The Nobel prize for Economics goes to Oliver Hart and Bengt Ceremony, experts of super-compensation to the manager – The Republic

The winners on the screen of the Academy

The announcement in Stockholm at 12. English is a professor at Harvard, the filnandese teaches at Mit. The choice is in opposition to the prediction of the eve

ROME – The Nobel prize for Economics was awarded to the anglo-american Oliver Hart, and to the Finnish Bengt Ceremony. The two economists are experts in particular of the remuneration and benefits that go to the top managers of the companies. The choice of the Swedish Academy has displaced all of the predictions of the vigil that they favored the French Olivier Blanchard.

Born in London, class of 1948, Hart teaches at Harvard University since 1993. And’ an expert in contract theory and corporate finance. In these issues and has dedicated many writings on newspapers and specialized magazines, but also a book of great success: “Firms, Contracts, and Financial Structure” (Oxford University Press, 1995). As the adviser to the government, he has worked in two cases, the (Black and Decker v. Usa and WFC Holdings Corp. – Wells Fargo – v. Usa). He is a member of the Econometric Society, the American Academy of Arts and Sciences, the British Academy, the American Finance Association, the National Academy of Sciences, and has several honorary degrees.

Bengt Ceremony, was born in Helsinki in 1949, married with a son, he is also an expert on contracts. Bachelor’s degree in Mathematics and Physics in his Country, specializations, at Stanford, has guided the Department of economic Studies at the Mit of Boston, between 2003 and 2006, and he still teaches today Economy and Management in the american university. In his curriculum, also had a long teaching at Yale.

Here are the reasons at the basis of their victory. “This year’s winners have developed the theory of contracts, a pattern robust for analyzing different issues of the architecture of the contract, such as remuneration based on the performance of the top manager, the deductions and the coretribuzioni in insurance, and the privatization of the activities of the public sector”, emphasised the jury of the royal Academy of Sweden. These theories, he said again to the jury, “you have proved to be important only for the economy but also for other areas, constitutional law and theory in bankruptcy: now we have a tool in theoretical to analyze the contracts in terms of both financial allocation”. And was also reminded of the absolute innovative character of the theories of Hart on incomplete contracts, initiated in the years ’80.

“I’m very happy, confused and grateful”. These are the first words of the Finnish Holmstroem. Responding to a question on the topic of the bonus to the manager, the economist explained that “they are too complicated”. More in general, it is appropriate that the bonuses the managers will not be paid all together in a short time, but over a prolonged period of time.”

The two researchers will share the prize of 8 million crowns (828 thousand euro).