The tenth annual TIAA-CREF Paul A. Samuelson Award for Outstanding Scholarly Writing on Lifelong Financial Security was awarded in 2005 to two sets of authors.
Shlomo Benartzi, University of California, Los Angeles; Richard H. Thaler, University of Chicago for their article titled "Save More Tomorrow: Using Behavioral Economics to Increase Employee Saving" (Journal of Political Economy, February 2004). In this paper, the authors propose a prescriptive savings program, called Save More Tomorrow (SMarT™ program). The essence of the program is straightforward: people commit in advance to allocating a portion of their future salary increases toward retirement savings. The authors report evidence on the first three implementations of the program and find that the SMarT™ program is effective in increasing employee savings.
Jonathan B. Berk, University of California, Berkeley; Richard C. Green, Carnegie Mellon University for their article titled "Mutual Fund Flows and Performance in Rational Markets" (Journal of Political Economy, December 2004). Researchers have repeatedly shown that professional money managers fail to outperform passive portfolios. More recent studies focus on the lack of persistence in performance, despite clear evidence that fund flows are very sensitive to performance. If managers lack superior ability, and instead are just lucky, then investors appear to be irrationally chasing performance. In this paper, the authors present a simple explanation for the empirical findings cited above and show that such findings are generally consistent with a rational and competitive market for capital investment and with rational, self-interested choices by fund mangers who have differential ability to generate abnormal returns. The model has direct implications for money managers, investors, and researchers.
Professor Benartzi is Associate Professor of Accounting at University of California, Los Angeles;
Professor Thaler is Robert P. Gwinn Professor of Behavioral Science and Economics at the University of Chicago;
Professor Berk is Harold Furst Associate Professor of Management Philosophy and Values at University of California, Berkeley;
Professor Green is Richard M. and Margaret S. Cyert Professor of Economics and Management at Carnegie Mellon University.
2005 Panel of Distinguished Judges
Nicholas Barberis, Ph.D.
Professor of Finance
John Cochrane, Ph.D.
Myron S. Scholes Professor of Finance
University of Chicago
Brigitte C. Madrian, Ph.D.
Associate Professor of Business and Public Policy; Boettner Chair in Financial Gerontology
University of Pennsylvania
Joseph P. Newhouse, Ph.D.
John D. MacArthur Professor of Health Policy and Management;
Director of the Division of Health Policy Research and Education
James Poterba, Ph.D.
Mitsui Professor of Economics; Associate Head of the Economics Department
Massachusetts Institute of Technology
Back row from left:
James Poterba, Joseph Newhouse, Brigitte Madrian, Nicholas Barberis, Madeleine d'Ambrosio.
Front row from left:
Richard Green, Jonathan Berk, Shlomo Benartzi