Paul Romer: Why He Won the Nobel Prize in Economics

Over time, increasing returns models are seen as less descriptive of growth than perhaps they were in the 1990s. The growth rates of many countries have been stagnant or even falling, rather than rising. Nonetheless, for understanding how ideas boost growth, and in cumulative fashion, Romer's work is essential. If you are wondering "which economist has done the most to help us explain Silicon Valley," you would turn first to Romer.