Robert C. Merton

Robert C. Merton is an American economist, who was awarded the Alfred Nobel Memorial Prize for Economic Sciences in 1997. He is also famous for his work on finance theory and risk management.

Personal, career and Academic profiles

Robert C. Merton was born on 31st July , 1944 in New York, USA. [br]

Robert C. Merton is an American economist, who was awarded the Alfred Nobel Memorial Prize for Economic Sciences in 1997. He is also famous for his work on finance theory and risk management.

Personal, career and Academic profiles

Robert C. Merton was born on 31st July , 1944 in New York, USA. [br]

Education

• 1966: Robert C. Merton attained B.S. in Engineering Mathematics from Columbia University.
• 1967: Merton completed his M.S. in Applied Mathematics from California Institute of Technology.
• 1970: He was awarded PhD in Economics from Massachusetts Institute of Technology.
• 1989: Merton was awarded Masters of Arts from Harvard University.
• 1991: Merton was honored with Doctor of Laws by the University of Chicago.
• 1996: Robert V. Merton was honored with Doctor of Economic Science by the University of Lausanne.
• 1998: Merton was rewarded with Doctor of Management Science by National Sun Yat-sen University. 2003: Merton was honored with Doctor of Science by Athens University of Economics and Business.
• Academic engagements
• 1968-1970: During this period of time Robert C. Merton was engaged as Research Assistant to Paul Samuelson, Massachusetts Institute of Technology.
• 1969-1970: Merton was engaged as an Instructor of Department of Economics in Massachusetts Institute of Technology.
• 1980-88: Robert C. Merton worked as the J.C. Penney Professor of Management in Massachusetts Institute of Technology.
• 1987-88: During this period, Merton engaged as a Visiting Professor of Finance in Graduate School of Business Administration, Harvard University.
• 1988-98: During this period, Merton was engaged as George Fisher Baker Professor of Business Administration in Harvard University.
• 1993: He was the Invited Professor of Finance in Universite de Nantes.
• 1997: Merton was awarded Notable Nobel Prize in Economics.
• 1998: Robert C. Merton became John and Natty McArthur University Professor in Graduate School of Business Administration, Harvard University.

Major Works and publications

• 1968: “Restrictions on Rational Option Pricing: A Set of Arbitrage Conditions”
• 1969: “An Empirical Investigation of the Samuelson Rational Warrant Pricing Theory”
• 1970: “Analytical Optimal Control Theory as Applied to Stochastic and Non-Stochastic Economics”
• 1976:”Continuous-Time Portfolio Theory and the Pricing of Contingent Claims”
• 1989: “Optimal Portfolio Rules in Continuous Time When the Nonnegativity Constraint on Consumption is Binding”
• 1992: “Pension Reform and Privatization in International Perspective: A Case of Israel”
• 1995: “The Informational Role of Asset Prices: The Case of Implied Volatility”
• 1997: “A Model of Contract Guarantees for Credit-Sensitive, Opaque Financial Intermediaries”
• 2000: “Future Possibilities in Finance Theory and Finance Practice”
• 2004: “Do a Firm’s Equity Returns Reflect the Risk of Its Pension Plan?”
• 2006: “A New Framework for Analyzing and Managing Macro financial Risks of An Economy”

Theories propounded [br]

Robert C. Merton is famous for developing his mathematics of financial options. He was the first to publish a paper expanding the mathematical understanding of the options pricing model.

People will remember Merton for his innovative work on a dilemma that all investors face. Merton developed portfolio problem which enables people to decide how much of their income they can consume now.

Merton developed the credit risk model, which considers equity as an option on the firm’s assets.

Some of the Honors and awards received by Merton

• 1964: Merton was rewarded with Faculty Scholar Award by Columbia University
• 1983: Robert C. Merton was awarded Leo Melamed Prize from University of Chicago
• 1985: He was rewarded with Roger Murray Prize by Institute for Quantitative Research in Finance
• 1989: Merton was honored with Distinguished Scholar Award by Eastern Finance Association
• 1993: Merton was rewarded with Financial Engineer of the Year Award by the International Association of Financial Engineers
• 1997: Merton was awarde Alfred Nobel Memorial Prize in Economic Sciences
• 1999: He was rewarded with Distinguished Alumni Award by California Institute of Technology
• 2002: He was awarded Risk Hall of Fame from Risk Magazine
• 2003: Merton got Lifetime Achievement Award from Risk Magazine
• 2006: Merton was rewarded with PRMIA Higher Standard Award from Professional Risk Managers’ International Association

Books by Robert C. Merton

• Continuous-Time Finance (Macroeconomics and Finance)
• Handbook of Economics of Finance
• Paul Samuelson and financial economics.(Biography): An article from: American Economist

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