January 27, 2021

William D. Nordhaus and Paul M. Romer win the Nobel Prize in Economics in 2018 | Economy

William D. Nordhaus and Paul M. Romer win the Nobel Prize in Economics in 2018 | Economy



William D. Nordhaus and Paul M. Romer have been awarded the Nobel Prize in Economics in 2018. Two Americans have won the award for integrating studies on climate change and technological innovations with macroeconomic analysis. "Their findings have significantly expanded the reach of economic analysis through the construction of models that explain how the market economy interacts with nature and knowledge ", highlighted the Swedish academy.

William D. Nordhaus, born in 1941 in Albuquerque (United States), is a professor at Yale University. The Nordhaus findings refer to the interactions between society and nature. "He decided to start working on this issue in the 1970s, as scientists were increasingly concerned about the combustion of fossil fuel that resulted in a warmer climate.In the mid-1990s, it became The first person to create an integrated evaluation model, that is, a quantitative model that describes the global interaction between the economy and the climate, integrates theories and empirical results of physics, chemistry and economics, "the statement said. Of the prize. "The Nordhaus model is now widely disseminated and used to simulate how the economy and climate evolve together, and is used to examine the consequences of climate policy interventions, for example, carbon taxes," he adds.

Paul M. Romer, born in 1955 in Denver (United States), is a professor at the NYU Stern business school. According to the Bank of Sweden, Romer demonstrates how knowledge can function as a motor for long-term economic growth. "Previous macroeconomic research had emphasized technological innovation as the main engine of economic growth, but they had not modeled how economic decisions and market conditions determined the creation of new technologies." Paul Romer solved this problem by demonstrating how economic forces govern economic growth. willingness of companies to produce new ideas and innovations, "he says. Romer's solution, which was published in 1990, laid the foundations for what is now called the theory of endogenous growth. "The theory is conceptual and practical, as it explains how ideas are different from other goods and require specific conditions to thrive in a market." Romer's theory it generated large amounts of new research on regulations and policies that foster new ideas and long-term prosperity. "

50 years of the Nobel Prize in Economics

The Nobel Prize for Economics this year marks 50 years. Popularly known as the Nobel Prize in Economics, an award was first awarded in 1969, it is not really one of the nobeles original, but a different prize to the rest, in honor to Alfred Nobel, and that grants the Bank of Sweden and not the Nobel Foundation.

The profile of the laureate has been very homogeneous over the years: male, American and with a long professional career. The average age of the winners is 67 years. Since its creation, the prize has recognized established figures such as Friedman, Hayek, Samuelson and Stiglitz, among others. To date, only one woman, the American Elinor Ostrom, has been distinguished with this award, which she obtained in 2009 along with her compatriot Oliver E. Williamson for her work in economic governance.

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