Tobin, James (1918-2002), an American economist, did important research into financial markets and how they work. He related the markets’ operations to the way that businesses and consumers make decisions about investing and spending money. For this work, Tobin was awarded the 1981 Nobel Prize in economic sciences.
Tobin was born on March 5, 1918, in Champaign, Illinois. He was educated at Harvard University from 1935 to 1941, and then served in the U.S. Navy until World War II ended in 1945. He gained a Ph.D. from Harvard University in 1947. Three years later, he went to teach at Yale University. Tobin was twice director of the Cowles Foundation (previously the Cowles Commission) at Yale University from 1955 to 1961 and again in 1964 and 1965. The Cowles Foundation is a research center that laid the basis for modern econometrics, the application of mathematical and statistical techniques to economic theory. In 1961, Tobin was a member of President John F. Kennedy’s Council of Economic Advisers, which had a profound influence on U.S. economic policy in the 1960’s. He died on March 11, 2002.
See also Econometrics; Investment; Money.
