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Joseph E. Stiglitz
New Keynesian economics
Joseph E. Stiglitz.jpg
Birth February 9, 1943 (1943-02-09) (age 67)
Nationality United States
Field Macroeconomics, Public Economics, Information Economics
Influences John Maynard Keynes, Robert Solow
Influenced Paul Krugman, Jason Furman
Contributions Screening, Taxation, Unemployment
Information at IDEAS/RePEc

In office
President Bill Clinton
Preceded by Laura Tyson
Succeeded by Janet Yellen

Joseph Eugene Stiglitz (born February 9, 1943) is an American economist and a professor at Columbia University. He is a recipient of the Nobel Memorial Prize in Economic Sciences (2001) and the John Bates Clark Medal (1979). He is also the former Senior Vice President and Chief Economist of the World Bank. He is known for his critical view of the management of globalization, free-market economists (whom he calls "free market fundamentalists") and some international institutions like the International Monetary Fund and the World Bank. In 2000, Stiglitz founded the Initiative for Policy Dialogue (IPD), a think tank on international development based at Columbia University. Since 2001, he has been a member of the Columbia faculty, and has held the rank of University Professor since 2003. He also chairs the University of Manchester's Brooks World Poverty Institute and is a member of the Pontifical Academy of Social Sciences. Stiglitz is one of the most frequently cited economists in the world.[1]



Stiglitz was born in Gary, Indiana, to Jewish parents, Charlotte and Nathaniel Stiglitz. From 1960 to 1963, he studied at Amherst College, where he was a highly active member of the debate team and President of the Student Government. He went to the Massachusetts Institute of Technology (MIT) for his fourth year as an undergraduate, where he later pursued graduate work. His undergraduate degree was awarded from Amherst College. From 1965 to 1966, he moved to the University of Chicago to do research under Hirofumi Uzawa who had received an NSF grant. He studied for his PhD from MIT from 1966 to 1967, during which time he also held an MIT assistant professorship. The particular style of MIT economics suited him well - simple and concrete models, directed at answering important and relevant questions.[2] He was a research fellow at the University of Cambridge from 1966 to 1970. In subsequent years, he held academic positions at Yale (1970-1974), Stanford (1974-1976, 1988–2001), Oxford (1976-1979), and Princeton (1979–1988).[3] Stiglitz is now a Professor at Columbia University, with appointments at the Business School, the Department of Economics and the School of International and Public Affairs (SIPA), and is editor of The Economists' Voice journal with J. Bradford DeLong and Aaron Edlin. He also gives classes for a double-degree program between Sciences Po Paris and Ecole Polytechnique in 'Economics and Public Policy'. As of 2005 he chairs The Brooks World Poverty Institute at the University of Manchester.[4][5] Stiglitz is generally considered to be a New-Keynesian economist.

In addition to making numerous influential contributions to microeconomics, Stiglitz has played a number of policy roles. He served in the Clinton Administration as the chair of the President's Council of Economic Advisors (1995 – 1997). At the World Bank, he served as Senior Vice President and Chief Economist (1997 – 2000), in the time when unprecedented protest against international economic organizations started, most prominently with the Seattle WTO meeting of 1999. He was fired by the World Bank for expressing dissent with its policies.[6] He was a lead author for the Intergovernmental Panel on Climate Change.

He is a member of Collegium International, an organization of leaders with political, scientific, and ethical expertise whose goal is to provide new approaches in overcoming the obstacles in the way of a peaceful, socially just and an economically sustainable world.

Stiglitz has advised American President Barack Obama, but has also been sharply critical of the Obama Administration's financial-industry rescue plan.[7] Stiglitz said that whoever designed the Obama administration's bank rescue plan is “either in the pocket of the banks or they’re incompetent.” [8]

Contributions to economics


Information asymmetry

Stiglitz's most famous research was on screening, a technique used by one economic agent to extract otherwise private information from another. It was for this contribution to the theory of information asymmetry that he shared the Nobel Memorial Prize in Economics[2] in 2001 "for laying the foundations for the theory of markets with asymmetric information" with George A. Akerlof and A. Michael Spence.

