Robert Shiller Awarded Nobel Prize in Economics

Robert Shiller--the man who lends his name to the Case-Shiller Home Price Indices--has been awarded the 2013 ""Nobel prize"":http://www.nobelprize.org/ in economics.

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Shiller, a Sterling professor of economics at ""Yale University"":http://www.econ.yale.edu/~shiller/, was selected for the $1.23 million prize along with Eugene Fama and Lars Peter Hansen, both at the University of Chicago.

In a release, the Nobel committee cited Shiller's work in behavioral economics, the study of human psychology and behavior as it relates to economic modeling. Besides his work in developing the Case-Shiller indices, he is perhaps most well-known in the housing world as one of the biggest players who predicted an imminent crash in the mid-2000s, just before the bubble burst.

Together, the committee says the three Laureates have made major strides in determining the predictability of asset prices, benefiting both academics and market investors.

""The Laureates have laid the foundation for the current understanding of asset prices. It relies in part on fluctuations in risk and risk attitudes, and in part on behavioral biases and market frictions,"" the committee said.