[2] In August 2014, Prescott was appointed an Adjunct Distinguished Economic Professor at the Australian National University (ANU) in Canberra, Australia.

In August 2014, Prescott was appointed an Adjunct Distinguished Professor at Research School of Economics (RSE) of the Australian National University.

[10] The Research Papers in Economics project ranked him as the 19th most influential economist in the world as of August 2012 based on his academic contributions.

Prescott and Kyland were pointing out that agents in the economy already factor into their decision making the assumed response by policy makers to a given economic climate.

Additionally Prescott and Kydland felt that the policy makers due to their relationship with government suffered from a credibility issue.

[11] The second paper, written in 1982, "Time to Build and Aggregate Fluctuations," Prescott and Kydland argued that shifts in supply typically caused by changes and improvements in technology accounted for "Not only long term increases in living standards but also to many of the short term fluctuations in business cycles."

In January 2009 Prescott, along with more than 250 other economists and professors,[14] signed an open letter to U.S. President Barack Obama opposing the passage of the American Recovery and Reinvestment Act.

The letter was sponsored by libertarian think tank, the Cato Institute, and was printed as a paid advertisement in several newspapers including The New York Times and the Arizona Republic.