Trygve Magnus Haavelmo

Trygve Magnus Haavelmo
(1911 - 1999)

Norwegian economist who was a pioneer in what became the field of economic forecasting. He was awarded the 1989 Nobel Prize for Economics.
After the outbreak of World War II, Haavelmo left Norway and delivered his doctoral dissertation, "The Probability Approach in Econometrics," at Harvard University in 1941. Although he had two doctorates from the University of Oslo, his innovative thesis, cited by the Nobel committee for its influence, was first published in 1944 in Econometrica, an American periodical. Haavelmo worked at the University of Chicago during the 1940s (where he was also a visiting professor in the late 1950s) before returning to Norway in 1947. He retired from the University of Oslo faculty in 1979, becoming professor emeritus.

Haavelmo's statistical techniques made possible the development of econometric models that predict how a change in one aspect of the economy will affect others; that is, he demonstrated that statistical probability theory could be integrated into economic formulations. His econometrics made possible the predictions regarding the course of national economies and the more accurate formulation of governmental economic policies.