Daniel McFadden

Lore & Background

McFadden was born on July 29, 1937, in Raleigh, North Carolina. He attended the University of Minnesota, where he received a B.S. in Physics and a Ph.D. in Behavioral Science (Economics) in 1962. His graduate advisor was Leonid Hurwicz, who later won the Economics Nobel Prize in 2007. In 1964, McFadden joined the faculty of the University of California, Berkeley, focusing his research on choice behavior and the problem of linking economic theory and measurement. In 1974, he introduced conditional logit analysis. He won the John Bates Clark Medal in 1975. In 1977, he moved to the Massachusetts Institute of Technology. He was elected to the National Academy of Sciences in 1981. He returned to Berkeley in 1991, founding the Econometrics Laboratory, which is devoted to statistical computation for economics applications. He is a trustee of the Economists for Peace and Security. He won the Erwin Plein Nemmers Prize in Economics in 2020 and was elected to the American Philosophical Society in 2006. In January 2011, McFadden was appointed the Presidential Professor of Health Economics at the University of Southern California, which entails a joint appointment in the Department of Economics and the Price School of Public Policy.

Reader's Guide

Daniel McFadden's significance lies in his foundational contributions to the analysis of discrete choice, for which he received the 2000 Nobel Memorial Prize in Economic Sciences. His introduction of conditional logit analysis in 1974 provided a rigorous framework for modeling decision-making when individuals choose among a finite set of alternatives, such as transportation modes or consumer brands. This work bridged economic theory with empirical measurement, influencing fields from transportation economics to marketing and health economics. McFadden's career includes key academic positions at the University of California, Berkeley, and the Massachusetts Institute of Technology, as well as the founding of the Econometrics Laboratory at Berkeley. His honors, including the John Bates Clark Medal and election to the National Academy of Sciences, underscore his lasting impact on econometrics. In 2024, he was among 16 Nobel laureates who signed an open letter arguing that Donald Trump's fiscal and trade policies, along with efforts to limit Federal Reserve independence, would reignite U.S. inflation.

Did You Know?

• McFadden shared the 2000 Nobel Memorial Prize in Economic Sciences with James Heckman.
• His graduate advisor at the University of Minnesota was Leonid Hurwicz, who won the Economics Nobel Prize in 2007.
• He introduced conditional logit analysis in 1974.
• In June 2024, he was one of 16 Nobel laureates who signed an open letter about Donald Trump's economic policies.