Published: Mon, October 08, 2018
Worldwide | By Myra Stephens

Two Americans win Nobel Prize in economics

Two Americans win Nobel Prize in economics

The academy said Nordhaus was honoured for "integrating climate change into long-run macroeconomic analysis" and Romer for "integrating technological innovations into long-run macro-economic analysis". His economic approaches to global warming include modeling to determine the efficient path for coping with climate change.

On the other hand, Romer's research showed that how economic forces command the firms to come up with new ideas and innovations. "The main recipe.is to make sure governments, corporations and households face a high price on their carbon emissions". His research has led to the formation of a new theory dubbed as endogenous growth theory.

Romer's career has taken him outside the academic world.

Romer was able to apply his theory as Chief Economist and Senior Vice President of the World Bank, a position that he held from October 2016 to January of this year.

Interest rates remain at or close to record lows in many major economies, including Sweden, where they have languished below zero since early 2015.

Whether economics is a genuine science in the sense of the Nobels awarded for accomplishments in medicine, chemistry and physics can be debated; the award often goes to work that has a high level of abstraction.

This year's proceedings have been overshadowed by the absence of the literature prize, postponed to give the Swedish Academy time to restore public trust after a sexual assault scandal.

The two economists will share the 9 million Swedish kronor ($1.01 million, €860,000) prize.

The Sveriges Riksbank Prize in Economic Sciences, as it is formally known, was created in memory of Alfred Nobel in 1968.

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