Robert J. Shiller

So, there’s a recent book by Scheve and Stasavage [Taxing the Rich, a History of Fiscal Fairness in the United States and Europe], who argued through a history of data from many countries, to look at what causes taxes on the high-income people to go up? And what causes redistributions to low-income people to go up? You might think rising inequality does that. But they … [ Read more ]

Finance and the Good Society

New York Times best-selling economist Robert Shiller is no apologist for the sins of finance–he is probably the only person to have predicted both the stock market bubble of 2000 and the real estate bubble that led up to the subprime mortgage meltdown. But in this important and timely book, Shiller argues that, rather than condemning finance, we need to reclaim it for the common … [ Read more ]

Professor Robert Shiller’s Financial Markets Course at Yale

Yale has made Robert Shiller’s Spring 2008 Financial Markets Course at Yale available to the Public as video and audio (mp3).

About the Course:
Financial institutions are a pillar of civilized society, supporting people in their productive ventures and managing the economic risks they take on. The workings of these institutions are important to comprehend if we are to predict their actions today and their evolution … [ Read more ]

Infectious Exuberance

Financial bubbles are like epidemics— and we should treat them both the same way.

The New Financial Order: Risk in the Twenty-First Century

Shiller is best known for arguing, as he did in Irrational Exuberance, that stock market movements do not reflect underlying economic reality and that the volatility of the market makes the financial system unstable. It is therefore a surprise to find him advocating vast expansion of financial derivative markets to reduce the economic risk faced by individuals and countries. According to Shiller, governments should swap … [ Read more ]

One Simple Test of Samuelson’s Dictum for the Stock Market

Jung and Shiller have an interesting paper that looks at Samuelson’s dictum: that is that the market is more efficient pricing individual stocks than getting the overall price level (i.e. the market) correct. In English it means that while we can price stocks relative to one another reasonably well, we can not price the overall market as well. [FinanceProfessor Annotation]