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9/1/2019 Nobel Memorial Prize in Economic Sciences - Wikipedia

Nobel Memorial Prize in Economic Sciences


The Nobel Memorial Prize in Economic Sciences, commonly referred to as the Nobel Prize in Economics,[2]
The Sveriges Riksbank
is an award for outstanding contributions to the field of economics,[3] and generally regarded as the most prestigious
Prize in Economic
award for that field. The award's official name is The Sveriges Riksbank Prize in Economic Sciences in
Sciences in Memory of
Memory of Alfred Nobel (Swedish: Sveriges riksbanks pris i ekonomisk vetenskap till Alfred Nobels minne).[4][5][6]
Alfred Nobel
The prize was established in 1968 by a donation from Sweden's central bank Sveriges Riksbank to the Nobel Foundation Awarded Outstanding
to commemorate the bank's 300th anniversary.[3][7][8][9] As it is not one of the prizes that Alfred Nobel established in for contributions in
his will in 1895, it is not technically a Nobel Prize.[10] However, it is administered and referred to along with the Nobel Economic Sciences
Prizes by the Nobel Foundation.[11] Laureates are announced with the Nobel Prize laureates, and receive the award at
Location Stockholm, Sweden
the same ceremony.[3]
Presented Royal Swedish
Laureates in the Memorial Prize in Economics are selected by the Royal Swedish Academy of Sciences.[12][13] It was first by Academy of Sciences
awarded in 1969 to Dutch and Norwegian economists Jan Tinbergen and Ragnar Frisch, "for having developed and Reward(s) 9 million SEK (2017)[1]
applied dynamic models for the analysis of economic processes".[9][14][15]
First 1969
awarded
Currently Paul Romer and
Contents held by William Nordhaus
Creation and funding (2018)
Relation to the Nobel Prizes Website nobelprize.org (https://n
Award nomination and selection process obelprize.org)
Laureates
Awards to non-economists
Controversies and criticisms
Alternative names
See also
Notes
References
External links

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Creation and funding


An endowment "in perpetuity" from Sveriges Riksbank pays the Nobel Foundation's administrative expenses associated with the prize and funds the monetary
component of the award.[12]

Since 2012, the monetary portion of the Prize in Economics has totaled 8 million Swedish kronor. This is equivalent to the amount given for the original Nobel
Prizes.[16][17][18] Since 2006, Sveriges Riksbank has given the Nobel Foundation an annual grant of 6.5 million Swedish kronor (in January 2008, approx.
US$1  million; €0.7 million) for its administrative expenses associated with the prize as well as 1 million Swedish kronor (until the end of 2008) to include
information about the prize on the Nobel Foundation's web site.[19]

Relation to the Nobel Prizes


The Prize in Economics is not one of the Nobel Prizes, which were endowed by Alfred Nobel in his will.[3][20][21] However, the nomination process, selection
criteria, and awards presentation of the Prize in Economic Sciences are performed in a manner similar to that of the Nobel Prizes.[12][17][22]

Laureates are announced with the Nobel Prize laureates, and receive the award at the same ceremony.[3] The Royal Swedish Academy of Sciences awards the prize
"in accordance with the rules governing the award of the Nobel Prizes instituted through his [Alfred Nobel's] will",[12] which stipulate that the prize be awarded
annually to "those who ... shall have conferred the greatest benefit on mankind".[23]

Award nomination and selection process


According to its official website, the Royal Swedish Academy of Sciences "administers a researcher exchange with
academies in other countries and publishes six scientific journals. Every year the Academy awards the Nobel Prizes in
Physics and in Chemistry, the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, the Crafoord
Prize and a number of other large prizes".[13]

