Roles of ideas and climate in growth earn duo economics Nobel prize

William Nordhaus left on screen and Paul Romer share the 2018 Nobel Memorial Prize in Economic Sciences

This year's Nobel prize for economics has been awarded to William Nordhaus and Paul Romer for their work on climate change. He founded the NYU Stern Urbanization Project a year later where he conducted applied research on the many ways that policy makers in the developing world can use the growth of cities to create economic opportunity and pursue social reform.

Nordhaus (77) is a sterling professor of economics at Yale University in New Haven, US and he won the award for integrating climate change into long-run macroeconomic analysis.

Romer had shown how economic forces govern the willingness of firms to innovate, helping some societies grow many times faster than others. The model has been used by the Environmental Protection Agency and the Intergovernmental Panel on Climate Change, an worldwide group of scientists who assess the global effects of climate change. His research has led to the formation of a new theory dubbed as endogenous growth theory.

When Swedish industrialist Alfred Nobel established the prizes in his will, economics wasn't one of the undertakings he wanted honoured.

He began working on the interactions between energy and the economy in the 1970s and since the 1990s has produced models that have helped economist quantify the impact that climate change will have on the economy. Many Republicans in Congress have also expressed skepticism about whether or how much human beings are contributing to global warming and whether the US government ought to take steps to address it.

Turkey has concrete information on disappearance of Saudi dissident, authorities say
Turkish officials have said authorities believe Khashoggi was killed at the consulate, allegations denied by Saudi Arabia . The ambassador declined to discuss the matter further, instead saying, "We don't want to harm the investigation".

The applications of the model for the carbon tax has been criticized for several reasons, though. While many developed economies have adopted a carbon tax, the United States has not.

The committee said: "Romer demonstrates how knowledge can function as a driver of long-term economic growth". But adopting the regulatory frameworks on a global scale has proved problematic, and the world's political leaders are failing to meet it, the head of the United Nations said last month. Government policies, he found, are vital. The theory is both conceptual and practical, as it explains how ideas are different to other goods and require specific conditions to thrive in a market.

Last year, the honour went to US economist Richard Thaler, a co-founder of the so-called "nudge" theory.

"This year's Laureates do not deliver conclusive answers, but their findings have brought us considerably closer to answering the question of how we can achieve sustained and sustainable global economic growth", the Nobel Prize committee said.

The peace prize, which was announced in Oslo on October 5, was awarded to Denis Mukwege, a gynecologist from the Democratic Republic of Congo, and Nadia Murad, an activist and victim of war crimes.

Related news:

Hot News

isis-killer-beheading-video-story-top Google+ is officially shutting down
Oct 09, 2018 - 01:42
In 2011, it found that Google broke its own privacy policies when it introduced its Buzz social network - a precursor to Google +. In a statement, Google officials said there were other reasons for withholding public disclosure of the data exposure.

isis-killer-beheading-video-story-top Bulgarian broadcast journalist raped and murdered
Oct 09, 2018 - 01:31
The Bulgarian prime minister, Boyko Borisov, said: "The best criminologists were sent to Ruse, let's not press them". Condolences poured in on social media for Marinova who leaves behind a small child.

isis-killer-beheading-video-story-top Unemployment rate falls to 3.7 percent, lowest mark since 1969
Oct 08, 2018 - 01:10
From the low point in the aftermath of the financial crisis, the number with jobs has increased by nearly 20 million. That means the jobs report data may not give an accurate picture of the health of the labor market for some time.

isis-killer-beheading-video-story-top Tropical Storm Michael Forms, Forecasted to Become Hurricane By Wednesday
Oct 08, 2018 - 01:04
It may achieve hurricane status with wind speeds of 74 miles per hour or higher before it makes landfall on Wednesday. Today's forecast for Palm Beach County includes a 20 to 30 percent chance of rain with highs in the upper 80s.

isis-killer-beheading-video-story-top Chances of Brexit deal in November are improving: EUs Jean-Claude Juncker
Oct 07, 2018 - 03:23
Even though we haven't changed our minds that the consequences of Brexit will be negative, for both sides. That is in the discretion of the British parliament and the government. "There is enough confusion".

isis-killer-beheading-video-story-top Tom Brady joins exclusive club with 500th touchdown
Oct 07, 2018 - 03:08
After New England's win over Indy, Brady did what Brady always does, he credited everyone who helped him get to where he is today. While the score indicated that the game was somewhat close , the Patriots handled the Colts somewhat easily.

isis-killer-beheading-video-story-top Pep Guardiola confirms shock team news ahead of Liverpool clash
Oct 07, 2018 - 02:53
Liverpool have lost only seven of the last 36 league meetings home and away between the sides, and nine of the last 51. Now we will have three days together until we play City and (we could) make the boys aware of what was all wrong.

isis-killer-beheading-video-story-top Tesla anxious by China tariffs even as deliveries surge
Oct 07, 2018 - 02:47
The prospect generated a firestorm on social media and in various countries that increased the value of Tesla's stakes. The M3 is supposed to start at $35,000, but the cheapest models offered on Tesla's website are priced at $49,000 .

isis-killer-beheading-video-story-top Chicago Officer Jason Van Dyke Found Guilty in Murder of LaQuan McDonald
Oct 07, 2018 - 02:23
He had been charged with first degree-murder, a charge that requires a finding that the shooting was unnecessary and unreasonable. Correction: Earlier versions of this story incorrectly stated that Van Dyke was handcuffed as he was led from the courtroom.

isis-killer-beheading-video-story-top US First Lady Melania Trump wraps up solo African tour in Egypt
Oct 07, 2018 - 02:15
She closed her tour in Egypt by touring the pyramids and the Great Sphinx to highlight US -backed preservation efforts there. Trump said she didn't hear the president make the remarks and that none of her hosts during the trip brought up the topic.

isis-killer-beheading-video-story-top Elon Musk takes swipe at SEC on heels of fraud settlement
Oct 07, 2018 - 02:07
FBN's Charlie Gasparino on the reports that Tesla CEO Elon Musk could help select the company's new directors and chairperson. He compared several of CEO Elon Musk's recent actions to Lehman's threats toward short sellers and refusals to raise capital.

isis-killer-beheading-video-story-top Dutch PM defends decision not to arrest Russian spies
Oct 07, 2018 - 01:50
Following these hacks, the personal medical information of more than 250 athletes from 30 counties was illegally released online. He showed passports identifying the Russians as Alexeksei Morenets, Evgenii Serebriakov, Oleg Sotknikov and Alexey Minin.

isis-killer-beheading-video-story-top Senate Narrowly Advances Kavanaugh Nomination
Oct 06, 2018 - 13:21
Senators voted 51-49 on a key procedural vote Friday to end debate on Kavanaugh, lining up Saturday's final confirmation vote. Lisa Murkowski turned against Supreme Court nominee Brett Kavanaugh quietly, uttering a single word: "No".

isis-killer-beheading-video-story-top Disbarred lawyer suspected of shooting officers in fatal SC standoff
Oct 06, 2018 - 12:33
The sheriff says he should be released from the hospital Friday after suffering a head injury. "Fire was being shot all over". Two sheriff's deputies are in critical condition, Chief Deputy Glenn Kirby said, and the third is in stable condition.

isis-killer-beheading-video-story-top Cesc Fabregas wishes Maurizio Sarri had arrived at Chelsea sooner
Oct 06, 2018 - 12:25
I think very well in the last 30 minutes in Greece and very well for 90 minutes in Liverpool. But I'd love to stay at the club. 'I've been very happy for the last four years and a half.