Who is George Akerlof? (Janet Yellen’s Husband) Wiki, Biography, Age, Family, Career, Net Worth, Many More Facts You Need To Know

George Akerlof
George Akerlof

George Akerlof Wiki – George Akerlof Biography

George Akerlof is a Nobel laureate economist and has been married to fellow economist Janet Yellen for over 40 years. Yellen made history as the first woman to serve as Federal Reserve head during the Obama administration. She could soon break another record as the first woman to serve as Treasury Minister. Joe Biden, elected by the president, was expected to nominate him for the role that required Senate approval.

George Akerlof Background

Akerlof was born on June 17, 1940, to Gosta and Rosalie Akerlof, and spent her early years in New Haven, Connecticut. In the autobiographical essay prepared for the Nobel Foundation, Akerlof announced that he was descended from academics from both sides of his family.

His father, Gosta Akerlof, emigrated from Sweden for a postdoctoral degree in chemistry from the University of Pennsylvania. He later became a faculty member at Yale, but was never offered a term of office. Akerlof wrote that during World War II his father was working on the Manhattan Project in Dayton, Ohio. After the war, the family moved to Pittsburgh when he started working at the Gosta Mellon Institute.

Akerlof explained that her maternal ancestry could be traced back to Germany and the family was Jewish. He wrote that his great-grandfather graduated from UC Berkeley in 1873 and continued to be a professor of medicine at Stanford School of Medicine. Rosalie’s father continued the family tradition of going to UC Berkeley and became a pharmacologist and cardiologist.

Rosalie also studied chemistry. He went to Yale for high school, where he met Gosta Akerlof. George Akerlof wrote that his family met at an “episode picnic” in 1930.

George Akerlof Career

Akerlof, like his wife, is a well-known professional in the fields of economics. In 2001, he won the Sveriges Riksbank Economic Sciences Award. He shared the award with his Stanford University colleagues A. Michael Spence and Columbia University’s Joseph E. Stiglitz. According to the Nobel Prize website, Akerlof was awarded for his research into how “asymmetric information” affects markets and prices. The Committee summarized Akerlof’s contribution as follows:

  • Studied markets where sellers of products have more information than buyers about product quality. He showed that low-quality products may squeeze out high-quality products in such markets, and that prices of high-quality products may suffer as a result.

Akerlof has focused on this idea for decades. Akerlof talked about car sales to demonstrate his theory in his 1970 article “The Lemon Market”. He concluded that when there was a lack of shared information about the quality of vehicles, both buyers and sellers were missing out on better offers. In this scenario, the “lemon” is an unreliable tool that the seller is just trying to get rid of. According to Akerlof’s theory, the buyer may be willing to pay more for a high-quality vehicle, but the buyer is offering a lower price because the car is likely to be “lemon”.

  • Suppose some cars are “lemon” and some are high quality. If buyers could figure out which cars were lemons and which were not, there would be two separate markets: a lemon market and a market for high-end cars. But often there is asymmetrical information: buyers do not know which cars are lemons, but of course sellers do.
  • Therefore, a buyer knows that the car they are buying is likely to be a lemon and would be willing to pay less than they would have paid if they were sure to buy a high quality car. This low price for all used cars discourages high quality car dealers. While some are willing to sell their own cars at the price that high-quality used car buyers would be willing to pay, they are not willing to sell at a lower price that reflects the buyer’s risk of ending up with a lemon. . In this way, exchanges that will benefit both the buyer and the seller cannot be realized and efficiency is lost.

Attending Yale University has become a family tradition in the Akerlof family. His father worked as a chemist at Yale, and Akerlof’s older brother also joined. In his autobiographical article for the Nobel Foundation, Akerloff explained the external forces dictating the choice of school:

  • Regarding college, I had no choice. My brother had gone to Yale. Even if my brother’s choice were not over-riding for my decision, I would probably have heeded the assistant principal of Lawrenceville, who admonished me that I should not wreck my life by even thinking about going to Harvard instead.

Akerlof explained that he worked for the Yale Daily News for two years while deciding to pursue a career in economics or history. Akerlof began to focus on mathematics after being denied a position on the paper’s board of directors, but initially had a hard time. A family friend, who was a Princeton mathematician, wrote that he had failed in algebra before stepping in to teach him.

After graduating from Yale in 1962 with a bachelor’s degree in economics. Akerlof went to MIT for postgraduate study. He received his doctorate. He accepted a job as an assistant professor in 1966 and later.
University of California, Berkeley. According to his profile on the school website, Akerlof gained full professor status in 1978. According to the Berkeley department of economics website, his most recent title was Senior Honorary Professor of Economics.

Akerlof also taught at the McCourt School of Public Policy in Georgetown. Akerlof’s biography stated that “his research was based on economics, but often drawn from other disciplines, including psychology, anthropology, and sociology.”

Yellen also taught at UC Berkeley, and the spouses sometimes collaborated on research projects. As Mercury News reported in 2014, Akerlof and Yellen’s search for a good real-life babysitter inspired a 1990 article on how low wages contribute to unemployment and a worker’s job performance.

Akerlof and Yellen’s love story began in a cafeteria at the Central Bank. In 1977 Yellen was working as a research economist for the Federal Reserve Board of Directors. According to the Washington Post, Yellen accepted the job after his tenure was denied at Harvard University, where he taught from 1971 to 1976.

Akerlof was working temporarily for the Federal Reserve in Washington, D.C. As Reuters reported, Akerlof was assigned to the organization’s research department. She and Yellen crossed paths for the first time in the Fed’s cafeteria in the autumn of 1977, and it didn’t take long for the sparks to fly.

Yellen and Akerlof tied the knot in June 1978, less than a year after meeting. Akerlof had accepted a position at the London School of Economics and asked Yellen to come with him. He told the Nobel Foundation about his love for hurricane:

  • We liked each other immediately and decided to get married. Not only did our personalities mesh perfectly, but we have also always been in all but perfect agreement about macroeconomics. Our lone disagreement is that she is a bit more supportive of free trade than I. We decided to get married hastily, not only because we had so little doubt about each other, but also for practical reasons. I had already accepted a professorship at the LSE for the coming year and if we were to avoid being separated, Janet would also need to get a job in England too. Luckily, she also was given a tenure-track lectureship at the LSE.

Yellen and Akerlof moved to England in September 1978. They returned to California in August 1980, where Akerlof was still on the faculty at UC Berkeley. Yellen also became a full professor at the university.

Akerlof and Yellen have a child together. Their son, Robert Akerlof, was born in June 1981. Robert followed in his parents’ footsteps and began a career in economics.

Young Akerlof received his doctorate degree. He graduated from Harvard University before choosing MIT to conduct his postdoctoral research. He is currently an associate professor of economics at the University of Warwick in Coventry, England. Robert Akerlof’s research focuses on social interaction, according to his faculty biography.

George Akerlof may have considered his own experience of fatherhood when writing his 1998 research paper “Men Without Children”. As the Institute for Family Studies summarized, Akerlof theorized that marriage and fatherhood help men “settle down”. “Marriage begins a period in which men devote themselves to acquiring human capital, the return of which will later be used to support the marriage,” he wrote. The Institute for Family Studies reported in the article that Akerlof also cited evidence that “low marriage rates contribute to increased crime rates of single men, drug addiction, unemployment, death rates and other problems”.