U of M Alum Lars Peter Hansen talks with the New York Times

Lars Peter Hansen, an economist at the University of Chicago, is one of three winners of this year's Nobel Memorial Prize in Economic Science, along with Eugene F. Fama, a fellow professor at the University of Chicago, and Robert J. Shiller, a professor at Yale.

U of M Alum Lars Peter Hansen wins Nobel Prize in Economic Sciences

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2013 was awarded jointly to Eugene F. Fama, Lars Peter Hansen (Ph.D. '78) and Robert J. Shiller "for their empirical analysis of asset prices."

Set a course for lower aviation emissions - HHEI Director VV Chari and Advisory Board member Bob Litterman

India can and should join in worldwide efforts under way to stem the greenhouse gases emitted by global aviation. Airlines are the fastest growing source of global greenhouse gas output and by 2020 are projected to be emitting 70% more than they did in 2005.

Why the Fed Needs to Pay Attention to the Regulations - HHEI Director VV Chari

University of Minnesota's Chari and colleague Christopher Phelan make a case for requiring financial institutions to hold large capital cushions against publicly traded assets and smaller sums against more illiquid loans--the opposite of current thinking.

Time is Key to Putting a Price on Climate Risk - HHEI Advisory Board member Bob Litterman

Time compression is a simple concept fundamental to risk management. It refers to the fact that we can solve almost any problem given enough time -- the problem only becomes troublesome when events unfold too quickly, leaving insufficient time to react and manage the consequences.

The Finance of Carbon Emissions - HHEI Advisory Board member Bob Litterman

I just read a very nice article by Bob Litterman in CATO's "Regulation" on the finance of carbon taxes. It includes a review of some of the recent academic calculations. Like just about every economist, Bob favors a carbon tax or tradeable emissions right over the vast network of regulatory controls on which we are now embarked. I might add that getting rid of the large subsidies for carbon emissions implicit in many country's policies would help before we start taxing.

Raising capital requirements for banks - HHEI Director VV Chari

"In our model, the costs of a financial crisis come largely from resources lost in bankruptcy and liquidation," VV Chari said. "To the extent that capital requirements can reduce the debt level of firms, that reduces the losses from bankruptcy. And because it reduces the losses, it reduces the incentive of governments to bail out."

HHEI Advisory Board member Richard Sandor awarded the French Legion of Honor

Dr. Richard Sandor, renowned financial innovator and entrepreneur, was named Chevalier dans l´ordre de la Légion d´Honneur (Knight in the French National Order of the Legion of Honor). The award is the highest decoration granted by the French government, and acknowledges his accomplishments in the field of environmental finance and carbon trading as well as his personal commitment and contribution to the promotion of French-American friendship. This award was conferred upon Dr. Sandor by decree of the President of France.

Another reason for more bank capital - HHEI Director VV Chari

"The idea that the government has this unlimited ability to make such prior commitments is unrealistic and also has worked out badly when they tried," said V.V. Chari, Director of the Heller-Hurwicz Economics Institute. "To the extent that banks doubt the credibility of a no-bailout commitment, they have an incentive to take on lots of risk and then force the commitment to be broken."

Why the U.S. Treasury Should Issue More TIPS - HHEI Director VV Chari

"The temptation five to 10 years from now to embrace inflation will be strong," says V.V. Chari to Bloomberg Businessweek News."We ought to have a lot of inflation-indexed securities out there."

Winkelmanns named Alumni of Notable Achievement

HHEI advisory board chair Kurt Winkelmann (PhD '87, economics; M.A. '82, economics) and his father, Donald Winkelmann (PhD '63, economics), were both named 2013 College of Liberal Arts Alumni of Notable Achievement. CLA Alumni of Notable Achievement have made remarkable contributions or attained significant achievements in their fields.

HHEI advisory board member Rüşdü Saraçoğlu receives the University's Distinguished Leadership Award for Internationals

Dr. Rüşdü Saraçoğlu is an accomplished economist who has contributed greatly in government and private sectors in Turkey and across nations. He is a proud alumnus of the College of Liberal Arts and the Department of Economics. Currently, he is the Chairman of Allianz Insurance Turkey and Alliance Life & Pension Turkey.

Timothy Kehoe named College of Liberal Arts 2013 Dean's Medalist

"It really comes down to not only to his exceptional achievement as an economist, but also the global impact of the work that he's doing," says Dean James Parente of 2013 Dean's Medalist Timothy Kehoe. "He's an extraordinary scholar and just an incredible human being."

How the euro shapes the U.S. debate - HHEI Director VV Chari

"By and large the reporting has been very factual, and I think that the focus of attention is good in the sense that it has allowed at least part of the discussion to focus on the long-run consequences of policies," said V.V. Chari to the Star Tribune. "All too often policy discussions are focused on the next three months, six months or the next election cycle. To the extent that contemporary developments get people to discuss issues that may become important five or 10 years down the road, I, as an economist, only applaud."

Finance, policy, and global warming; A Q&A with Dr. Robert Litterman

"Bringing academic insights to the public and private sectors is a key aspect of both my role as a board member of the Heller-Hurwicz Economics Institute at the University of Minnesota and as the Executive Editor of the Financial Analysts Journal," said Litterman.

Nobel laureate receives honorary degree

Thomas Sargent, a former University of Minnesota professor and Nobel laureate received an honorary University degree on February 4. Sargent won the Nobel Prize in Economic Sciences in 2011 along with Christopher Sims, both former faculty members in the University's Department of Economics.

University of Minnesota confers honorary degree on Thomas Sargent

"Pound for pound, in terms of its accomplishments in undergraduate teaching, graduate teaching and research, I regard the University of Minnesota as the best economics department in the world," said Sargent. "Graduates of the U of M form an elite group comprising many of the world's most distinguished economists. As an economist, I am especially honored and pleased to be able to say that I too have a degree from the University of Minnesota. I will treasure it."