Robert E. Lucas Jr.

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.

RELATED TERMS
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects ...
  2. Milton Friedman

    An American economist and statistician best known for his strong ...
  3. Rational Expectations Theory

    An economic idea that the people in the economy make choices ...
  4. Macroeconomics

    The field of economics that studies the behavior of the aggregate ...
  5. Market Economy

    An economic system in which economic decisions and the pricing ...
  6. Microeconomics

    The branch of economics that analyzes the market behavior of ...
Related Articles
  1. Fundamental Analysis

    How Influential Economists Changed Our History

    Find out how these five groundbreaking thinkers laid our financial foundations.
  2. Economics

    The Austrian School Of Economics

    Investopedia explains: If you think economists are only concerned with numbers, check out the Austrian School, who are more like economic philosophers.
  3. Economics

    The Uncertainty Of Economics: Exploring The Dismal Science

    Learning about the study of economics can help you understand why you face contradictions in the market.
  4. Economics

    Why Can't Economists Agree?

    There are many reasons why economists can be given the same data and come up with entirely different conclusions.
  5. Forex Education

    Free Market Maven: Milton Friedman

    As proponent of free market capitalism, this economist changed the way the world's economies operate.
  6. Bonds & Fixed Income

    Can Keynesian Economics Reduce Boom-Bust Cycles?

    Learn about a British economist's proposed solution to a common economic problem.
  7. Active Trading

    Giants Of Finance: John Maynard Keynes

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

    Adam Smith's Legacy

    Adam Smith popularized many of the ideas that created classical economics.
  9. Investing

    These 5 Books Will Transform the Way You Think

    Just as successful startups disrupt their industries, these writers disrupt our view of the world.
  10. Fundamental Analysis

    The Unsung Pioneers Of Finance

    We all know names like Rockefeller, but there are other influential pioneers of finance in America's history.
RELATED FAQS
  1. According to the neoclassical growth theory, what factors influence the growth of ...

    The neoclassical growth theory builds five major variables into its time-sensitive production formula. The first is total ... Read Full Answer >>
  2. What industries are typically considered infant industries?

    Infant industries are those considered vulnerable to established competitors. Some examples of infant industries include ... Read Full Answer >>
  3. How is game theory related to the Nash equilibrium?

    The Nash equilibrium is an important concept in game theory referring to a stable state in a game where no player can gain ... Read Full Answer >>
  4. 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 >>
  5. 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 >>
  6. 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 >>
Hot Definitions
  1. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  2. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  3. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  4. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  5. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  6. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center