Michael Spence

Last updated
Michael Spence
A Michael Spence.jpg
Spence in 2008
Born (1943-11-07) November 7, 1943 (age 77) [1]
Nationality United States
Institution Harvard University
Stanford University
SDA Bocconi School of Management
New York University
Field Microeconomics, labor economics
Alma mater Harvard University, (Ph.D.)
University of Oxford, (B.A.)
Princeton University, (B.A.)
Doctoral
advisor
Kenneth Arrow [2]
Thomas Schelling [2]
Influences Richard Zeckhauser
Contributions Signaling theory
Awards John Bates Clark Medal (1981)
Nobel Memorial Prize in Economics (2001)
Information at IDEAS / RePEc

Andrew Michael Spence (born November 7, 1943, Montclair, New Jersey) is a Canadian-American economist and Nobel laureate. [3]

Contents

Spence is the William R. Berkley Professor in Economics and Business at the Stern School of Business at New York University, and the Philip H. Knight Professor of Management, Emeritus, and Dean, Emeritus, at the Stanford Graduate School of Business. [4] [5]

Together with George A. Akerlof and Joseph E. Stiglitz, Spence is a co-recipient of the 2001 Nobel Memorial Prize in Economic Sciences, "for their analyses of markets with asymmetric information."

Career

Spence is noted for his job-market signaling model, which inspired research into this branch of contract theory. In this model, employees signal their respective skills to employers by acquiring a certain degree of education, which is costly to them. Employers will pay higher wages to more educated employees, because they know that the proportion of employees with high abilities is higher among the educated ones, as it is less costly for them to acquire education than it is for employees with low abilities. For the model to work, it is not even necessary for education to have any intrinsic value if it can convey information about the sender (employee) to the recipient (employer) and if the signal is costly.

Spence received his middle and high school education at the University of Toronto Schools of the University of Toronto. He later came back to Rotman School of Management at the University of Toronto to serve as a member of the Rotman Dean’s Advisory Board. [6]

Spence attended Princeton University as an undergraduate student and graduated summa cum laude with a B.A. in philosophy in 1966, completing a senior thesis titled "Freedom and Determinism". [7] Spence then studied at Magdalen College, University of Oxford as a Rhodes Scholar, and received a B.A./M.A. in mathematics in 1968. [8] Spence then began graduate studies in economics at Harvard University with the support of a Danforth Graduate Fellowship in the fall of 1968. He received a Ph.D. in economics in 1972, completing a dissertation titled "Market signalling" under the supervision of Kenneth Arrow and Thomas C. Schelling. [9] Spence was awarded the David A. Wells Prize for outstanding doctoral dissertation in 1972.

He is the Chairman of the Commission on Growth and Development, and a distinguished visiting fellow at the Council on Foreign Relations. [10]

Spence joined the faculty of New York University's Stern School of Business on September 1, 2010. [11] He joined the faculty of SDA Bocconi School of Management in Italy in July 2011. [12]

He is a senior fellow at Stanford University's Hoover Institution and the Philip H. Knight Professor Emeritus of Management in the Graduate School of Business. Spence is also a Commissioner for the Global Commission on Internet Governance. [13] [14] Additionally, Spence is also a member of the Berggruen Institute's 21st Century Council. [15] [16]

He is the author of three books and 50 articles, and has also been a consistent contributor to Project Syndicate , an international newspaper syndicate, since 2008. Among his beliefs are that high-frequency trading should be banned. [17]

Spence had both Bill Gates and Steve Ballmer in a graduate-level economics class at Harvard. In a 1999 Fortune interview, however, Gates and Ballmer admitted not attending class and passing only after cramming for four days before the final. [18]

Honors and awards

Spence is an Honorary Fellow of Magdalen College, Oxford, where he studied as a Rhodes Scholar. [19] He was the recipient of the Nobel Memorial Prize in Economic Sciences in 2001, as well as the John Bates Clark Medal from the American Economics Association in 1981. [20]

Spence was elected as a Fellow of the Econometric Society in 1976 and a member of the American Academy of Arts and Sciences in 1983. [21] [22]

Selected works

Personal life

Spence currently lives in Milan, Italy with his wife and children.[ citation needed ]

See also

Related Research Articles

An economist is a practitioner in the social science discipline of economics.

