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Joseph E. Stiglitz

Born February 9, 1943 (1943-02-09) (age 65)
Gary, Indiana
Residence Flag of the United States U.S.
Nationality Flag of the United States American
Fields Economics
Institutions Columbia University
Alma mater MIT
Amherst College
Doctoral advisor Robert Solow
Known for Screening
Notable awards John Bates Clark Medal (1979)
The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (2001)

Joseph Eugene "Joe" Stiglitz (born February 9, 1943) is an American economist and a member of the Columbia University faculty. Events 474 - Zeno crowned as co-emperor of the Byzantine Empire. Year 1943 ( MCMXLIII) was a Common year starting on Friday (the link will display full 1943 calendar of the Gregorian calendar. The United States of America —commonly referred to as the The United States of America —commonly referred to as the Economics is the social science that studies the production distribution, and consumption of goods and services. Columbia University is a private University in the United States and a member of the Ivy League. Alma mater is Latin for "nourishing mother" It was used in Ancient Rome as a title for the mother Goddess, and in Medieval Amherst College is a private liberal arts college in Amherst, Massachusetts, USA. A doctorate is an Academic degree that indicates the highest level of academic achievement Robert Merton Solow (born August 23 1924 is an American Economist particularly known for his work on the theory of Economic growth. Screening in Economics refers to a strategy of combating Adverse selection, one of the potential decision-making complications in cases of Asymmetric information The biennial John Bates Clark Medal is awarded by the American Economic Association to "that American economist under the age of forty who is adjudged to have The Nobel Memorial Prize in Economic Sciences, officially named The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (Sveriges riksbanks pris i ekonomisk Events 474 - Zeno crowned as co-emperor of the Byzantine Empire. Year 1943 ( MCMXLIII) was a Common year starting on Friday (the link will display full 1943 calendar of the Gregorian calendar. The United States of America —commonly referred to as the An economist is an expert in the Social science of Economics. Columbia University is a private University in the United States and a member of the Ivy League. He is a recipient of the John Bates Clark Medal (1979) and the The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (2001). The biennial John Bates Clark Medal is awarded by the American Economic Association to "that American economist under the age of forty who is adjudged to have Year 1979 ( MCMLXXIX) was a Common year starting on Monday (link displays the 1979 Gregorian calendar) The Nobel Memorial Prize in Economic Sciences, officially named The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (Sveriges riksbanks pris i ekonomisk Year 2001 ( MMI) was a Common year starting on Monday according to the Gregorian calendar. Former Senior Vice President and Chief Economist of the World Bank, he is known for his critical view of globalization, free-market economists (whom he calls "free market fundamentalists") and some international institutions like the International Monetary Fund and the World Bank. The position of World Bank Chief Economist is one of the most influential in Economics. The World Bank is an internationally supported Bank that provides financial and technical assistance to developing countries for development programs (e Globalization (or globalisation) in its literal sense is the process of transformation of local or regional phenomena into global ones Market fundamentalism (also known as free market fundamentalism) is an expression used by critics of Laissez-faire capitalism, usually by adherents of Interventionist The International Monetary Fund ( IMF) is an International organization that oversees the Global financial system by following the Macroeconomic The World Bank is an internationally supported Bank that provides financial and technical assistance to developing countries for development programs (e In 2000 Stiglitz founded the Initiative for Policy Dialogue (IPD), a think tank on international development based at Columbia University. The Initiative for Policy Dialogue (IPD is a Non-profit organization based at Columbia University in the United States A think tank (also called a policy institute) is an organization institute corporation or group that conducts Research and engages in advocacy in areas such Columbia University is a private University in the United States and a member of the Ivy League. Since 2001 he has been a member of the Columbia faculty, and has held the rank of University Professor since 2003. The meaning of the word professor ( Latin: professor, person who professes to be an expert in some art or science teacher of highest rank) varies He also chairs the University of Manchester's Brooks World Poverty Institute and is a member of the Pontifical Academy of Social Sciences. The University of Manchester is a " red brick " civic University located in Manchester, England. The Brooks World Poverty Institute (BWPI is a research centre connected to the University of Manchester dedicated to multidisciplinary research on poverty inequality and growth The Pontifical Academy of Social Sciences was established in January 1994 by Pope John Paul II. Stiglitz is the second most cited economist in the world, as of 2008. [1]

