Robert Emerson Lucas Jr. (born September 15, 1937) is an American economist at the University of Chicago, where he is currently the John Dewey Distinguished Service Professor Emeritus in Economics and the College. Widely regarded as the central figure in the development of the new classical approach to macroeconomics,[1] he received the Nobel Prize in Economics in 1995 "for having developed and applied the hypothesis of rational expectations, and thereby having transformed macroeconomic analysis and deepened our understanding of economic policy".[2][3] He has been characterized by N. Gregory Mankiw as "the most influential macroeconomist of the last quarter of the 20th century."[4] As of 2020, he ranks as the 11th most cited economist in the world.[5]
Lucas was born in 1937 in Yakima, Washington, and was the eldest child of Robert Emerson Lucas and Jane Templeton Lucas.
Lucas received his B.A. in History in 1959 from the University of Chicago. Lucas attended the University of California, Berkeley as a first-year graduate student, but he left Berkeley due to financial reasons and returned to Chicago in 1960, earning a PhD in Economics in 1964.[6] His dissertation "Substitution between Labor and Capital in U.S. Manufacturing: 1929–1958" was written under the supervision of H. Gregg Lewis and Dale Jorgenson.[7] Lucas studied economics for his PhD on "quasi-Marxist" grounds. He believed that economics was the true driver of history, and so he planned to immerse himself fully in economics and then return to the history department.[8]
A collection of his papers is housed at the Rubenstein Library at Duke University.[13]
Contributions
Rational expectations
Lucas is well known for his investigations into the implications of the assumption of the rational expectations theory. Lucas (1972) incorporates the idea of rational expectations into a dynamic general equilibrium model. The agents in Lucas's model are rational: based on the available information, they form expectations about future prices and quantities, and based on these expectations they act to maximize their expected lifetime utility. He also provided sound theory fundamental to Milton Friedman and Edmund Phelps's view of the long-run neutrality of money, and provide an explanation of the correlation between output and inflation, depicted by the Phillips curve.
Lucas (1976) challenged the foundations of macroeconomic theory (previously dominated by the Keynesian economics approach), arguing that a macroeconomic model should be built as an aggregated version of microeconomic models while noting that aggregation in the theoretical sense may not be possible within a given model. He developed the "Lucas critique" of economic policymaking, which holds that relationships that appear to hold in the economy, such as an apparent relationship between inflation and unemployment, could change in response to changes in economic policy. That led to the development of new classical macroeconomics and the drive towards microeconomic foundations for macroeconomic theory.[14]
Other contributions
Lucas developed a theory of supply that suggests people can be tricked by unsystematic monetary policy; the Uzawa–Lucas model (with Hirofumi Uzawa) of human capital accumulation; and the "Lucas paradox", which considers why more capital does not flow from developed countries to developing countries. Lucas (1988) is a seminal contribution in the economic development and growth literature. Lucas and Paul Romer heralded the birth of endogenous growth theory and the resurgence of research on economic growth in the late 1980s and the 1990s.
He also contributed foundational contributions to behavioral economics, and provided the intellectual foundation for the understanding of deviations from the law of one price based on the irrationality of investors.
In 2003, he stated, about 5 years before the Great Recession, that the "central problem of depression-prevention has been solved, for all practical purposes, and has in fact been solved for many decades."[15]
He also proposed the Lucas Wedge which tries to show how much higher GDP would be in the presence of proper policy.
Bibliography
Lucas, Robert (1972). "Expectations and the Neutrality of Money". Journal of Economic Theory. 4 (2): 103–24. CiteSeerX10.1.1.592.6178. doi:10.1016/0022-0531(72)90142-1.
Lucas, Robert (1976). "Econometric Policy Evaluation: A Critique". Carnegie-Rochester Conference Series on Public Policy. 1: 19–46. CiteSeerX10.1.1.726.1610. doi:10.1016/S0167-2231(76)80003-6.
Lucas, Robert (1988). "On the Mechanics of Economic Development". Journal of Monetary Economics. 22 (1): 3–42. doi:10.1016/0304-3932(88)90168-7. S2CID 154875771.
Lucas, Robert (1990). "Why Doesn't Capital Flow from Rich to Poor Countries". American Economic Review. 80 (2): 92–96. JSTOR 2006549.
Lucas, Robert (1981). Studies in Business-Cycle Theory. MIT Press. ISBN978-0-262-62044-4.
