Americans Thomas Sargent of New York University, and Christopher Sims of Princeton University have been awarded the Nobel prize in economics “for their empirical research on cause and effect in the macroeconomy”.
Sargent is recognized for contributions to developing and applying modeling and methodology using structural macroeconometrics in analyzing permanent changes in economic policy. Sims’ developed methods using “vector autoregression to analyze how the economy is affected by temporary changes in economic policy.” Using these varied econometric tools, the Nobel prize committee recognized that “……their contributions are complementary in several ways. Today, the methods developed by Sargent and Sims are essential tools in macroeconomic analysis.
I have read an interesting article by Nikolay Gertchev, “The Economic Nobel Prize” (*) which I would like to share with you.
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(*)Nikolay Gertchev, “The Economic Nobel Prize,” Libertarian Papers 3, 9 (2011). Libertarian Papers 3, 9 (2011). ONLINE AT: libertarianpapers.org