John Muth
John Fraser Muth (/mjuːθ/; September 27, 1930 – October 23, 2005) was an American economist. He is "the father of the rational expectations revolution in economics", primarily due to his article "Rational Expectations and the Theory of Price Movements" from 1961.
John Muth | |
|---|---|
| Born | September 27, 1930 |
| Died | October 23, 2005 (aged 75) |
| Nationality | American |
| Academic career | |
| Institution | Carnegie Mellon University, Michigan State University, Indiana University |
| Field | Mathematical economics |
| School or tradition | Carnegie School |
| Alma mater | Carnegie Mellon University |
| Doctoral advisor | Herbert A. Simon |
| Awards | Alexander Henderson Award (1954) |
| Information at IDEAS / RePEc | |
Muth earned his PhD in mathematical economics from Carnegie Mellon University, and was in 1954 the first recipient of the Alexander Henderson Award. He was affiliated with Carnegie Mellon as a research associate from 1956 until 1959, as an assistant professor from 1959 to 1962, and as an associate professor without tenure from 1962 to 1964. He was a full professor at Michigan State University from 1964 to 1969 and a full professor at Indiana University from 1969 until his retirement in 1994.
Muth asserted that expectations "are essentially the same as the predictions of the relevant economic theory." Although he formulated the rational expectations principle in the context of microeconomics it has subsequently become associated with macroeconomics and the work of Robert Lucas, Jr., Finn E. Kydland, Edward C. Prescott, Neil Wallace, Thomas J. Sargent, and others.