Contents

Biography

Stiglitz was born in Gary, Indiana, to Jewish parents, Charlotte and Nathaniel Stiglitz. The State of Indiana ( was the 19th US state admitted into the union PLEASE TAKE NOTE************ From 1960 to 1963, he studied at Amherst College, where he was a highly active member of the debate team and President of the Student Government. Amherst College is a private liberal arts college in Amherst, Massachusetts, USA. He went to the Massachusetts Institute of Technology (MIT) for his fourth year as an undergraduate, where he later pursued graduate work. His undergraduate degree was awarded from Amherst College. From 1965 to 1966, he moved to the University of Chicago to do research under Hirofumi Uzawa who had received an NSF grant. The University of Chicago is a Private university located principally in the Hyde Park neighborhood of Chicago. Hirofumi Uzawa (宇澤弘文 1928 -) is a Japanese Economist, Professor emeritus of Tokyo University, and a member of the Japan Academy He studied for his PhD from MIT from 1966 to 1967, during which time he also held an MIT assistant professorship. The particular style of MIT economics suited him well - simple and concrete models, directed at answering important and relevant questions [2]. From 1969 to 1970, he was a Fulbright research fellow at the University of Cambridge. The Fulbright Program, including the Fulbright-Hays Program, is a program of grants for international educational exchange for scholars educators graduate The University of Cambridge (often Cambridge University) located in Cambridge, England, is the second-oldest university in the In subsequent years, he held professorships at Yale University, Duke University, Stanford University, Oxford University and Princeton University. Duke University is a private Research University located in Durham, North Carolina, United States. Leland Stanford Junior University, commonly known as Stanford University or simply Stanford, is a private Research university located in The University of Oxford (informally "Oxford University" or simply "Oxford" located in the city of Oxford, Oxfordshire, England is the Princeton University is a private Coeducational research university located in Princeton, New Jersey. Stiglitz is currently a Professor at Columbia University, with appointments at the Business School, the Department of Economics and the School of International and Public Affairs (SIPA), and is editor of The Economists' Voice journal with J. Bradford DeLong and Aaron Edlin. Columbia University is a private University in the United States and a member of the Ivy League. History Alonzo Barton Hepburn, then president of Chase Manhattan Bank, founded the School in 1916 with 11 full-time faculty members Economics is the social science that studies the production distribution, and consumption of goods and services. James Bradford DeLong (b June 24 1960, Boston) commonly known as Brad DeLong, is a professor of Economics at the University Stiglitz is generally considered to be a New-Keynesian economist. New Keynesian economics is a school of contemporary Macroeconomics that strives to provide microeconomic foundations for Keynesian economics.

In addition to making numerous influential contributions to microeconomics, Stiglitz has played a number of policy roles. Microeconomics is a branch of Economics that studies how individuals households and firms and some states make decisions to allocate limited resources typically in markets He served in the Clinton Administration as the chair of the President's Council of Economic Advisors (1995 – 1997). William Jefferson "Bill" Clinton (born William Jefferson Blythe III, August 19 1946 served as the forty-second President of the United States The Council of Economic Advisers (CEA is a group of Economists who advise the President of the United States. Year 1995 ( MCMXCV) was a Common year starting on Sunday. Events of 1995 Year 1997 ( MCMXCVII) was a Common year starting on Wednesday (link will display full 1997 Gregorian calendar At the World Bank, he served as Senior Vice President and Chief Economist (1997 – 2000), in the time when unprecedented protest against international economic organizations started, most prominently with the Seattle WTO meeting of 1999. The World Bank is an internationally supported Bank that provides financial and technical assistance to developing countries for development programs (e Year 1997 ( MCMXCVII) was a Common year starting on Wednesday (link will display full 1997 Gregorian calendar 2000 ( MM) was a Leap year that started on Saturday of the Common Era, in accordance with the Gregorian calendar. Protest activity surrounding the WTO Ministerial Conference of 1999, which was to be the launch of a new millennial round of Trade negotiations occurred He was a lead author for the Intergovernmental Panel on Climate Change

Some of Stiglitz's most important contributions to economics

Information Asymmetries

Stiglitz's most famous research was on screening, a technique used by one economic agent to extract otherwise private information from another. Screening in Economics refers to a strategy of combating Adverse selection, one of the potential decision-making complications in cases of Asymmetric information It was for this contribution to the theory of information asymmetries that he shared the Nobel Memorial Prize in Economics[2] in 2001 "for laying the foundations for the theory of markets with asymmetric information" with George A. Akerlof and A. Michael Spence. In Economics and Contract theory, information asymmetry deals with the study of decisions in transactions where one party has more or better Information In Economics and Contract theory, information asymmetry deals with the study of decisions in transactions where one party has more or better Information George Arthur Akerlof (born June 17, 1940) is an American Economist and Koshland Professor of Economics at the Andrew Michael Spence (born November 7, 1943) is an American -born Canadian -raised Economist and recipient of the 2001

Traditional neoclassical economics literature assumes that markets are always efficient except for some limited and well defined market failures; Stiglitz et al. Neoclassical economics is a term variously used for approaches to Economics focusing on the determination of prices outputs and income distributions in markets more recent studies reverse that presumption: it is only under exceptional circumstances that markets are efficient. Stiglitz (and Greenwald) [3] show that "whenever markets are incomplete and /or information is imperfect (which are true in virtually all economies), even competitive market allocation is not constrained Pareto efficient". Pareto efficiency, or Pareto optimality, is an important concept in Economics with broad applications in Game theory, Engineering and the In other words, there almost always exists schemes of government intervention which can induce Pareto superior outcomes, thus making everyone better off [3]. Pareto efficiency, or Pareto optimality, is an important concept in Economics with broad applications in Game theory, Engineering and the Although these conclusions, and the pervasiveness of market failures, do not at all warrant the state intervening broadly in any economy, it makes clear that the "optimal" range of government recommendable interventions is definitely much larger than the traditional "market failure" school recognizes [4] For Stiglitz there is no such thing as an "invisible hand" [5]. The invisible hand is a Metaphor coined by the Economist Adam Smith.

