Robert C. Merton


Robert C. Merton

Infobox Scientist
name = Robert C. Merton


image_size = 180px
birth_date = Birth date and age|1944|7|31|mf=y
birth_place = New York City, New York, U.S.
nationality = United States
field = Finance, Economics
work_places = Harvard University
MIT
alma_mater = Columbia University
Caltech
MIT
doctoral_advisor = Paul Samuelson
doctoral_students =
known_for = Black–Scholes model
ICAPM
Merton's portfolio problem
Merton Model
Jarrow-Turnbull model
Long-Term Capital Management
prizes = Nobel Memorial Prize in Economic Sciences (1997)
Lifetime Achievement in Mathematical Finance (1999)

Robert Cox Merton (born 31 July 1944) is an American economist and Nobel laureate in economics.

Biography

Merton was born in New York City to Robert K. Merton. He earned a Bachelor of Science in Engineering Mathematics from the School of Engineering and Applied Science of Columbia University, a Masters of Science from the California Institute of Technology, and his doctorate in economics from the Massachusetts Institute of Technology. He then joined the faculty of the MIT Sloan School of Management. [cite web | author=Faculty research Department | title=Biography - Robert C. Merton | url=http://dor.hbs.edu/fi_redirect.jhtml?facInfo=bio&facEmId=rmerton&loc=extn | publisher=Harvard Business School | date=2008 | accessdate=2008-08-30] He is currently a professor at the Harvard Business School.

In 1969, Merton published "Merton's portfolio problem", which proposed a formula to enable people to decide how much of their income they can consume at present and how much of the remainder should be allocated toward investments. In 1970, he introduced the "Merton Model", which treated equity as an option on a firm's assets, and introduced the use of continuous-time default probabilities to model options on the common stock of a company. This was extended by Stuart Turnbull and Merton's student Robert A. Jarrow and is known as the Jarrow-Turnbull model. In 1973, Merton introduced the Intertemporal Capital Asset Pricing Model, which incorporates explicit hedges that investors make to protect themselves from savings shortfalls.

In 1997, Merton was awarded the Nobel Memorial Prize in Economic Sciences with Myron Scholes for their work on stock options.

Together with Myron Scholes, Merton was among the board of directors of Long-Term Capital Management (LTCM), a hedge fund that failed spectacularly in 1998 after losing $4.6 billion in less than four months. [cite book
title=The Age of Turbulence: Adventures in a New World
last=Greenspan
first=Alan
year=2007
page=193-195
id=ISBN 978-1-59420-131-8
publisher=The Penguin Press
] .The Federal Reserve was so concerned about the potential impact of LTCM's failure on the financial system that it arranged for a group of 19 banks and other firms to provide sufficient liquidity for the banking system to survive.

In 1999, Merton was awarded a lifetime achievement award in mathematical finance. [http://www.bu.edu/mfd/mfdmerton.pdf]

In 2002 Merton entered the debate over how corporations ought to account for the stock options they award as part of a compensation package. Merton was among those advocating expensing stock options. Shortly afterwards, the Financial Accounting Standards Board changed their rules and began to require expensing options.

In 2005 the Baker Library at Harvard University opened The Merton Exhibit in his honor. [ [http://www.library.hbs.edu/hc/exhibits/merton/about.htm Baker Library: About the Merton Exhibit ] ] In 2006, Merton developed SmartNest, a pension management solution that addresses deficiencies associated with traditional defined-benefit and defined-contribution plans. [ [http://www.secventures.com/cs_client_case_studies.html SmartNest Case Study] ]

In 2007, Merton was hired as Chief Science Officer of Trinsum Group, a financial advisory firm.

ee also

*List of economists

References

External links

* [http://pine.hbs.edu/external/facPersonalShow.do?pid=6511 Page at the Harvard Business School]
* [http://www.pbs.org/wgbh/nova/stockmarket/ PBS, "Nova" - Trillion Dollar Bet (2000)]
* [http://alop.atspace.com/tui/merton-press.html Press Release: The Sveriges Riksbank (Bank of Sweden) Prize in Economic Sciences in Memory of Alfred Nobel for 1997]
* [http://dspace.mit.edu/handle/1721.1/13875 Doctoral Dissertation]
* [http://www.trinsum.com/about_leadership.html Trinsum Group profile]
* [http://ideas.repec.org/f/pme203.html IDEAS/RePEc]