Each September the Academy's Economics Prize Committee, which consists of five elected members, "sends invitations
to thousands of scientists, members of academies and university professors in numerous countries, asking them to
nominate candidates for the Prize in Economics for the coming year. Members of the Academy and former laureates are
also authorised to nominate candidates."[12][13][24] All proposals and their supporting evidence must be received before
Announcement of the Nobel
February 1.[21] The proposals are reviewed by the Prize Committee and specially appointed experts. Before the end of
Memorial Prize in Economic
September, the committee chooses potential laureates. If there is a tie, the chairman of the committee casts the deciding
Sciences 2008
vote. Members of the Royal Swedish Academy of Sciences vote in mid-October to determine the next laureate or
laureates of the Prize in Economics.[12][13][25] As with the Nobel Prizes, no more than three people can share the prize
for a given year; they must still be living at the time of the Prize announcement in October; and information about Prize nominations cannot be disclosed publicly
for 50 years.[21]

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Like the Nobel laureates in physics, chemistry, physiology or medicine, and literature, each laureate in Economics receives a diploma, gold medal, and monetary
grant award document from the King of Sweden at the annual Nobel Prize Award Ceremony in Stockholm, on the anniversary of Nobel's death (December
10).[3][26]

Laureates
The first prize in economics was awarded in 1969 to Ragnar Frisch and Jan Tinbergen "for having developed and applied dynamic models for the analysis of
economic processes".[27] In 2009, Elinor Ostrom became the first woman awarded the prize.

Awards to non-economists
In February 1995, following acrimony within the selection committee pertaining to the awarding of the 1994 Prize in Economics to John Forbes Nash, the Prize in
Economics was redefined as a prize in social sciences. This made it available to researchers in such topics as political science, psychology, and sociology.[28][29]
Moreover, the composition of the Economics Prize Committee changed to include two non-economists. This has not been confirmed by the Economics Prize
Committee. The members of the 2007 Economics Prize Committee are still dominated by economists, as the secretary and four of the five members are professors
of economics.[30] In 1978, Herbert A. Simon, whose PhD was in political science, became the first non-economist to win the prize, while Daniel Kahneman, a
professor of psychology and international relations at Princeton University is the first non-economist by profession to win the prize.

Controversies and criticisms


Some critics argue that the prestige of the Prize in Economics derives in part from its association with the Nobel Prizes, an association that has often been a source
of controversy. Among them is the Swedish human rights lawyer Peter Nobel, a great-grandnephew of Ludvig Nobel.[31] Nobel criticizes the awarding institution of
misusing his family's name, and states that no member of the Nobel family has ever had the intention of establishing a prize in economics.[32] He explained that
"Nobel despised people who cared more about profits than society's well-being", saying that "There is nothing to indicate that he would have wanted such a prize",
and that the association with the Nobel prizes is "a PR coup by economists to improve their reputation".[31]

According to Samuel Brittan of the Financial Times, both former Swedish minister of finance, Kjell-Olof Feldt, and Swedish former minister of commerce, Gunnar
Myrdal, wanted the prize abolished, saying, "Myrdal rather less graciously wanted the prize abolished because it had been given to such reactionaries as Hayek (and
afterwards Milton Friedman)."[29] Relatedly, it has been noted that several members of the awarding committee have been affiliated with the Mont Pelerin
Society.[33]

In his speech at the 1974 Nobel Prize banquet, Friedrich Hayek stated that had he been consulted on the establishment of a Nobel Prize in economics, he would
"have decidedly advised against it"[29][34] primarily because, "The Nobel Prize confers on an individual an authority which in economics no man ought to possess....
This does not matter in the natural sciences. Here the influence exercised by an individual is chiefly an influence on his fellow experts; and they will soon cut him
down to size if he exceeds his competence. But the influence of the economist that mainly matters is an influence over laymen: politicians, journalists, civil servants
and the public generally."[34]

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Critics cite the apparent snub of Joan Robinson as evidence of the committee's bias towards mainstream economics,[35][36] though heterodox economists like
Friedrich Hayek (Austrian School) and Ronald Coase (associated with new institutional economics) have won.

