The university added another Nobel Laureate to its list of accomplished faculty and alumni on Monday, as the Royal Swedish Academy of Sciences co-awarded the year's Nobel Prize in economics to CAS and Stern professor Thomas Sargent. Princeton University professor Christopher Sims shared the award with Sargent.
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The two independently developed models for understanding cause and effect relationships in the macroeconomic scope.
Sargent used structural macroeconometrics — the application of statistics to study economic data and problems on a holistic level — to detail how individual expectations change policy decisions and vice versa.
Sargent developed his findings in the 1970s while he was an associate professor for the University of Minnesota. Sargent joined NYU in 2002, and he is currently a visiting professor at Princeton University. He will return to NYU next semester.
Sargent has penned many papers and books regarding rational expectations, learning and catastrophic events related to macroeconomic theory. He has served on the boards of various associations and has received honorary doctorates from the Stockholm School of Economics and the European University Institute.
Stern professor David Backus praised Sargent's work ethic and his passion for the subject.
"I read his books. Later on [I] got to know him," he said. "He's a constant source of good ideas and technical advice — a wonderful colleague all around."
He also described Sargent as an educator who demanded dedication from himself and from his students.
As the news spread, NYU officials congratulated Sargent on achieving this honor.
"All of NYU is delighted that our Tom Sargent has been chosen as the 2011 Nobel Laureate in Economics," NYU President John Sexton said in a statement. "Tom has been an anchor of a wonderful Economics Department at NYU — not only a great scholar but also a devoted mentor and brilliant teacher."
"He is, of course, a great researcher — beyond that, he is a model citizen, dedicated to the common enterprise of our university, and a remarkable human being," Sexton said. "Even among the Nobelists, he will stand out."
In a press conference Monday, the duo also discussed their working relationship and joked about the harsh criticisms they dole out to one another. Throughout the event, they were treated with applause from students, reporters and faculty as many recognized the unstable condition of the current economic climate.
"[Sargent's] work on rational expectations and business cycles is renowned, and to achieve this honor at a time when our economy is struggling is appropriate, as we can learn from Tom's insight into today's maladies," said John Raisian, director of the Hoover Institution, a think tank at Stanford University.
Editor's Note: Professor Thomas Sargent teaches course in both CAS and Stern.
