Joseph E. Stiglitz

Infobox Scientist
name = Joseph E. Stiglitz


image_size = 180px
birth_date = Birth date and age|1943|2|9|mf=y
birth_place = Gary, Indiana, U.S.
nationality =United States
field = Economics
work_places = Columbia University
alma_mater = MIT
Amherst College
doctoral_advisor = Robert Solow
doctoral_students =
known_for = Screening
prizes = John Bates Clark Medal (1979)
Nobel Memorial Prize in Economic Sciences (2001)

Joseph Eugene Stiglitz (born February 9, 1943) is an American economist and a professor at Columbia University. He is a recipient of the John Bates Clark Medal (1979) and the Nobel Memorial Prize in Economic Sciences (2001). 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 the most cited economist in the world, as of June 2008.cite web|url=http://ideas.repec.org/top/top.person.all.html |title=Top 5% Authors, as of June 2008 |accessdate=2008-07-10 ]

Biography

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 [http://nobelprize.org/nobel_prizes/economics/laureates/2001/stiglitz-autobio.html Joseph E. Stiglitz: The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2001] ] . From 1969 to 1970, he was a Fulbright research fellow at the University of Cambridge. In subsequent years, he held professorships at Yale University, Duke University, Stanford University, Oxford University and Princeton University. Stiglitz is currently 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. 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 (1995ndash 1997). At the World Bank, he served as Senior Vice President and Chief Economist (1997ndash 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. [ [http://www.gregpalast.com/the-globalizer-who-came-in-from-the-cold/ multi-day interview with Greg Palast] ] He was a lead author for the Intergovernmental Panel on Climate Change. Stiglitz has advised American Presidential candidate Barack Obama.

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 [http://nobelprize.org/nobel_prizes/economics/laureates/2001/stiglitz-autobio.html"Joseph E. Stiglitz: The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2001"] ] 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; Stiglitz et al. more recent studies reverse that presumption: it is only under exceptional circumstances that markets are efficient. Stiglitz (and Greenwald) have shown 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.GREENWALD, Bruce and STIGLITZ, Joseph E. 1986 Externalities in Economies with Imperfect Information and Incomplete Markets, Quarterly Journal of Economics, no. 90.] Empirical evidence on the pervasiveness of these market failures is lacking. Although these conclusions, and the pervasiveness of market failures, do not at all warrant the state intervening broadly in any economy, it makes clear that the "optimal" range of government recommendable interventions is definitely much larger than the traditional "market failure" school recognizes [http://www.cuhk.edu.hk/gpa/wang_files/state.pdf WANG, Shaoguang. The State, Market Economy, and Transition. Department of Political Science, Yale University.] ] For Stiglitz there is no such thing as an "invisible hand". [http://www.guardian.co.uk/comment/story/0,3604,863426,00.html#article_continue STIGLITZ, Joseph E. "There is no invisible hand." London: The Guardian Comment, December 20, 2002.] ]

::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. [http://blogs.iht.com/tribtalk/business/globalization/?p=177 ALTMAN, Daniel. "Managing Globalization." In: "Q & Answers" with Joseph E. Stiglitz, Columbia University and "The International Herald Tribune", Oct 11, 2006 05:03AM.] ]

In the opening remarks for his prize acceptance "Aula Magna", [http://nobelprize.org/nobel_prizes/economics/laureates/2001/stiglitz-lecture.html 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.] ] 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". [http://www.beppegrillo.it/eng/2007/01/stiglitz.html STIGLITZ, Joseph E. "The pact with the devil." Beppe Grillo's Friends interview] ]

Efficiency wages: the Shapiro-Stiglitz model

Stiglitz also did some research on efficiency wages, and helped create what became know as the "Shapiro-Stiglitz model" to explain why there is unemployment, why wages aren't 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 employment. The answer to these puzzles was proposed by Shapiro and Stiglitz in 1984: "Unemployment is driven by the information structure of employment". [http://links.jstor.org/sici?sici=0002-8282(198406)74:3%3C433:EUAAWD%3E2.0.CO;2-G 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.] ] Two basic observations undergird their analysis:

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

A full description of this model can be found at the [http://coin.wne.uw.edu.pl/lwincenciak/docs/lecture_4.pdf links provided] . [http://coin.wne.uw.edu.pl/lwincenciak/docs/lecture_4.pdf "Efficiency wages, the Shapiro-Stiglitz Model"] ] Some key implications of this model are:

* 1. Wages don’t fall enough during recessions to prevent unemployment from rising. If labor demand shifts inward, 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 to another private cost of hiring 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 [ w∗ > e' ] in all cases.

