Edward Prescott, considered a Nobel Prize candidate and one of the intellectual leaders of modern macroeconomics, has joined the economics faculty of the W.P. Carey School of Business at Arizona State University.
Prescott has held various positions at the University of Minnesota since 1980, and is also a senior advisor in the research department at the Federal Reserve Bank of Minneapolis.
ASU president Michael Crow called the hiring a significant move for the university because of what Prescott brings to the school.
"We’re talking about a Nobel Prize candidate who’s given all the key lectures, won all the key prizes, and is of the highest order of teachers," Crow said.
In 2002, Prescott received the Erwin Plein Nemmers Prize in Economics for his work with business cycles and economic fluctuations. The honor is generally reserved for economists believed to be future contenders for the Nobel Prize.
His theory that a substantial part of business cycles are simply the economy’s best response to policy changes that affect its productivity. He has also researched the importance of an organization’s ability and willingness to commit to specific policies over the long term.
Prescott’s addition to the faculty is proof of the school’s status as a premier business institution, said Philip Regier, interim dean.
"This legitimizes our claim to be one of the best business schools in the country," he said. "Prescott raises our reputation, and is the sort of person our Ph.D. students will flock to."
Department of Economics Chairman Art Blakemore called Prescott’s arrival "a very, very big hire" because of the elite reputation that he brings to the university. "We’re talking about one of the elite economists of our time," Blakemore said.