Whenever there are “externalities”—where the actions of an individual have impacts on others for which they do not pay or for which they are not compensated—markets will not work well. But recent research has shown that these externalities are pervasive, whenever there is imperfect information or imperfect risk markets—that is always.
The real debate today is about finding the right balance between the market and government (and the third “sector”—non-governmental non-profit organizations. ) Both are needed. They can each complement each other. This balance will differ from time to time and place to place. [6]

In the opening remarks for his prize acceptance "Aula Magna" [7], Stiglitz said:

"I hope to show that Information Economics represents a fundamental change in the prevailing paradigm within economics. Information economics or the economics of information is a branch of microeconomic theory that studies how information affects an Economy and economic decisions Problems of information are central to understanding not only market economics but also political economy, and in the last section of this lecture, I explore some of the implications of information imperfections for political processes. " Stiglitz, Aula Magna

In an interview, Stiglitz explained further:

"The theories that I (and others) helped develop explained why unfettered markets often not only do not lead to social justice, but do not even produce efficient outcomes. Interestingly, there has been no intellectual challenge to the refutation of Adam Smith’s invisible hand: individuals and firms, in the pursuit of their self-interest, are not necessarily, or in general, led as if by an invisible hand, to economic efficiency. The invisible hand is a Metaphor coined by the Economist Adam Smith. The invisible hand is a Metaphor coined by the Economist Adam Smith. " [8]

Efficiency wages: the Shapiro-Stiglitz model

Stiglitz also did some research on efficiency wages, and helped create what became know as the "Shapiro-Stiglitz model" to explain why there is unemployment, why wages aren't bid down sufficiently by job seekers (in the absence of minimum wages) so that everyone who wants a job finds one, and to question whether the neoclassical paradigm could explain involuntary employment. In Labor economics, the efficiency wage hypothesis argues that wages at least in some markets are determined by more than simply Supply and demand. Unemployment occurs when a person is available to work and currently seeking work but the person is without work. Neoclassical economics is a term variously used for approaches to Economics focusing on the determination of prices outputs and income distributions in markets [9] The answer to these puzzles was proposed by Shapiro and Stiglitz in 1984: "Unemployment is driven by the information structure of employment" [9]. Carl Shapiro is the Transamerica Professor of Business Strategy at the Haas School of Business at the University of California Berkeley. Two basic observations undergird their analysis:

The mathematical analysis of the "Shapiro-Stiglitz model" is beyond the scope of this article. A full model description can be found at the links provided [10]. Some key implications of this model are:

The outcome is never Pareto efficient. Pareto efficiency, or Pareto optimality, is an important concept in Economics with broad applications in Game theory, Engineering and the

Main article: Efficiency wages

Some possible practical implications of Stiglitz theorems

While there can be no possible questioning of the mathematical validity of Stiglitz et al. In Labor economics, the efficiency wage hypothesis argues that wages at least in some markets are determined by more than simply Supply and demand. theorems, their practical implications in political economy and their application in real life economic policies have been subject to considerable debates and disagreements [11]. Political economy originally was the term for studying production buying and selling and their relations with law custom and government Economic policy refers to the actions that Governments take in the economic field. Stiglitz himself seems to be continuously adapting his own political-economic discourse, [12] as we can see from the evolution in his positions as initially stated in Whither Socialism? (1994) to his own new positions held on his most recent publications.

Once incomplete and imperfect information are introduced, Chicago-school defenders of the market system cannot sustain descriptive claims of the Pareto efficiency of the real world. Pareto efficiency, or Pareto optimality, is an important concept in Economics with broad applications in Game theory, Engineering and the Thus, Stiglitz's use of rational-expectations equilibrium assumptions to achieve a more realistic understanding of capitalism than is usual among rational-expectations theorists leads, paradoxically, to the conclusion that capitalism deviates from the model in a way that justifies state action--socialism--as a remedy. Socialism refers to a broad set of economic theories of social organization advocating state or collective ownership and administration of the Means of production and distribution [13]
The effect of Stiglitz's influence is to make economics even more presumptively interventionist than Samuelson preferred. Samuelson is an English language Patronymic Surname meaing son of Samuel. Samuelson treated market failure as the exception to the general rule of efficient markets. Samuelson is an English language Patronymic Surname meaing son of Samuel. But the Greenwald-Stiglitz theorem posits market failure as the norm, establishing "that government could potentially almost always improve upon the market's resource allocation. " And the Sappington-Stiglitz theorem "establishes that an ideal government could do better running an enterprise itself than it could through privatization"[14] (Stiglitz 1994, 179). [13]

The objections to the wide adoption of these positions suggested by Stiglitz's discoveries do not come from economics itself but mostly from political scientists and are in the fields of sociology. Economics is the social science that studies the production distribution, and consumption of goods and services. Sociology (from Latin: socius "companion" and the suffix -ology "the study of" from Greek λόγος lógos "knowledge" As David L. Prychitko discusses in his "critique" to Whither Socialism? (see below), although Stiglitz's main economic insight seems generally correct, it still leaves open to question great constitutional questions such as how the coercive institutions of the state should be constrained and what is the relation between the state and civil society. [15]

Politics

Stiglitz in Washington (1992 - 2000)

