“The goal of my work is to enable you to do something without having to do everything”

Awarded the 3rd BBVA Foundation Frontiers of Knowledge Award in Economics, Finance and Management, economist Lars Peter Hansen explains how his work on the generalized method of moments makes it possible to analyze economic phenomena without fully specifying the underlying economy. He highlights its application in linking expectations about growth and macroeconomic fluctuations with the prices of financial assets, as well as its usefulness for designing regulations that balance market stability with innovation and risk control.

The BBVA Foundation Frontiers of Knowledge Award in the Economics, Finance and Management category, in its third edition, has been granted to Lars Peter Hansen of the University of Chicago, for making fundamental contributions to our understanding of how economic actors cope with risky and changing environments.