GUWAHATI: 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. The trio is honoured for their groundbreaking work on how political institutions are formed and how they influence economic prosperity.
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The Nobel Committee highlighted the laureates' model for understanding political institutions, which involves three core components. "The first is a conflict over how resources are allocated and who holds decision-making power in a society (the elite or the masses)," said a post by The Nobel Prize.
"The second is that the masses sometimes have the opportunity to exercise power by mobilising and threatening the ruling elite; power in a society is thus more than the power to make decisions. The third is the commitment problem, which means that the only alternative is for the elite to hand over decision-making power to the populace," the post added.
This prestigious award, worth 11 million Swedish crowns ($1.1 million), is the last Nobel Prize to be presented this year.
Last year’s laureate, Claudia Goldin, received recognition for her research on gender disparities in the labour market, becoming only the third woman among the 93 recipients of this prize.
Acemoglu, Johnson, and Robinson’s work adds a significant layer to understanding the role of institutions in shaping economic outcomes worldwide.