Three Nobel Lectures and the Rhetoric of Finance

Economist John Cochrane, who blogs as The Grumpy Economist, attended the Nobel Lectures in economics and shared his perspective¬†on the laureates’ presentations, including Hansen’s. He wrote,

“Lars chose to talk more about his current research and less about the research that got him the prize, a good technique for these lectures. He’s working on “ambiguity,” how to handle the fact that we don’t really know what the right model is, and, even more interestingly, how to construct models in which the people in the models don’t really know what the right model is. Typically for Lars, this is a very deep research program, which may lead to a fundamental difference in how we think about risk and information in economics.”

Read his complete comments on Hansen’s work at his blog.