About > Working Group Members > Lars Peter Hansen

Lars Peter Hansen

Becker Friedman Institute Research Director and
David Rockefeller Distinguished Service Professor

The University of Chicago

Lars Peter Hansen, an internationally known leader in economic dynamics, guides the scholarly direction of the Becker Friedman Institute and chairs the Institute's Research Council. Hansen was one of the forces behind the 2008 creation of its predecessor, the Milton Friedman Institute, and served as its founding director.

Hansen’s work explores formal implications of dynamic economic models in which decision makers face uncertain environments. The main theme of his research has been to devise and apply econometric methods that are consistent with the probabilistic framework of the economic models under investigation. His work has implications for consumption, savings investment, and asset pricing.

The main thrust of his research is to explore, analyze, and interpret implications of dynamic economic models in environments with uncertainty from a time-series perspective. His recent research explores ways to quantify the intertemporal risk-return tradeoffs and ways to model economic behavior when decision makers are uncertain about how to forecast future economic events.

He won the 2010 BBVA Foundation Frontiers of Knowledge Award in the Economics, Finance and Management “for making fundamental contributions to our understanding of how economic actors cope with risky and changing environments.” He also received  the CME Group-MSRI Prize in Innovative Quantitative Applications in 2008 and the Erwin Plein Nemmers Prize in Economics from Northwestern University in 2006.

He was selected to deliver the Princeton Lectures in Finance at the Bendheim Center for Finance in December 2010 and the Tjalling C. Koopmans Memorial Lectures at Yale in September 2008. He is a fellow of the National Academy of Sciences and the American Finance Association. He also is a member of the American Academy of Arts and Sciences and past president of the Econometric Society.