History of Economics Nobel
Economics was not one among the original list of categories for which the most reputed award in the world, the Nobel Prize was awarded. It was only in 1969 that Sweden's national bank, the Sveriges Riksbank constituted this award to mark its 300th anniversary. Official name of this awards is " Sveriges Riksbank Prize in Economic Sciences." Since 1969 this award is presented every year by the Royal Swedish Academy of Sciences.
Nobel 2010
This year Nobel Prize for economics has been shared by Peter A. Diamond of MIT, Dale Mortensen of North western University and Christopher Pissarides of London School of Economics for their research into difficulty in matching demand and supply particularly in the labour market. Their research has come at the right time when the whole world is faced with problem of hgh unemployment. These economists tend to deal with the factors which lead to scarcity of labour and unemployment simultaneously in a economy.
While Peter A. Diamond has dealtwith the foundations of search market, the other two i.e. Dale Mortensen and Christopher Pissarides have expanded it to the labour market. They have shown why in economies a high rate of unemployment is often accompanied with a no. of job openings. One of the major conclusions of this theory is that higher unemployment benefits tend to increase the search time of job seekers. That's why their is often mismatch between labor demand and supply because job seekers don't tend to easily accept what is offered to them due to high social security net.
Recognition of March back to Basics
While in present decade economics has mostly been dominated by econometrics and economists tend to formulate mathematical models for every economic principle, the search theory focusses on basics of demand, supply and labour market without much emphasis on econometrics. Thus, awarding of Nobel Prize to these economists is a recognition of economics' march to basics and an attempt to shed away excess mathematization and statistization. Mathematics and Statistics were used in Economics to make it more accurate and get it the repute of a perfect science but, in this race we must not forget that economics as a discipline is also an art of adjusting to dynamic situations which can't be done through hard and fast rules.
Economics was not one among the original list of categories for which the most reputed award in the world, the Nobel Prize was awarded. It was only in 1969 that Sweden's national bank, the Sveriges Riksbank constituted this award to mark its 300th anniversary. Official name of this awards is " Sveriges Riksbank Prize in Economic Sciences." Since 1969 this award is presented every year by the Royal Swedish Academy of Sciences.
Nobel 2010
This year Nobel Prize for economics has been shared by Peter A. Diamond of MIT, Dale Mortensen of North western University and Christopher Pissarides of London School of Economics for their research into difficulty in matching demand and supply particularly in the labour market. Their research has come at the right time when the whole world is faced with problem of hgh unemployment. These economists tend to deal with the factors which lead to scarcity of labour and unemployment simultaneously in a economy.
While Peter A. Diamond has dealtwith the foundations of search market, the other two i.e. Dale Mortensen and Christopher Pissarides have expanded it to the labour market. They have shown why in economies a high rate of unemployment is often accompanied with a no. of job openings. One of the major conclusions of this theory is that higher unemployment benefits tend to increase the search time of job seekers. That's why their is often mismatch between labor demand and supply because job seekers don't tend to easily accept what is offered to them due to high social security net.
Recognition of March back to Basics
While in present decade economics has mostly been dominated by econometrics and economists tend to formulate mathematical models for every economic principle, the search theory focusses on basics of demand, supply and labour market without much emphasis on econometrics. Thus, awarding of Nobel Prize to these economists is a recognition of economics' march to basics and an attempt to shed away excess mathematization and statistization. Mathematics and Statistics were used in Economics to make it more accurate and get it the repute of a perfect science but, in this race we must not forget that economics as a discipline is also an art of adjusting to dynamic situations which can't be done through hard and fast rules.
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