Three economists win Nobel for studying why nations fail

Economists Daron Acemoglu, Simon Johnson, and James A. Robinson have been awarded the 2024 Nobel Prize in Economics for their research on how institutions shape societies' welfare. Announced by the Royal Swedish Academy of Sciences, the trio will share the 11 million kroner ($1.1 million) prize.

BREAKING NEWS
The Royal Swedish Academy of Sciences has decided to award the 2024 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Daron Acemoglu, Simon Johnson and James A. Robinson “for studies of how institutions are formed and affect prosperity.”… pic.twitter.com/tuwIIgk393

— The Nobel Prize (@NobelPrize) October 14, 2024

Their studies highlight how economic and political institutions affect who holds decision-making power and how societies can achieve more inclusive systems. The findings suggest that when the masses mobilize to challenge elites, it can lead to fairer resource allocation and a stronger rule of law.

The Economics Prize was established in 1968 by Sweden’s central bank, complementing other Nobel categories like peace and literature. Recent winners include Claudia Goldin for her work on gender pay gaps and Ben Bernanke for research on banking crises.

The introduction of more inclusive institutions, less extraction and the rule of law would create long-term benefits. So why don’t the elite simply replace the existing economic system?

The laureates’ model for explaining the circumstances under which political institutions are… pic.twitter.com/oPCbMndkQM

— The Nobel Prize (@NobelPrize) October 14, 2024