JOSEPH EUGENE STIGLITZ

Wowzers!!

Economist in the Making Born in Gary, Indiana,

1943. Graduated from

Amherst College Received his PHD from

MIT in 1967 Became full professor

at Yale in 1970 Awarded the John Bates

Clark Award in 1979

Economist Fulfilled

Taught at Princeton, Stanford, MIT and Oxford.

Served on the Council for Economic Advisors under Clinton

Was the Chief Economist of World Bank Chaired the Commission on the Measurement of Economic Performance and Social Progress

Contributions

Co-founder of Initiative for Policy Dialogue (IPD)

IPD helps developing countries explore alternative policies and ensures wider civic participation

Helped create a new branch of economics : “The Economics of Information”

Information Asymmetry

He received a Nobel Prize for his work on “Information Asymmetry” & “Screening”

A technique used by one economic agent to extract otherwise private information from another

This creates an imbalance, manipulating market results

Stiglitz-Shapiro Model

A major contribution resulting from research on efficiency wages in 1983

Explains unemployment and wages How everyone can receive an occupation Unemployment is driven by the

information structure of employment Challenges assumption that markets are

always efficient

Graphs for Model

Impact on Society & World

Established foundation for modern economics

Displayed weaknesses of current economic system

Awareness of poverty in developing nations due to Globalization, shown via published books

Why should we care?

By educating ourselves we can only be prepared for the future

New economic crises, while Stiglitz’ contribution will serve us as aid

Time to start recovering the economy, through proper reform!!

Citations "Joseph E. Stiglitz." The Nobel Foundation. Joseph E. Stiglitz, Dec. 2002. Web. 21 Feb. 2010.

<http://nobelprize.org/nobel_prizes/economics/laureates/2001/stiglitz-autobio.html>.

Stiglitz, Joseph. Globalization and its Discontents. New York: W.W. Norton & Company, 2003. Print.

Stiglitz, Joseph. Making Globalization Work. New York: W.W. Norton & Company, 2007. Print.

Stiglitz, Joseph E. Josephstiglitz.com. Columbia University. Web. 1 Mar. 2010. <http://www.josephstiglitz.com/

Autor, David H. Efficiency Wages, the Shapiro-Stiglitz Model. Working Paper no. 548. 2003. Print.

http://econ-www.mit.edu/files/548

Images:

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