Stiglitz moved to Washington in March 1992 to join the Clinton Administration, first as a member, and then as Chairman of the Council of Economic Advisers, in which capacity he also served as a member of the cabinet. The United States Presidency of Bill Clinton, also known as the Clinton Administration, was the executive branch of the Federal The Council of Economic Advisers (CEA is a group of Economists who advise the President of the United States. He became deeply involved in environmental issues, which included serving on the Intergovernmental Panel on Climate Change, and helping draft a new law for toxic wastes (which was never passed). Some of the ideas that Stiglitz had helped formulate, like adverse selection and moral hazard, are now part of the every day language of the policy debate in health care. Adverse selection, anti-selection, or negative selection is a term used in Economics, Insurance, Statistics, and Risk management Moral hazard is the prospect that a party insulated from risk may behave differently from the way it would behave if it were fully exposed to the risk

Stiglitz's most important contribution in this period was helping define a new economic philosophy, a "third way", which recognized the important, but limited, role of government, that unfettered markets often did not work well, but that government was not always able to correct the limitations of markets. The academic research that he had been conducting over the preceding twenty-five years provided the intellectual foundations for this "third way".

When President Bill Clinton was re-elected, he asked Stiglitz to continue to serve as Chairman of the Council of Economic Advisers for another term. William Jefferson "Bill" Clinton (born William Jefferson Blythe III, August 19 1946 served as the forty-second President of the United States The Council of Economic Advisers (CEA is a group of Economists who advise the President of the United States. But he had already been approached by the World Bank, to be its senior vice president for development policy and its chief economist. The World Bank is an internationally supported Bank that provides financial and technical assistance to developing countries for development programs (e

As the World Bank began its ten year review of the transition of the former Communist countries to the market economy it unveiled failures of the countries that had followed the International Monetary Fund (IMF) shock therapy policies - both in terms of the declines in GDP and increases in poverty - that were even worse than the worst that most of its critics had envisioned at the onset of the transition. Communism is a Socioeconomic structure that promotes the establishment of an egalitarian, classless, stateless Society based A market economy is a realized Social system based on the Division of labour in which the prices of Goods and Services are determined in a The International Monetary Fund ( IMF) is an International organization that oversees the Global financial system by following the Macroeconomic Poverty (also called penury) is deprivation of common necessities that determine the quality of life including food clothing shelter and safe Drinking water, and Clear links existed between the dismal performances and the policies that the IMF had advocated, such as the voucher privatization schemes and excessive monetary stringency. Meanwhile, the success of a few countries that had followed quite different strategies suggested that there were alternatives that could have been followed. The U.S. Treasury had put enormous pressure on the World Bank to silence his criticisms of the policies which they and the IMF had pushed [16] [17]. The United States Department of the Treasury is a Cabinet department and the Treasury of the United States government. The World Bank is an internationally supported Bank that provides financial and technical assistance to developing countries for development programs (e

Stiglitz always had a poor relationship with Treasury Secretary Lawrence Summers. The United States Secretary of the Treasury is the head of the United States Department of the Treasury, concerned with finance and monetary matters, and until Lawrence Henry "Larry" Summers (born November 30, 1954) is an American Economist and academic In 2000 Summers successfully petitioned for Stiglitz's removal, supposedly in exchange for World Bank President James Wolfensohn's re-appointment – an exchange that Wolfensohn denies took place. James David Wolfensohn KBE, AO (born December 1, 1933) was the ninth president of the World Bank Group. Whether Summers ever made such a blunt demand is questionable – Wolfensohn claims he would "have told him to fuck himself" (Mallaby, The World's Banker, p. 266).

Stiglitz resigned a month before his term expired at the World Bank, and left the Bank on January 2000. The World Bank is an internationally supported Bank that provides financial and technical assistance to developing countries for development programs (e [17] The Bank's president, James Wolfensohn, announced Stiglitz's resignation in November 1999 and also announced that Stiglitz would stay on as "special advisor to the president", and would chair the search committee for a successor. The World Bank is an internationally supported Bank that provides financial and technical assistance to developing countries for development programs (e

"Joseph E. Stiglitz said today [Nov. 24, 1999] that he would resign as the World Bank's chief economist after using the position for nearly three years to raise pointed questions about the effectiveness of conventional approaches to helping poor countries". [18]

In this role, he continued criticism of the IMF, and, by implication, the US Treasury Department. In April 2000, in an article for the New Republic, he wrote on the IMF:

"They’ll say the IMF is arrogant. The New Republic ( TNR) is an American Magazine of politics and the arts They’ll say the IMF doesn’t really listen to the developing countries it is supposed to help. They’ll say the IMF is secretive and insulated from democratic accountability. They’ll say the IMF’s economic ‘remedies’ often make things worse – turning slowdowns into recessions and recessions into depressions. And they’ll have a point. I was chief economist at the World Bank from 1996 until last November, during the gravest global economic crisis in a half-century. I saw how the IMF, in tandem with the U. S. Treasury Department, responded. And I was appalled".