* 2. There are also negative externalities. Each firm increases the asset value of unemployment for all other firms by hiring. But the first problem clearly dominates since the 'natural rate of unemployment' is always too high.

ome 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 [http://www.developmentinpractice.org/apc_ap-v14n3x525073q.html SANAHUJA, José Antonio. "Consensus, dissensus, confusion: the "Stiglitz Debate" in perspective." Development in Practice, Vol 14, 2004] ] . Stiglitz himself seems to be continuously adapting his own political-economic discourse, [http://www.nybooks.com/articles/15630 FRIEDMAN, Benjamin M. "Globalization: Stiglitz's Case." The New York Review of Books, Volume 49, Number 13 · August 15, 2002] ] 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.

::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" [http://elsa.berkeley.edu/~yqian/econ260b/Sappington%20Privatization.pdf 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] ] (Stiglitz 1994, 179). [http://www.the-dissident.com/Boettke_CR.pdf BOETTKE, Peter J. "What Went Wrong with Economics?", Critical Review Vol. 11, No. 1, P. 35. p. 58] ]

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 to question great constitutional questions such as how the coercive institutions of the state should be constrained and what is the relation between the state and civil society. [http://www.cato.org/pubs/journal/cj16n2-10.html 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] ]

Politics

Clinton administration, 1992 - 2000

Stiglitz moved to Washington in March 1992 to join the Clinton Administration, first as a member, and then as Chairman of the Council of Economic Advisers, 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). Some of the ideas that Stiglitz had helped formulate, like adverse selection and moral hazard, are now part of the every day language of the policy debate in health care.

Stiglitz's most important contribution in this period was helping define a new economic philosophy, a "third way", which recognized 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 twenty-five 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 pushed. [http://newleftreview.org/A2305 Wade, Robert. "Showdown at the World Bank", New Left Review 7, January-February 2001] ] [http://www.commondreams.org/views/101100-101.htm Hage, Dave.. "Joseph Stiglitz : A Dangerous Man, A World Bank Insider Who Defected", Published on Wednesday, October 11, 2000 in the Minneapolis Star-Tribune] ]

Stiglitz always had a poor relationship with Treasury Secretary Lawrence Summers. 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". [Mallaby, "The World's Banker", p. 266]

Stiglitz resigned a month before his term expired at the World Bank, and left the Bank in January 2000. [http://www.commondreams.org/views/101100-101.htm HAGE, Dave. "Joseph Stiglitzndash A Dangerous Man, A World Bank Insider Who Defected." Published on Wednesday, October 11, 2000 in the Minneapolis Star-Tribune] ] 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." [http://query.nytimes.com/gst/fullpage.html?res=9801EFDB163FF936A15752C1A96F958260 Richard W. Stevenson, "Outspoken chief economist leaving World Bank," "New York Times" (November 25, 1999).] ]

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, yet this time Wolfensohn was worried for his second term, which Summers had threatened to veto. Stanley Fisher, deputy managing director of the International Monetary Fund, 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. [http://sociology.berkeley.edu/faculty/evans/evans_pdf/Wade.pdf 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.] ]

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. In consideration of its compelling intellectual value, KPFA has elected to offer a recorded transcript of the interview with Stiglitz as a premium for a listener fundraising pledge campaign.

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 government, to enhance democratic processes for decision-making in developing countries, to ensure that a broader range of alternatives are on the table and more stakeholders are at the table.

Books

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 Antoni Ocampo (United Nations Under-Secretary-General for Economic and Social Affairs) 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 challenge 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 second part examines the central issues of macroeconomics, presenting an analysis of economic models and policy perspectives on stabilization from Neoclassical, Keynesian, and heterodox perspectives. The third part presents a similar analysis for capital market liberalization.

"Making Globalization Work"

"Making Globalization Work" (2006) surveys the iniquities 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" [see Stiglitz discuss his book on [http://uk.youtube.com/watch?v=UzhD7KVs-R4 Youtube] ] 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".

