Joseph Stiglitz

“Information and the Change in the Paradigm in Economics (Les Prix Nobels)”

Editors: Tore Frangsmyr

Abstract:
Information economics represents a fundamental change in the prevailing paradigm within economics. The argument of Adam Smith (1776) that free markets lead to efficient outcomes has played a central role in these debates: It suggested that we could, by and large, rely on markets without government intervention (or, at most, with a limited role for the government). The set of ideas that I will present here undermined Adam Smith's theory and the view of the role of government that rested on it. The ideas and models I will discuss here have proved useful not only in addressing broad philosophical questions, such as the appropriate role of the state, but also in analyzing concrete policy issues.

Source: Les Prix Nobel: The Nobel Prizes 2001
Exact Citation:
Stiglitz, Joseph. "Information and the Change in the Paradigm in Economics (Les Prix Nobels)." In Les Prix Nobel: The Nobel Prizes 2001. Ed. Tore Frangsmyr. Stockholm, Sweden: The Nobel Foundation, 2001.
Place: Stockholm, Sweden
Date: 2001