Daniel McFadden
Nobel laureate econometrician who advanced discrete choice analysis.
Daniel Little McFadden, an American econometrician, was a co-recipient of the 2000 Nobel Memorial Prize in Economic Sciences alongside James Heckman. His award recognized his work on the theory and methods used to analyze discrete choice. Currently, he holds the title of Presidential Professor of Health Economics at the University of Southern California and also serves as a Professor of the Graduate School at the University of California, Berkeley.
Born in Raleigh, North Carolina, on July 29, 1937, McFadden studied at the University of Minnesota. There, he earned a B.S. in Physics and, five years later in 1962, a Ph.D. in Behavioral Science (Economics). His graduate advisor at Minnesota was Leonid Hurwicz, who later won the Economics Nobel Prize in 2007.
McFadden began his academic career at the University of California, Berkeley, in 1964, concentrating his research on choice behavior and the challenge of connecting economic theory with empirical measurement. In 1974, he introduced the method of conditional logit analysis. He received the John Bates Clark Medal in 1975. Two years later, in 1977, he moved to the Massachusetts Institute of Technology, and in 1981 he was elected to the National Academy of Sciences.
Returning to Berkeley in 1991, he established the Econometrics Laboratory, a facility dedicated to statistical computing for economic research. He also serves as a trustee for Economists for Peace and Security. His later honors include election to the American Philosophical Society in 2006 and the Erwin Plein Nemmers Prize in Economics in 2020. In January 2011, he was appointed Presidential Professor of Health Economics at the University of Southern California, a role that involves a joint appointment in the Department of Economics and the Price School of Public Policy.
Politically, in June 2024, McFadden was one of 16 Nobel laureates in economics who signed an open letter. The letter argued that Donald Trump's fiscal and trade policies, along with efforts to limit the Federal Reserve's independence, would reignite inflation in the United States.
- born
- July 29, 1937, in Raleigh, North Carolina
- field
- Econometrics, Behavioral Science (Economics)
- nationality
- American
- known_for
- Development of theory and methods for analyzing discrete choice; conditional logit analysis
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.
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