"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. [http://www.econ-pol.unisi.it/pubdocenti/HEI99.pdf ZAPIA, Carlo. "The economics of information, market socialism and Hayek's legacy.", Dipartimento di Economia Politica, Università di Siena] ]

;Critique

"Whither Socialism?" has been subject to various critiques such as those of the Yale professor John E. Roemer, [http://newleftreview.org/?view=2045 ROEMER, John E. "An Anti-Hayekian Manifesto.", New Left Review I/211, May-June 1995 ] ] Peter Boettke, the Deputy Director of the [http://www.gmu.edu/jbc/ James M. Buchanan Center for Political Economy] (1996), [ [http://links.jstor.org/sici?sici=0022-0515%28199603%2934%3A1%3C189%3AWS%3E2.0.CO%3B2-2&size=LARGE&origin=JSTOR-enlargePage "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] ] as well as David L. Prychitko, a professor of economics at Northern Michigan University. [http://www.cato.org/pubs/journal/cj16n2-10.html PRYCHITKO, David L. Book Reviews, "Whither Socialism?", The Cato Journal, Cato Institute, vol. 16, no. 2.] ] According to Prychitko:

"Stiglitz's main insight is generally correctndash 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 [http://www.rjc.edu.sg/subjects/economics/Economists/james%20buchanen.htm James McGill Buchanan Jr.] BUCHANAN, James M. "Public Finance and Public Choice", National Tax Journal,1975.] (1975) and other economists have raised."

Papers and conferences

Dr. 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, Dr. 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.

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. Before that, he married and divorced twice.

Publications

; Books:

* 2008, "The Three Trillion Dollar War" ISBN 978-0-39-306701-9; by Joseph Stiglitz and Linda Bilmes, W. W. Norton.

* 2006, "Making Globalization Work" ISBN 0-393-06122-1, Penguin Books, August 2006.

* 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

* 1996, [http://mitpress.mit.edu/catalog/item/default.asp?tid=5669&ttype=2"Whither Socialism ?" STIGLITZ, Joseph E., (Wicksell Lectures), MIT Press, January 1996.]

* 2000, "Frontiers of Development Economics: The Future in Perspective", edited with Gerald M. Meier, World Bank, May 2000.

* 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.

* 2002, "Globalization and Its Discontents", W.W. Norton & Company, June 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)ndash 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-10: 0198284179 ISBN-13: 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:
* 2007, The Economic Consequences of Mr. Bush, Vanity Fair, December 2007 Issue
* 2007, [http://stiglitzfilm.com Where is the World Going To, Mr. Stiglitz?] directed by Jacques Sarasin, First Run Features.
* 2001, New Ideas About Old Age Security: Toward Sustainable Pension Systems in the 21st Century , edited with Robert Holzmann, World Bank, January 2001.
* 1998 [http://www2.gsb.columbia.edu/faculty/jstiglitz/download/2001_World_Economics.pdf "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.
* [http://info.worldbank.org/etools/bspan/PresentationView.asp?PID=950&EID=492 World Bank Video presentation]
* [http://www2.gsb.columbia.edu/faculty/jstiglitz/papers.cfm Online access to Stiglitz published papers, at his own website]
* [http://uc.princeton.edu/main/index.php?option=com_content&task=view&id=2814&Itemid=1 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.
* [http://www.project-syndicate.org/series/11/description I Dissent: Uncommon Economic Wisdom.] A monthly column for [http://www.project-syndicate.org Project Syndicate] .