Traditional neoclassical economics literature assumes that markets are always efficient except for some limited and well defined market failures. More recent studies by Stiglitz and others reverse that presumption: It is only under exceptional circumstances that markets are efficient. Stiglitz has shown (together with Bruce Greenwald) that "whenever markets are incomplete and /or information is imperfect (which are true in virtually all economies), even competitive market allocation is not constrained Pareto efficient". In other words, there almost always exists schemes of government intervention which can induce Pareto superior outcomes, thus making everyone better off.[9] Although these conclusions and the pervasiveness of market failures do not necessarily warrant the state intervening broadly in the economy, it makes clear that the "optimal" range of government recommendable interventions is definitely much larger than the traditional "market failure" school recognizes[10] For Stiglitz there is no such thing as an "invisible hand".[11]

Whenever there are “externalities”—where the actions of an individual have impacts on others for which they do not pay or for which they are not compensated—markets will not work well. But recent research has shown that these externalities are pervasive, whenever there is imperfect information or imperfect risk markets—that is always.
The real debate today is about finding the right balance between the market and government. Both are needed. They can each complement each other. This balance will differ from time to time and place to place.[12]

In the opening remarks for his prize acceptance "Aula Magna",[13] Stiglitz said:

"I hope to show that Information Economics represents a fundamental change in the prevailing paradigm within economics. Problems of information are central to understanding not only market economics but also political economy, and in the last section of this lecture, I explore some of the implications of information imperfections for political processes." Stiglitz, Aula Magna

In an interview, Stiglitz explained further:

"The theories that I (and others) helped develop explained why unfettered markets often not only do not lead to social justice, but do not even produce efficient outcomes. Interestingly, there has been no intellectual challenge to the refutation of Adam Smith’s invisible hand: individuals and firms, in the pursuit of their self-interest, are not necessarily, or in general, led as if by an invisible hand, to economic efficiency".[14]

Efficiency wages: the Shapiro-Stiglitz model

Stiglitz also did some research on efficiency wages, and helped create what became known as the "Shapiro-Stiglitz model" to explain why there is unemployment, why wages are not bid down sufficiently by job seekers (in the absence of minimum wages) so that everyone who wants a job finds one, and to question whether the neoclassical paradigm could explain involuntary unemployment.[15] The answer to these puzzles was proposed by Shapiro and Stiglitz in 1984: "Unemployment is driven by the information structure of employment".[15] Two basic observations undergird their analysis:

  1. Unlike other forms of capital, humans can choose their level of effort.
  2. It is costly for firms to determine how much effort workers are exerting.

A full description of this model can be found at the links provided.[16] Some key implications of this model are:

  1. Wages do not fall enough during recessions to prevent unemployment from rising. If the demand for labour falls, this lowers wages. But because wages have fallen, the probability of 'shirking' (workers not exerting effort) has risen. If employment levels are to be maintained, through a sufficient lowering of wages, workers will be less productive than before through the shirking effect. As a consequence, in the model wages do not fall enough to maintain employment levels at the previous state, because firms want to avoid excessive shirking by their workers. So, unemployment must rise during recessions, because wages are kept 'too high'.
  2. Possible corollary: Wage sluggishness. Moving from one private cost of hiring <w∗> to another private cost of hiring <w∗∗> will require each firm to repeatedly re-optimize wages in response to shifting unemployment rate. Firms cannot cut wages until unemployment rises sufficiently (a coordination problem).

The outcome is never Pareto efficient.

  1. Each firm employs too few workers because it faces private cost of hiring rather than the social cost — which is equal to and in all cases. This means that firms do not "internalize" the "external" cost of unemployment - they do not factor how large-scale unemployment harms society when assessing their own costs. This leads to a negative externality as marginal social cost exceeds the firm's marginal cost (MSC = Firm's Private Marginal Cost + Marginal External Cost of increased social unemployment)
  2. There are also negative externalities. Each firm increases the asset value of unemployment <Vu> for all other firms by hiring. But the first problem clearly dominates since the 'natural rate of unemployment' is always too high.

Some possible practical implications of Stiglitz theorems

While the mathematical validity of Stiglitz et al. theorems are not in question, their practical implications in political economy and their application in real life economic policies have been subject to considerable debates and disagreements.[17] Stiglitz himself seems to be continuously adapting his own political-economic discourse,[18] as we can see from the evolution in his positions as initially stated in Whither Socialism? (1994) to his own new positions held on his most recent publications.

