Robert Lucas

Robert Lucas, who received the 1995 Nobel Memorial Prize in Economic Sciences, is a key figure in the development of the theory of rational expectations. His work has shown that because people make rational decisions about their economic welfare, their actions can alter the expected results of government economic policies.

Among his books are Rational Expectations and Econometric Practice (1981), which he co-edited with Thomas Sargent; Studies in Business-Cycle Theory (1981); Models of Business Cycles (1985); and Recursive Methods in Economic Dynamics, which he published in 1989 with Edward Prescott and Nancy Stokey, the Frederick Henry Prince Distinguished Service Professor in Economics at the University of Chicago. Among other recent works are “Knowledge Growth and the Allocation of Time,” with Benjamin Moll, Journal of Political Economy; “Ideas and Growth” Economica, and “Models of Idea Flows,” (NBER working paper) with Fernando E. Alvarez and Francisco J. Buera.

Lucas Stories