Persondata
NAME= Merton, Robert Cox
ALTERNATIVE NAMES=
SHORT DESCRIPTION= American economist
DATE OF BIRTH= 31 July 1944
PLACE OF BIRTH= New York
DATE OF DEATH=
PLACE OF DEATH=


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Robert K. Merton — Robert King Merton (* 5. Juli 1910 in Philadelphia, Pennsylvania als Meyer Robert Schkolnick; † 23. Februar 2003 in New York) war ein US amerikanischer Soziologe. Inhaltsverzeichnis 1 Leben 2 Werk …   Deutsch Wikipedia

  • Robert King Merton — (* 5. Juli 1910 in Philadelphia, Pennsylvania als Meyer Robert Schkolnick; † 23. Februar 2003 in New York) war ein US amerikanischer Soziologe. Merton ist Vater von Robert C. Merton, dem Wirtschafts Nobelpreisträger von 1997. Inhaltsverzeichnis …   Deutsch Wikipedia

  • Robert C. Merton — Robert Carhart Merton Robert Carhart Merton (* 31. Juli 1944 in New York) erhielt 1997 gemeinsam mit Myron S. Scholes den Preis für Wirtschaftswissenschaften der schwedischen Reichsbank in Gedenken an Alfred Nobel. In der Begründung hieß es: „Für …   Deutsch Wikipedia

  • Robert King Merton — Robert King Merton, sociologue américain né à Philadelphie en Pennsylvanie le 5 juillet 1910 et décédé à New York le 23 février 2003. Sommaire 1 Biographie 2 Les prophéties auto réalisatrices …   Wikipédia en Français

  • Robert K. Merton — Saltar a navegación, búsqueda Robert King Merton, sociólogo estadounidense nacido en Filadelfia el 5 de julio de 1910, y muerto en Nueva York el 23 de febrero de 2003. Es el padre del Premio Nobel de Economía Robert C. Merton. Padre de la teoría… …   Wikipedia Español

  • Robert Carhart Merton — (* 31. Juli 1944 in New York) erhielt 1997 gemeinsam mit Myron S. Scholes den Preis für Wirtschaftswissenschaften der schwedischen Reichsbank im Gedenken an Alfred Nobel. In der Begründung hieß es: „Für ihre Ausarbeitung einer mathematischen… …   Deutsch Wikipedia

  • Robert K. Merton — Robert King Merton Robert King Merton, sociologue des américain né à Philadelphie en Pennsylvanie le 4 juillet 1910 et décédé à New York le 23 février 2003. Etudiant à Harvard, il a été l élève de Pitirim Sorokin et de Talcott Parsons. Il est le… …   Wikipédia en Français

  • Robert k merton — Robert King Merton Robert King Merton, sociologue des américain né à Philadelphie en Pennsylvanie le 4 juillet 1910 et décédé à New York le 23 février 2003. Etudiant à Harvard, il a été l élève de Pitirim Sorokin et de Talcott Parsons. Il est le… …   Wikipédia en Français

  • Robert C. Merton — Robert Merton Robert C. Merton (né le 31 juillet 1944 à New York) est un économiste américain, connu pour avoir appliqué les mathématiques aléatoires en temps continu (Calcul d Itô) à l économie, et surtout à l étude des marchés financiers. Il a… …   Wikipédia en Français

  • Robert C. Merton — Saltar a navegación, búsqueda Robert C. Merton Robert C. Merton (31 de julio de 1944) es un economista estadounidense que recibió el Premio Nobel de Economía en 1997, compartido con Myron Scholes, por sus trabajos para calcular el precio …   Wikipedia Español

  • Robert K. Merton — Robert King Merton (1910 2003) fue un sociólogo estadounidense. Padre de la teoría de las funciones manifiestas y latentes, y autor de obras como El análisis estructural en la Sociología (1975), Merton es uno de los clásicos de la escuela… …   Enciclopedia Universal


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.