Once incomplete and imperfect information are introduced, Chicago-school defenders of the market system cannot sustain descriptive claims of the Pareto efficiency of the real world. Thus, Stiglitz's use of rational-expectations equilibrium assumptions to achieve a more realistic understanding of capitalism than is usual among rational-expectations theorists leads, paradoxically, to the conclusion that capitalism deviates from the model in a way that justifies state action—socialism—as a remedy.[19]
The effect of Stiglitz's influence is to make economics even more presumptively interventionist than Samuelson preferred. Samuelson treated market failure as the exception to the general rule of efficient markets. But the Greenwald-Stiglitz theorem posits market failure as the norm, establishing "that government could potentially almost always improve upon the market's resource allocation." And the Sappington-Stiglitz theorem "establishes that an ideal government could do better running an enterprise itself than it could through privatization"[20] (Stiglitz 1994, 179).[19]

The objections to the wide adoption of these positions suggested by Stiglitz's discoveries do not come from economics itself but mostly from political scientists and are in the fields of sociology. As David L. Prychitko discusses in his "critique" to Whither Socialism? (see below), although Stiglitz's main economic insight seems generally correct, it still leaves open great constitutional questions such as how the coercive institutions of the government should be constrained and what the relation is between the government and civil society.[21]


Clinton administration, 1993 - 1997

Stiglitz joined the Clinton Administration in 1993,[22] serving first as a member during 1993-1995, and then as Chairman of the Council of Economic Advisers during 1995-1997, in which capacity he also served as a member of the cabinet. He became deeply involved in environmental issues, which included serving on the Intergovernmental Panel on Climate Change, and helping draft a new law for toxic wastes (which was never passed).

Stiglitz's most important contribution in this period was helping define a new economic philosophy, a "third way", which postulated the important, but limited, role of government, that unfettered markets often did not work well, but that government was not always able to correct the limitations of markets. The academic research that he had been conducting over the preceding 25 years provided the intellectual foundations for this "third way".

When President Bill Clinton was re-elected, he asked Stiglitz to continue to serve as Chairman of the Council of Economic Advisers for another term. But he had already been approached by the World Bank, to be its senior vice president for development policy and its chief economist.

As the World Bank began its ten-year review of the transition of the former Communist countries to the market economy it unveiled failures of the countries that had followed the International Monetary Fund (IMF) shock therapy policies - both in terms of the declines in GDP and increases in poverty - that were even worse than the worst that most of its critics had envisioned at the onset of the transition. Clear links existed between the dismal performances and the policies that the IMF had advocated, such as the voucher privatization schemes and excessive monetary stringency. Meanwhile, the success of a few countries that had followed quite different strategies suggested that there were alternatives that could have been followed. The U.S. Treasury had put enormous pressure on the World Bank to silence his criticisms of the policies which they and the IMF had pursued.[23][24]

Stiglitz always had a poor relationship with Treasury Secretary Lawrence Summers.[25] In 2000, Summers successfully petitioned for Stiglitz's removal, supposedly in exchange for World Bank President James Wolfensohn's re-appointment – an exchange that Wolfensohn denies took place. Whether Summers ever made such a blunt demand is questionable – Wolfensohn claims he would "have told him to fuck himself".[26]

Stiglitz resigned from the World Bank in January 2000, a month before his term expired.[24] The Bank's president, James Wolfensohn, announced Stiglitz's resignation in November 1999 and also announced that Stiglitz would stay on as "special advisor to the president", and would chair the search committee for a successor.

"Joseph E. Stiglitz said today [Nov. 24, 1999] that he would resign as the World Bank's chief economist after using the position for nearly three years to raise pointed questions about the effectiveness of conventional approaches to helping poor countries."[27]

In this role, he continued criticism of the IMF, and, by implication, the US Treasury Department. In April 2000, in an article for The New Republic, he wrote:

"They’ll say the IMF is arrogant. They’ll say the IMF doesn’t really listen to the developing countries it is supposed to help. They’ll say the IMF is secretive and insulated from democratic accountability. They’ll say the IMF’s economic ‘remedies’ often make things worse – turning slowdowns into recessions and recessions into depressions. And they’ll have a point. I was chief economist at the World Bank from 1996 until last November, during the gravest global economic crisis in a half-century. I saw how the IMF, in tandem with the U.S. Treasury Department, responded. And I was appalled."

The article was published a week before the annual meetings of the World Bank and IMF and provoked a strong response. It proved too strong for Summers and, yet more lethally, Stiglitz's protector-of-sorts at the World Bank, Wolfensohn. Wolfensohn had privately empathised with Stiglitz's views, but this time was worried for his second term, which Summers had threatened to veto.[citation needed] Stanley Fisher, deputy managing director of the IMF, called a special staff meeting and informed at that gathering that Wolfensohn had agreed to fire Stiglitz. Meanwhile, the Bank's External Affairs department told the press that Stiglitz had not been fired, his post had merely been abolished.[28]

In a September 19, 2008 radio interview with Aimee Allison and Philip Maldari on Pacifica Radio's KPFA 94.1 FM in Berkeley, California, Stiglitz implied that President Clinton and his economic advisors would not have backed the North American Free Trade Agreement (NAFTA) had they been aware of stealth provisions, inserted by lobbyists, that they overlooked.

