Paul Romer, the newly appointed chief economist of the World Bank and the former New York University professor is likely to get the 2016 Nobel Economics Prize. According to reports, economists working on growth and labour markets are among those vying for the prestigious prize this year. The Nobel Economics Prize was created by the Swedish Central bank in 1968, while the rest of Nobel prizes were set up as per the 1895 will of inventor Alfred Nobel.
Often the Nebel Committee select pairs or trios for the coveted prize. However, last year the prize went to US-British researcher Angus Deaton for his work on poverty. Romer is an academic, activist as well as an entrepreneur. He was appointed as the World bank chief economist in July. Swedish paper,
Romer is an academic, activist as well as an entrepreneur. He was appointed as the World bank chief economist in July. Swedish paper Nyheterm reported that Romer is the front runner for the Nobel Economics because of his “pioneering work on endogenous growth theory”.
The endogenous growth theory tries to incorporate the way that people innovate and develop technologies into models of economic growth. Last week, the NYU had accidently published a press release declaring the Nobel Economics to Romer.
Romer helped develop the theory in the 1980s and 1990s. It also holds that the spillover effects of a knowledge-based economy will lead to economic development and that the long-run growth rate of an economy can be increased with measures such as subsidies for research and development, and education.
(With inputs from agencies)