U.S. Economist Wins Nobel for Integrative Models

U.S. economist and New York Times columnist Paul Krugman has been awarded the prestigious $1.4 million Nobel Prize. The Nobel committee said it recognized Krugman for his formulation of a non-traditional theory that integrates "previously disparate research fields of international trade and economic geography."

Quoting the committee in a N.Y. Times article, Krugman's work was awarded for “'having shown the effects of economies of scale on trade patterns and on the location of economic activity.'” The Princeton University professor has "developed models that explain observed patterns of trade between countries, as well as what goods are produced where and why. Traditional trade theory assumes that countries are different and will exchange different kinds of goods with each other; Mr. Krugman’s theories have explained why worldwide trade is dominated by a few countries that are similar to each other, and why some countries might import the same kinds of goods that it exports," according to the N.Y. Times article.

Per said article, Princeton courses taught by Krugman include a graduate-level course on international monetary theory and policy -- a timely subject that focuses on international liquidity crises. Other classes he teaches involve the study of the welfare state and international trade, and freshman seminars on various economic topics. The Nobel recipient is also known to be a strong critic of the Bush administration.

Given that innovation journalism seeks to integrate the relevant quadrants of technology, innovation, business, and society, I wonder how and where technology intersects with Krugman's work -- both as a subject and as a research tool. Obviously, the prize winner sees critical connections in areas of global import that were not strongly recognized before. His integrative research methods would seem to hold insights that innovation journalists would do well to become familiar with, especially in the fallout of the current global financial quagmire and how intimately technology and trade influence economies worldwide, as well as impact the digital divide across global cultures.

- Misako M.