Initiative for Policy Dialogue

In July 2000 Stiglitz founded the Initiative for Policy Dialogue (IPD), with support of the Ford, Rockefeller, McArthur, and Mott Foundations and the Canadian and Swedish governments, to enhance democratic processes for decision-making in developing countries and to ensure that a broader range of alternatives are on the table and more stakeholders are at the table.

Commission of Experts on Reforms of the International Monetary and Financial System

In 2009, Stiglitz chaired the Commission of Experts on Reforms of the International Monetary and Financial System, informally known as the Stiglitz Commission, which was convened by the President of the United Nations General Assembly "to review the workings of the global financial system, including major bodies such as the World Bank and the IMF, and to suggest steps to be taken by Member States to secure a more sustainable and just global economic order".[29]


Along with his technical economic publications (he has published over 300 technical articles), Stiglitz is the author of books on issues from patent law to abuses in international trade.

Stability with Growth: Macroeconomics, Liberalization and Development

In Stability with Growth: Macroeconomics, Liberalization and Development (2006), Stiglitz, José Antonio Ocampo (United Nations Under-Secretary-General for Economic and Social Affairs, until 2007), Shari Spiegel (Managing Director, Initiative for Policy Dialogue - IPD), Ricardo Ffrench-Davis (Main Adviser, Economic Commission for Latin America and the Caribbean - ECLAC) and Deepak Nayyar (Vice Chancellor, University of Delhi) discuss the current debates on macroeconomics, capital market liberalization and development, and develop a new framework within which one can assess alternative policies. They explain their belief that the Washington Consensus has advocated narrow goals for development (with a focus on price stability) and prescribed too few policy instruments (emphasizing monetary and fiscal policies), and places unwarranted faith in the role of markets. The new framework focuses on real stability and long-term sustainable and equitable growth, offers a variety of non-standard ways to stabilize the economy and promote growth, and accepts that market imperfections necessitate government interventions. Policy-makers have pursued stabilization goals with little concern for growth consequences, while trying to increase growth through structural reforms focused on improving economic efficiency. Moreover, structural policies, such as capital market liberalization, have had major consequences for economic stability. This book challenges these policies by arguing that stabilization policy has important consequences for long-term growth and has often been implemented with adverse consequences. The first part of the book introduces the key questions and looks at the objectives of economic policy from different perspectives.The third part presents a similar analysis for capital market liberalization.

Making Globalization Work

Making Globalization Work (2006) surveys the inequities of the global economy, and the mechanisms by which developed countries exert an excessive influence over developing nations. Dr. Stiglitz argues that through tariffs, subsidies, an overly-complex patent system and pollution, the world is being both economically and politically destabilised. Stiglitz argues that strong, transparent institutions are needed to address these problems. He shows how an examination of incomplete markets can make corrective government policies desirable.

Stiglitz argues that economic opportunities are not widely enough available, that financial crises are too costly and too frequent, and that the rich countries have done too little to address these problems. Making Globalization Work[30] had sold more than two million copies.

The Roaring Nineties

In 2003, Stiglitz published The Roaring Nineties, his analysis of the boom and bust of the 1990s. In 2004 he published New Paradigm for Monetary Economics (Cambridge University Press) and in 2005, Oxford University Press published his book Fair Trade for All.

The Roaring Nineties: A New History of the World's Most Prosperous Decade

"The Roaring Nineties: A New History of the World's Most Prosperous Decade" (2003) continues his argument on how misplaced faith in free-market ideology led to the global economic issues of today, with a perceptive focus on US policies.

Globalization and Its Discontents

In Globalization and Its Discontents (2002), Stiglitz argues that what are often called "developing economies" are, in fact, not developing at all, and puts much of the blame on the IMF.

Stiglitz bases his argument on the themes that his decades of theoretical work have emphasized: namely, what happens when people lack the key information that bears on the decisions they have to make, or when markets for important kinds of transactions are inadequate or don't exist, or when other institutions that standard economic thinking takes for granted are absent or flawed. Stiglitz stresses the point: "Recent advances in economic theory" (in part referring to his own work) "have shown that whenever information is imperfect and markets incomplete, which is to say always, and especially in developing countries, then the invisible hand works most imperfectly." As a result, Stiglitz continues, governments can improve the outcome by well-chosen interventions. Stiglitz argues that when families and firms seek to buy too little compared to what the economy can produce, governments can fight recessions and depressions by using expansionary monetary and fiscal policies to spur the demand for goods and services. At the microeconomic level, governments can regulate banks and other financial institutions to keep them sound. They can also use tax policy to steer investment into more productive industries and trade policies to allow new industries to mature to the point at which they can survive foreign competition. And governments can use a variety of devices, ranging from job creation to manpower training to welfare assistance, to put unemployed labor back to work and cushion human hardship.

