Nobel Memorial Prize in Economic Sciences

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Nobel Memorial Prize in Economic Sciences

The Nobel Memorial Prize in Economic Sciences, officially known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, is an award for outstanding contributions to the field of economics. Established in 1968 by a donation from Sweden's central bank, Sveriges Riksbank, on its 300th anniversary, it was not part of the original group of awards set out in the will of Alfred Nobel, the inventor of dynamite, who died in 1896. The Prize in Economic Sciences is awarded alongside the Nobel Prizes in Physics, Chemistry, Physiology or Medicine, Literature, and the Nobel Peace Prize, following the same principles and ceremonies.

History

Unlike the Nobel Prizes, which were created by Alfred Nobel's last will and testament, the Prize in Economic Sciences was established by the Swedish central bank in memory of Nobel. It was first awarded in 1969, more than 70 years after the distribution of the first Nobel Prizes. The establishment of the prize was somewhat controversial at the time, as critics argued that it was not in accordance with Nobel's will.

Selection Process

The selection process for the Nobel Memorial Prize in Economic Sciences mirrors that of the Nobel Prizes. Candidates are nominated by qualified individuals, including previous laureates, members of the Royal Swedish Academy of Sciences, and professors of economics from selected universities around the world. The Nobel Committee for Economics, part of the Royal Swedish Academy of Sciences, reviews the nominations and selects the laureates through a majority vote. The prize cannot be awarded posthumously, although if a laureate dies between the announcement and the award ceremony, the prize is presented posthumously.

Award

The laureate(s) of the Nobel Memorial Prize in Economic Sciences receive a medal, a diploma, and a monetary award, which varies from year to year based on the income generated from the endowment left by the creator of the prize. The award ceremony takes place on December 10, the anniversary of Alfred Nobel's death, in Stockholm, Sweden. The laureates are invited to give a lecture on a subject related to the prize.

Notable Laureates

Over the years, the Nobel Memorial Prize in Economic Sciences has been awarded to individuals who have made significant contributions to various fields within economics, including microeconomics, macroeconomics, econometrics, and economic theory. Notable laureates include Paul Samuelson (1970), Milton Friedman (1976), Amartya Sen (1998), and Joseph Stiglitz (2001). Their work has had a profound impact on economic policies and theories around the world.

Criticism

The Nobel Memorial Prize in Economic Sciences has faced criticism over the years. Some argue that it has a bias towards Western economists and economic thought, overlooking significant contributions from economists in other parts of the world. Others have raised concerns about the prize's association with the Nobel name, suggesting that it implies a legitimacy and importance equivalent to the original Nobel Prizes, despite not being envisioned by Alfred Nobel himself.

Conclusion

The Nobel Memorial Prize in Economic Sciences remains a prestigious award that recognizes significant achievements in the field of economics. It highlights the importance of economic research and its application in solving real-world problems, from poverty and inequality to market failures and financial crises. Despite the controversies and criticisms, the prize continues to celebrate the contributions of economists to the understanding and betterment of society.