The article was published a week before the annual meetings of the World Bank and IMF and provoked a strong response. It proved too strong for Summers and, yet more lethally, Stiglitz's protector-of-sorts at the World Bank, Wolfensohn. Wolfensohn had privately empathised with Stiglitz's views, yet this time Wolfensohn was worried for his second term, which Summers had threatened to veto. Stanley Fisher, deputy managing director of the International Monetary Fund, called a special staff meeting and informed at that gathering that Wolfensohn had agreed to fire Stiglitz. The International Monetary Fund ( IMF) is an International organization that oversees the Global financial system by following the Macroeconomic Meanwhile, the Bank's External Affairs department told the press that Stiglitz had not been fired, his post had merely been abolished (see US Hegemony and the World Bank, pp 222-223, by Wade in 2002, Review of the International Political Economy). [19]

Initiative for Policy Dialogue

In July 2000 Stiglitz founded the Initiative for Policy Dialogue (IPD), with support of the Ford, Rockefeller, McArthur, and Mott Foundations and the Canadian and Swedish government, to enhance democratic processes for decision making in developing countries, to ensure that a broader range of alternatives are on the table and more stakeholders are at the table. The Initiative for Policy Dialogue (IPD is a Non-profit organization based at Columbia University in the United States

Main article: Initiative for Policy Dialogue

Reviews of some books published by Stiglitz

Along with his technical economic publications (he has published over 300 technical articles), Stiglitz is the author of several books in which he uses his command of economic logic to good effect, offering clear discussions of dozens of complex issues, from patent law to abuses in international trade. The Initiative for Policy Dialogue (IPD is a Non-profit organization based at Columbia University in the United States

Stability with Growth: Macroeconomics, Liberalization and Development

In Stability with Growth: Macroeconomics, Liberalization and Development (2006), Stiglitz, José Antoni Ocampo (United Nations Under-Secretary-General for Economic and Social Affairs) Shari Spiegel (Managing Director, Initiative for Policy Dialogue - IPD ) Ricardo Ffrench-Davis (Main Adviser, Economic Commission for Latin America and the Caribbean - ECLAC ) and Deepak Nayyar (Vice Chancellor, University of Delhi) discuss the current debates on macroeconomics, capital market liberalization, and development, and develop a new framework within which one can assess alternative policies. They explain their belief that the Washington consensus has advocated narrow goals for development (with a focus on price stability) and prescribed too few policy instruments (emphasizing monetary and fiscal policies), and places unwarranted faith in the role of markets. The new framework focuses on real stability and long-term sustainable and equitable growth, offers a variety of non-standard ways to stabilize the economy and promote growth, and accepts that market imperfections necessitate government interventions. Policy-makers have pursued stabilization goals with little concern for growth consequences, while trying to increase growth through structural reforms focused on improving economic efficiency. Moreover, structural policies, such as capital market liberalization, have had major consequences for economic stability. This book challenge these policies by arguing that stabilization policy has important consequences for long-term growth and has often been implemented with adverse consequences. The first part of the book introduces the key questions and looks at the objectives of economic policy from different perspectives. The second part examines the central issues of macroeconomics, presenting an analysis of economic models and policy perspectives on stabilization from Neoclassical, Keynesian, and heterodox perspectives. Neoclassical economics is a term variously used for approaches to Economics focusing on the determination of prices outputs and income distributions in markets In Economics Keynesian economics (ˈkeɪnziən also Keynesianism and Keynesian Theory) is based on the ideas of twentieth-century British economist Heterodox economics refers to the approaches or schools of economic thought, that are considered outside of mainstream, that is orthodox economics The third part presents a similar analysis for capital market liberalization.

Making Globalization Work

Making Globalization Work (2006) surveys the iniquities of the global economy, and the mechanisms by which developed countries exert an excessive influence over developing nations. Making Globalization Work is a book written by Nobel Prize laureate Joseph E Dr. Stiglitz argues that through recourse to various measures – be it overt trade tariffs, subtler subsidies, a patent system that developed countries are better prepared to navigate, or the damage done to poor countries by global pollution – the world is being both economically and politically destabilised, from which we will all suffer. Making Globalization Work exposes the problems of how globalisation is currently being managed, the vested interests behind many decisions and the prospects for negotiating fairer terms for those worst affected. Dr Stiglitz tackles the problems immediately facing the world, arguing that strong, transparent institutions are needed to turn globalization to favour the world's poorest, and to address the democratic deficit that is so keenly felt across the world. He shows how an examination of incomplete markets can make corrective government policies desirable.

Stiglitz argues that economic opportunities are not widely enough available, that financial crises are too costly and too frequent, and that the rich countries have done too little to address these problems. Making Globalization Work is an optimistic book, offering the hope that global society has the will or the ability to address global problems and that international economic integration will ultimately prove a force for good. Making Globalization Work[20] had sold more than two million copies.

Main article: Making Globalization Work

The Roaring Nineties

In 2003, Stiglitz published The Roaring Nineties, his analysis of the boom and bust of the 1990s. Making Globalization Work is a book written by Nobel Prize laureate Joseph E In 2004 he published "New Paradigm for Monetary Economics" (Cambridge University Press) and in 2005, Oxford University Press published his book "Fair Trade for All. "

Globalization and Its Discontents

Stiglitz considers a pressing economic problem of our time when he argues that what we usually call "developing economies" are, in fact, not developing at all. Stiglitz, in Globalization and Its Discontents (2002), offers his views both of what has gone wrong and of what to do differently. Globalization and Its Discontents is a book published in 2002 by the 2001 Nobel laureate Joseph E But the book also focuses on who is to blame. According to Stiglitz, the story of failed development does have a villain, and the villain has been the IMF.

