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The Nobel Prize in Economic Sciences Explained

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Not One of the Original Five Prizes

Unlike the prizes in physics, chemistry, medicine, literature, and peace established by Alfred Nobel's original 1895 will, the economics prize was created separately, decades later, in 1968.

Its Official, Full Name

Its formal title is "The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel," reflecting that it was established and funded by Sweden's central bank, not by the original Nobel Foundation endowment.

Why It Was Created

Sweden's central bank established the prize in 1968 to mark its 300th anniversary, proposing it be administered alongside the existing Nobel Prizes by the same Royal Swedish Academy of Sciences that selects the physics and chemistry laureates.

Why It's Sometimes Controversial

Because it wasn't part of Nobel's original will and is funded by a separate source, some critics and even a member of the Nobel family have argued it shouldn't be considered a genuine "Nobel Prize" in the same sense as the original five.

Notable Laureates

Past winners include influential economists such as Milton Friedman, known for his work on monetary policy, and more recently, laureates recognized for research on poverty reduction, labor markets, and behavioral economics.

Awarded and treated identically despite its separate origin

Despite the ongoing debate over its technical status, the economics prize is selected through the same rigorous nomination and review process as the original Nobel Prizes, awarded at the same ceremony in Stockholm, and carries the same prize money and prestige within the professional economics community.

Frequently Asked Questions

Is the Nobel Prize in Economic Sciences technically a real Nobel Prize?

This remains a genuinely debated point β€” while it is administered by the Nobel Foundation and awarded alongside the original prizes with equal prestige, it was not established by Alfred Nobel's will and is funded by a different source, leading some to draw a technical distinction.

Who decides who wins the economics prize?

The Royal Swedish Academy of Sciences, the same body responsible for selecting the physics and chemistry laureates, is also responsible for reviewing nominations and selecting the winner of the economics prize each year.