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University of Pennsylvania Almanac Tuesday, October 21, 1980 Published by the University of Pennsylvania Volume 27, Number 9 'With gratitude and affection' for the Senate's resolutions last Tuesday (one, by a vote of 167-127 asked for his nomination for the presidency), Provost Vartan Gregorian told faculty and deans Monday that he declined to have his name placed in nomina- tion. He steps down as provost Friday, and Acting Provost Benjamin Shen takes office (confirmed last Thursday at the Executive Board meeting). For Dr. Gregorian 's full statement, and Senate Chair Paul Bender's letter to him on the two resolutions Senate acted on last week, see page 5. Stated Meeting: The open portion of the Trustees' fall meeting where the nomination of Dr. Sheldon Hackney as president will be acted on, starts at 2p.m. Friday, October 24, in Weightman Gym. See page 4 for revised rules for the Sunshine meeting. INSIDE Celebrating the Nobel Prize Paul Miller on the Selection, P. 6 The Royal Swedish Academy ofSciences gives no warning. Itjust sends the news outfrom Paul Miller 0. & A. at Senate. pp. 8, 9 Stockholm, and suddenly in Wynnewood a Benjamin Franklin Professor who thought he Other Senate 0. & A, pp. 10, 11 knew what he would do that is, instead, honor at academia Out, pp. 12-14 exactly day guest of Speaking Nobel Prize celebration. For one Counsel's Advice on 'Sunshine,' p. 14 remarkable randomized come-as-you-are-party, the Calendar moved to back page this week highlight ofthe day the Prize came to Lawrence R. Klein of the University ofPennsylvania Faculty ofArts and Sciences, seepage 2. Notesfrom a Press Conference Celebrating the Nobel Prize with Larry Klein Some Penn people have been tuning in the earlv news daily, even' been done on the backs of many people-research assistants, year about this time, knowing (we/I, projecting, anyway) that Larry research associates, and research colleagues over the years-and I Klein's name must come up soon-it was so long overdue. But the am glad particularly that this recognition has come during the years mode/forecaster wasn't lookingahead: He hadstayed up late at Pennsylvania. I have been here now for 22 years and 1 came here a thesisandwhen Kravis calledat the crack dawn much attracted the of academic freedom that reading Irving" of very by large degree last Wednesday, he was "sleepy. Then began a steadyflow ofcalls, was granted to me. I feel in many respects very grateful for that over and thepress was at the door. By the time he reached campus, still the years, and am glad to be associated with the awarding of this intent on teaching his 10:30 class, Dr. K/em 's office at McNeil was Prize in connection with the work that was done here. It was filling with reporters, photographers, wel/wishers, balloons. A obviously started somewhere else, because it went on for a long press conference set, and champagne on ice, he stillhad to be period of time. But it is fitting, because so much of the work was convincedthat it is all right to cut class thedayyou win the Nobel done at Pennsylvania, that they share in this day. Thank you. prize. "Oh, but I must see them;! have something to tell them." Applause Trailing reporters like clouds ofglory-and absorbed in teaching (Question on his work) one ofthem what amounts to a short course in economics as he We econometricians, at least the ones who work in model went-he made his to the classroom. the way Curiously enough building, have a view of the world in which the economic system has class seemedto know that had come and something up:professor certain regularity, and this regularity can be described by the students beamed a! each otheras he almost explained, shyly-and, equation systems governing the laws of motion of society as not to outline next week's work with them, he forgetting plan approximations. We use what we call the living laboratory," or real deliveredthe class into Albert Ando's care and to the himselfagain life experience of the economy, to get statistical, empirical press. background; we fit these theories of the functioning of the economy Martin Meyerson: Congratulations to Larry Klein, his to the living laboratory data, and use it for trying to guide economic department, our entire University. When the Nobel Prize in decision-making whether that be policies in the hands of public Economics was established not too many years ago, many of us at authorities or decision-making in productive enterprises or the University were convinced that this day would come and it was international bodies. The most visible things we do are periodic therefore no surprise to a great many of