Three Economists Awarded Nobel for Unpacking the Roots of Global Wealth Disparities

This year’s Nobel Prize in Economic Sciences was awarded to three prominent scholars: Daron Acemoglu and Simon Johnson, professors at the Massachusetts Institute of Technology (MIT), and James Robinson from the University of Chicago. They were recognized for their significant contributions to understanding wealth disparities between nations.

The Royal Swedish Academy of Sciences announced this honor, acknowledging the scholars’ research on how institutions are formed and their impact on prosperity.

The three recipients co-authored the bestselling book Why Nations Fail. The committee noted that societies without the rule of law and burdened by exploitative institutions struggle to achieve growth or meaningful change. They explained that the winners’ research sheds light on this issue, emphasizing that inclusive institutions create long-term benefits for all. In contrast, extractive institutions offer only short-term advantages for those in power.

Unlike the other five Nobel categories, the Nobel Prize in Economic Sciences has been awarded since 1969. Established by Sweden’s central bank to commemorate its 300th anniversary, its official title is the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.

Meanwhile, the Nobel Prize announcements were concluded last week, beginning with the Prize in Physiology or Medicine and ending with the Prize in Economic Sciences. The Nobel Prize ceremony will take place on December 10, the anniversary of Alfred Nobel’s death. Each laureate will receive a medal and a cash award of 11 million Swedish kronor (approximately $1.05 million).