Foundation for Advancement of Research in Financial Economics
The History of FARFE
In early 2006 a group of individuals who had Steve Ross as an academic mentor during his more than 35 years of teaching at Penn, Yale, and MIT, decided to organize a gathering of all those who were similarly impacted by Steve. In the context of the planned event, the group sought a way to create a lasting tribute to Steve and celebrate the influence he has had on financial economics and on their lives. After extensive discussion it was decided that a prize for a publication that exemplifies Steve's research style and values would be the most appropriate way to honor Steve.
Several alternatives were considered, including a partnership with an existing journal, professional association or a university. Eventually it was determined that in order to accomplish the vision of the prize, it would be best to set up an independent organization. While there are some ongoing costs associated with running an independent entity, it was believed that sufficient funding could be secured, and that academic prestige and reputation would help sustain the organization and its mission in perpetuity.
The decision to set up the Foundation for the Advancement of Research in Financial Economics (FARFE) was made at an organizational meeting on October 27, 2006, attended by 22 of the prospective founders. FARFE was officially formed on December 18, 2006. McGraw Hill Corporation generously contributed $10,000 at that point, becoming the first organization to donate to FARFE. The initial Funds to endow FARFE were raised almost exclusively within the set of founding members.. The existence of FARFE was revealed to Steve Ross on October 12, 2007, during the opening dinner of its founding conference and celebration held at Endicott House in Dedham, Massachusetts and in the presence of his family and 45 of the 51 founding members of FARFE.
Steve Ross reacted very enthusiastically to the creation of FARFE and quickly outlined an ambitious strategy to enlarge the mission of FARFE beyond just the Ross Prize. FARFE has therefore embarked on a second phase of fund-raising within academic and investment community members who share the founders' vision. FARFE's mission is to encourage foundational research in financial economics.