The 2012 Stephen A. Ross Prize in Financial Economics has been awarded to “Private and Public Supply of Liquidity,” written by Bengt Holmstrom from the Massachusetts Institute of Technology and Jean Tirole from the Toulouse School of Economics and published in the Journal of Political Economy in 1998.


Funded in December 2006 by finance academics and practitioners, the Foundation for the Advancement of Research in Financial Economics (FARFE) is committed to supporting and encouraging fundamental research in financial economics and to facilitating productive interaction between research and practice in finance. To further this mission FARFE has established the Stephen A. Ross prize to be awarded for an important research contribution in financial economics. In the future FARFE plans to establish a FARFE fellowship program and to organize conferences that will bring together scholars and practitioners. In so doing, FARFE will help enhance the quality of the financial industry, which is a driving force of economic growth and an important part of the economy.

Organized as a nonprofit, tax-exempt foundation, FARFE is an independent institution that is not affiliated with any university, association, financial institution or the government.