Abstract
\Edward Prescott was awarded the Nobel Prize in Economics in 2004 with Finn Kydland for their contributions to dynamic macroeconomics. Prescott is a member of a small group of economists who, starting in the 1970s, revolutionized macroeconomics by challenging the Keynesian consensus. While he is best known for his research on business cycles and the optimal design of economic policy, he has made important contributions to other applied fields, such as finance and development, as well as to economic theory. He has also made important contributions to methodology, having pioneered many of the standard contemporary techniques and tools in macroeconomics.
Keywords
- American Academy of Arts and Sciences
- American Economic Association
- Bayesian analysis
- Business cycle
- Clubs
- Consumer surplus
- Debreu, G
- Discretion vs rules
- Dynamic programming
- Econometric Society
- Economic development
- Endogenous growth models
- Equity premium
- Financial economics
- Firms
- Friedman, M
- Gibrat’s law
- Haavelmo, T
- Hodrick–Prescott filter
- Imperfect information
- Industrial organization
- International inequality
- Investment equation
- Klein, L
- Lotteries
- Lucas, R
- Microeconomic foundations
- Misperceptions theory
- Model calibration vs. statistical estimation
- Modigliani, F
- Moral hazard
- Muth, J
- Neoclassical growth model
- New Classical Economics
- Organizational capital
- Partial equilibrium
- Prescott, E
- Productivity shocks
- Rational expectations theory
- Real business cycle theory
- Recursive competitive equilibrium
- Recursive methods
- Relative incomes vs relative growth rates
- Rules vs discretion
- Statistical estimation vs. model calibration
- Stochastic process
- Time inconsistency
- Total factor productivity
JEL Classifications
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsBibliography
Debreu, G. 1954. Valuation equilibrium and Pareto Optimum. Proceedings of the National Academy of Sciences 40: 588–592.
Lucas, R. 1972. Expectations and the neutrality of money. Journal of Economic Theory 4: 103–124.
Author information
Authors and Affiliations
Editor information
Copyright information
© 2018 Macmillan Publishers Ltd.
About this entry
Cite this entry
Parente, S.L. (2018). Prescott, Edward Christian (Born 1940). In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2406
Download citation
DOI: https://doi.org/10.1057/978-1-349-95189-5_2406
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-95188-8
Online ISBN: 978-1-349-95189-5
eBook Packages: Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences