DEFINITION of 'Nobel Memorial Prize In Economic Sciences'

The Nobel Memorial Prize in Economic Sciences is a prestigious award acknowledging outstanding contributions to the science of economics. The Nobel Memorial Prize in Economic Sciences is commonly called the Nobel Prize in Economics. The official name for the award is the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.

BREAKING DOWN 'Nobel Memorial Prize In Economic Sciences'

One of the most esteemed awards in economics, the Nobel Memorial Prize in Economic Sciences is awarded yearly to individuals making exceptional contributions to economics. An endowment from Sveriges Riksbank, Sweden's central bank, provides funding in perpetuity to pay the Nobel Foundation's administrative expenses pertaining to the award along with the monetary prize, which has been SEK8 million (approximately $1 million) since 2012.

Founding of the Nobel Memorial Prize in Economics

The prize was established in 1968 by a donation from Sweden's central bank, the Sveriges Riksbank, on the bank's 300th anniversary. Although it is not one of the prizes that Alfred Nobel established in his will, it is referred to along with the other Nobel Prizes by the Nobel Foundation.

Nobel Memorial Prize in Economic Sciences Awards Process

Each year, the Academy's Economics Prize Committee "sends invitations to thousands of scientists, members of academies and university professors in numerous countries, asking them to nominate candidates for the Prize in Economics for the coming year. Members of the Academy and former laureates are also authorized to nominate candidates." The proposals are reviewed by the Prize Committee and specially appointed experts. Before the end of September, the committee chooses potential laureates. If there is a tie, the chairman of the committee casts the deciding vote. Next, the potential laureates must be approved by the Royal Swedish Academy of Sciences.

The prize is awarded by the Royal Swedish Academy of Sciences following an invitation for nominations. A maximum of three individuals can share a prize during the same year. Awards are presented at the annual Nobel Prize Award Ceremony in Stockholm, Sweden each year on Dec. 10, the anniversary of Nobel's death.

Past Nobel Memorial Prize in Economic Sciences Winners

The first prize in economics was awarded in 1969 to Ragnar Frisch and Jan Tinbergen "for having developed and applied dynamic models for the analysis of economic processes." In 2009, Elinor Ostrom became the first woman awarded the prize.

Other prominent winners include: Milton Friedman "for his achievements in the fields of consumption analysis, monetary history and theory and for his demonstration of the complexity of stabilization policy;" Harry Markowitz, Merton Miller and William Sharpe "for their pioneering work in the theory of financial economics;" and John Nash and Reinhard Selten “for their pioneering analysis of equilibria in the theory of non-cooperative games."

RELATED TERMS
  1. Prize Indemnity Insurance

    Prize indemnity insurance, also known as Hole-in-One insurance, ...
  2. Ronald H. Coase

    A British economist who won the 1991 Nobel Memorial Prize in ...
  3. Richard Stone

    Richard Stone is a British economist who won the 1984 Nobel Memorial ...
  4. Nakahara Prize

    The Nakahara Prize is an award issued to a Japanese economist ...
  5. Douglass C. North

    An American economist and winner of the 1993 Nobel Memorial Prize ...
  6. Simon Kuznets

    Simon Kuznets, a Russian-American economist, was awarded the ...
Related Articles
  1. Insights

    Where Does the Nobel Prize Money Come From?

    The cash award associated with the Nobel Prize has changed in value considerably since the first awards in 1901. How does the Nobel Foundation invest its money?
  2. Insights

    Harvard and MIT Professors Win Nobel Memorial Prize in Economics

    British economist Oliver Hart, 68, and Finnish economist Bengt Holmström, 67, were honored with the award today for their contributions to contract theory.
  3. Managing Wealth

    Winning the Lottery: Dream or Nightmare?

    Winning the lottery is both a dream come true and a nightmare. Make sure you account for taxes and other hidden fees when claiming your prizes.
  4. Insights

    Do Cannes Winners Cash In?

    It may be the most prestigious film festival and competition in the world, but does winning Cannes lead to winning at the box office?
  5. Financial Advisor

    Who is Richard Thaler, Economics Nobel Prize Winner?

    Thaler, one of the founding behavioral economists, won the 2017 Nobel Prize in Economic Sciences.
  6. Managing Wealth

    Getting Rich: What Are Your Odds?

    America is home to some of the richest people in the world - so how good are your chances of joining the ranks of the wealthy?
  7. Small Business

    11 Summer Books to Read That JP Morgan Recommends (JPM)

    Discover the 11 books included in JPMorgan's 18th annual summer reading list. The titles cover a range of topics, from sleep to maps.
  8. Managing Wealth

    Janet Yellen Success Story: Net Worth, Education & Top Quotes

    Look into the life and academic career of Janet Yellen, the first female chair of the Federal Reserve and a noted Keynesian economist.
  9. Investing

    Guess Who Just Won a $4.3 Billion Defense Contract (LDOS, BA)

    The Pentagon awarded $4.83 billion in new defense contracts Wednesday -- all but $495 million of which was contained in one single award. The lucky winner of this award -- all $4.34 billion ...
  10. Insights

    McKinsey and FT Pick the Best Business Books of 2017

    Which of these 17 titles will be picked this year's business book of the year ?
RELATED FAQS
  1. What is the difference between accounting and economics?

    Discover the difference between accounting and economics by comparing and contrasting the financial discipline of accounting ... Read Answer >>
  2. How does economics study human action and behavior?

    Find out why economics can be considered a deductive social science, like sociology, and how human action and behavior informs ... Read Answer >>
Trading Center