References

External links

* [http://www-1.gsb.columbia.edu/faculty/jstiglitz/index.cfm Joseph Stiglitz's homepage]
* [http://www.threetrilliondollarwar.org/ ThreeTrillionDollarWar.org]
* [http://nobelprize.org/nobel_prizes/economics/laureates/2001/stiglitz-lecture.html 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.]
* [http://www.commondreams.org/views/101100-101.htm "Joseph Stiglitzndash A Dangerous Man, A World Bank Insider Who Defected.", HAGE, Dave, Minneapolis Star-Tribune, October 11, 2000]
* [http://www.hindu.com/thehindu/nic/stiglitz/index.htm Audio of Stglitz's lecture in The Hindu Public Lecture Series at Chennai]
* [http://coin.wne.uw.edu.pl/lwincenciak/docs/lecture_4.pdf "Efficiency wages, the Shapiro-Stiglitz Model" a lecture by Leszek Wincenciak, Ph.D., Warsaw University, May 22, 2007]
* [http://www.policydialogue.org Initiative for Policy Dialogue (IPD) official website]
* [http://www.humanities.manchester.ac.uk/bwpi/ The Brooks World Poverty Institute at the University of Manchester]
* [http://www.alternet.org/story/12652 Stiglitz explains how the IMF destroys nations]
* [http://www.imf.org/external/np/vc/2002/070202.htm An Open Letter to Joseph Stiglitz, by Kenneth Rogoff, Economic Counsellor and Director of the Research Department, IMF]
* [http://www.bepress.com/ev "The Economists' Voice"]
* [http://www.nobel.se/economics/laureates/2001/stiglitz-autobio.html Autobiographical essay in acceptance of the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel]
* [http://www.project-syndicate.org/contributors/contributor_comm.php4?id=184 Joseph E. Stiglitz's syndicated monthly op/ed column for Project Syndicate]
* [http://www.wider.unu.edu/publications/annual-lectures/annual-lecture-1998.pdf "More instruments and broader goals: Moving toward the post-Washington Consensus" (PDF 287KB)] The (freely) published UNU-WIDER 1998 Annual Lecture
* [http://www.public.iastate.edu/~tonys/Stiglitz.html Critical review of Globalization and its Discontents by Tony Smith]
* [http://www.mises.org/story/2301 Critical View of Stiglitz's Externality Model, From A Free Market Perspective]
* [http://www.epsusa.org/events/aea2006papers/stiglitz.pdf "The Economic Costs of the Iraq War: An Appraisal Three Years After the Beginning of the Conflict"] - A paper that estimates the total cost to the U.S. of the second Iraq War to be $1-2 trillion. Co-authored with Linda Bilmes.
* [http://www.rollingstone.com/politics/story/12855294/national_affairs_the_2_trillion_dollar_war The 2 Trillion Dollar War] December-2006 @ Rolling Stone
* [http://progressive.org/playlists/stiglitz06_high.mp3 Download MP3 Joseph Stiglitz interview by The Progressive magazine on Nov. 1, 2006]
* [http://www.nybooks.com/articles/21259 Gloomy About Globalization] Robert Skidelsky review of Stiglitz's "Making Globalization Work" from "The New York Review of Books"
* [http://ideas.repec.org/e/pst33.html IDEAS/RePEc]
* [http://www.humaniteinenglish.com/article449.html « The Free Market Does Not Work » Joseph E. Stiglitz (2006)]

;"Video lectures"
* [http://video.google.com/videosearch?hl=en&rls=GGLD,GGLD:2005-07,GGLD:en&sa=N&resnum=0&q=joseph%20stiglitz&ie=UTF-8&oe=UTF-8&tab=wv Joseph Stiglitz on Google Video] , Google Video
* [http://info.worldbank.org/etools/bspan/PresentationView.asp?PID=950&EID=492 The Roaring Nineties by Joseph Stiglitz] , World Bank
* [http://info.worldbank.org/etools/bspan/PresentationView.asp?PID=325&EID=145 Joseph Stiglitz and Kenneth Rogoff discuss: Globalization and Its Discontents] , World Bank
* [http://nobelprize.org/economics/laureates/2001/stiglitz-lecture.html Information and the Change in the Paradigm in Economics - Nobel lecture] , Nobelprize.org
* [http://www.kellogg.northwestern.edu/news/whatsnew/Stiglitz.htm Rewriting history] , Kellogg School of Management, Northwestern University
* [http://www.duke.edu/web/grg/pages/videos.htm The Future of Globalization: Lessons from Cancun and Recent Financial Crises] , Globalization research group, Duke
* [http://media01.smartcom.no/Microsite/dss_01.aspx?eventid=3386 Social responsible investment] , Norwegian Ministry of Finance

Persondata
NAME= Stiglitz, Joseph E.
ALTERNATIVE NAMES=
SHORT DESCRIPTION= Economist
DATE OF BIRTH= February 9, 1943
PLACE OF BIRTH= Gary, Indiana
DATE OF DEATH=
PLACE OF DEATH=