Economists Nordhaus, Romer awarded 2018 Nobel prize

Cheryl Sanders
October 8, 2018

American duo William Nordhaus and Paul Romer have been awarded the 2018 Nobel Prize in Economics for their efforts in this direction.

Nordhaus completed his PhD dissertation at MIT under the supervision of Robert M. Solow, himself the 1987 victor of the Nobel Prize in economic sciences.

Romer's research, the academy said, depicts how the collection of ideas sustains long-term economic growth.

The Royal Swedish Academy of Sciences said they had addressed "some of our time's most basic and pressing questions" about sustainable growth.

"The key insight of my work was to put a price on carbon in order to hold back climate change", Nordhaus was quoted as saying in a Yale publication this year.

He teaches economics at New York University, where he founded the Stern Urbanisation Project, which researches how policymakers can harness the rapid growth of cities to create economic opportunity and undertake systemic social reform. His work is fundamental to endogenous growth theory, which holds that investments in human capital, innovation and knowledge are significant contributors to economic growth.

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

Unlike the other Nobel prizes which were created in Swedish inventor and philanthropist Alfred Nobel's last will and testament and first awarded in 1901, the economics prize was created by the Swedish central bank, the Riksbank, in 1968 to mark its tricentenary.

The prize awarded Monday is the final Nobel awarded this year after accolades for medicine, physics, chemistry and peace were given last week.

Per Krusell, one of the panel that awarded the prize, said both men were part of the same agenda, thinking about "long-run, global" issues.

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