us. It is hard to imagine forecasts of tendencies in theeconomy, but in my own mind the most anyone more worthy of the Nobel Prize in Economics than Larry significant thing we have done is to give some empirical content to Klein. In his work in model building, he created both an economic reasoning, to give a better understanding of how the extraordinarily important analytic field and extraordinarily economy works, and to be able to give policy makers quantitative important applied field for public policy and for private action. But guidance for their decisions. it is that very fitting Larry be the tenth person associated with the (Question on his relationship to President Carter.) University in various ways over its history to receive the Nobel Prize. Yes, 1 meet, not on a regular basis but from time to time, with the It is fitting because, as our Provost Vartan Gregorian said this President's advisors and sometimes the President himself. I'm a if there is who can be called Mr. morning, anyone properly friend of the administration. I am a friendly critic. University, it is Larry Klein. (Question on Carter performance.) Larry Klein-as a teacher, as a researcher, as an applier of that Fair. The principal idea we tried to put across to the President, scholarship, as a citizen of our institution-has been ready to help starting in 1976, was that he should keep a very steady economic that institution and its members in every way possible. Just a policy particularly because his predecessors had very erratic concluding human sentence about Larry: there are those who, when swings in policy. I would say that economic policy has not been steady. they become eminent, seek the company only of others who are Some of that is a consequence of uncontrollable things, but some is eminent. But I have never known any instance in which any person of their own making. The other problem, which is a problem of the who is attached in any way to the work of Larry Klein, however Presidency, is that it is short-lived, and politicians often choose humble that person might be, didn't have access to Larry Klein. And economic guidance and policy with an eye to immediate response it is with the greatest sense of joy-and it is a joyful day-that our Provost and I to present to you, Professor Larry Klein, Nobel laureate. Applause Dr. Klein: About the only speech that I carry around ready is the 3533 Locust Walk/CO state of the and I don't think want to hear that. But of Philadelphia, Pa. 19104 economy, you (215) 243-5274 course this is a day that is not like usual days, and 1 feel that I have had normal my routine upset a bit starting at 7 o'clock this morning. The University of Pennsylvania's journal of record and opinion is published My feeling is that if one has worked on a subject hard enough, and Tuesdays during the academic year and as needed during summer and holi- breaks. Guidelines for readers and contributors worked on it for a long, longtime, then naturally one is pleased to see day are available on request. it gain some degree of recognition and acceptance. I want to say that EDITOR Karen C. Gaines most of the work that I have done over the years, contrary to what ASSISTANT EDITOR C. Anne Vitullo certain social thinkers believe, has been in teams. Many social EDITORIAL ASSISTANT Marguerite F. Miller DESIGN SERVICES Brenda Reed, Marguerite F. Miller thinkers picture the ivory tower, the iconoclast spinning out his own WORK-STUDY ASSISTANTS Sue Meadows, Lauren Green. Barbara West ideas by himself,just as a thought process. But my own work on the materials for which the Prize was awarded was always done in ALMANAC ADVISORY BOARD Robert Lewis Shayon, chair; Herbert Callen, Fred Karush. Paul Bender, Charles Dwyer and Phoebe Leboy for the Faculty significant research teams, and I think that it is a very effective way Senate... Morris Arnold for the Administration... Valerie Pena for the Librar- to carry on. This work for which recognition is being given has all ians Assembly... Shirley Hill for the Administrative Assembly... Una L. Deutsch for the A-3 Assembly. 2 October 2/, 1980 Almanac and also an eye to the next election. If a presidential term were six philosophy. Just from an anecdotal point ofview: when I first started years, or if there were more of an automatic renewal process, at least studying economics, as an undergraduate and graduate student, the for one other term, then 1 feel that politicians could do more kinds of methods that have been cited for the world today, the ones I far-sighted things. As I perceive the economic policy now in the worked on, were in the economic underground.
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