Hall teaches at Stanford and Woodford at Columbia. According to Associated Press, they will share prize money of 12 million Swedish kronor.
Their contributions allow models of the economy to be built from household and business choices, rather than statistical relationships between aggregate indicators alone. According to the committee’s explanation relayed by Columbia, this approach helps explain how public policies can dampen economic fluctuations.
MIT highlights Hall’s research on expectations and household consumption, alongside the framework Woodford developed in his 2003 book Interest and Prices.