Two American researchers with ties to the Massachusetts Institute of Technology won the Nobel Prize for economic science on Monday.
William D. Nordhaus, 77, is a professor of economics at Yale University and was awarded the prize for his work on the interaction between climate change and the economy. Nordhaus shares the prize with Paul M. Romer, 62, of New York University's Stern School of Business, who has researched the link between technology and the economy.
Both researchers studied at MIT, according to the school. Nordhaus received his PhD in economics from MIT in 1967 and Romer completed graduate work at MIT, after which he received his doctorate in economics from the University of Chicago.
The two researchers were honored for their work that provided insight into the “causes and consequences” of both technological innovation and climate change, as well as how the two topics intersect with economics.
Nordhaus was specifically awarded the Nobel in economics “for integrating climate change into long-run macroeconomic analysis,” according to the Royal Swedish Academy of Sciences, and Romer for “integrating technological innovations” into economic analysis.
The two researchers helped broaden the scope of economics with their work, according to the Academy, by creating models that explain “how the market economy interacts with nature and knowledge.”
MIT history with Nobel Prize
Nordhaus’s win marks the 37th MIT alumnus to win a Nobel Prize, according to the school, and the 90th winner with a connection to MIT.
Nordhaus completed his PhD dissertation at MIT under the supervision of a future Nobel winner: Robert M. Solow, who won the prize in economic sciences in 1987.
When it comes to the Nobel Prize in economic sciences specifically, MIT has a track record with that award, as well: five people have won the Nobel Prize in economic sciences while working as school faculty; another 11 MIT alumni, including Nordhaus, have won the prize; and additional seven former MIT faculty have won the Nobel Prize in economic sciences.