Paul Krugman Wins Economics Nobel

Paul Krugman , a professor at Princeton University and an Op-Ed page columnist for The New York Times, has been awarded the Nobel Memorial Prize in Economic Sciences.

“It’s been an extremely weird day, but weird in a positive way,” Mr. Krugman said in an interview on his way to a Washington meeting for the Group of 30, an international body from the public and private sectors that discusses international economics. He said he was mostly “preoccupied with the hassles” of trying to make all his scheduled meetings today and answer a constantly ringing cell phone.

Mr. Krugman received the award for his work on international trade and economic geography. In particular, the prize committee lauded his work for “having shown the effects of economies of scale on trade patterns and on the location of economic activity.” He 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.

Paul Krugman

“There was something very beautiful about the old existing trade theory, and its ability to capture the world in a surprisingly simple conceptual framework,” Mr. Krugman said. “And then I realized that some of the new insights coming through in industrial organization could be applied to international trade.”

Mr. Krugman wrote his dissertation, however, on international finance, and credits the late MIT professor Rudiger Dornbusch for pushing him to study international trade.

Paul Krugman's grasp of economics in action and his uncanny way of translating complex issues into everyday terms have made him the most widely read economist writing for the general public today. He has been awarded the 2008 prize in Economic Sciences for his study of international trade and the effects of globalisation.

What's new?
• Chapter order – re-organised from the 1st edition to reflect how the subject is taught
• Stronger international focus – Global issues are dealt with throughout the text and emphasis is placed on looking at topics from an international perspective
• Global Comparison boxes – uses data driven examples to illustrate the international dimension of economic concepts
• New chapters on Taxes, Inflation and Unemployment
• Coverage of the financial crisis

Strengths:
• Real world examples, stories, applications and case studies – These teach the core concepts and motivate learning
• The writing style is accessible, entertaining and friendly
• Tools for learning

Tools for learning:
Each chapter is structured around a common set of features that helps students learn while keeping them engaged

• Chapter opening summaries – Each chapter begins with a real-life story that is then integrated throughout the chapter. They illustrate concepts, build intuition and encourage students to think further
• Economics in action – each chapter closes with a real world case study
• Each chapter also has:
o What you will learn – easy to read bulleted list
o Quick review – to cement ideas
o Check your understanding – short in text questions to test the student has understood the concepts
o For enquiring minds – concepts are applied to real world events
o Global comparison boxes – illustrations from around the world
o Pitfalls – Concepts that are often misunderstood or that students often struggle with are dealt with as they come up
o Definition of key terms – terms are defined in the text, then again in the margin
o A look ahead – Provides students with an idea of what to expect
o End of chapter review – a brief but complete summary of the key concepts, key terms and a comprehensive set of end of chapter problems

Supplements and Media:
A full array of supplements are available to accompany the text - see tab above.
Companion website - www.worthpublishers.com/krugmanwells
eBook: 978-1-4292-1846-7

PART I: WHAT IS ECONOMICS?
Introduction: The Ordinary Business of Life
First Principles
Economic Models: Trade-offs and Trade
Appendix: Graphs in Economics
PART II: SUPPLY AND DEMAND
Supply and Demand
Consumer and Producer Surplus
The Market Strikes Back
Elasticity
PART II: INDIVIDUALS AND MARKETS
Taxes
International Trade
PART IV: MAKING DECISIONS
Title TBD (how consumers & producers make decisions?)
PART V: THE CONSUMER
Rational Consumer
Consumer Preference and Choice
PART VI: THE PRODUCTION DECISION
Behind the Supply Curve: Inputs and Costs
Perfect Competition and Supply Curve
PART VII: MARKET STRUCTURE: BEYOND PERFECT COMPETITION
Monopoly
Oligopoly
Monopolistic Competition and Product Differentiation
PART VIII: MICROECONOMICS AND PUBLIC POLICY
Externalities
Public Goods and Common Resources
Economics of the Welfare State
PART IX: FACTOR MARKETS AND RISK
Factor Markets
Risk and Financial Markets

PAUL KRUGMAN is Professor of Economics at Princeton University, USA, where he regularly teaches the principles course. Prior to his current position he taught at Yale, Stanford and MIT.
 
ROBIN WELLS is Researcher in Economics at Princeton University, USA, where she teaches undergraduate courses. She has previously taught at the University of Michigan, the University of Southampton, Stanford and MIT. Her teaching and research focus on the theory of organizations and incentives. She writes regularly for academic journals.