Why did Shiller win the Nobel Prize?

In 2013, American economist, Robert J. Shiller was awarded a Nobel Prize for Economics for his contribution to the development of the efficient-market hypothesis and the empirical analysis of asset prices.

“Shiller in particular was honored for work in which he showed that variations in the prices of stocks and bonds over long periods occur in predictable patterns that reflect the irrational expectations of investors regarding the value of future returns,” reports said.

He attended the University of Michigan in 1967 where he received a Bachelor’s Degree in Economics. He also completed the Massachusetts Institute of Technology (MIT) where he received his master’s degree in 1968 and his doctorate in 1972.

He then proceeded to become a professor where he tutored at the University of Minnesota, the University of Pennsylvania, and the Massachusetts Institute of Technology (MIT). In 1982, he joined the Economic Faculty of Yale University, where he was the Chairman of Economics and Professorship in Finance.