Milton Friedman was awarded the 1976 prize in part for his work on monetarism. Awarding the prize to Friedman caused international protests.[37] Friedman was
accused of supporting the military dictatorship in Chile because of the relation of economists of the University of Chicago to Pinochet, and a controversial six-day
trip[38] he took to Chile during March 1975 (less than two years after the coup that deposed President Salvador Allende). Friedman himself answered that he never
was an adviser to the dictatorship, but only gave some lectures and seminars on inflation and met with officials, including Augusto Pinochet, in Chile.[39]

Four Nobel Prize laureates – George Wald, Linus Pauling, David Baltimore and Salvador Luria – wrote letters in October 1976 to the New York Times protesting
Friedman's award.[40][41]

The 1994 prize to John Forbes Nash caused controversy within the selection committee because of Nash's history of mental illness and alleged anti-
Semitism.[42][43] The controversy resulted in a change to the rules governing the committee during 1994: Prize Committee members are now limited to serve for
three years.[28]

The 2005 prize to Robert Aumann was criticized by European press[44] for his alleged use of game theory to justify his stance against the dismantling of Israeli
settlements in occupied territories.

Alternative names
The award's official Swedish name is Sveriges riksbanks pris i ekonomisk vetenskap till Alfred Nobels minne. The Nobel Foundation's translations of the Swedish
name into English have varied since 1969:

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Years English translations

1969–1970 Prize in Economic Science dedicated to the memory of Alfred Nobel[45][46]

1971 Prize in Economic Science[47]

1972 Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel[48]

1973–1975 Prize in Economic Science in Memory of Alfred Nobel[49][50]

1976–1977 Prize in Economic Sciences in Memory of Alfred Nobel[51][52]

1978–1981 Alfred Nobel Memorial Prize in Economic Sciences[53][54]

1982 Alfred Nobel Memorial Prize in Economic Science[55]

1983 Prize in Economic Sciences in Memory of Alfred Nobel[56]

1984–1990 Alfred Nobel Memorial Prize in Economic Sciences[57][58]

1991 Sveriges Riksbank (Bank of Sweden) Prize in Economic Sciences in Memory of Alfred Nobel[59]

1992–2005 Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel[60][61]

2006–present The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel[62][63]

See also
List of Nobel laureates by country
List of prizes known as the Nobel of a field
List of science and technology awards
List of prizes named after people

Notes
1. "Nobel Prize amount is raised by SEK 1 million" (https://www.nobelprize.org/press/#/publication/59c911c82a43dd000437b4b7/552bd85dccc8e20c00e7f979).
Nobelprize.org.
2. Hird., John A. (2005). Power, Knowledge, and Politics. American governance and public policy. Georgetown University Press. p. 33. ISBN 978-1-58901-048-2.
OCLC 231997210 (https://www.worldcat.org/oclc/231997210). "the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel, commonly
referred to as the Nobel Prize in Economics"

