Nobel Prize in Economics: Who are William Nordhaus and Paul Romer?

Lloyd Doyle
October 9, 2018

But adopting the regulatory frameworks on a global scale has been a complex challenge, and the world's political leaders are failing to meet it, the head of the United Nations said last month.

William Nordhaus, of Yale University, and Paul Romer, of New York University, will share the nine million krona (£773,000) prize money.

The work of both economists does "not deliver conclusive answers", the Nobel committee said, adding that nevertheless "their findings have brought us considerably closer to answering the question of how we can achieve sustained and sustainable global economic growth". The prize was divided between William D. Nordhaus and Paul M. Romer.

Nordhaus made his name by warning policymakers during the first stirrings of concern about climate change in the 1970s that their economic models were not properly taking account of the impact of global warming and he is seen as one of the pioneers of environmental economics. "Without him, there wouldn't be such a subject of climate economics". Nordhaus has refined multiple iterations of his model. 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.

Nordhaus and Romer show us that good policy for the economy is the same as good policy for promoting the technological advances essential to continued growth of our current economy and the sustainable balances necessary to ensure the future of the global economy and the global environment for the next generations.

Paul Romer is an economist who is also the pioneer of endogenous growth theory that argues that investment in human capital; innovation and knowledge contribute to economic growth. 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.

Romer was born in Denver, Colorado. Apart from this, he obtained an MA and a PhD in Economics from the University of Chicago in 1978 and 1983 respectively.

"'I didn't ever want it, but, yeah, I'll accept!'" he recalled replying at a separate news conference later at New York University.

Nordhaus, 77, is part of a prominent family with long ties to New Mexico. He received his undergraduate degree from Yale University and a economics from the Massachusetts Institute of Technology before becoming joining the Yale faculty in 1967.

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

Other reports by Iphone Fresh

Discuss This Article