Lucas, Robert (1995) – "Monetary Neutrality" Prize Lecture – 1995 Nobel Prize in economics , December 7, 1995
Stokey, Nancy; Robert Lucas; and Edward Prescott (1989), Recursive Methods in Economic Dynamics. Harvard University Press, ISBN0-674-75096-9.
Lucas, Robert E. Jr. and Benjamin Moll, 2014, "Knowledge Growth and the Allocation of Time", Journal of Political Economy, University of Chicago Press, vol. 122(1), pages 1 - 51.[16]
^Snowdon, Brian; Vane, Howard R. (2005). Modern Macroeconomics: Its Origin, Development and Current State. Cheltenham: Edgar Elgar. pp. 220–223. ISBN978-1-84542-208-0.
^"Robert E. Lucas, Jr. | American economist". Encyclopedia Britannica. Retrieved 2017-08-02.
^"The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1995". Nobel Foundation. Retrieved 2008-10-14.
^Mankiw, N. Gregory (September 21, 2009). "Back In Demand". Wall Street Journal.
^ ab"Robert E. Lucas Jr. - Biographical". www.nobelprize.org. Retrieved 2016-11-16.
^Andrada, Alexandre F. S. (2014). "Understanding Robert E. Lucas Jr. His Influence and Influences". SSRN 2515932. {{cite journal}}: Cite journal requires |journal= (help)
^Pressman, Steven (1999). Fifty Major Economists. London: Routledge. pp. 193–197. ISBN978-0-415-13481-1.
^"Robert Emerson Lucas". American Academy of Arts & Sciences. Retrieved 2021-12-10.
^"Robert E. Lucas, cons_suffix". www.nasonline.org. Retrieved 2021-12-10.
^"APS Member History". search.amphilsoc.org. Retrieved 2021-12-10.
^"Robert E. Lucas Papers, 1960–2004 and undated". Rubenstein Library, Duke University.
^"New Classical Macroeconomics: Robert Lucas | Policonomics". policonomics.com. Retrieved 2017-08-02.
^"Fighting Off Depression". The New York Times. January 4, 2009.
^Jucas, Robert E. Jr.; Moll, Benjamin (2014). "Knowledge Growth and the Allocation of Time". Journal of Political Economy. doi:10.3386/w17495. Retrieved 9 April 2019.
References
Galbács, Peter (2015). The Theory of New Classical Macroeconomics. A Positive Critique. Contributions to Economics. Heidelberg/New York/Dordrecht/London: Springer. doi:10.1007/978-3-319-17578-2. ISBN978-3-319-17578-2.
Kasper, Sherryl (2002). "Robert E. Lucas, Jr and new classical economics". The Revival of Laissez-Faire in American Macroeconomic Theory: A Case Study of Its Pioneers. Edward Elgar.
External links
Wikiquote has quotations related to Robert Lucas Jr..
Robert Lucas Jr. on Nobelprize.org includes the Prize Lecture on December 7, 1995 Monetary Neutrality
robert, lucas, this, biography, living, person, needs, additional, citations, verification, please, help, adding, reliable, sources, contentious, material, about, living, persons, that, unsourced, poorly, sourced, must, removed, immediately, especially, potent. This biography of a living person needs additional citations for verification Please help by adding reliable sources Contentious material about living persons that is unsourced or poorly sourced must be removed immediately especially if potentially libelous or harmful Find sources Robert Lucas Jr news newspapers books scholar JSTOR February 2013 Learn how and when to remove this template message Robert Emerson Lucas Jr born September 15 1937 is an American economist at the University of Chicago where he is currently the John Dewey Distinguished Service Professor Emeritus in Economics and the College Widely regarded as the central figure in the development of the new classical approach to macroeconomics 1 he received the Nobel Prize in Economics in 1995 for having developed and applied the hypothesis of rational expectations and thereby having transformed macroeconomic analysis and deepened our understanding of economic policy 2 3 He has been characterized by N Gregory Mankiw as the most influential macroeconomist of the last quarter of the 20th century 4 As of 2020 he ranks as the 11th most cited economist in the world 5 Robert Emerson Lucas Jr Born 1937 09 15 September 15 1937 age 85 Yakima Washington U S NationalityAmericanSpouseNancy StokeyInstitutionCarnegie Mellon UniversityUniversity of ChicagoFieldMacroeconomicsSchool ortraditionNew classical macroeconomicsAlma materUniversity of Chicago BA MA PhD DoctoraladvisorH Gregg LewisDale W JorgensonDoctoralstudentsMarcel BoyerCostas AzariadisJean Pierre DanthineBoyan JovanovicPaul RomerEsteban Rossi