Written with Aurélien Saïdi
(draft version with more footnotes and full references here)
The 2018 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel was given for “addressing some of our time’s most basic and pressing questions about how we create long-term sustained and sustainable economic growth.” It was shared by Yale’s William Nordhaus for bringing negative externalities due to greenhouse gas emissions in growth models and New York University’s Paul Romer “for integrating technological innovations into long-run macroeconomic analysis.” The press release concludes that their contributions are “methodological . . . Laureates do not deliver conclusive answers.” Yet the methods rewarded are very different in kind. Nordhaus is praised for his development of a quantitative “integrated assessment model” of how climate and economic growth affect each other, a model then largely used to run simulations. Romer was crowned for a 10-years effort to endogenize growth culminating…
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Utopia, you are standing in it! 
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