He moves to the University of Chicago, where he is currently a Professor in Economics, Statistics and the College. He focuses on the linkages between the financial markets and the macroeconomy. In 1982, he develops a statistical method to understand those linkages without having to have a whole model of both. The method has been applied widely in testing theories of asset pricing, and led to his Nobel Prize in 2013.

He then serves as assistant and associate professor at Carnegie Mellon University. 

Lars Peter Hansen shares the 2013 Nobel Prize in Economics with Eugene F. Fama and Robert J. Shiller for their ‘empirical analysis of asset prices’. The Prize honors his development of the ‘generalized method of moments’ (GMM), which has revolutionized the way empirical research is done in finance and macroeconomics: It allows statistical models to be created by estimating parameters even if not all the influential factors are fully known.

He gains his B.Sc. in mathematics and political science at Utah State University in 1974.

Lars Peter Hansen is born in Urbana, Illinois.

He goes on to earn his PhD in economics at the University of Minnesota in 1978.