Finn E. Kydland and Edward C. Prescott today were awarded the Nobel Memorial Prize in Economic Sciences by the Royal Swedish Academy of Sciences. The academy noted the two professors' contributions to the study of business cycles and macroeconomics. Mr. Kydland is a professor at Carnegie Mellon University, Pittsburgh, and the University of California at Santa Barbara. Mr. Prescott is a professor at Arizona State University, Tempe, and a researcher at the Federal Reserve Bank of Minneapolis.
Zvi Bodie, professor of finance and economics at Boston University, and Bruce I. Jacobs, principal at Jacobs Levy Equity Management, both said the prize winners' work might be of use to economic strategists and investment analysts who use a macroeconomic approach to forecasting interest rates or the economy.