Finn E. Kydland Norwegian economist

Finn Erling Kydland is a Norwegian economist known for his contributions to business cycle theory. He is the Henley Professor of Economics at the University of California, Santa Barbara. He also holds the Richard P. Simmons Distinguished Professorship at the Tepper School of Business of Carnegie Mellon University, where he earned his Ph.D., and a part-time position at the Norwegian School of Economics (NHH). Kydland was a co-recipient of the 2004 Nobel Memorial Prize in Economics, with Edward C. Prescott, "for their contributions to dynamic macroeconomics: the time consistency of economic policy and the driving forces behind business cycles."

Robert F. Engle American economist

Robert Fry Engle III is an American economist and statistician. He won the 2003 Nobel Memorial Prize in Economic Sciences, sharing the award with Clive Granger, "for methods of analyzing economic time series with time-varying volatility (ARCH)".

Thomas J. Sargent American economist

Thomas John Sargent is an American economist and the W.R. Berkley Professor of Economics and Business at New York University. He specializes in the fields of macroeconomics, monetary economics, and time series econometrics. As of 2020, he ranks as the 29th most cited economist in the world. He was awarded the Nobel Memorial Prize in Economics in 2011 together with Christopher A. Sims for their "empirical research on cause and effect in the macroeconomy".

Oliver Hart (economist)

Oliver Simon D'Arcy Hart is a British-born American economist, currently the Lewis P. and Linda L. Geyser University Professor at Harvard University. Together with Bengt R. Holmström, he received the Nobel Memorial Prize in Economic Sciences in 2016.

Jean Tirole

Jean Tirole is a French professor of economics at Toulouse 1 Capitole University. He focuses on industrial organization, game theory, banking and finance, and economics and psychology. In 2014 he was awarded the Nobel Memorial Prize in Economic Sciences for his analysis of market power and regulation.

The MIT Department of Economics is a department of the Massachusetts Institute of Technology in Cambridge, Massachusetts.

Craig Calhoun American sociologist (born 1952)

Craig Jackson Calhoun is an American sociologist, currently University Professor of Social Sciences at Arizona State University. An advocate of using social science to address issues of public concern, he was the Director of the London School of Economics and Political Science from September 2012 until September 2016, after which he became the first president of the Berggruen Institute. Prior to leading LSE, Calhoun led the Social Science Research Council, and was University Professor of the Social Sciences at New York University and Director of NYU's Institute for Public Knowledge. With Richard Sennett he co-founded NYLON, an interdisciplinary working seminar for graduate students in New York and London who bring ethnographic and historical research to bear on politics, culture, and society.

The New York University Leonard N. Stern School of Business is the business school of New York University, a private research university based in New York City. Founded in 1900, Stern is one of the oldest and most prestigious business schools in the world. It is located on Gould Plaza next to the Courant Institute of Mathematical Sciences and the economics department of the College of Arts and Sciences.

Eric Maskin American Nobel laureate in economics

Eric Stark Maskin is an American economist and 2007 Nobel laureate recognized with Leonid Hurwicz and Roger Myerson "for having laid the foundations of mechanism design theory". He is the Adams University Professor and Professor of Economics and Mathematics at Harvard University.

Robert Butler Wilson, Jr. is an American economist and the Adams Distinguished Professor of Management, Emeritus at Stanford University. He was jointly awarded the 2020 Nobel Memorial Prize in Economic Sciences, together with his Stanford colleague and former student Paul R. Milgrom, "for improvements to auction theory and inventions of new auction formats". Two more of his students, Alvin E. Roth and Bengt Holmström, are also Nobel Laureates in their own right.

Barcelona School of Economics

The Barcelona School of Economics is an independent institution of research and graduate education located in Barcelona, Spain. The School offers a variety of master's degrees in Economics, Finance, and Data Science. It has been ranked by RePEc among the top Economics Departments in the world.

The Bernacer Prize is awarded annually to European young economists who have made outstanding contributions in the fields of macroeconomics and finance. The prize is named after Germán Bernácer, an early Spanish macroeconomist.

Alvin E. Roth American academic (born 1951)

Alvin Elliot Roth is an American academic. He is the Craig and Susan McCaw professor of economics at Stanford University and the Gund professor of economics and business administration emeritus at Harvard University. He was President of the American Economics Association in 2017.