HansbergBenjamin MollContributionsRational expectationsLucas critiqueAwardsNobel Memorial Prize in Economic Sciences 1995 Information at IDEAS RePEc Contents 1 Biography 2 Contributions 2 1 Rational expectations 2 2 Lucas critique 2 3 Other contributions 3 Bibliography 4 See also 5 Notes 6 References 7 External linksBiography EditLucas was born in 1937 in Yakima Washington and was the eldest child of Robert Emerson Lucas and Jane Templeton Lucas Lucas received his B A in History in 1959 from the University of Chicago Lucas attended the University of California Berkeley as a first year graduate student but he left Berkeley due to financial reasons and returned to Chicago in 1960 earning a PhD in Economics in 1964 6 His dissertation Substitution between Labor and Capital in U S Manufacturing 1929 1958 was written under the supervision of H Gregg Lewis and Dale Jorgenson 7 Lucas studied economics for his PhD on quasi Marxist grounds He believed that economics was the true driver of history and so he planned to immerse himself fully in economics and then return to the history department 8 Following his graduation Lucas taught at the Graduate School of Industrial Administration now Tepper School of Business at Carnegie Mellon University until 1975 when he returned to the University of Chicago 9 Lucas was elected to the American Academy of Arts and Sciences in 1980 10 the National Academy of Sciences in 1981 11 and the American Philosophical Society in 1997 12 After his divorce from Rita Lucas he married Nancy Stokey They have collaborated in papers on growth theory public finance and monetary theory Lucas has two sons Stephen Lucas and Joseph Lucas 6 A collection of his papers is housed at the Rubenstein Library at Duke University 13 Contributions EditRational expectations Edit Lucas is well known for his investigations into the implications of the assumption of the rational expectations theory Lucas 1972 incorporates the idea of rational expectations into a dynamic general equilibrium model The agents in Lucas s model are rational based on the available information they form expectations about future prices and quantities and based on these expectations they act to maximize their expected lifetime utility He also provided sound theory fundamental to Milton Friedman and Edmund Phelps s view of the long run neutrality of money and provide an explanation of the correlation between output and inflation depicted by the Phillips curve Lucas critique Edit Main article Lucas critique Lucas 1976 challenged the foundations of macroeconomic theory previously dominated by the Keynesian economics approach arguing that a macroeconomic model should be built as an aggregated version of microeconomic models while noting that aggregation in the theoretical sense may not be possible within a given model He developed the Lucas critique of economic policymaking which holds that relationships that appear to hold in the economy such as an apparent relationship between inflation and unemployment could change in response to changes in economic policy That led to the development of new classical macroeconomics and the drive towards microeconomic foundations for macroeconomic theory 14 Other contributions Edit Lucas developed a theory of supply that suggests people can be tricked by unsystematic monetary policy the Uzawa Lucas model with Hirofumi Uzawa of human capital accumulation and the Lucas paradox which considers why more capital does not flow from developed countries to developing countries Lucas 1988 is a seminal contribution in the economic development and growth literature Lucas and Paul Romer heralded the birth of endogenous growth theory and the resurgence of research on economic growth in the late 1980s and the 1990s He also contributed foundational contributions to behavioral economics and provided the intellectual foundation for the understanding of deviations from the law of one price based on the irrationality of investors In 2003 he stated about 5 years before the Great Recession that the central problem of depression prevention has been solved for all practical purposes and has in fact been solved for many decades 15 He also proposed the Lucas Wedge which tries to show how much higher GDP would be in the presence of proper policy Bibliography