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3. "Nobel Prize" (https://www.britannica.com/topic/Nobel-Prize). Encyclopædia Britannica. 2007. Retrieved 29 November 2018. "An additional award, the
Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was established in 1968 by the Bank of Sweden with a grant to the Nobel
Foundation, and was first awarded in 1970. Thus, its laureates are announced with the Nobel Prize recipients, and the Prize in Economic Sciences is
presented at the Nobel Prize Award Ceremony."
4. "Hart and Holmström awarded the Prize in Economic Sciences for 2016" (http://archive.riksbank.se/en/Web-archive/Published/Notices/2016/Hart-and-Holmstro
m-awarded-the-Prize-in-Economic-Sciences-for-2016/index.html). Stockholm: Sveriges Riksbank. 10 October 2016. Retrieved 25 August 2018.
5. "Prize in Economic Sciences" (https://www.kva.se/en/priser/ekonomipriset). Stockholm: The Royal Swedish Academy of Sciences. Retrieved 25 August 2018.
6. "Beslut om titel på ekonomipriset [Resolution on the economics prize's name]" (http://archive.riksbank.se/sv/Webbarkiv/Publicerat/Nyheter/2006/Beslut-om-titel
-pa-ekonomipriset/index.html) (in Swedish). Stockholm: Sveriges Riksbank. 6 July 2006. Retrieved 20 August 2018.
7. "The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel" (http://www.riksbank.se/en/The-Riksbank/Economics-prize/). Sveriges
Riksbank. Retrieved 12 December 2012. "Sveriges Riksbank’s Prize in Economic Sciences in Memory of Alfred Nobel was established with a donation to the
Nobel Foundation in connection with the Riksbank’s 300th anniversary in 1968."
8. "The Nobel Prize" (https://www.webcitation.org/5EsureXKk?url=http://nobelprize.org). The Nobel Foundation. Archived from the original (http://nobelprize.org)
on 4 April 2006. Retrieved 7 November 2007. "In 1968, Sveriges Riksbank established The Sveriges Riksbank Prize in Economic Sciences in Memory of
Alfred Nobel, founder of the Nobel Prize."
9. "The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel" (https://www.webcitation.org/5EsureXKk?url=http://nobelprize.org). The Nobel
Foundation. Archived from the original (http://nobelprize.org) on 4 April 2006. Retrieved 7 November 2007. "In 1968, Sveriges Riksbank (Sweden's central
bank) established this Prize in memory of Alfred Nobel, founder of the Nobel Prize."
10. "Not a Nobel Prize" (https://www.nobelprize.org/nomination/economic-sciences/). Nomination and selection of Laureates in Economic Sciences. Stockholm:
The Nobel Foundation. Retrieved 25 August 2018.
11. "Organization Structure: Spreading Information About the Nobel Prize" (https://www.nobelprize.org/nobel_organizations/org_structure.html). The Nobel
Foundation. Retrieved 2014-11-26.
12. "Statutes for The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel approved by the Crown on the 19th day of December 1968" (http
s://www.webcitation.org/5EsureXKk?url=http://nobelprize.org). The Nobel Foundation. Archived from the original (http://nobelprize.org) on 4 April 2006.
Retrieved 16 November 2007. "In celebration of the Tercentenary of Sveriges Riksbank, the Bank has instituted a prize in economic sciences in memory of
Alfred Nobel. ... The Prize shall be awarded annually to a person who has written a work on economic sciences of the eminent significance expressed in the
will of Alfred Nobel drawn up on November 27, 1895. ... The Prize shall be awarded by the Royal Academy of Sciences in accordance with the rules governing
the award of the Nobel Prizes instituted through his will."
13. "Nominating and awarding" (http://www.kva.se/en/priser/ekonomipriset/ekonomipriset-nominering-och-utdelning), in "Prize in Economic Sciences", Royal
Swedish Academy of Sciences. Retrieved July 04, 2017.
14. "Jan Tinbergen" (http://www.britannica.com/ebc/article-9380801) (2007), in Encyclopædia Britannica, accessed November 16, 2007, from Encyclopædia
Britannica Online: <http://www.britannica.com/eb/article-9380801>.
15. "Ragnar Frisch" (http://www.britannica.com/ebc/article-9364984) (2007), in Encyclopædia Britannica, accessed November 16, 2007, from Encyclopædia
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16. "The Nobel Prize Amounts" (https://www.nobelprize.org/nobel_prizes/about/amounts/). www.nobelprize.org. Retrieved 2016-04-26.
17. Assar Lindbeck, "The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1969–2006" (https://www.webcitation.org/5EsureXKk?url=htt
p://nobelprize.org), nobelprize.org, April 18, 1999. Retrieved November 11, 2007.

