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The End of Economists' Imperialism

Harvard Business Review

"By almost any market test, economics is the premier social science," Stanford University economist Edward Lazear wrote just over a decade ago. Two years later, in 2002, the co-leader of that invasion, Princeton psychology professor Daniel Kahneman, won an economics Nobel (the other co-leader, Amos Tversky, had died in 1996).

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Why Those Guys Won the Economics Nobels

Harvard Business Review

Back in the ‘60s, people developed the capital asset pricing model [CAPM] as a way to do that. You’d have this beta with the market, so you have the riskless rate plus beta times the equity premium. It’s not something that necessarily resonates a lot with people in the markets or people in the world.

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