Stiglitz complains bitterly that the IMF has done great damage through the economic policies it has prescribed that countries must follow in order to qualify for IMF loans, or for loans from banks and other private-sector lenders that look to the IMF to indicate whether a borrower is creditworthy. The organization and its officials, he argues, have ignored the implications of incomplete information, inadequate markets, and unworkable institutions—all of which are especially characteristic of newly developing countries. As a result, Stiglitz argues, the IMF has often called for policies that conform to textbook economics but do not make sense for the countries to which the IMF is recommending them. Stiglitz seeks to show that these policies have been disastrous for the countries that have followed them.

Whither Socialism?

Whither Socialism? is based on Stiglitz's Wicksell Lectures, presented at the Stockholm School of Economics in 1990 and presents a summary of information economics and the theory of markets with imperfect information and imperfect competition, as well as being a critique of both free market and market socialist approaches (see Roemer critique, op. cit.). Stiglitz explains how the neoclassical, or Walrasian model ("Walrasian economics" refers to the result of the process which has given birth to a formal representation of Adam Smith's notion of the "invisible hand", along the lines put forward by Leon Walras and encapsulated in the general equilibrium model of Arrow-Debreu), may have wrongly encouraged the belief that market socialism could work. Stiglitz proposes an alternative model, based on the information economics established by the Greenwald-Stiglitz theorems.

One of the reasons Stiglitz sees for the critical failing in the standard neoclassical model, on which market socialism was built, is its failure to consider the problems that arise from lack of perfect information and from the costs of acquiring information. He also identifies problems arising from its assumptions concerning completeness.[31]


Whither Socialism? has been subject to various critiques such as those of the Yale professor John E. Roemer,[32] Peter Boettke, the Deputy Director of the James M. Buchanan Center for Political Economy (1996),[33] as well as David L. Prychitko, a professor of economics at Northern Michigan University.[21] According to Prychitko:

"Stiglitz's main insight is generally correct– that the state cannot be ruled out or that it should be ruled in– but leaves open the grand constitutional questions: How will the coercive institutions of the state be constrained? What is the relation between the state and civil society? His book fails on these political aspects because it has not addressed the broader constitutional concerns that James McGill Buchanan Jr.[34] (1975) and other economists have raised."

Freefall: America, Free Markets, and the Sinking of the World Economy

In Freefall: America, Free Markets, and the Sinking of the World Economy (2010), Stiglitz discusses the causes of the 2008 recession/depression and goes on to propose reforms needed to avoid a repetition of a similar crisis, advocating government intervention and regulation in a number of areas.

Papers and conferences

Stiglitz wrote a series of papers and held a series of conferences explaining how such information uncertainties may have influence on everything from unemployment to lending shortages. As the chairman of the Council of Economic Advisers during the Clinton Administration and former chief economist at the World Bank, Stiglitz was able to put some of his views into action. For example, he was an outspoken critic of quickly opening up financial markets in developing countries. These markets rely on access to good financial data and sound bankruptcy laws, but he argued that many of these countries didn't have the regulatory institutions needed to ensure that the markets would operate soundly.

He co-authored a paper titled "Implications of the New Fannie Mae and Freddie Mac Risk-Based Capital Standard" with Peter Orszag in 2002 in which they concluded "on the basis of historical experience, the risk to the government from a potential default on GSE debt is effectively zero."[35]

Personal Information

Stiglitz married for the third time on October 28, 2004, to Anya Schiffrin, who works at the School of International and Public Affairs at Columbia University.


