active Trading

    Water Cooler Finance: The iPhone Launch, Buffett's Lunch And BP's Lashing

    This week in financial news saw more uncertainty in the markets on bad news from retail, GM and BP.
  9. Active Trading

    Top 5 All-Time Best Mutual Fund Managers

    The best managers produced long-term, market-beating returns and helped investors build big nest eggs. Find out who made the cut.
  10. Retirement

    The 5 Most Influential Bankers Of All Time

    These bankers shaped the current financial system - though some didn't live to see the fruits of their labor.

You May Also Like

Hot Definitions
  1. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  2. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  3. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  4. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  5. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center