The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Fama, Eugene F. (1939–)

  • G. William Schwert
Reference work entry


Eugene Fama is known as the father of empirical finance. Over an unusually active career that spans more than five decades, Fama has produced pioneering research on efficient capital markets and asset pricing models, as well as the behaviour of interest rates, exchange rates, futures prices and inflation rates. He has also produced important papers on capital structure and payout policy. His theoretical work on agency problems and banking is ground-breaking and influential. In addition, Fama’s influence on finance through the doctoral students he has supervised and his diligent work as a professional colleague are widely recognised and appreciated.


Agency costs American finance association Anomaly Capital structure Capital asset pricing model Dimensional fund advisors Dividend policy Dividend yields Efficient capital markets Exchange rates Fama–French three factor model Financial markets Governance Inflation rates Interest rates Small firm effect Stock returns University of Chicago Value effect 

JEL Classifications

G11 G12 G14 G15 G21 G31 G32 G34 G35 E31 E43 E44 C31 C46 B31 
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I am grateful for comments from Eugene F. Fama and René M. Stulz.


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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • G. William Schwert
    • 1
  1. 1.