Nobel Prize for Economics awarded to researchers from NYU and Yale

Two researchers at American universities have been awarded the 2018 Nobel Prize for Economics: New York University's Paul Romer (L) and Yale University's William Nordhaus (R). (L - AP Photo/Virginia Mayo; R - Michael Marsland/Yale University via AP)

Two researchers at American universities have been awarded the Nobel Prize for economics.

Yale University's William Nordhaus was named for integrating climate change into long term macroeconomic analysis and New York University's Paul Romer was awarded for factoring technological innovation into macroeconomics.

They will share the $1.01 million prize.

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In awarding the Nobel prize in economics, the Swedish Royal Academy of Sciences cited Nordhaus for showing that "the most efficient remedy for problems caused by greenhouse gases is a global scheme of universally imposed carbon taxes."

A faculty member at Yale University since 1967, Nordhaus' research has focused on economic growth and natural resources, and the economics of climate change. His economic approaches to global warming include modeling to determine the efficient path for coping with climate change.

He's also studied wage and price behavior, health economics, augmented national accounting, the political business cycle, productivity, and the "new economy." His current work on what he calls his "G-Econ project" promises to provide the first comprehensive measures of economic activity at a geophysical scale.

The Swedish Royal Academy said that the work of Paul Romer, who shared the award announced Monday, showed "economic forces govern the willingness of firms to produce new ideas and innovations."

Romer says he ignored two telephone calls before the Royal Academy was able to get through to him.

"I didn't answer either because I thought it was a spam call," he said.

Romer teaches economics at New York University, where he founded the Stern Urbanization Project, which researches how policymakers can harness the rapid growth of cities to create economic opportunity and undertake systemic social reform.

Romer also works with civic innovators as director of NYU's Marron Institute of Urban Management. The university says he founded Aplia, an education technology application where students have submitted more than 1 billion answers to homework problems.

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