  • 2010, Freefall: America, Free Markets, and the Sinking of the World Economy ISBN 978-0393075960, W. W. Norton.
  • 2006, Stability with Growth: Macroeconomics, Liberalization, and Development ISBN 0-19-928814-3 (Initiative for Policy Dialogue Series C); by Joseph E. Stiglitz, Jose Antonio Ocampo, Shari Spiegel, Ricardo Ffrench-Davis, and Deepak Nayyar; Oxford University Press 2006
  • 2000, Frontiers of Development Economics: The Future in Perspective, edited with Gerald M. Meier, World Bank, May 2000.
  • 2001, Rethinking the East Asian Miracle, edited with Shahid Yusuf, World Bank and Oxford University Press.
  • 2002, Principles of Macroeconomics, third edition, with Carl E. Walsh, W.W. Norton & Company, March 2002.
  • 2002, Economics, Third Edition, with Carl E. Walsh, W.W. Norton & Company, April 2002.
  • 2002, Peasants Versus City-Dwellers: Taxation and the Burden of Economic Development, with Raaj K. Sah, Oxford University Press, April 2002.
  • Towards a New Paradigm in Monetary Economics, with Bruce Greenwald, Cambridge University Press.
  • 2003, The Roaring Nineties, W.W. Norton & Company, forthcoming in October 2003.
  • Fair Trade for All: How Trade Can Promote Development (Initiative for Policy Dialogue Series C)– by Joseph E. Stiglitz, Andrew Charlton; Hardcover
  • Economics of the Public Sector. by Joseph E. Stiglitz
  • 2002, The Rebel Within: Joseph Stiglitz and the World Bank by Joseph E. Stiglitz (Editor), Ha-Joon Chang (Editor), ISBN 1-898855-91-9, Anthem Press, Wimbledon Publishing Company (Paperback - February 25, 2002)
  • 2005, The Development Round Of Trade Negotiations In The Aftermath Of Cancun by Joseph E. Stiglitz, Andrew Charlton (Paperback - January 30, 2005)
  • 2005, A Chance For The World Bank by Joseph P Stiglitz (Foreword), Jozef Ritzen, ISBN 1-84331-162-3, Anthem Press, Wimbledon Publishing Company (Paperback - May 30, 2005)
  • 1986, 'Economics of the Public Sector' by J.E.Stiglitz ISBN 0-393-96651-8, W.W.Norton, New York. (Re-printed 1988, 2000)
  • 1981, 'Theory of Commodity Price Stabilization' by David M.G. Newbery and Joseph E. Stiglitz ISBN 0198284179 ISBN 978-0198284178, Oxford University Press [Hardcover: 512 pages]
  • Readings in the Modern Theory of Economic Growth by Joseph E. Stiglitz (Editor), Hirofumi Uzawa (Editor)
Articles, conferences, papers, videos
  • 2009, "Wall Street’s Toxic Message", Vanity Fair, July 2009
  • 2009, "America's socialism for the rich", The Guardian, June 2009
  • 2009, "Regulation and Failure", in David Moss and John Cisternino (eds.), New Perspectives on Regulation. Cambridge: The Tobin Project
  • 2009, "Capitalist Fools", Vanity Fair, January 2009
  • 2008, The Three Trillion Dollar War a panel discussion with Joseph Stiglitz and Linda Bilmes regarding their new book, `The Three Trillion Dollar War: The True Cost of the Iraq Conflict.` Feb 28, 2008 at Columbia University.
  • 2007, "The Economic Consequences of Mr. Bush", Vanity Fair, December 2007 Issue
  • 2007, Where is the World Going To, Mr. Stiglitz? directed by Jacques Sarasin, First Run Features.
  • 2002, "Implications of the New Fannie Mae and Freddie Mac Risk-based Capital Standard", for FannieMae Volume I, Issue 2 March 2002
  • 2001, New Ideas About Old Age Security: Toward Sustainable Pension Systems in the 21st Century , edited with Robert Holzmann, World Bank, January 2001.
  • 1998, Redefining the Role of the State - What should it do ? How should it do it ? And how should these decisions be made? Paper presented at the Tenth Anniversary of MITI Research Institute, Tokyo, March 1998.
  • 1996, The World Bank Research Observer: No 2: August 1996 by Joseph Stiglitz
  • 1993, “Post Walrasian and post Marxian economics,” Journal of Economic Perspectives, vol. 7, pp. 109–14
  • 1993, “Market socialism and neoclassical economics,” in Bardhan, P. K. and Roemer, J. E. (eds.), Market Socialism. The Current Debate, New York: Oxford University Press
  • 1989, “Principal and agent,” in J. Eatwell, M. Milgate and P. Newman (eds.), The New Palgrave. Allocation, Information and Markets. New York: W. W. Norton
  • 1987, “The causes and consequences of the dependence of quality on prices”, Journal of Economic Literature, vol. 25, pp. 1–48
  • 1981, "Credit Rationing in Markets with Imperfect Information", The American Economic Review, Vol. 71, No.3 (June 1981),pp. 393–410, by Joseph E. Stiglitz and Andrew Weiss
  • 1974, Incentives and Risk Sharing in Sharecropping, The Review of Economic Studies, Vol. 41, No. 2, 219-255.
  • 1970, Increasing Risk, in: Journal of Economic Theory, Vol. 2, by M. Rothschild and J. E. Stiglitz
  • World Bank Video presentation
  • Online access to Stiglitz published papers, at his own website
  • "I Dissent: Uncommon Economic Wisdom", A monthly column for Project Syndicate.


