U.S.-based economists Daron Acemoglu, Simon Johnson, and James Robinson have won the 2024 Nobel Prize in Economics. It is for their groundbreaking research on how institutions shape prosperity. The Royal Swedish Academy of Sciences praised their work for highlighting the role of strong societal institutions in fostering economic growth, reducing inequality, and improving the rule of law. The award recognizes their contributions to understanding how institutional quality impacts global development.
The prestigious award, formally known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, is the final prize to be given out this year and is worth 11 million Swedish crowns (1.1 million US dollars).
Acemoglu and Johnson are at MIT, while Robinson works at the University of Chicago. This year’s laureates have provided new insights into why there are such vast differences in prosperity between nations. One important explanation is persistent differences in societal institutions. By examining the various political and economic systems introduced by European colonisers, Daron Acemoglu, Simon Johnson and James Robinson have been able to demonstrate a relationship between institutions and prosperity. They have also developed theoretical tools that can explain why differences in institutions persist and how institutions can change.