In Globalization and Its Discontents Stiglitz bases his argument for different economic policies on the themes that his decades of theoretical work have emphasized: namely, what happens when people lack the key information that bears on the decisions they have to make, or when markets for important kinds of transactions are inadequate or don't exist, or when other institutions that standard economic thinking takes for granted are absent or flawed. Globalization and Its Discontents is a book published in 2002 by the 2001 Nobel laureate Joseph E The implication of each of these absences or flaws is that free markets, left to their own devices, do not necessarily deliver the positive outcomes claimed for them by textbook economic reasoning that "assumes that people have full information, can trade in complete and efficient markets, and can depend on satisfactory legal and other prescriptions. Stiglitz stresses the point: "Recent advances in economic theory" (in part referring to his own work) "have shown that whenever information is imperfect and markets incomplete, which is to say always, and especially in developing countries, then the invisible hand works most imperfectly. " As a result, Stiglitz continues, governments can improve the outcome by well-chosen interventions. At the level of national economies, when families and firms seek to buy too little compared to what the economy can produce, governments can fight recessions and depressions by using expansionary monetary and fiscal policies to spur the demand for goods and services. At the microeconomic level, governments can regulate banks and other financial institutions to keep them sound. They can also use tax policy to steer investment into more productive industries and trade policies to allow new industries to mature to the point at which they can survive foreign competition. And governments can use a variety of devices, ranging from job creation to manpower training to welfare assistance, to put unemployed labor back to work and, at the same time, cushion the human hardship deriving from what — importantly, according to the theory of incomplete information, or markets, or institutions — is no one's fault.

Stiglitz complains bitterly that the IMF has done great damage through the economic policies it has prescribed that countries must follow in order to qualify for IMF loans, or for loans from banks and other private-sector lenders that look to the IMF to indicate whether a borrower is creditworthy. The International Monetary Fund ( IMF) is an International organization that oversees the Global financial system by following the Macroeconomic The International Monetary Fund ( IMF) is an International organization that oversees the Global financial system by following the Macroeconomic The organization and its officials, he argues, have ignored the implications of incomplete information, inadequate markets, and unworkable institutions—all of which are especially characteristic of newly developing countries. As a result, Stiglitz argues, time and again the IMF has called for policies that conform to textbook economics but do not make sense for the countries to which the IMF is recommending them. Stiglitz seeks to show that the consequences of these misguided policies have been disastrous, not just according to abstract statistical measures but in real human suffering, in the countries that have followed them.

Main article: Globalization and Its Discontents

Whither Socialism?

Description

Whither Socialism? is based on Stiglitz's Wicksell Lectures, presented at the Stockholm School of Economics in 1990 and presents a convenient and well-written summary of the central themes of the new information economics and is as an excellent primer on the theory of markets with imperfect information and imperfect competition as well as being a critique of both free market and market socialist approaches (see Roemer critique, op. Globalization and Its Discontents is a book published in 2002 by the 2001 Nobel laureate Joseph E Whither Socialism? is a book by Joseph Stiglitz, first published in 1994 by MIT Press Information economics or the economics of information is a branch of microeconomic theory that studies how information affects an Economy and economic decisions cit. ). Stiglitz explains how the neoclassical, or Walrasian model ("Walrasian economics" refers to the result of the process which has given birth to a formal representation of Smith's notion of invisible hand, along the lines put forward by Walras and encapsulated in the general equilibrium model of Arrow-Debreu) , which has dominated economic thought over the past half century, may have wrongly encouraged the belief that market socialism could work. Neoclassical economics is a term variously used for approaches to Economics focusing on the determination of prices outputs and income distributions in markets In Neoclassical economics and Microeconomics, perfect competition describes a market in which no buyer or seller has Market power. Adam Smith ( baptised 16 June 1723 – 17 July 1790) was a Scottish moral philosopher and a pioneer of Political economy. The invisible hand is a Metaphor coined by the Economist Adam Smith. Marie-Esprit-Léon Walras ( December 16, 1834 in Évreux, France - January 5, 1910 in Clarens near Montreux The Arrow-Debreu model, also referred to as the Arrow-Debreu-McKenzie model (ADM model is the central model in the General (Economic Equilibrium Theory and often Socialism refers to a broad set of economic theories of social organization advocating state or collective ownership and administration of the Means of production and distribution Stiglitz proposes an alternative model, based on the information economics established by the Greenwald-Stiglitz theorems, that provides greater theoretical insight into the workings of a market economy and offers a clearer guidance for the setting of policy in transitional economies. Information economics or the economics of information is a branch of microeconomic theory that studies how information affects an Economy and economic decisions

One of the reasons Stiglitz sees for the critical failing in the standard neoclassical model, on which market socialism was built, is its assumptions concerning information, particularly its failure to consider the problems that arise from lack of perfect information and from the costs of acquiring information. Neoclassical economics is a term variously used for approaches to Economics focusing on the determination of prices outputs and income distributions in markets Socialism refers to a broad set of economic theories of social organization advocating state or collective ownership and administration of the Means of production and distribution He also identifies problems arising from its assumptions concerning completeness. [21]

