DEFINITION of 'Robert E. Lucas Jr.'
An American economist who won the 1995 Nobel Memorial Prize in Economic Sciences for his research on rational expectations. Lucas Jr. was heavily influenced by Milton Friedman and Arnold Harberger, among others. Lucas Jr. contributed to the development of New Keynesian economics and developed the Lucas Critique that showed how macroeconometric models could easily become useless. His research areas have included macroeconomics, economic growth and development economics.
BREAKING DOWN 'Robert E. Lucas Jr.'
Lucas Jr. was born in Washington in 1937, and earned his Ph.D. in economics from the University of Chicago. He began his teaching career at Carnegie-Mellon and later accepted a position at the University of Chicago.