Information and the Change in the Paradigm in Economics, Part 1

  title={Information and the Change in the Paradigm in Economics, Part 1},
  author={J. E. Stiglitz},
  journal={The American Economist},
  pages={26 - 6}
  • J. Stiglitz
  • Published 1 October 2003
  • Economics
  • The American Economist
The research for which George Akerlof, Mike Spence, and I are being recognized is part of a larger research program which, today, embraces hundred, perhaps thousands, of researchers around the world. In this lecture, I want to set the particular work which was sited within this broader agenda, and that agenda within the broader perspective of the history of economic thought. I hope to show that Information Economics represents a fundamental change in the prevailing paradigm within economics… 

The Relational Economics: An Example of Substantial Hypothesis Refutation

Various studies on the economics of information conducted from the perspective developed by Akerlof, Grossman, and Stiglitz support the claim that the signal provided by the market price system is

How to Change Economics 101

Abstract In the view of Samuel Bowles and Wendy Carlin, macroeconomics 101 requires serious changes. They advocate instead the use of the new CORE textbook, The Economy, to which they contributed.

The characteristics of a monetary economy: a Keynes¿Schumpeter approach.

Mainstream monetary theory considers money only as an instrument meant to facilitate trading without having any effect on income or on the evolution of the economic system. The aim of this paper is

Inside the Black box: Policies for Economic Growth

Growth in income per capita is or should be a central objective of economic policy. This paper explores how the economy generates economic growth and what is actually going on in an economy when it

Financial Economics from Fisher Information

A dynamical investment program that enforces an optimization of information flow, achieving I—J=extremum, can also, in certain cases, achieve a program of optimal capital investment.

Information asymmetry and dividend policy of Sarbanes-Oxley Act

PurposeThe literature of financial economics documents a causal relationship between the level of information asymmetry in the firm and its dividend policy. Nevertheless, this relationship suffers

The Effect of Asymmetric Information in the Money Market on Investment, Employment, and Production in Iran

Nowadays, banks are considered as one of the major components of the financial system of a country and any deficits and malfunction in the banking system will negatively affect the performance of the

Telecommunications Services Market in the Light of the Agency Theory and the Transaction Cost Theory under New Institutional Economics : Case for Poland

Q e main objective of the paper is to evaluate the telecommunications services market in Poland, focusing on its regulation in the context of the Agency Q eory and the Transaction Cost Q eory under



The Contributions of the Economics of Information to Twentieth Century Economics

In the field of economics, perhaps the most important break with the past—one that leaves open huge areas for future work—lies in the economics of information. It is now recognized that information

The analytics of uncertainty and information

There has been explosive progress in the economic theory of uncertainty and information in the past few decades. This subject is now taught not only in departments of economics but also in

Information and Economic Analysis: A Perspective

Ten years ago, I delivered a paper before this group with the title, 'Information and Economic Analysis.' I chose the title deliberately: I did not call the subject on which I was speaking the

The Invisible Hand and Modern Welfare Economics

This paper reviews and puts into perspective recent work reassessing the first and second Fundamental Theorems of Welfare Economics. It assesses the implications of the Greenwald-Stiglitz theorem

A Theory of Incentives in Procurement and Regulation

More then just a textbook, A Theory of Incentives in Procurement and Regulation will guide economists' research on regulation for years to come. It makes a difficult and large literature of the new

Price Rigidities and Market Structure

Conventional wisdom has it that a large part of the explanation of Keynesian unemployment is the observed rigidities of wages and prices. What has been lacking, however, is a satisfactory theory (or

Information, Finance, and Markets: The Architecture of Allocative Mechanisms

While bankers and businessmen have long recognized the importance of finance. financial constraints, and financial institutions, they have played a secondary role in neoclassical economic theory.

Technological Change, Sunk Costs, and Competition

THERE IS A PERSISTENT divergence between the widespread views of the virtues of capitalism and the models we use tojustify those beliefs. While it is the dynamic properties of capitalism, the

Keynesian, New Keynesian, and New Classical Economics

Much of the new theory of macro-economics that has been built upon micro-economic models of imperfect information leads to conclusions which are surprisingly close in spirit to Keynes' original