Vernon L. Smith

Definition of 'Vernon L. Smith'


An American economist who won the Nobel Prize in Economics in 2002, along with Daniel Kahneman, for his research in experimental economics. He has shown the importance of alternative market institutions and has developed wind-tunnel tests for alternative market designs. His research has also explored capital theory, finance, natural resource economics, industrial organization, property rights economics and neuroeconomics.

Investopedia explains 'Vernon L. Smith'


Smith was born in Kansas in 1927. He earned his Ph.D. in economics from Harvard University and has taught economics at numerous universities, including Purdue, Stanford, Brown, the University of Massachusetts, the California Institute of Technology, the University of Arizona, George Mason University and Chapman University. Among his many other achievements, Smith is a Senior Fellow at free-market think tank The Cato Institute, a distinguished fellow of the American Economic Association and a member of the National Academy of Sciences. He is also a member of the board of editors of numerous economics journals.



comments powered by Disqus
Hot Definitions
  1. Federal Reserve Note

    The most accurate term used to describe the paper currency (dollar bills) circulated in the United States. These Federal Reserve Notes are printed by the U.S. Treasury at the instruction of the Federal Reserve member banks, who also act as the clearinghouse for local banks that need to increase or reduce their supply of cash on hand.
  2. Benchmark Bond

    A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds. Also referred to as "benchmark issue" or "bellwether issue".
  3. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  4. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  5. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  6. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
Trading Center