Toulouse School of Economics

Toulouse School of Economics is a school of economics, affiliated with Toulouse 1 Capitole University, a constituent college of the Federal University of Toulouse Midi-Pyrénées. It is located in the city of Toulouse, France. While the core focus is economics, TSE offers a range of academic degrees spanning licences, master's and a doctoral (PhD) programme. According to RePEc, TSE was ranked the 9th most productive research department of economics in the world and the 3rd in Europe by April 2019.

Thomas Philippon is a French economist and professor of finance at the New York University Stern School of Business.

The Berggruen Prize is a US$1-million award given each year to a significant individual in the field of philosophy. It is awarded by the Berggruen Institute to "thinkers whose ideas have helped us find direction, wisdom, and improved self-understanding in a world being rapidly transformed by profound social, technological, political, cultural, and economic change."

Laura Veldkamp American economist

Laura Veldkamp is an American economist teaching as a professor of finance at Columbia University's Graduate School of Business and also serves as a co-editor of the Journal of Economic Theory.

The Department of Economics is an academic department of the University of Oxford within the Social Sciences Division. Relatively recently founded in 1999, the department is located in the Norman Foster-designed Manor Road Building.

References

  1. "A. Michael Spence – Facts". NobelPrize.org.
  2. 1 2 Signaling in Retrospect and the Informational Structure of Markets Nobel Lecture Retrieved September 12, 2016.
  3. "The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2001". NobelPrize.org. Retrieved 2018-11-07.
  4. Economics, -William R. Berkley Professor in; Business. "NYU Stern - A. Spence - William R. Berkley Professor in Economics & Business". www.stern.nyu.edu. Retrieved 2020-05-12.
  5. "A. Michael Spence". Stanford Graduate School of Business. Retrieved 2020-05-12.
  6. "Rotman School of Management". 2021-03-07. Archived from the original on 2021-03-07. Retrieved 2021-03-07.
  7. Spence, Andrew Michael (1966). "Freedom and Determinism".Cite journal requires |journal= (help)
  8. "Professor A. Michael Spence | Magdalen College Oxford". www.magd.ox.ac.uk. Retrieved 2020-05-12.
  9. hollis.harvard.edu https://hollis.harvard.edu/primo-explore/fulldisplay?context=L&vid=HVD2&search_scope=everything&tab=everything&lang=en_US&docid=01HVD_ALMA211904693260003941 . Retrieved 2020-05-12.Missing or empty |title= (help)
  10. "A. Michael Spence". Council on Foreign Relations. Retrieved 2020-05-12.
  11. "NYU Stern | News | A. Michael Spence, Nobel Economist, to Join NYU Stern". www.stern.nyu.edu. February 22, 2010. Retrieved June 14, 2016.
  12. "Nobel Economist Michael Spence Joins SDA Bocconi Faculty". BusinessBecause. July 25, 2011. Retrieved June 18, 2016.
  13. "Nobel laureate A. Michael Spence named Hoover Senior Fellow". Hoover Institution. Retrieved 2020-05-12.
  14. "OurInternet". www.ourinternet.org. 20 January 2014. Retrieved June 14, 2016.
  15. "Berggruen Institute". Archived from the original on 2018-06-13. Retrieved 2017-01-07.
  16. Forbes, Miguel. "Charles Taylor Wins $1M First Inaugural Berggruen Nobel Prize", Forbes , January 3, 2017.
  17. Philips, Matthew (March 28, 2011). "Should High-Frequency Trading Be Banned? One Nobel Winner Thinks So". Freakanomics blog.
  18. "The $100 Billion Friendship In a frank chat with FORTUNE's Brent Schlender, Bill Gates and Steve Ballmer talk about their partnership and how it will shape Microsoft in the 21st century". archive.fortune.com. October 25, 1999. Retrieved June 14, 2016.
  19. "People at Magdalen - Magdalen College Oxford (Search by last name)". www.magd.ox.ac.uk. Retrieved June 14, 2016.
  20. "A. Michael Spence - Biography". stern.nyu.edu. Retrieved April 7, 2019.
  21. "Fellows of the Econometric Society 1950 to 2019 | The Econometric Society". www.econometricsociety.org. Retrieved 2020-05-12.
  22. "Andrew Michael Spence". American Academy of Arts & Sciences. Retrieved 2020-05-12.
Awards
Preceded by
James J. Heckman
Daniel L. McFadden
Laureate of the Nobel Memorial Prize in Economics
2001
Served alongside: George A. Akerlof, Joseph E. Stiglitz
Succeeded by
Daniel Kahneman
Vernon L. Smith