Critique

Whither Socialism? has been subject to various critiques such as those of the Yale professor John E. Whither Socialism? is a book by Joseph Stiglitz, first published in 1994 by MIT Press Roemer (An Anti-Hayekian Manifesto - 1995) [22], the one written by Peter Boettke, the Deputy Director of the James M. Buchanan Center for Political Economy (1996) [23], as well as the critique by David L. Prychitko, a professor of economics at Northern Michigan University, which was published in The Cato Journal (fall 1996). Northern Michigan University is a four-year Public university established in 1899 located in Marquette, in Michigan's Upper Peninsula. Prychitko says that "the book hopes to go beyond the confines of pure technical economic theory, as its title implies. Stiglitz makes efforts to join the dialogue in political economy, and wonders "whether the insights of modern economic theory and the utopian ideals of the nineteenth century can be brought closer together?" (p. 277). It is precisely this comment that invites criticism, not so much because he wants to save some socialist ideals (incredibly, however, through a "people's capitalism" [p. 265]), but rather because of his unexamined presuppositions regarding how to do so. " "Stiglitz insists that we should not ask whether or not the state has a role to play in the economy, but rather how large a role, and in what specific tasks (p. 231). For Stiglitz, the problem is posed correctly only when we seek an "appropriate balance between markets and government" (p. 267)," but he fails to indicate what an "appropriate balance" would be. "Stiglitz formally demonstrates the potential efficiency-enhancing properties of the state based on the Greenwald-Stiglitz theorems (establishing the - constrained - Pareto inefficiency of market economies with imperfect information and incomplete markets), and "believes that solutions to worldly problems can become illuminated by this new set of mathematical theorems, to replace the old theorems of Arrow-Debreu and Lange-Lerner (pp. Pareto efficiency, or Pareto optimality, is an important concept in Economics with broad applications in Game theory, Engineering and the 4-6, 231-32). " [15]

Stiglitz mentions that economics must be recast as something more than a constrained maximization problem, and proposes his own alternative--a mathematical theorem that encompasses more complex, nonlinear vectors.

"Stiglitz's main insight is generally correct -- that the state cannot be ruled out or that it should be ruled in --, but leaves open the grand constitutional questions: How will the coercive institutions of the state be constrained? What is the relation between the state and civil society? His book fails on these political aspects because it has not addressed the broader constitutional concerns that James McGill Buchanan Jr. [24] (1975) and other economists have raised. " [15]

Main article: Information economics

Papers and conferences

Dr. Information economics or the economics of information is a branch of microeconomic theory that studies how information affects an Economy and economic decisions Stiglitz wrote a series of papers and held a series of conferences explaining how such information uncertainties may have influence on everything from unemployment to lending shortages. As the chairman of the Council of Economic Advisers during the Clinton Administration and former chief economist at the World Bank, Dr. The World Bank is an internationally supported Bank that provides financial and technical assistance to developing countries for development programs (e Stiglitz was able to put some of his views into action. For example, he was an outspoken critic of quickly opening up financial markets in developing countries. These markets rely on access to good financial data and sound bankruptcy laws, but he argued that many of these countries didn't have the regulatory institutions needed to ensure that the markets would operate soundly.

Stiglitz's Critics

Stiglitz's book Whither Socialism, was criticized by David L. Prychitko of the Cato Institute. The Cato Institute is a Libertarian Think tank headquartered in Washington D Prychitko criticized the book for failing to address the "constitutional concerns" voiced by James M. Buchanan, insufficiently examining historical evidence and context, and not addressing work by figures like Hayek, Claus Offe, and Jurgen Habermas. James McGill Buchanan Jr (born October 3 1919 is an American Economist renowned for his work on Public choice theory, for which he won the 1986 Hayek is a surname and may refer to Dina Hayek (born 1982 popular Lebanese singer Friedrich Hayek (1899–1992 Austrian-British Professor Claus Offe (born 1940 in Berlin) is one of the world's leading political sociologists of marxist orientation Jürgen Habermas (ˈjʏʁgən ˈhaːbɐmaːs born June 18, 1929 is a German Philosopher and Sociologist in the tradition of Ultimately, Prychitko regards the book as a good informal introduction to modern information economics but "despite its great merits, however, I think the book has not come to terms with the fundamental historical, political, and philosophical issues implied by its own provocative title. "[15] .

He has been criticised for his use of the term market failure to imply that this automatically necessitates Government intervention, when the term 'institutional failure' is more appropriate, as market institutions fail less than Government ones[25]

Personal Information

Stiglitz married for the third time on October 28, 2004, to Anya Schiffrin, who works at the School of International and Public Affairs at Columbia University. Market failure is a concept within economic theory wherein the allocation of goods and services by a Free market is not efficient. Events 306 - Maxentius is proclaimed Roman Emperor. 312 - Battle of Milvian Bridge: Constantine "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " Anya Schiffrin (born 6 December 1962) is an American academic and business journalist Before that, he married and divorced twice.

