Stephen Ross (economist)

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Stephen A. Ross is the Franco Modigliani Professor of Finance and Economics at the MIT Sloan School of Management. Ross received his doctorate of economics from Harvard University, has taught at the University of Pennsylvania, Yale School of Management, and MIT.

He initiated arbitrage pricing theory in the mid-1970s. In 1985 he contributed to the creation of the Cox-Ingersoll-Ross model for interest rate dynamics. Such theories have become an important part of the paradigm known as neoclassical finance. A decade before that, Stephen Ross had been a committed Marxist, and he had given up a promising career in physics out of concern that he would end up contributing to the development of weapons.

Stephen Ross is the coauthor of the best-selling textbook series in his field, Corporate Finance.

He gave the inaugural lecture of the Princeton Lectures in Finance, sponsored by the Bendheim Center for Finance of Princeton University, in 2001. It became a book in 2004, defending neoclassical finance, and such notions as the efficiency and rationality of markets, against critics, especially those who describe their work as behavioral finance.