  1. ^ Number of Citations
  2. ^ a b Joseph E. Stiglitz: The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2001
  3. ^
  4. ^
  5. ^
  6. ^ multi-day interview with Greg Palast
  7. ^ "Obama’s Ersatz Capitalism". The New York Times. 2009-03-31. Retrieved 2009-04-02. 
  8. ^ "Stiglitz Says Ties to Wall Street Doom Bank Rescue". Bloomberg News. 2009-04-17. Retrieved 2009-04-18. 
  9. ^ Bruce C. Greenwald & Joseph E. Stiglitz: Externalities in Economies with Imperfect Information and Incomplete Markets. In: Quarterly Journal of Economics. no. 90. (PDF; 2,96 MB)
  10. ^ WANG, Shaoguang. The State, Market Economy, and Transition. Department of Political Science, Yale University.
  11. ^ STIGLITZ, Joseph E. There is no invisible hand. London: The Guardian Comment, December 20, 2002.
  12. ^ ALTMAN, Daniel. Managing Globalization. In: Q & Answers with Joseph E. Stiglitz, Columbia University and The International Herald Tribune, Oct 11, 2006 05:03AM.
  13. ^ STIGLITZ, Joseph E. Prize Lecture: Information and the Change in the Paradigm in Economics. Joseph E. Stiglitz held his Prize Lecture December 8, 2001, at Aula Magna, Stockholm University. He was presented by Lars E.O. Svensson, Chairman of the Prize Committee.
  14. ^ STIGLITZ, Joseph E. The pact with the devil. Beppe Grillo's Friends interview
  15. ^ a b SHAPIRO, Carl and STIGLITZ, Joseph E. Equilibrium Unemployment as a Worker Discipline Device. The American Economic Review, Vol. 74, No. 3 (Jun., 1984), pp. 433-444.
  16. ^ Efficiency wages, the Shapiro-Stiglitz Model
  17. ^ SANAHUJA, José Antonio. Consensus, dissensus, confusion: the "Stiglitz Debate" in perspective. Development in Practice, Vol 14, 2004
  18. ^ FRIEDMAN, Benjamin M. Globalization: Stiglitz's Case. The New York Review of Books, Volume 49, Number 13 · August 15, 2002
  19. ^ a b BOETTKE, Peter J. What Went Wrong with Economics?, Critical Review Vol. 11, No. 1, P. 35. p. 58
  20. ^ SAPPINGTON, David E. M. e STIGLITZ, Joseph E. Privatization, Information and Incentives. Columbia University; National Bureau of Economic Research (NBER) June 1988; NBER Working Paper No. W2196
  21. ^ a b PRYCHITKO, David L. Book Reviews, Whither Socialism?, The Cato Journal, Cato Institute, vol. 16, no. 2. David L. Prychitko is the Head of the Department of Economics (Northern Michigan University), a Faculty Affiliate in the Program on Markets and Institutions at the James M. Buchanan Center for Political Economy (George Mason University) and the author of over a dozen socio-economic books mainly on Marxism and socialism
  22. ^ ""
  23. ^ Wade, Robert. Showdown at the World Bank, New Left Review 7, January-February 2001
  24. ^ a b Hage, Dave.. Joseph Stiglitz : A Dangerous Man, A World Bank Insider Who Defected, Published on Wednesday, October 11, 2000 in the Minneapolis Star-Tribune
  25. ^ Michael Hirsh, Why Joseph Stiglitz is Ignored, Newsweek, Jul 18, 2009
  26. ^ Mallaby, The World's Banker, p. 266
  27. ^ Richard W. Stevenson, Outspoken chief economist leaving World Bank, New York Times (November 25, 1999).
  28. ^ WADE, Robert. U.S. Hegemony and the World Bank: Stiglitz's Firing And Kanbur's Resignation., New Left Review, 9 Oct 2000, pp 9-10.
  29. ^ "Terms of Reference Commission of Experts of the President of the United Nations General Assembly on Reforms of the International Monetary and Financial System". Retrieved 2009-05-27. 
  30. ^ see Stiglitz discuss his book on Youtube
  31. ^ ZAPIA, Carlo. The economics of information, market socialism and Hayek's legacy., Dipartimento di Economia Politica, Università di Siena
  32. ^ ROEMER, John E. An Anti-Hayekian Manifesto., New Left Review I/211, May-June 1995
  33. ^ Whither Socialism? by Joseph E. Stiglitz, Author(s) of Review: Peter J. Boettke, Journal of Economic Literature, Vol. 34, No. 1 (Mar., 1996), pp. 189-191
  34. ^ BUCHANAN, James M. Public Finance and Public Choice, National Tax Journal,1975.
  35. ^ "Implications of the New Fannie Mae and Freddie Mac Risk-Based Capital Standard". Fannie Mae. Retrieved 2010-02-10. 

