Tuesday, May 5, 2015
YOLO COUNTY NEWS
99 CENTS

Nobel gives housing-market studies a strong appraisal

By
From page A6 | October 18, 2013 |

The issue: Three top economists’ work recognized

We all know the old joke: If we placed all of the world’s economists end to end, they still wouldn’t agree.

The Nobel Prize Committee has marvelously proved that witticism with this year’s selection of three remarkable Americans for the top prize for economics.

ECONOMIST Robert J. Shiller of Yale University and Eugene F. Fama of the University of Chicago disagree about whether house price fluctuations during the Past decade in the United State constituted an irrational price bubble. They share the prize with another veteran University of Chicago economist, Lars Peter Hansen, who has studied stock-market fluctuations and developed methods to evaluate different theories about price movements.

“Their research has been about how well the financial markets actually work,” explained Professor Per Stromberg, member of the Nobel Economic Sciences Prize Committee. “All of these three researchers are about looking at data and trying to see patterns in financial prices. This is actually a very important test of how well markets work.”

Shiller is probably best known for the widely quoted Standard & Poor’s Case-Shiller Home Price Index, which monitors a 10-city average on home pricing. Shiller wrote in his 2005 book “Irrational Exuberance” that house prices in his index looked like “a rocket taking off” but doubted the trend would continue over the long run.

Shiller, of course, seemed to be spectacularly right. The collapse of housing prices starting in 2008 became one of the major causes of the so-called “Great Recession.”

“I don’t even know what a (price) bubble means,” Fama told The New York Times recently. “These words have become popular. I don’t think they have any meaning.”

ALL THREE MEN have thought long and hard about how efficient, or even rational, capitalism’s marketplace is when setting prices for a share of common stock or that nice, three-bedroom colonial on Maple Street.

Unlike physicists who plumb the natural laws of motion and matter, economists must try to develop statistical models that, ultimately, are based upon human behavior. Hansen, Fama and Shiller have done important and impressive work applying statistical science to the often irrational-seeming process of price setting.

Even if we make jokes about the dismal science of economics, we must acknowledge the impressive achievements they’ve made.

Comments

comments

.

News

 
Sexual assault awareness campaign recognizes teens

By Anne Ternus-Bellamy | From Page: A1 | Gallery

Mother, daughters killed in crash caused by wrong-way driver

By Lauren Keene | From Page: A1 | Gallery

 
Fire damages Woodland apartment

By Lauren Keene | From Page: A2

 
Watering bans, conservation mandates on tap for regulators

By The Associated Press | From Page: A2

 
A blessing of the bikes

By Fred Gladdis | From Page: A2

 
New comic allows readers to ‘Carpe Diem’!

By Enterprise staff | From Page: A2

Sunrise Rotarians honor student role models

By Enterprise staff | From Page: B3

 
Vet Med Large Animal Clinic has a new director

By Special to The Enterprise | From Page: B3

Party celebrates release of Lescroart’s new novel

By Enterprise staff | From Page: B3

 
Grace Valley hosts open house

By Special to The Enterprise | From Page: B3

Indoor Fun Fly comes to Woodland

By Enterprise staff | From Page: B3

 
Learn to use walking poles effectively

By Enterprise staff | From Page: B3

Capitol drive collects essentials for young lives

By Special to The Enterprise | From Page: B3 | Gallery

 
Davis families take a spin at the Loopalooza

By Anne Ternus-Bellamy | From Page: A7 | Gallery

Independent study enrollment underway

By Enterprise staff | From Page: A8

 
Faulkner featured at Poetry Night on Thursday

By Special to The Enterprise | From Page: A8

Got bikes? Donate ‘em!

By Enterprise staff | From Page: A8

 
Sunset Rotary hosts Thursday-afternoon bingo

By Enterprise staff | From Page: A8

Winters agri-tour visits Four Winds Nursery

By Enterprise staff | From Page: A8

 
Fresh cherries at Sutter market

By Enterprise staff | From Page: A8 | Gallery

Pets of the week

By Enterprise staff | From Page: A8 | Gallery

 
Speakers cancel for health reasons

By Enterprise staff | From Page: A8

Davis Municipal Fiber will give people a choice

By Enterprise staff | From Page: A8

 
Special KDRT broadcast celebrates Grateful Dead’s 50 years

By Special to The Enterprise | From Page: A9

Dance, dance, dance for a great cause

By Wayne Tilcock | From Page: A10

 
Information offered on city tax refund program

By Enterprise staff | From Page: A10

Monthly tour set at Yolo Bypass Wildlife Area

By Special to The Enterprise | From Page: A10 | Gallery

 
Tour de Cluck participants can get here by train

By Special to The Enterprise | From Page: A10

.

Forum

Think long and hard about our town’s future

By Special to The Enterprise | From Page: B4

 
Whom will our council represent?

By Michelle Millet | From Page: B4

Weeds pose a threat to pets

By Letters to the Editor | From Page: B4

 
Is your bike waiting for you?

By Letters to the Editor | From Page: B4

Tips to reduce student stress

By Letters to the Editor | From Page: B4

 
John Cole cartoon

By Debbie Davis | From Page: B4

Ready to cut her off

By Creators Syndicate | From Page: B5

 
New rule: No dough, no art

By Creators Syndicate | From Page: B5

.

Sports

 
DHS celebrates Senior Day with a fun victory

By Chris Saur | From Page: B1 | Gallery

 
Visiting Eagles edge Blue Devils

By Spencer Ault | From Page: B1 | Gallery

Majors roundup: Thompson, D’Angelo lead Brew Crew rally

By Enterprise staff | From Page: B2 | Gallery

 
UCD roundup: Aggies baseballers fall in 13 innings

By Enterprise staff | From Page: B12

 
.

Features

.

Arts

Stellar acting brings home Capital Stage’s dark comedy

By Bev Sykes | From Page: A11 | Gallery

 
Student choreographers, dancers stage festival at UC Davis

By Special to The Enterprise | From Page: A11 | Gallery

From Bach to rock, Regal Beezers will entertain

By Special to The Enterprise | From Page: A11 | Gallery

 
Student filmmakers showcased at UCD Festival

By Special to The Enterprise | From Page: A11

.

Business

.

Obituaries

Emma Sallie Wing Hale

By Enterprise staff | From Page: A8

 
Robert Simpson Loomis

By Special to The Enterprise | From Page: A8

.

Comics

Comics: Tuesday, May 5, 2015 (set 1)

By Creator | From Page: B5

 
Comics: Tuesday, May 5, 2015 (set 2)

By Creator | From Page: B7