The Royal Swedish Academy of Sciences has decided to award the 2024 Sveriges Riksbank Nobel Prize in Economics in memory of Alfred Nobel to Daron Acemoglu, Simon Johnson and James A. Robinson “for their studies on how institutions shape and affect welfare».
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
The model that won the 2024 Nobel Prize in Economics
«Establishing inclusive institutions, reducing discrimination and the rule of law will create long-term benefits. So why don’t the elite simply replace the existing economic system?“, explains the academy for the study of the laureates.
Their model for explaining the conditions under which political institutions form and change has three components.
- The first is the conflict over how resources are allocated and who holds decision-making power in a society (the elite or the masses).
- The second is that the masses sometimes have the opportunity to exercise power by mobilizing and threatening the ruling elite—power in a society is therefore more than decision-making power.
- The third is the commitment problem, which means that the only alternative is for the elite to hand over decision-making power to the people.
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
It is recalled that on Friday, October 11, the Japanese organization Nihon Hidankyo won the Nobel Peace Prize for its work and contribution to the effort to abolish nuclear weapons.
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