External links

Government offices
Preceded by
Laura D'Andrea Tyson
Chairman of the Council of Economic Advisers
Succeeded by
Janet Yellen
Business positions
Preceded by
Michael Bruno
World Bank Chief Economist
Succeeded by
Nicholas Stern


Up to date as of January 14, 2010

From Wikiquote

Joseph Eugene Stiglitz (born February 9, 1943) is an American economist and author. He is the winner of the John Bates Clark Medal in 1979 and the Nobel Memorial Prize in Economics in 2001.


  • Most poor people earn more than minimum wage when they are working; their problem is not low wages. The problem comes when they are not working.
    • Economics (1993)
  • They [free market policies] were never based on solid empirical and theoretical foundations, and even as many of these policies were being pushed, academic economists were explaining the limitations of markets — for instance, whenever information is imperfect, which is to say always.
  • It's actually a tribute to the quality of economics teaching that they have persuaded so many generations of students to believe in so much that seems so counter to what the world is like. Many of the things that I'm going to describe make so much more common sense than these notions that seem counter to what ones eyes see every day.

Autobiographical Essay for the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (2001)

Full text here

  • There must have been something in the air of Gary that led one into economics: the first Nobel Prize winner, Paul Samuelson, was also from Gary, as were several other distinguished economists... Certainly, the poverty, the discrimination, the episodic unemployment could not but strike an inquiring youngster: why did these exist, and what could we do about them.
  • My teachers helped guide and motivate me; but the responsibility of learning was left with me.
  • In debate, one randomly was assigned to one side or the other. This had at least one virtue — it made one see that there was more than one side to these complex issues.
  • The notion that every well educated person would have a mastery of at least the basic elements of the humanities, sciences, and social sciences is a far cry from the specialized education that most students today receive, particularly in the research universities.
  • The best teachers still taught in a Socratic style, asking questions, responding to the answers with still another question. And in all of our courses, we were taught that what mattered most was asking the right question — having posed the question well, answering the question was often a relatively easy matter.
  • I, like many members of my generation, was concerned with segregation and the repeated violation of civil rights. We were impatient with those (like President Kennedy) who took a cautious approach. How could we continue to countenance these injustices that had gone on so long? (The fact that so many people in the establishment seemed to do so — as they had accepted colonialism, slavery, and other forms of oppression — left a life-long mark. It reinforced a distrust of authority which I had had from childhood.)
  • There was an incongruity between many of the models that we were taught and the policy positions that our teachers (and we) believed in. The models seemed more consonant with free market prescriptions, though they were presented more as benchmarks rather than full characterizations.
  • Once I undertook the analysis of a problem, I often looked at it from a variety of perspectives. I approached the problem as a series of thought experiments — unlike many other sciences, we typically cannot do actual experiments.
  • If stability and efficiency required that there existed markets that extended infinitely far into the future — and these markets clearly did not exist — what assurance do we have of the stability and efficiency of the capitalist system?
  • Economists often like startling theorems, results which seem to run counter to conventional wisdom.
  • An early insight in my work on the economics of information concerned the problem of appropriability — the difficulty that those who pay for information have in getting returns.
  • I recognized that information was, in many respects, like a public good, and it was this insight that made it clear to me that it was unlikely that the private market would provide efficient resource allocations whenever information was endogenous.
  • Seeing an economy that is, in many ways, quite different from the one grows up in, helps crystallize issues: in one's own environment, one takes too much for granted, without asking why things are the way they are.
  • Growing up in Gary Indiana gave me, I think, a distinct advantage over many of my classmates who had grown up in affluent suburbs. They could read articles that argued that in competitive equilibrium, there could not be discrimination, so long as there are some non-discriminatory individuals or firms, since it would pay any such firm to hire the lower wage discriminated-against individuals, and take them seriously. I knew that discrimination existed, even though there were many individuals who were not prejudiced. To me, the theorem simply proved that one or more of the assumptions that went into the theory was wrong.

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