Nobel-winning economist and Gary native Joseph Stiglitz earned another accolade, this time for his research on income inequality.
The American Academy of Political and Social Science named Stiglitz the winner of the 2014 Daniel Patrick Moynihan Prize, citing his recent book "The Price of Inequality" and his overall contribution to the public's understanding "of the sources and dire ramifications of economic inequality in America." The prize is intended to honor those "who, like the late Senator, have promoted the use of sound analysis and social science research in policy-making, while contributing to the civility of public discourse and pursuing a bipartisan approach to society's most pressing problems."
The academy will present the award to Stiglitz, a professor at Columbia University in New York City, in a ceremony in May. Stiglitz will give a public lecture about his work at the event in Washington D.C.
"Stiglitz's illustrious academic career is couple with an impressive career in public service," the academy said in a statement. "He was a member of the Council of Economic Advisers from 1993 to 1995 during the Clinton administration; and from 1997 to 2000, he was the Chief Economist and Senior Vice President of the World Bank. Stiglitz's dedication to informed policy-making, as evinced by his research and public service, is aligned with the spirit and intention of the Moynihan Prize."
The prize is awarded in the memory of Daniel Patrick Moynihan, an ambassador, sociologist and U.S. Senator from New York
Previous winners include economist Alice Rivlin, Harvard Kennedy School dean David Ellwood and education historian Diane Ravitch.
Stiglitz, who was valedictorian of Horace Mann High School, won the 2001 Nobel Prize for Economics for his contribution to the theory of information asymmetry, which means that some participants in a market have better information than others – people for instance know more than their insurance companies about how great a risk they have of getting into an accident. He got honored for clarifying screening, a technique that one side uses to get better information from the other, and also for showing how an imbalance of knowledge could be critical to understanding unemployment and other issues.