Awarded every three years, the Fama Prize honours Nobel Laureate Eugene F. Fama. Fama is best known for his work analysing markets and securities prices, pioneering research closely followed by academics and financial services professional alike. Fama received the Nobel Memorial Prize in Economic Sciences in 2013.
The Fama Prize is intended to ‘encourage the development and diffusion of innovative approaches to doctoral education and the publication and wide distribution of exceptional educational materials’.
Pietro Veronesi, chair of the selection committee, spoke about the decision to select Mostly Harmless Econometrics: ‘The book draws on readers’ interests and empirical curiosity to motivate the analysis, training future generations of applied researchers who can push forward our understanding of economics and finance. The Committee ultimately selected this book, as we believe it best represents the aspirations and the objectives of the Fama Prize.’
When awarded the prize, Steve Pischke said: ‘It’s a great honor to receive this prize, as Eugene Fama is such a giant in the profession. What creates a particular connection for us is the close parallels between the empirical methods we discuss in the book, and Fama’s 1969 paper with Fisher, Jensen, and Roll. That paper is considered the template for modern event studies in finance, a close cousin of the difference-in-differences methodology used in other fields.’