Robert Shiller wins Deutsche Bank Prize for reshaping financial economics
Robert Shiller, a Yale economics professor, has been awarded the Deutsche Bank Prize in Financial Economics. The honour recognises his influential work on market behaviour and real estate trends. His research has shaped modern financial theory for decades.
Shiller gained fame with his 2000 book Irrational Exuberance, which warned of an overvalued stock market just before the dot-com crash. His insights into speculative bubbles made him a leading voice in behavioural economics.
He also co-developed the Case-Shiller index, a key tool for tracking US housing prices. This index became widely used after the 2008 financial crisis to monitor real estate market risks. The Deutsche Bank Prize is awarded every two years by Goethe University Frankfurt. Past recipients include Eugene Fama in 2005 and Michael Woodford in 2007. In 2007, Nobuhiro Kiyotaki also received the award for his work on financial frictions and macroeconomic instability. This year’s prize comes with a €60,000 endowment, funding further research in the field.
Shiller’s contributions span stock market analysis, housing economics, and behavioural finance. The award highlights his lasting impact on how economists study and predict financial instability. His work remains central to discussions on market regulation and risk management.