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18. "The Prize in Economic Sciences 2007" (http://www.kva.se/en/pressrum/pressmeddelanden/ekonomipriset-2007), press release, Royal Swedish Academy of
Sciences, October 15, 2007. Retrieved November 16, 2007. Archived (https://web.archive.org/web/20071114222806/http://www.kva.se/KVA_Root/eng/_news/
detail.asp?NewsId=988) November 14, 2007, at the Wayback Machine
19. "Årsredovidning 2006" (http://www.riksbank.se/Upload/Dokument_riksbank/Kat_publicerat/Rapporter/2007/arsred_popvers_06_sve.pdf#page=68) (PDF).
Sveriges Riksbank. 29 March 2007. Retrieved 15 September 2013. "I posten ekonomipris ingår prissumman om 10 miljoner kronor samt
administrationskostnader för detta pris om 6,5 miljoner kronor. Dessutom har bidrag givits till det interaktiva Internetmuseum som Nobelstiftelsen byggt upp.
Bidraget avser täckande av kostnaden för information om ekonomipriset. Bidraget ska enligt avtal utbetalas årligen med 1 miljon kronor till och med 2008."
20. Rampell, Catherine (15 October 2012). "2 From U.S. Win Nobel in Economics" (https://www.nytimes.com/2012/10/16/business/economy/alvin-roth-and-lloyd-s
hapley-win-nobel-in-economic-science.html). New York Times. Retrieved 3 November 2012.
21. "Nomination of the Laureates in Economics" (https://www.webcitation.org/5EsureXKk?url=http://nobelprize.org). The Nobel Foundation. Archived from the
original (http://nobelprize.org) on 4 April 2006. Retrieved 14 October 2012.
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archive.org/web/20061008013935/http://www.kva.se/KVA_Root/eng/awards/nobel/economy/index.asp) October 8, 2006, at the Wayback Machine
23. "Excerpt from the Will of Alfred Nobel" (https://www.webcitation.org/5EsureXKk?url=http://nobelprize.org). The Nobel Foundation. Archived from the original (ht
tp://nobelprize.org) on 4 April 2006. Retrieved 7 November 2007.
24. "Nomination and Selection of the Laureates in Economics" (https://www.webcitation.org/5EsureXKk?url=http://nobelprize.org). The Nobel Foundation. Archived
from the original (http://nobelprize.org) on 4 April 2006. Retrieved 18 October 2007.
25. "Members" (https://web.archive.org/web/20080504225908/http://www.kva.se/KVA_Root/eng/about/members/index.asp?br=ns&ver=6up). Royal Swedish
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18 October 2007.
26. "The Nobel Prize Award Ceremonies and Banquets" (https://www.webcitation.org/5EsureXKk?url=http://nobelprize.org). The Nobel Foundation. Archived from
the original (http://nobelprize.org) on 4 April 2006. Retrieved 7 November 2007.
27. "The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1969" (https://www.webcitation.org/5EsureXKk?url=http://nobelprize.org).
Nobel Foundation. Archived from the original (http://nobelprize.org) on 4 April 2006. Retrieved 28 October 2012.
28. Nasar, A Beautiful Mind, p. 372
29. Brittan, Samuel (19 December 2003). "The not so noble Nobel Prize" (http://www.samuelbrittan.co.uk/text172_p.html). Financial Times. Retrieved
26 November 2009.
30. "The Economics Prize Committee" (https://www.webcitation.org/5EsureXKk?url=http://nobelprize.org). Nobel Foundation. Archived from the original (http://nob
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31. "Nobel descendant slams Economics prize" (https://web.archive.org/web/20071014012248/http://www.thelocal.se/2173/20050928/). The Lygtrsdr 3ocal. 28
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32. "Alfred Nobels familie tar avstand fra økonomiprisen" (http://www.aftenposten.no/norge/Alfred-Nobels-familie-tar-avstand-fra-okonomiprisen-552817b.html).
Aftenposten. Retrieved 2017-04-21.
33. Offer, Avner; Söderberg, Gabriel (2016). The Nobel Factor: The Prize in Economics, Social Democracy, and the Market Turn (1st ed.). Princeton University
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prize.org). Nobel Foundation. 13 October 1992. Archived from the original (http://nobelprize.org) on 4 April 2006. Retrieved 17 October 2007.
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References
Nasar, Sylvia (1998). A Beautiful Mind. New York: Simon & Schuster. ISBN 0-684-81906-6.

External links
The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (https://www.riksbank.se/en-gb/about-the-riksbank/the-tasks-of-the-riksbank/res
earch/economics-prize/) on Sveriges Riksbank's web site
The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (https://www.kva.se/en/priser/ekonomipriset) on the web site of the Royal
Swedish Academy of Sciences
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The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (https://www.nobelprize.org/nobel_prizes/economic-sciences/) on the Nobel
Foundation's web site.
IDEAS/RePEc (https://ideas.repec.org/nobel.html)
Nobel Perspectives website (https://www.ubs.com/nobel) - documentary interviews with past laureates of the Nobel Prize for Economics

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