The Miami Herald

About the Nobel Memorial Prize in economics

The 2007 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel was announced Monday, October 15, 2007. This year's prize will go to three Americans - Leonid Hurwicz, Eric S. Maskin and Roger B. Myerson - for their work in developing mechanism design theory, an application of game theory and a key component of modern economics.

The economics prize is the only Nobel not authorized by Alfred Nobel's will. It was established in 1968 in memory of Nobel by the Sveriges Riksbank, Sweden's central bank. The prize is awarded every year on December 10 in Stockholm, Sweden. Recipients are selected by the Royal Swedish Academy of Sciences.

Recent recipients:

- 2006: Edmund S. Phelps, "for his analysis of intertemporal tradeoffs in macroeconomic policy."

- 2005: Robert J. Aumann and Thomas C. Schelling, "for having enhanced our understanding of conflict and cooperation through game-theory analysis."

- 2004: Finn E. Kydland, Edward C. Prescott, "for their contributions to dynamic macroeconomics: the time consistency of economic policy and the driving forces behind business cycles."

- 2003: Robert F. Engle III, "for methods of analyzing economic time series with time-varying volatility (ARCH)," and Clive W.J. Granger, "for methods of analyzing economic time series with common trends (cointegration)."

- 2002: Daniel Kahneman, "for having integrated insights from psychological research into economic science, especially concerning human judgment and decision-making under uncertainty," and Vernon L. Smith, "for having established laboratory experiments as a tool in empirical economic analysis, especially in the study of alternative market mechanisms."

- 2001: George A. Akerlof, A. Michael Spence and Joseph E. Stiglitz, "for their analyses of markets with asymmetric information."

- 2000: James J. Heckman, "for his development of theory and methods for analyzing selective samples," and Daniel L. McFadden, "for his development of theory and methods for analyzing discrete choice."

- 1999: Robert A. Mundell, "for his analysis of monetary and fiscal policy under different exchange rate regimes and his analysis of optimum currency areas."

- 1998: Amartya Sen, "for his contributions to welfare economics."

- 1997: Robert C. Merton and Myron S. Scholes, "for a new method to determine the value of derivatives."

Source: The Nobel Foundation

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