Nobel Prize in Economic Sciences-2018 goes to William Nordhaus, Paul Romer

Americans William D Nordhaus and Paul M Romer win 2018 Nobel Prize in Economics

Americans William D Nordhaus and Paul M Romer win 2018 Nobel Prize in Economics

Romer, who is at the NYU Stern School of Business in NY, was honoured for his work on the role of technological change in economic growth.

In scholarly work done more than three decades ago, economist Paul Romer proposed that societies look beyond the material drivers of long-term growth, such as oil, ports, or labor.

Per Stromberg, head of the Nobel economics prize committee, said "it's about the long-run future of the world economy". Nordhaus' research shows that the most efficient remedy for problems caused by greenhouse gas emissions is a global scheme of carbon taxes uniformly imposed on all countries.

Farrell: That's right. He is, since the mid-1970s, has been working on creating a model, and it's about the economics and technology and climate, and it's basically the model that everyone is using to try and understand, "What is the long-term effect of global climate change and what should be our economic response?" "I hope the prize today could help everyone see that humans are capable of wonderful accomplishments when we set about trying to do something".

This year's laureates were announced as the United Nations issued a stark warning on the growing threat of climate change, adding pressure on policy makers and business leaders to do more to address the risks.

Many economists have since endorsed the concept of taxing carbon and using this financial lever to influence societal behaviour. "And to raise the prices of goods and services that are carbon-intensive and to lower the ones that are less carbon-intensive". Examples include subsidies for research and development, and patent policies that strike a balance between letting inventors profit from their breakthroughs and allowing others to put those innovations to work.

Justin Wolfers, an economist at the University of MI, said on Twitter that the work of both winners showed "smart government policies" are "essential if the economy is to deliver good outcomes in the long run".

Governments have the power to promote or discourage innovation through policy.

By contrast, an idea - say, a recipe for Swedish meatballs - can be shared and used over and over again, delivering continual economic benefits.

An assistant professor of economics at Rochester from 1982 to 1988, Romer went on to appointments at the University of Chicago, the University of California at Berkeley, and Stanford University before his appointment at NYU's Stern School of Business.

The recipient of the Economics award past year was Richard H. Thaler for his pioneering work in establishing that human behaviour is irrational and in defiance of economic theory.

Nordhaus of Yale university was awarded with the Nobel Prize 2018 in Economics (Yale, 2018).

The Nobel prizes for physiology or medicine, physics, chemistry and peace were awarded last week.

The Nobel Prize in Economics, formally called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was first awarded in 1968.

Romer, a former chief economist of the World Bank, received the prize "for integrating technological innovations into long-run macroeconomic analysis", the Nobel committee said.

Romer is now on leave from Stern, which he joined in 2010, and in the past taught undergraduates at NYU's Shanghai campus.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.