Nobel Prize 2018 in Economic Sciences (The Sveriges Riksbank Prize) was divided equally between William D. Nordhaus and Paul M. Romer.
William D. Nordhaus and Paul M. Romer have designed methods for about how we create long-term sustained and sustainable economic growth.
William D. Nordhaus have been contributed “for integrating climate change into long-run macroeconomic analysis. He became the first person to create an integrated assessment model, e. a quantitative model that describes the global interplay between the economy and the climate. Nordhaus’ model is used to examine the consequences of climate policy interventions, for example carbon taxes.
Paul M. Romer has integrated technological innovations into long-run macroeconomic analysis. Romer demonstrated how knowledge can function as a driver of long-term economic growth by his “endogenous growth theory” which explains how ideas are different to other goods and require specific conditions to thrive in a market. Romer’s theory has generated vast amounts of new research into the regulations and policies that encourage new ideas and long-term prosperity.