Stiglitz, Joseph E. (Born 1943)
Joseph E. Stiglitz, 2001 Nobel Laureate in Economics, helped to create the theory of markets with asymmetric information and was one of the founders of modern development economics. He played a leading role in an intellectual revolution that changed the characterization of a market economy. In the new paradigm, the price system only imperfectly solves the information problem of scarcity because of the many other information problems that arise in the economy: the selection over hidden characteristics, the provision of incentives for hidden behaviours and for innovation, and the coordination of choices over institutions.
KeywordsAdverse selection Agency problems Arrow, K. J. Arrow–Debreu model Asymmetric information Bankruptcy Capital controls Convexity Coordination problems Corruption Development economics East Asian financial crisis (1997) Economic geography Economic rents Efficient markets hypothesis Endogenous growth Freeman, H. Hidden characteristics Imperfect information Incentive contracts Incomplete contracts Incomplete markets Information economics Institutional economics Insurance International Monetary Fund Law of the single price Market failure Market socialism Mirrlees, J. Monitoring costs Moral hazard Multiple equilibria Neoclassical economics Noise Non-market institution Optimal taxation Partial equilibrium Perfect markets Pooling contracts Pooling equilibrium Principal and agent Privatization Quality Reputation Risk Ross, S. Rule of law Search costs Selection problems Separating contracts Separating equilibrium Sharecropping Signalling Stiglitz, J. E. Subjective probability Transition and institutions Transparency Uncertainty Underdevelopment traps Variance Washington Consensus
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