The Nobel Prize in Economics has been awarded to Turkish-American economist Daron Acemoglu and British-Americans Simon Johnson and James Robinson for their groundbreaking work on wealth inequality between nations.
The trio’s research examined the political and economic systems introduced by European colonisers, demonstrating the relationship between institutions and a nation’s prosperity, according to the Nobel Committee.
“Reducing the vast differences in income between countries is one of our time’s greatest challenges,” said Jakob Svensson, chair of the Committee for the Prize in Economic Sciences, in an official statement. “The laureates have demonstrated the importance of societal institutions for achieving this.”
Daron Acemoglu, 57, and Simon Johnson, 61, both serve as professors at the Massachusetts Institute of Technology (MIT), while James Robinson, 64, is a professor at the University of Chicago. Their work has shed light on how societal institutions influence whether countries thrive economically or struggle.
Speaking via telephone as the award was announced in Stockholm, Acemoglu expressed his joy, saying, “I am delighted. It’s just a real shock and amazing news.”
Unlike the original five Nobel Prizes established by Alfred Nobel’s will in 1895, the economics prize was created in 1968 through a donation from Sweden’s central bank. This has led some critics to label it a “false Nobel,” despite it being awarded by the Royal Swedish Academy of Sciences, which follows the same rigorous selection process as the other Nobel science prizes.
The economics prize marks the conclusion of this year’s Nobel season, which included accolades for artificial intelligence in the physics and chemistry categories. The Peace Prize was awarded to the Japanese group Nihon Hidankyo for its work against nuclear weapons.
In other categories, South Korea’s Han Kan received the literature prize, making her the only female laureate this year, while the medicine prize recognised advancements in understanding gene regulation.
Nobel Prizes come with a diploma, a gold medal, and a monetary award of one million dollars. The awards will be formally presented in Stockholm and Oslo on December 10, commemorating the death of the prize’s founder, Alfred Nobel, in 1896.