Gene Fama’s Autobiography
| Peter Klein |
Here’s an autobiographical essay by Gene Fama written for the Annual Review of Financial Economics. Fama’s work on agency theory (with Mike Jensen) and on corporate finance (with Ken French) should be of particular interest to O&Mers, though some may disagree with his introductory claim that “[f]inance is the most successful branch of economics in terms of theory and empirical work, the interplay between the two, and the penetration of financial research into other areas of economics and real-world applications.”
Fama’s Chicago-Booth colleagues add the following note about Fama’s institutional leadership, presumably directed at today’s Fama-bashers:
Rather than rest on his laurels or impose his own views on the group, Gene has always sought the truth, even when it appeared at odds with his own views. . . . The current finance group at Chicago includes a diverse set of people who specialize in all areas of modern finance including, behavioral economics, pure theory, and emerging, non-traditional areas such as entrepreneurship and development that were unheard of when Gene arrived at Chicago. Contrary to the caricatured descriptions, there is no single Chicago view of finance, except that the path to truth comes from the rigorous development and confrontation of theories with data.