Nobel Prizes: Economic Sciences
The final Nobel Prize has been announced, bringing an end to our collection of blogposts celebrating each category from this year’s Nobel Prizes’.
Congratulations to Alvin Roth and Lloyd Shapley on winning the 2012 Nobel Memorial Prize in Economic Sciences ‘for the theory of stable allocations and the practice of market design’. Follow @NobelPrize_org on Twitter for more info!
The Nobel Memorial Prize in Economic Sciences is an award for outstanding contributions to the field of economics, generally regarded as one of the most prestigious awards in economic sciences. Although not one of the Nobel Prizes established by the will of Alfred Nobel in 1895, it is consistently identified with them. Like the Nobel Laureates in Chemistry and Physics, Laureates in Economics are selected by the Royal Swedish Academy of Sciences, and a Prize Committee similar to the Nobel Committees is used.
The Nobel Memorial Prize in Economic Sciences was first awarded in 1969 to the Dutch and Norwegian economists Jan Tinbergen and Ragnar Frisch, ‘for having developed and applied dynamic models for the analysis of economic processes.’
Tinbergen became known for his ‘Tinbergen Norm’, which is the principle that, if the difference between the least and greatest income in a company exceeds a rate of 1:5, that will not help the company and may be counterproductive. Tinbergen developed the first national comprehensive macroeconomic model, which he first developed in 1936 for the Netherlands, and later applied to the United States and the United Kingdom.