The analyst commented on the choice of the Nobel prize in Economics

© REUTERS / Andrew FilksОбъявление Nobel prize in Economics in 2018 in StockholmThe analyst commented on the choice of the Nobel prize in Economics© REUTERS / Ilze Filks

New laureates of the economic prize in memory of Alfred Nobel William Nordhaus, and Paul Romer expanded the understanding of what to consider when developing macroeconomic models, told RIA Novosti Director of the Institute for data analysis Deloitte Alexey Minin.

The Royal Swedish Academy of Sciences announced earlier on Monday about awarding the prize in Economics, established in memory of Alfred Nobel by the Swedish Central Bank in 1968, working in the US professors William Nordhaus and Sex Romero. Both will get the award for research integration in long-run macroeconomic analysis: Nordhaus — climate change, Romer — technological innovation.

«Both works have expanded the understanding of what to consider when developing macroeconomic models. This is, apparently, formed the basis of the decision of the jury. The previous award was given for the irrationality of the behavior of agents in the economy. This work (Romer and Nordhaus — ed.) has more to do with the interaction of the economy with nature, knowledge,» — said the expert.

According to Minin, the work is dedicated to the Romer endogenous development, the development of the knowledge economy, the experience of the people who create the economy in the long term.

«That is, it is about how the economy is developing inside, promoting technology, innovation, knowledge. It is that the economy can grow regardless of external factors. It is also fundamentally important. For the most part we hear that external influences on our economy leads to so and so consequences. The idea is that the economy can steadily grow and cultivate itself. This is the second approach to macroeconomic modeling across the country,» he said.

The study Nordhaus, in turn, on climate change and the impact of growing economy on the climate. «Both studies address the same subject from slightly different angles. One part — about climate and climate impact on long-term macroeconomic model, and the second part is about endogenous development through innovation. Though they are different, but a little about the same — how the economy interacts with the knowledge, climate», — concluded the expert.

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