Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel

Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel is a prestigious international award administered by the Royal Swedish Academy of Sciences. Funded by a donation from Sveriges Riksbank, Sweden's central bank, on the occasion of its 300th anniversary in 1968, it is awarded for outstanding contributions to the field of economics. Although not one of the original Nobel Prizes established by the will of Alfred Nobel, it is commonly referred to as the "Nobel Prize in Economics" and is awarded alongside the other prizes at the same ceremony in Stockholm.

History and establishment

The prize was established in 1968 through a donation from Sveriges Riksbank to the Nobel Foundation, commemorating the bank's 300th anniversary. This initiative was largely driven by prominent Swedish economists, including Assar Lindbeck, and received support from key figures within the Royal Swedish Academy of Sciences. The establishment followed a period of growing recognition of economics as a rigorous, policy-influential science, akin to the fields honored by the original Nobel Prizes. The first prizes were awarded in 1969, with the inaugural laureates being Ragnar Frisch and Jan Tinbergen for their development of dynamic models and analysis of economic processes. The decision to align the award so closely with the existing Nobel framework, including its selection by the Royal Swedish Academy of Sciences and presentation at the same ceremony, was a deliberate choice to confer immediate prestige and authority.

Award process and selection

The award process meticulously mirrors that of the original Nobel Prizes. The Royal Swedish Academy of Sciences is responsible for the selection of laureates, guided by the statutes of the prize. Each year, the academy's Economic Sciences Prize Committee, a body of five economists, solicits confidential nominations from thousands of qualified nominators, including previous laureates, professors at select universities, and members of the academy itself. The committee then conducts a rigorous evaluation of the candidates' work, often consulting with external experts, before presenting its final recommendation to the academy's Social Sciences Class for approval. The final vote by the entire Royal Swedish Academy of Sciences typically occurs in early October, with the announcement following immediately. The laureates receive their awards at the Nobel Prize ceremony in Stockholm City Hall on December 10, the anniversary of Alfred Nobel's death.

Laureates and notable contributions

Since 1969, the prize has been awarded to nearly 90 individuals, recognizing groundbreaking work across diverse economic subfields. Early awards often honored pioneers of macroeconomics and econometrics, such as Paul Samuelson, Simon Kuznets, and Wassily Leontief. The late 20th century saw prizes for foundational work in microeconomic theory, including game theory by John Nash, Reinhard Selten, and John Harsanyi, and market design by William Vickrey. More recent decades have highlighted contributions to behavioral economics by Daniel Kahneman and Richard Thaler, empirical analysis of causal inference by Joshua Angrist, David Card, and Guido Imbens, and research on financial economics by Eugene Fama, Lars Peter Hansen, and Robert Shiller. The sole female laureate to date is Elinor Ostrom, honored for her analysis of economic governance.

Comparison with the Nobel Prizes

While administered identically and presented at the same ceremony, the prize is technically distinct from the original five Nobel Prizes endowed by Alfred Nobel. The key difference is its funding source: it is financed by an endowment from Sveriges Riksbank and administered by the Nobel Foundation under a separate agreement, whereas the original prizes are funded by Alfred Nobel's estate. Its full official name, "Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel," explicitly denotes this distinction. Nevertheless, the laureates receive an identical gold medal (with a slightly different design), diploma, and monetary award, and are accorded the same societal prestige. The Royal Swedish Academy of Sciences emphasizes that the selection criteria and rigorous process are held to the same standard as for the prizes in Physics, Chemistry, and Physiology or Medicine.

Criticism and controversies

The prize has faced criticism since its inception. Some descendants of Alfred Nobel, including Peter Nobel, have objected to its association with the Nobel Prize, arguing it misrepresents Alfred Nobel's will and dilutes the brand. Critics from within economics, such as Friedrich Hayek (a 1974 laureate himself), have argued that the prize grants excessive authority to individual economists and politicizes the discipline, potentially encouraging scientism. The award's historical skew towards neoclassical economics and scholars from institutions like the University of Chicago, MIT, and Harvard University has been noted, with debates over overlooked contributions from heterodox economics traditions. Controversies have also surrounded specific awards, such as the 1976 prize to Milton Friedman, which sparked protests over his association with Augusto Pinochet's regime in Chile, and the 1997 prize to Myron Scholes and Robert C. Merton, whose firm Long-Term Capital Management collapsed a year later.

Category:Economic awards Category:Nobel Prize