On the other hand, Romer's research showed that how economic forces command the firms to come up with new ideas and innovations. At a news conference Monday, Romer said his research has left him optimistic that society can solve even a threat as deeply challenging as the warming of the planet.
"This year's Laureates do not deliver conclusive answers, but their findings have brought us considerably closer to answering the question of how we can achieve sustained and sustainable global economic growth", the academy said.
The New York university economist, who has argued that technological change can be accelerated by the targeted use of state interventions in areas such as R&D tax credits and patent regulation, famously inspired Gordon Brown to use the phrase post neo-classical endogenous growth theory in a speech when he was shadow chancellor. In the 1990s, he created an integrated assessment model, which is a quantitative model that describes the global relationship between the climate and the economy.
Paul Romer's research, on the other hand, shows "how the accumulation of ideas sustains long-term economic growth".
Pence accuses China of 'malign' campaign to undermine Trump
Trump's first national security strategy released past year labeled China a "revisionist power" alongside Russian Federation . China said a Chinese warship had been sent to warn the USA vessel to leave an area of irrefutable Chinese sovereignty.
The two economists will share the 9 million Swedish kronor ($1.01 million, €860,000) prize. Last year's economics prize went to alumnus Richard Thaler '74 (PhD), the Charles R. Walgreen Distinguished Service Professor of Behavioral Science and Economics at the Booth School at the University of Chicago and one-time faculty member at what is now Rochester's Simon Business School.
That theory demonstrates how people can be persuaded to make decisions that leave them healthier and happier. The prize is awarded in memory of Alfred Nobel.
The Nobel, which also consists of a diploma and a gold medal, will be presented at a formal ceremony in Stockholm on December 10.
Kavanaugh says he might have been 'too emotional' in testimony
Republicans argued that it exonerated Kavanaugh of any wrongdoing, giving senators more confidence in voting to confirm him. White House spokesman Raj Shah said the Trump administration was "fully confident" Kavanaugh had the necessary support.
Two researchers at American universities have been awarded the Nobel Prize for economics.
That award was postponed by a year for the first time in 70 years over a rape scandal that came to light as part of the #MeToo movement.
The Nobel Prize in Economics was jointly awarded on Monday to Americans William Nordhaus and Paul Romer.
The peace prize was awarded Friday to Denis Mukwege of Congo and Iraqi Nadia Murad for their work to draw attention to how sexual violence is used as a weapon of war.
Jadeja hits debut ton as India declare on record 649-9
Prithvi Shaw had been impressive during India A's tour of England , and was knocking on the doors of the national team. With the achievement, Shaw became the fourth youngest player to score a hundred on debut and the youngest ever Indian.