Publications

Books
Articles, conferences, papers, videos

References

  1. ^ Top 5% Authors, as of January 2008. Retrieved on 2008-02-09. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 474 - Zeno crowned as co-emperor of the Byzantine Empire.
  2. ^ a b Joseph E. Stiglitz: The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2001
  3. ^ a b GREENWALD, Bruce and STIGLITZ, Joseph E. 1986 Externalities in Economies with Imperfect Information and Incomplete Markets, Quarterly Journal of Economics, no. 90.
  4. ^ WANG, Shaoguang. The State, Market Economy, and Transition. Department of Political Science, Yale University.
  5. ^ STIGLITZ, Joseph E. There is no invisible hand. London: The Guardian Comment, December 20, 2002.
  6. ^ ALTMAN, Daniel. Managing Globalization. In: Q & Answers with Joseph E. Stiglitz, Columbia University and The International Herald Tribune, Oct 11, 2006 05:03AM.
  7. ^ STIGLITZ, Joseph E. Prize Lecture: Information and the Change in the Paradigm in Economics. Joseph E. Stiglitz held his Prize Lecture December 8, 2001, at Aula Magna, Stockholm University. He was presented by Lars E.O. Svensson, Chairman of the Prize Committee.
  8. ^ STIGLITZ, Joseph E. The pact with the devil. Beppe Grillo's Friends interview
  9. ^ a b SHAPIRO, Carl and STIGLITZ, Joseph E. Equilibrium Unemployment as a Worker Discipline Device. The American Economic Review, Vol. 74, No. 3 (Jun., 1984), pp. 433-444.
  10. ^ Efficiency wages, the Shapiro-Stiglitz Model
  11. ^ SANAHUJA, José Antonio. Consensus, dissensus, confusion: the "Stiglitz Debate" in perspective. Development in Practice, Vol 14, 2004
  12. ^ FRIEDMAN, Benjamin M. Globalization: Stiglitz's Case. The New York Review of Books, Volume 49, Number 13 · August 15, 2002
  13. ^ a b BOETTKE, Peter J. What Went Wrong with Economics?, Critical Review Vol. 11, No. 1, P. 35. p. 58
  14. ^ SAPPINGTON, David E. M. e STIGLITZ, Joseph E. Privatization, Information and Incentives. Columbia University; National Bureau of Economic Research (NBER) June 1988; NBER Working Paper No. W2196
  15. ^ a b c d PRYCHITKO, David L. Book Reviews, Whither Socialism?, The Cato Journal, Cato Institute, vol. 16, no. 2. David L. Prychitko is the Head of the Department of Economics (Northern Michigan University), a Faculty Affiliate in the Program on Markets and Institutions at the James M. Buchanan Center for Political Economy (George Mason University) and the author of over a dozen socio-economic books mainly on Marxism and socialism
  16. ^ Wade, Robert. Showdown at the World Bank, New Left Review 7, January-February 2001
  17. ^ a b Hage, Dave.. Joseph Stiglitz : A Dangerous Man, A World Bank Insider Who Defected, Published on Wednesday, October 11, 2000 in the Minneapolis Star-Tribune
  18. ^ Richard W. Stevenson, Outspoken chief economist leaving World Bank, New York Times (November 25, 1999).
  19. ^ WADE, Robert. U.S. Hegemony and the World Bank: Stiglitz's Firing And Kanbur's Resignation., New Left Review, 9 Oct 2000, pp 9-10.
  20. ^ see Stiglitz discuss his book on Youtube
  21. ^ ZAPIA, Carlo. The economics of information, market socialism and Hayek's legacy., Dipartimento di Economia Politica, Università di Siena
  22. ^ ROEMER, John E. An Anti-Hayekian Manifesto., New Left Review I/211, May-June 1995
  23. ^ Whither Socialism? by Joseph E. Stiglitz, Author(s) of Review: Peter J. Boettke, Journal of Economic Literature, Vol. 34, No. 1 (Mar., 1996), pp. 189-191
  24. ^ BUCHANAN, James M. Public Finance and Public Choice, National Tax Journal,1975.
  25. ^ http://www.rothbard.org/story/803

External links

Video lectures


Preceded by
Laura D'Andrea Tyson		 Chairman of the Council of Economic Advisers
1995-1997		 Succeeded by
Janet Yellen
Preceded by
Michael Bruno		 World Bank Chief Economist
1997-2000		 Succeeded by
Nicholas Stern


Persondata
NAME Stiglitz, Joseph E. Laura D'Andrea Tyson (b June 28, 1947, New Jersey) is an American Economist and former Chair of the President's Council of Economic The Council of Economic Advisers (CEA is a group of Economists who advise the President of the United States. Janet Louise Yellen (Born August 13 1946 in Brooklyn NY is an economist and president of the Federal Reserve Bank of San Francisco. The position of World Bank Chief Economist is one of the most influential in Economics. For the film producer see Nicholas Stern. Nicholas Herbert Stern Baron Stern of Brentford, FBA (born 22 April 1946
ALTERNATIVE NAMES
SHORT DESCRIPTION Economist
DATE OF BIRTH February 9, 1943
PLACE OF BIRTH Gary, Indiana
DATE OF DEATH
PLACE OF DEATH
Economics is the social science that studies the production distribution, and consumption of goods and services. Events 474 - Zeno crowned as co-emperor of the Byzantine Empire. Year 1943 ( MCMXLIII) was a Common year starting on Friday (the link will display full 1943 calendar of the Gregorian calendar.
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