2009 (Nobel) Prize in Economics

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel was established in 1968. Technically, there is no ‘Nobel’ prize in Economics; on the website of Nobel foundation, amongst Nobel Prize in Physics, Chemistry, Medicine, Literature and the Nobel Peace Prize, we have our ‘Prize in Economics’. The prize will be announced on the following Monday, the 12th of October. As always, consensus is impossible, for economics has given birth to too many sub-disciplines in the past few decades.

A brief round-up on the web seems to suggest/predict the following winners:

1) Thomson Reuters has predicted 6 winners- William D Nordhaus and Martin L Weitzman being two of the predicted winners. I have highlighted them, for it is their work in ‘environmental economics’ which is considered to be pioneering. The other economists who are mentioned have contributed to behavioral economics and monetary economics. Amol Agrawal at Mostly Economics, provides his views on the Reuters prediction.

2) Eugene Fama – for his ‘contributions’ to portfolio theory and asset pricing. It has to be a joke! (See the Wall Street Journal and Chris F. Masse at Midas Oracle, a blog about ‘predictions’.)

3) Inflation Targeting, according to Ajay Shah is path-breaking, and if given a chance, he would vote for J B Taylor and M Woodford.

4) And, comments on blog posts that discuss the ‘Nobel’ prize in economics show that each commenter wants/feels a particular economist should win the Prize, which is natural. Not much is spoken about Jagdish Bhagwati this time.

5) Robert Vienneau writes that Luigi Pasinetti and Paul Davidson should win the Prize, but they wont. For it is not surprising that Nobel prizes have not been awarded to heterodox economists. Yes, the prize winners in Economics have mostly worked within the Neoclassical framework, although, they have extended and utilized microeconomics and neoclassical general equilibrium by modifying it to a variety of problems – health, environment, behaviour, neuroscience, geography, etc. Hence, economics now is not only related to employment and poverty, but also to issues of climate change, complexities in human behaviour, legal theory (via law and economics) and so on and so forth.

I think it would be a right time to award the prize to a heterodox economist. There seems to be some problem (a lot of problems) with mainstream theory – a version of neoclassical theory. However, awarding it to an economist who has pointed out (and who still point out like Davidson, Garegnani, Pasinetti and many others) logical inconsistencies or unrealistic assumptions will be a bad move; as it will undermine the entire research programme of neoclassical economics. Hence, the award could go to an economist who uses neoclassical tools more or less, but in an unconventional way. For instance, for contributions to a theory of technical progress (Paul Romer), for research conducted in green accounting (William Nordhaus), using neuroscience to understand economic (read human) behaviour – neuroeconomics (Ernst Fehr), etc.

What is a Laureate?
A Laureate is a recipient of honour or recognition for achievement in an art or science. [FAQ, Nobelprize.org]

Achievement: Is there an ‘objective’ way of deciding? No. Note that most of the predictions made are based on citations of the economists’ works. In any case, let us see what Monday brings forth!

More on Nobel Prize in Economics

G Omkarnath, Nobel Economics, The Hindu, 2003.

Jayati Ghosh, The Nobel prize for economics may need its own bailout, Guardian.co.uk, 2009.

10 thoughts on “2009 (Nobel) Prize in Economics

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  2. Symposium on Poverty and Development
    Conference Hall Alankar Bhawan, Boring Road,Patna
    National HRD Network,Patna Chapter
    Vice President Ratnakar Mishra presiding.
    http://www.nationalhrd.org
    ratanakar.mishra@gmail.com
    Quotation from an introduction and reply by Manu Shanker Mishra.
    “In any pedagogy there is suppression.The economics of higher education of a formal system in an overall model of primary,secondary and higher education takes note of both formal and informal education in view of the privileged and under privileged sections of the society.With an intuitive knowledge of the market pulse the analyzer can do regular suppression without ignoring the business cycle caused by zeta function of a double sheeted plane and the first, second or third wave.The shock fronts effect the point of vetification in the social distribution of knowledge.In a system of awarding for a reward in terms of gain of knowledge in the 0 knowledge model there is no future shock or tremor in the present if no institution of higher education is treated as the sole point of reference with high frequency.The informal economy is purposefully ignored and formal education is of a degree even with scholarships,grants and loans.Acceptance is a wish of the priveleged only while for the underprivileged it is what they must accept.Between invention and theory there interval of creative ability and false notions.Comparitive advantages underlying interchange of ideas are repressed as industry and trade insist that there interest must be first attended to.An assymetric technology is not necessarily anti-symmetric but effects priorities.Experiences in Bihar or India do not differ from those of UNESCO and world line has existence only in Editorial Board of New York Times and Discovery Channels.”
    Ratnakar Mishra summed up proceedings, thanked the Team which gave the power point presentation and thanked the Lady Social Activist for sharing her experiences with all.
    I can add from my own undrstanding about the Books by Manu (Shanker Mishra)chech google that there can be no resolution without a deontic net and no mechanical equlibrium in a market economy.

  3. Trish Borgese says:

    October 22, 2009 at 1:56 am
    A small telephonic conversation with Manu Shanker Mishra,author on20/10/2009.
    What is this the actual import of this comment on Higher Education?
    Commercialization of Higher Education increase transactional costs as the state decreases its role and from an arbitrary set of prices we have a concieved and percieved prices in the social choice theory.Knowledge and Understanding treated as seperate, the price actualization is a supply and demand theory only at extremal values.Regional and sectoral balances are evident as those educated under state subsidy as in Indian Institute of Technologies and coming from a poor state like Bihar has Aspirations to work with NASA in USA and not ISRO in India.
    The prestigious CERN projects underlying theoretical frame underwent a sea change from creating a sun, to creating super-nova, to creating a Big Bang and discovering the Higgs- Boson to now that a Black Hole would be created.What was in the book Methodological Frame of the Field that shocked Cambridge University, UK to all these eminent and noted scientists?
    Methodological Frame showed that a pie subscript 0 particle and the Higgs-Boson as a neutral scalar in a z distribution would create a Black Hole.This pie subscript 0 was something previously unheard of as a fundamental particle in theories of neutrinos only pie superscript 0 was in use.The most important change was trace, retrace and V spin.
    Were you considered to young by the Nobel Prize Institute for a prize in 2009 or was it that you are from an underprivileged region?
    What The Nobel Prize Committe in Stockholm, Sweden or Oslo, Norway do is their business.Why should you or I bother about their choice,newsonomics and Brand names created by American Newspapers and T.V.However there should be a more equitalble funding for rearch.

  4. Gerdt I have seen the report on economics at HRD,Patna.
    Sadly when I got back your post was deleted. They are not aware how Manu Shanker Mishra effected London School of Economics with LL.B.The entire model of economics of higher education is fresh debate.Recession is best understtod by his comments as well as bubble economy.
    It is not a bad idea to be uptodate with the ideas and opinions shaping modern times.Manu (Shanker Mishra) an Indian based in Patna, Bihar, India has effected modern thinking.Check all this out.Thank you for bringing it to the notice of the team on this site.

  5. Gerdt,thanks for the HRD report.It is an original thought on delta functions and business cycles.I posted a query by e-mail to Manu Shanker Mishra. His reply about the global recession and burst of bubble economies is that it was a result of both type I and II errors in extrapolation by American and European Economists.

  6. Pingback: 2009: A Round Up « Undergraduate Economist

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