EditLucas Robert 1972 Expectations and the Neutrality of Money Journal of Economic Theory 4 2 103 24 CiteSeerX 10 1 1 592 6178 doi 10 1016 0022 0531 72 90142 1 Lucas Robert 1976 Econometric Policy Evaluation A Critique Carnegie Rochester Conference Series on Public Policy 1 19 46 CiteSeerX 10 1 1 726 1610 doi 10 1016 S0167 2231 76 80003 6 Lucas Robert 1988 On the Mechanics of Economic Development Journal of Monetary Economics 22 1 3 42 doi 10 1016 0304 3932 88 90168 7 S2CID 154875771 Lucas Robert 1990 Why Doesn t Capital Flow from Rich to Poor Countries American Economic Review 80 2 92 96 JSTOR 2006549 Lucas Robert 1981 Studies in Business Cycle Theory MIT Press ISBN 978 0 262 62044 4 Lucas Robert 1995 Monetary Neutrality Prize Lecture 1995 Nobel Prize in economics December 7 1995 Stokey Nancy Robert Lucas and Edward Prescott 1989 Recursive Methods in Economic Dynamics Harvard University Press ISBN 0 674 75096 9 Lucas Robert E Jr The History and Future of Economic Growth The 4 Solution Unleashing the Economic Growth America Needs edited by Brendan Miniter New York Crown Business 2012 Lucas Robert E Jr and Benjamin Moll 2014 Knowledge Growth and the Allocation of Time Journal of Political Economy University of Chicago Press vol 122 1 pages 1 51 16 See also EditWelfare cost of business cycles List of economists Lucas islands model Uzawa Lucas modelNotes Edit Snowdon Brian Vane Howard R 2005 Modern Macroeconomics Its Origin Development and Current State Cheltenham Edgar Elgar pp 220 223 ISBN 978 1 84542 208 0 Robert E Lucas Jr American economist Encyclopedia Britannica Retrieved 2017 08 02 The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1995 Nobel Foundation Retrieved 2008 10 14 Mankiw N Gregory September 21 2009 Back In Demand Wall Street Journal Top 10 Authors as of August 2020 a b Robert E Lucas Jr Biographical www nobelprize org Retrieved 2016 11 16 Andrada Alexandre F S 2014 Understanding Robert E Lucas Jr His Influence and Influences SSRN 2515932 a href Template Cite journal html title Template Cite journal cite journal a Cite journal requires journal help Roberts Russ February 5 2007 Lucas on Growth Poverty and Business Cycles EconTalk Library of Economics and Liberty Pressman Steven 1999 Fifty Major Economists London Routledge pp 193 197 ISBN 978 0 415 13481 1 Robert Emerson Lucas American Academy of Arts amp Sciences Retrieved 2021 12 10 Robert E Lucas cons suffix www nasonline org Retrieved 2021 12 10 APS Member History search amphilsoc org Retrieved 2021 12 10 Robert E Lucas Papers 1960 2004 and undated Rubenstein Library Duke University New Classical Macroeconomics Robert Lucas Policonomics policonomics com Retrieved 2017 08 02 Fighting Off Depression The New York Times January 4 2009 Jucas Robert E Jr Moll Benjamin 2014 Knowledge Growth and the Allocation of Time Journal of Political Economy doi 10 3386 w17495 Retrieved 9 April 2019 References EditGalbacs Peter 2015 The Theory of New Classical Macroeconomics A Positive Critique Contributions to Economics Heidelberg New York Dordrecht London Springer doi 10 1007 978 3 319 17578 2 ISBN 978 3 319 17578 2 Kasper Sherryl 2002 Robert E Lucas Jr and new classical economics The Revival of Laissez Faire in American Macroeconomic Theory A Case Study of Its Pioneers Edward Elgar External links Edit Wikiquote has quotations related to Robert Lucas Jr Robert E Lucas Jr s website at University of Chicago Robert Lucas Jr on Nobelprize org includes the Prize Lecture on December 7 1995 Monetary Neutrality Robert E Lucas Jr Autobiography Nobel Prize Press Release IDEAS RePEc Interview on Channel 4 Chicago Economics on Trial Robert E Lucas Jr 1937 The Concise Encyclopedia of Economics Library of Economics and Liberty 2nd ed Liberty Fund 2008 Interviews with Robert Lucas as part of the Nobel Perspectives project permanent dead link AwardsPreceded byJohn C HarsanyiJohn F Nash Jr Reinhard Selten Laureate of the Nobel Memorial Prize in Economics1995 Succeeded byJames A MirrleesWilliam VickreyAcademic officesPreceded bySherwin Rosen President of the American Economic Association2002 2003 Succeeded byPeter Diamond Portals Biography Business and economics Retrieved from https en wikipedia org w index php title Robert Lucas Jr amp oldid 1132783741, wikipedia, wiki, book, books, library,
