Top of Mind
Robert J. Shiller, the Sterling Professor of Economics at Yale University, delivered his Nobel Prize Lecture on December 8, 2013. In it, he took up the running argument over whether financial markets efficiently price in information about future dividends. Through a comparison of actual stock prices since 1871 to what efficient market theory would predict, he argued for the existence of bubbles, driven by "fads, fashions, or social epidemics that come and go."
View the entire lecture, as well as the lectures of his fellow prize recipients Eugene F. Fama and Lars Peter Hansen.