Robert F. Engle Quotes

Powerful Robert F. Engle for Daily Growth

About Robert F. Engle

Robert Frederick Engle is an American economist, renowned for his significant contributions to financial economics and time-series econometrics. Born on October 18, 1942, in Pittsburgh, Pennsylvania, Engle showed a keen interest in mathematics from an early age. He earned his Bachelor's degree in Mathematics from Carnegie Mellon University in 1963, and then went on to complete his Ph.D. in Econometrics from Yale University in 1968. Engle's academic career took flight at the University of California, Berkeley, where he joined as an assistant professor in 1968. His groundbreaking work on time-series econometrics began during this period, leading to the development of the Autoregressive Conditional Heteroscedasticity (ARCH) model and its generalization, the Generalized ARCH (GARCH) model, in the early 1980s. These models revolutionized the field by providing a framework for modeling and forecasting financial time series with changing volatility. Engle's work was recognized with numerous awards, including the Nobel Memorial Prize in Economic Sciences in 2003, shared with Clive W. J. Granger. His influence extends beyond academia, as his models are now widely used by financial institutions worldwide for risk management and forecasting. Engle currently holds the title of Johnson Professor of Finance at New York University's Stern School of Business, where he continues to pursue research in finance and econometrics. His legacy lies not only in the theoretical advancements he has made but also in the practical impact his work has had on the global financial industry.

Interpretations of Popular Quotes

"In finance, as in physics, a good theory should be simple and beautiful."

This quote suggests that the principles of finance and physics share similarities, particularly in the quality of theories. A good theory, whether it's about the movement of particles in physics or the behavior of financial markets, should be not only accurate but also simple and aesthetically pleasing to understand. The simplicity and beauty in a theory make it easier for others to comprehend and apply its concepts, thus contributing significantly to progress in the respective fields.


"I think it's important to understand that finance is a science, not an art."

This quote by Robert F. Engle emphasizes that finance should be approached as a systematic, methodical discipline based on empirical evidence and statistical analysis rather than relying solely on intuition or subjective judgment (art). The implication is that financial decision-making should be rooted in rigorous research, quantitative analysis, and a deep understanding of financial principles to ensure sound and effective outcomes.


"Econometrics is applied mathematics, and like all of mathematics, it involves both beauty and power."

Robert F. Engle's quote emphasizes that econometrics, a branch of economics dealing with statistical methods for analyzing economic data, is not just a set of mathematical tools but also an aesthetic discipline. He suggests that, like mathematics in general, it has both an artistic (beauty) and functional (power) aspect. The beauty lies in its abstract principles, theories, and models, while the power comes from its ability to make predictions, analyze economic phenomena, and inform policy decisions.


"The time-series properties of financial returns are among the most fascinating aspects of finance."

This quote emphasizes that one of the intriguing features of finance is the time-dependent characteristics of financial returns, often referred to as 'time-series properties.' It suggests that understanding how these properties evolve over time can provide valuable insights into the behavior and trends of financial markets. These properties may include auto-correlation (the tendency for returns on a given asset or market to be similar in consecutive periods), heteroscedasticity (volatility changes with the level of returns), or seasonality (recurring patterns in return distributions at specific time intervals). Analyzing these properties helps financiers forecast future market movements, manage risk, and make informed investment decisions.


"I have always believed that econometrics can contribute much to our understanding of finance, if only we are willing to make the effort to do it right."

This quote emphasizes the potential power of econometrics – a statistical method used in economics to study relationships among economic variables – in deepening our understanding of finance. Engle suggests that the key lies in properly applying econometric techniques, indicating that careful, meticulous work is necessary for meaningful insights into financial systems and behaviors.


The advantage of knowing about risks is that we can change our behavior to avoid them. Of course, it is easily observed that to avoid all risks would be impossible; it might entail no flying, no driving, no walking, eating and drinking only healthy foods, and never being touched by sunshine. Even a bath could be dangerous.

- Robert F. Engle

Sunshine, Touched, Foods, Bath

There are some risks we choose to take because the benefits from taking them exceed the possible costs. Optimal behavior takes risks that are worthwhile. This is the central paradigm of finance: we must take risks to achieve rewards, but not all risks are equally rewarded.

- Robert F. Engle

Some, Benefits, Optimal, Exceed

If the Chinese economy can be opened so that currencies are convertible, Chinese tourists can take money and go see the world. Chinese businessmen can go and buy property in the U.S. and France and every place. All of a sudden, it's just going to be a blossoming global economy. I think it's going to be good for everybody.

- Robert F. Engle

Everybody, I Think, Buy, Businessmen

The Nobel Prize in Economics is an incredible recognition for the work that my students, colleagues and I have done over the years. We all worked hard, but we were also lucky that the financial applications were so important.

- Robert F. Engle

Work, Lucky, Over, Nobel Prize

I was convinced that the trading frequency measured a fundamental heartbeat of financial markets. Clearly it reflected the flow of information. It turns out also to be closely related to measures of liquidity.

- Robert F. Engle

Measured, Trading, Closely, Flow

Why not put a tax on carbon emissions. It would raise a lot of money, it would reduce the environmental damages in the future, it would solve so many problems, and it would be a much more constructive thing to do than to think about raising the income tax.

- Robert F. Engle

Income, About, Damages, Why Not

When I am skating, economics is far away. I always return refreshed and ready to carry on.

- Robert F. Engle

Always, Skating, Away, Refreshed

My mother says that my father truly enjoyed having a son. My two-years-younger twin sisters felt that he didn't quite know how to enjoy them. But I wasn't aware of those things then. So many of my childhood memories involve him. All the excursions into science were shaped by his knowledge and enthusiasm.

- Robert F. Engle

Father, Enjoy, Shaped, Enjoyed

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