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William Dawbney Nordhaus born May 31, is an American economist and Sterling Professor of Economics at Yale University , best known for his work in economic modeling and climate change. Nordhaus,  who co-founded the Sandia Peak Tramway. He has been a member of the faculty at Yale since , in both the Economics department and the School of Forestry and Environmental Studies ,   and has also served as its Provost from — and its Vice President for Finance and Administration from — His tenure as provost was among the shortest in the university's history.
He has been on the Brookings Panel on Economic Activity since During the Carter administration, from —, Nordhaus was a member of the Council of Economic Advisers. Nordhaus is the author or editor of over 20 books. One of his early works, he partnered with Paul Samuelson as a co-author for an introductory textbook entitled Economics.
Nordhaus worked alongside Samuelson from the 12th edition until the 19th, starting in It was known as a best-selling economics textbook for decades and is still extremely popular today.
He has also written several books on global warming and climate change , one of his primary areas of research.
Nordhaus is also known for his critique of current measures of national income. He wrote, "If we are to obtain accurate estimates of the growth of real incomes over the last century, we must somehow construct price indexes that account for the vast changes in the quality and range of goods and services that we consume, that somehow compare the services of horse with automobile, of Pony Express with facsimile machine, of carbon paper with photocopier, of dark and lonely nights with nights spent watching television, and of brain surgery with magnetic resonance imaging" , Palda summarizes the importance of Nordhaus's insight as follows: "The practical lesson to be drawn from this fascinating study of lighting is that the way we measure the consumer price index is severely flawed.
Instead of putting goods and their prices directly into the index we should reduce all goods to their constituent characteristics. Then we should evaluate how these goods can best be combined to minimize the cost of consuming these characteristics. Such an approach would allow us to include new goods in the consumer price index without worrying about whether the index of today is comparable to that of ten years ago when the good did not exist.
Such an approach would also allow governments to more precisely calculate the rate at which welfare and other forms of aid should be increased. At present, such calculations tend to overestimate the cost of living because they do not take into account the manner in which increases in quality reduce the monetary cost of maintaining a certain standard of living. Nordhaus has written on the economics of climate change. In Reflections on the Economics of Climate Change , he states: "Mankind is playing dice with the natural environment through a multitude of interventions — injecting into the atmosphere trace gases like the greenhouse gases or ozone-depleting chemicals, engineering massive land-use changes such as deforestation, depleting multitudes of species in their natural habitats even while creating transgenic ones in the laboratory, and accumulating sufficient nuclear weapons to destroy human civilizations.
Agriculture, forestry, outdoor recreation, and coastal activities fall in this category. In , Nordhaus, who has done several studies on the economics of global warming , criticized the Stern Review for its use of a low discount rate : . The Review's unambiguous conclusions about the need for extreme immediate action will not survive the substitution of discounting assumptions that are consistent with today's market place.
So the central questions about global-warming policy — how much, how fast, and how costly — remain open. The Review informs but does not answer these fundamental questions. In , Nordhaus chaired a committee of the National Research Council that produced a report discounting the impact of fossil fuel subsidies on greenhouse gas emissions.
The required carbon price needed to achieve current targets has risen over time as policies have been delayed. He asserted that he was not alone in making this assessment, claiming that half of the simulation arrived at the same conclusion. He also remarked that the two-degree target was set without asking about the cost of meeting it.
Shultz and William A. He shared the award with Paul Romer. His model integrates theories and empirical results from physics, chemistry and economics. Nordhaus' model is now widely spread and is used to simulate how the economy and the climate co-evolve. Many of the news outlets that reported on Nordhaus's prize noted that he was in the advance wave of economists who embraced a carbon tax as a preferred method of carbon pricing.
Keen disagrees that Nordhaus's "Damage Function" should be a quadratic equation. Others have also pointed out that climate scientists and ecologists have a very negative opinion of Nordhaus. Most climate scientists assume non-linear impacts. Possible exceptions are the melting of the Arctic sea-ice pack and disintegration of the West Antarctic ice sheet.
These would surely have highly nonlinear effects, but particularly for the second we do not have clear ex-ante knowledge of where or when the nonlinearity will arise. Put differently, if our ex-ante or judgmental probability of such discontinuous events is smooth, then from a decision-maker's perspective the expected consequences are not highly non-linear and the presence of uncertainly probably does not change the best guess strategy markedly.
From Wikipedia, the free encyclopedia. American economist. Albuquerque , New Mexico , U. Basic concepts. Fiscal Monetary Commercial Central bank. Related fields. Econometrics Economic statistics Monetary economics Development economics International economics. Edward C. Sargent Paul Krugman N. Gregory Mankiw. See also. Macroeconomic model Publications in macroeconomics Economics Applied Microeconomics Political economy Mathematical economics.
Council of Economic Advisers U. March 13, Retrieved October 11, The New York Times. Royal Swedish Academy of Sciences. October 8, Proceedings of the National Academy of Sciences.
Bibcode : PNAS.. Houghton Mifflin Harcourt. Retrieved October 8, A theory of endogenous technological change Ph. Massachusetts Institute of Technology.
Yale Department of Economics. Washington, D. Retrieved October 1, The Journal of Economic Education. Nordhaus October 22, Yale University Press. The History of Light Suggests Not. Edited by Robert J. Gordon and Timothy F. Cooper-Wolfling Press.
Bibcode : Sci Yale University. National Academies. Retrieved July 7, Cowles Foundation. Retrieved February 25, January 26, Retrieved January 27, Nordhaus, Nordhaus, Distinguished Fellow".
Financial Times. Mr Nordhaus was an early advocate of carbon taxes, but the committee noted that the models he developed also allowed policymakers to calculate quantitative paths for the best tax showing how they would depend on [assumptions regarding the values of disparate climate and economic variables].
The Yale economist William D. Nordhaus has spent the better part of four decades trying to persuade governments to address climate change, preferably by imposing a tax on carbon emissions. His careful work has long since convinced most members of his own profession.
Retrieved October 31, Science Advances. Bibcode : SciA Samuelson Simon Kuznets John R. Meade Herbert A. Simon Theodore W. Klein James Tobin George J. Buchanan Jr. Sharpe Ronald H.
Ekonomia by Samuelson Paul Nordhaus William