In his latest Discussion Section interview, Kevin Murphy interviews Lars Peter Hansen, the David Rockefeller Distinguished Service Professor. Below are two highlights from their conversation. For the complete listing of interview segments, click here.
Discussion Section with Kevin Murphy
Featuring Lars Peter Hansen
As founding director of BFI, Hansen and his distinguished board of advisors were critical in developing the Institute’s commitment to sound theoretical and empirical research. Hansen describes the early mission of the Institute (when it began as the Milton Friedman Institute), and its evolution over time.
For economists building macroeconomic models, one of the important challenges is to incorporate risk aversion into those models, as Hansen describes in this episode.