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 a distinguished award established in 1969 to honor significant contributions in the field of economics. While it is often associated with the original Nobel Prizes, it was created much later and is not officially recognized as one of them, as it was not part of Alfred Nobel's original will. The prize is administered by the Royal Swedish Academy of Sciences, which evaluates nominees based on their contributions to economic scholarship and practice.
Each year, the prize is awarded to one or two recipients, often following an extensive nomination and review process. The award includes a medal, diploma, and a monetary prize typically around one million US dollars. Notable laureates have included influential economists such as Milton Friedman and Richard H. Thaler. The prize aims to commemorate Alfred Nobel's legacy by recognizing those whose work has advanced human understanding in economics, reflecting a commitment to enhancing societal welfare through economic insights.
Nobel Memorial Prize in Economic Sciences
The Nobel Memorial Prize in Economic Sciences, whose official name is the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, is one of the most prestigious awards in the field of economics. Awarded since 1969, it is generally given to one or two individuals for their achievement in economics and related fields. The award is administered in honor of Alfred Nobel. The Nobel Memorial Prize in Economic Sciences was created more than sixty years after the other Nobel Prizes. It is awarded each year by the Royal Swedish Academy of Sciences.
Background
The Nobel Memorial Prize in Economic Sciences was based on the model of the five original Nobel Prizes, which Alfred Nobel bequeathed in his will. Nobel was a Swedish inventor and chemist who was born in 1833. He spent most of his adult life inventing and refining explosives, and one of his most well-known inventions is dynamite. An accident at Nobel’s lab killed his brother and other workers. Many experts believe that the destructive power of his inventions made Nobel want to leave a positive legacy after his death. According to Nobel’s will, his fortune should be used to “annually distribute in the form of prizes to those who, during the preceding year, shall have conferred the greatest benefit on mankind.” The five original prizes were for chemistry, physics, literature, peace, and medicine. These awards, which began in 1901, are administered annually by the Nobel Foundation. In 1968, Sweden’s central bank, the Sveriges Riksbank, celebrated its three hundredth anniversary. To mark the milestone, the bank created an endowment to fund a prize to honor achievement in the science of economics. The prize was meant to honor Nobel, an icon of Swedish history. The award is often grouped with the Nobel Prizes although it is not officially a Nobel Prize because it was not created by Nobel himself.
Overview
The Nobel Foundation was created in 1900 after Nobel’s death. This private organization administers the prizes bequeathed in Nobel’s will. The Nobel Foundation is also tasked with representing and protecting the Nobel Prize name and image. The Nobel Memorial Prize in Economic Sciences is awarded annually by the Royal Swedish Academy of Sciences in Stockholm, Sweden. It is awarded according to the same criteria and principals as the other five Nobel Prizes.
Founded in 1739, the Royal Swedish Academy of Sciences promotes science and scholarship in Sweden and throughout the world. The organization is responsible for overseeing the prize in economics as well as the other Nobel Prizes. Each year, the academy selects nominees and eventually winners. The process is long and complicated. Some members of the Royal Swedish Academy of Sciences belong to the Economic Sciences Prize Committee. This group, whose members specialize in economics and related fields, begins the process by inviting people and groups to make nominations for the prize. Group members do this in September of the year before the award is given. The invitations are sent to members of the Royal Swedish Academy of Sciences, past laureates, and other distinguished scholars and professors.
Nominations for the award must be received by the committee no later than the following January. Committee members generally receive hundreds of submissions for the award and must review all nominees. The committee does not release any information about the people or groups who have been nominated during a particular year until fifty years later.
As the members of the Economic Sciences Prize Committee review the nominees, its members consult experts in the field of economics and related fields to better understand the qualifications of the nominees, their contributions, and their effects on the field of economics. During this review, the committee begins to shorten the list of potential winners. In the summer before the prize is awarded, the committee drafts a report recommending a shortlist of potential winners. After all members of the committee sign the report, it is submitted to the Royal Swedish Academy of Sciences. The members of the academy read and discuss the report and in October of the year of the award votes on the final winner or winners of the prize. The vote is final and cannot be appealed once it is made. The winners are notified in October of their win and invited to Sweden to take part in the prize ceremony.
In December, the winners go to Sweden to take part in a formal ceremony during which they receive their awards and have the opportunity to speak about their wins. The laureates receive a medal, a diploma, and a monetary award, which is usually close to one-million US dollars.
Between 1969 and 2020, the Nobel Memorial Prize in Economics was awarded 52 times to 86 laureates. The first time the prize was awarded in 1969, it was given jointly to Ragnar Frisch and Jan Tinbergen “for having developed and applied dynamic models for the analysis of economic processes.” The prize has been given to many prominent economists, including Milton Friedman, who received the award in 1976 for “achievements in the fields of consumption analysis, monetary history and theory,” and Richard H. Thaler, who received the award in 2017 “for his contributions to behavioural economics.”
Bibliography
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Horsley, Scott. “'Auctions Are Everywhere': 2020 Economics Nobel Goes To 2 Americans.” NPR, 12 Oct. 2020, www.npr.org/2020/10/12/922936574/2-u-s-economists-awarded-nobel-memorial-prize-in-economic-sciences. Accessed 24 Nov. 2020.
“How Is the Nobel Prize in Economics Selected?” Rutgers Department of Economics, economics.rutgers.edu/departmental-news/449-how-is-the-nobel-prize-in-economics-selected-ask-professor-sjostrom. Accessed 24 Nov. 2020.
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