2003 Nobel Prize in Economic Sciences

The 2003 Nobel Prize in Economic Sciences has been awarded to Robert F. Engle III and Clive W.J. Granger. The prize was announced by the Royal Swedish Academy of Sciences in Stockholm on 8 October 2003.

The citation

Half of the prize goes to Robert F. Engle III "for methods of analyzing economic time series with time-varying volatility (ARCH)". Half of the prize goes to Clive W.J. Granger "for methods of analyzing economic time series with common trends (cointegration)".

The laureates

Robert F. Engle III was born in 1942 in Syracuse, the United States, and is affiliated with New York University, New York. Clive W.J. Granger was born in 1934 in Swansea, United Kingdom, and is affiliated with the University of California, San Diego.

Why it matters

Their methods are used to analyse financial markets and economic data that change over time. Granger was born in Swansea and educated at the University of Nottingham.

The prize

The prize is worth 10 million Swedish kronor, divided between the laureates. It will be presented at a ceremony in Stockholm on 10 December, the anniversary of the death of Alfred Nobel, the Swedish inventor of dynamite whose will founded the prizes in 1895. Strictly, this award is the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. It was established by the Swedish central bank in 1968, but is presented alongside the Nobel Prizes.