Citation | Stiglitz won the 2001 Nobel Prize in Economics for helping create "The Economics of Information," exploring the consequences of information asymmetries. He pioneered concepts of adverse selection, moral hazard and screening, now used routinely by theorists and policy analysts. His work on unemployment and credit rationing showed that even small information asymmetries overturned long-standing propositions that market equilibria would be either efficient or necessarily characterised by market-clearing. He was Chair of the Council of Economic Advisers to President Clinton, Vice-President and Chief Economist at the World Bank, and now leads the Brooks World Poverty Institute at The University of Manchester. |