New economics prize to honor MIT’s Ross

The inaugural Stephen A. Ross Prize in Financial Economics will be awarded by the end of 2008 by the newly created non-profit Foundation for Advancement of Research in Financial Economics, said Anat Admati, professor of finance and economics at Stanford University's Graduate School of Business. The $100,000 prize which recognizes innovative developments or refinements in financial economics is a tribute to Stephen A. Ross, professor of financial economics at the Massachusetts Institute of Technology Sloan School of Management, Cambridge.

Some 50 of Mr. Ross’ former students — mostly academics, and a few investment practitioners — donated more than $617,000 toward endowing the prize, said Ms. Admati, who helped lead the effort. “This will be the biggest prize of its type in the field.”

Ms. Admati said she and the other academics plan to raise an additional $400,000 for a total of $1 million to adequately endow the foundation to finance subsequent prizes.