September 30, 2009

US financial economist Robert J. Shiller receives Deutsche Bank Prize in Financial Economics 2009

  • Center for Financial Studies awards Deutsche Bank Prize in Financial Economics 2009 to Yale Professor Shiller for his vital contributions to research in the field of financial economics 
  • Bank Chairman Josef Ackermann to present the prize  
  • Symposium of renowned economists discusses Shiller’s financial economic research

The highly respected US economist Robert J. Shiller receives the Deutsche Bank Prize in Financial Economics 2009, an award that carries an endowment of €50,000, today in Frankfurt. During a symposium titled “Financial Innovation and Economic Crisis” being held in connection with the award, leading financial economists, including Nobel Prize laureate Robert C. Merton of the Harvard Business School and the CFS President Otmar Issing, will discuss the topics explored in Robert Shiller’s research.

“There could probably not be a more appropriate time to honour Professor Robert J. Shiller with the Deutsche Bank Prize in Financial Economics,” said Josef Ackermann, Chairman of the Management Board and the Group Executive Committee of Deutsche Bank AG. “Shiller has developed instruments to gauge the extent of over-exuberance on capital and property markets. He has also used these instruments to give timely warnings on the risks of such over-exuberance.” Ackermann will present the award to Shiller during an evening ceremony.

Shiller’s empirical work on asset pricing and related macroeconomic risks is of great academic and practical value. As far back as 2000, at the height of new economy euphoria, he foresaw the market collapse. He also issued an early warning about the pending bursting of the property bubble in the US and the severe financial crisis arising from this development.

“I am really happy about receiving this award because it shows that my work is recognised and, above all, applied not only in academia, but also in practice,” Robert J. Shiller said. “Finance is a powerful technology, but a technology that has been only imperfectly applied for the betterment of humankind. There are many obstacles to the appropriate application of financial solutions. Some of them are due to institutional and regulatory rigidities, others to human psychology. As regulation has improved, we have gradually improved our application of financial technology. The financial crisis that we have recently suffered is an example of growing pains with new financial technology, but not a reason to doubt that much more financial innovation is in our future."

Shiller has played a major role in developing one of the most important property price indexes in the US, the “Standard & Poor's/Case-Shiller Home Price Index”. He is the Arthur M. Okun Professor of Economics at the Cowles Foundation for Research in Economics at Yale University as well as Professor of Finance at the International Center for Finance of the Yale School of Management. His book Animal Spirits, co-written with Nobel Prize winner George Akerlof, was published in February. In it, he examines the importance of the human factor in the development of financial markets.

The prize sponsored by Deutsche Bank has been awarded biennially by the CFS, in partnership with the Goethe University Frankfurt, since 2005. The award honours internationally renowned economists whose work has significantly influenced research in financial economics, and has led to fundamental advances in theory and practice.

Shiller was selected by a Jury of highly respected international financial experts. The Jury was composed of Michael Binder (Goethe University Frankfurt and CFS), Otmar Issing (CFS President), Takatoshi Ito (University of Tokyo), Jan Pieter Krahnen (Jury Chairman, Goethe University Frankfurt and Director of CFS), Reinhard H. Schmidt (Goethe University Frankfurt), Klaus Schmidt-Hebbel (Catholic University of Chile), Marti Subrahmanyam (Stern School, New York University), Maria Vassalou (SAC Capital Advisors LLC and President of the European Finance Association), Norbert Walter (Chief Economist of Deutsche Bank AG) and Volker Wieland (Goethe University Frankfurt and CFS).

The first Deutsche Bank Prize in Financial Economics was presented in 2005 to Eugene F. Fama, Professor of Finance at the University of Chicago, for developing and researching the concept of market efficiency. In 2007, Michael Woodford, Professor of Political Economy at Columbia University in New York, received the award for his research on the theory of monetary macroeconomics.

Additional information:
Deutsche Bank Prize in Financial Economics 2007: U.S. economist Michael Woodford recognized
Deutsche Bank Prize in Financial Economics 2005: Eugene F. Fama awarded

For further information, please call:

Sabine Neumann     
Center for Financial Studies   
Goethe University Frankfurt   
Phone: +49 (0)69-798-30066   

Dr. Klaus Winker
Deutsche Bank
Press Department
Phone: +49 (0)69-910-32249

About the Center for Financial Studies

The Center for Financial Studies (CFS), located in Frankfurt, is a research institute affiliated to Goethe University and financed through donations and the contributions from its members. It conducts independent and international research on financial markets, financial intermediaries and monetary economics, and is active in policy-related debates on finance-related issues. Its spectrum of activities currently spans eight research programs, each managed by a program director. The CFS promotes the dialogue between academia and the financial community by regularly organising conferences, colloquia, academic forum discussions and specialist presentations on finance-related issues. The CFS is headed by its President, Otmar Issing, and its Managing Director, Jan Pieter Krahnen. Rolf E. Breuer is the CEO of the “Verein für Kapitalmarktforschung”, the institute’s sponsoring association. More information on the activities of the CFS can be found at

About Deutsche Bank

Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 78,896 employees in 72 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.
Press ReleasePress photo Dr. Josef Ackermann and Robert J. Shiller