The Yale University Professor of Economics Robert J. Shiller, one of three winners collected his 2013 Nobel Memorial Prize in Economic Science on December 8, 2013 in Stockholm, Norway. The Nobel Committee described him as a founder of the field of behavioral finance, an innovator in incorporating psychology into economics and pioneering analyst of speculative bubbles in the stock market and real estate. He precisely predicted stock market as well as housing bubbles. He is known for his financial engineering hypothesis.
He is well known for the Standard and Poor’s Case-Shiller Home Price Indices, a well-known index to measure U.S. residential real estate prices, track changes in the value of residential real estate for the nation as well as 20-city (metropolitan regions) indices. His book, Irrational Exuberances, is a collection of long series of home prices that cannot be found in any other country. He asserts that a home or other domicile, ownership of a car, and affordable access to the purchase of education and healthcare services are all appreciable long-term assets. He also says that home’s discrete assessed valuation can be bought, sold and rent using legal contracts while other assets are traded on other markets.