Robert Lucas is Visiting Professor of Economics at Northwestern University.
R. Lucas writes the paper "Expectations and the Neutrality of Money." In it, he incorporates the idea of rational expectations into a dynamic general equilibrium model. He also provides a sound theoretical fundament to M. Friedman and E. Phelps's view of the long-run neutrality of money, and provides an explanation of the correlation between output and inflation, depicted by the Phillips curve.
Lucas becomes Assistant Professor of Economics at Carnegie Institute of Technology (now Carnegie-Mellon University). In 1970 he becomes Professor of Economics. Carnegie-Mellon’s group of economists is very stimulating and Lucas gets involved in two projects: with Leonard Rapping, to provide a neoclassical account of the behaviour of U.S. wages and employment from 1929 to 1958. The other with Edward Prescott on the dynamics of an imperfectly competitive industry.
Lucas is appointed Ford Foundation Visiting Research Professor of Economics at the University of Chicago and since 1980 he is John Dewey Distinguished Service Professor of Economics. He teaches and conducts researches on monetary theory, international-trade, fiscal policy, and economic growth. Since 1982 he lives with Nancy Stokey, whit whom Lucas writes papers on growth theory, public finance, and monetary theory. Their monograph, “Recursive Methods in Economic Dynamics”, is published in 1989.
Robert Lucas receives the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel "for having developed and applied the hypothesis of rational expectations, and thereby having transformed macroeconomic analysis and deepened our understanding of economic policy".
Robert Lucas attends the Roosevelt High School, where he develops his passion for mathematics. Thanks to his ability in calculus Lucas is able to help his father in solving some mathematical problems at work.
Robert Lucas marries Rita Cohen, , also an undergraduate at Chicago. They separate in 1982, and divorce several years later.
Robert Lucas obtains a scholarship from University of Chicago, where he discovers the beauty of the liberal arts. He takes courses in Ancient History, and becomes a history major.
Robert Lucas is born in Yakima, Washington the oldest child of Robert Emerson Lucas and Jane Templeton.
Robert Lucas obtains a Woodrow Wilson Doctoral Fellowship, and enters the graduate program in History at the University of California. While at Berkeley, he takes courses in Economic History and audits an economic theory course. He decides then to switch into economics but unfortunately Berkley's Economics Department can't offer him financial support. Therefore, he goes back to the University of Chicago.
Robert Lucas's family during the World War II years relocates to Seattle.
Lucas returns to Chicago for his PhD. He reads P. Samuelson's "Foundations of Economic Analysis". In 1960, he begins M. Friedman's price theory sequence. He attends courses in analysis, statistics, courses held by Z. Griliches and G. Lewis and one on mathematical economics of D. Bear. He is influenced by A. Harberger's sequence in public finance. Under Lewis and Harberger he writes his thesis using data from U.S. manufacturers to estimate elasticities of substitution between capital and labour.