Nobel prize-winning macroeconomist Ed Prescott has died at the age of 81.
He was widely recognized for his research on real business-cycle theory, and held a regents professorship at Arizona State University’s W.P. Carey School of Business.
Prescott won the Nobel Prize in 2004, along with co-author Finn Kydland, for research examining business cycle fluctuations as the result of an optimal response of the economy to policy changes that affect productivity.
He joined ASU in 2003 as a professor and the W.P. Carey Chair in Economics, and since 2009 served as the director of the Center for the Advanced Study in Economic Efficiency at the W.P. Carey School.
Since 1981 Prescott also served as a senior advisor at the Federal Reserve Bank of Minneapolis.
Dean of the W.P. Carey School of Business Ohad Kadan said: “Professor Edward Prescott’s passing is a huge loss for the W. P. Carey School of Business community.”
He added: “His contributions to economics research were foundational, and his work transformed macroeconomic policy. His passion for economics has made a lasting impact on the field, and his tremendous presence and incisive insights will be greatly missed.”
ASU Economics Department Chair Alejandro Manelli said: “Whether it was a grad student honored to meet a Nobel laureate or another distinguished professor wanting to dissect a new theory, Ed was always generous with his time and brilliant mind. We will miss him greatly.”
Prescott passed away on Nov. 7.