NYU Professor Awarded Nobel Prize
- Author: Rogelio Becker Oct 09, 2018,
Oct 09, 2018, 2:28
Romer received the award for what the the Royal Swedish Academy of Sciences cited as his work "integrating technological innovations into long-run macroeconomic analysis.Ó Both Romer and NordhausÕs work has highlighted the global debate over the impact of climate change". The statement said Nordhaus was the first person to create a quantitative model that describes the global interplay between the economy and the climate.
In this photo taken on April 05, 2000, USA president Bill Clinton sits next to Dr. William D. Nordhaus (R), professor of economics at Yale University, during the morning session of The White House Conference On The New Economy in the East Room of the White House.
The two men were awarded the prize for their roles in changes to long-term economic forecasting. He has endorsed a universal tax on carbon, which would require polluters to pay for the costs that their emissions impose on society. The climate then affects economic growth, and the cycle repeats. His economic simulations show various scenarios where carbon taxes are implemented worldwide. "It is used to examine the consequences of climate policy interventions, for example carbon taxes". The model doesn't include climate tipping points, which have the capacity to be devastating, and it looks at keeping the climate below 3°C above pre-industrial levels, which we're already in line to hit. His research has led to the formation of a new theory dubbed as endogenous growth theory. To help in that effort, he constructed integrated economic and scientific computer models to determine the most efficient ways to cope with climate change.
Nicolai Foss wrote an interesting critique of Romer-style "new growth theory" in 2006, arguing that "its essential ideas have been known for a long time, and.it does not really make contact with a large literature on institutions and economic change".
Romer was born in Denver, Colorado. "Graduate work in economics (first at MIT, then Queens University, and the University of Chicago) was a compromise that brought me back toward the policy concerns I had been exposed to as a youth but still left plenty of room for abstract theorizing of the type that attracted me to physics".
Nordhaus was born in Albuquerque, New Mexico.
The economists Paul Romer and William Nordhaus have been awarded 2018's Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel, often considered to be the most prestigious prize in the field of economics. A total of 81 laureates have been named over the prize's 50 year history.
George Alessandria, the chair of Rochester's Department of Economics, says the members of the department are thrilled that Romer is being recognized with the Nobel Prize.