{"id":1402923,"date":"2024-10-14T15:29:44","date_gmt":"2024-10-14T13:29:44","guid":{"rendered":"https:\/\/pre.efe.com\/?p=1402923"},"modified":"2024-10-14T17:51:46","modified_gmt":"2024-10-14T15:51:46","slug":"3-economists-awarded-nobel-for-study-on-institutions-national-prosperity","status":"publish","type":"post","link":"https:\/\/pre.efe.com\/en\/other-news\/2024-10-14\/3-economists-awarded-nobel-for-study-on-institutions-national-prosperity\/","title":{"rendered":"3 economists awarded Nobel for study on institutions, national prosperity"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Copenhagen, Oct 14 (EFE).- Three US-based economists were awarded the Nobel Prize in Economics for their pioneering research showing how social institutions shape a nation\u2019s economic success and long-term prosperity.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">\u201cDaron Acemoglu, Simon Johnson, and James Robinson have demonstrated the importance of societal institutions for a country\u2019s prosperity,\u201d the Royal Swedish Academy of Sciences said in a statement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One of their key findings was that regions wealthy during colonization are now among the poorest, with high settler mortality rates linked to lower GDP per capita today.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>A Tale of Two Nogales <br><\/strong>The laureates used Nogales, a border city divided between the US and Mexico, to illustrate their findings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Nogales, Arizona, on the northern side, is relatively prosperous with secure property rights, higher education levels, and stable political systems. On the southern side in Sonora, Mexico, residents are considerably poorer, face more organized crime, and have fewer political rights.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-108-1024x683.jpeg\" alt=\"\" class=\"wp-image-1402941\" style=\"width:800px\" srcset=\"https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-108-1024x683.jpeg 1024w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-108-300x200.jpeg 300w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-108-768x512.jpeg 768w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-108-1536x1024.jpeg 1536w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-108-430x286.jpeg 430w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-108-1200x800.jpeg 1200w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-108.jpeg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Academy of Sciences permanent secretary Hans Ellegren (C), Jakob Svensson (L) and Jan Teorell, of the Nobel assembly at the Swedish Riksbank announces the Swedish Riksbank&#8217;s prize in economic science in memory of Alfred Nobel 2024, which goes to Daron Acemoglu, Simon Johnson and James A Robinson, during a press meeting at the Royal Swedish Academy of Sciences in Stockholm, Sweden, 14 October 2024. EFE-EPA\/Christine Olsson\/TT SWEDEN OUT<\/em><\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">Geographically, both sides share the same climate and cultural roots, but the institutions governing them differ drastically.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe people who live north of the fence live in the USA\u2019s economic system, which gives them greater opportunities to choose their education and profession.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In contrast, those south of the fence live under conditions that limit their ability to influence legislation,\u201d the academy noted.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This example, the academy noted, is part of a broader historical pattern linked to colonization.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Colonial Legacy and Institutional Differences<br><\/strong>The researchers found that population density played a major role in the type of institutions developed in colonized areas.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Densely populated regions offered greater resistance but also provided cheap labor once subdued, leading to the establishment of extractive institutions benefiting local elites.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-109-1024x683.jpeg\" alt=\"\" class=\"wp-image-1402945\" style=\"width:800px\" srcset=\"https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-109-1024x683.jpeg 1024w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-109-300x200.jpeg 300w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-109-768x512.jpeg 768w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-109-1536x1024.jpeg 1536w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-109-430x286.jpeg 430w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-109-1200x800.jpeg 1200w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-109.jpeg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Academy of Sciences permanent secretary Hans Ellegren (C), Jakob Svensson (L) and Jan Teorell, of the Nobel assembly at the Swedish Riksbank announces the Swedish Riksbank&#8217;s prize in economic science in memory of Alfred Nobel 2024, which goes to Daron Acemoglu, Simon Johnson and James A Robinson, during a press meeting at the Royal Swedish Academy of Sciences in Stockholm, Sweden, 14 October 2024. EFE-EPA\/Christine Olsson\/TT SWEDEN OUT<\/em><\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">In sparsely populated areas, European settlers moved in larger numbers, leading to the creation of more inclusive institutions that encouraged investment and hard work.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Another factor was the prevalence of diseases in settler communities. In areas where diseases were most dangerous to European settlers, dysfunctional systems, poverty, and weak rule of law prevail today.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe incidence of disease, which can be seen in historical statistics of mortality during colonial times, is strongly associated with current economic prosperity,\u201d the researchers noted.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They argued that extractive institutions established by European colonizers in these regions have persisted, hindering development.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-110-1024x683.jpeg\" alt=\"\" class=\"wp-image-1402949\" style=\"width:800px\" srcset=\"https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-110-1024x683.jpeg 1024w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-110-300x200.jpeg 300w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-110-768x512.jpeg 768w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-110-1536x1024.jpeg 1536w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-110-430x286.jpeg 430w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-110-1200x800.jpeg 1200w, https:\/\/pre.efe.com\/wp-content\/uploads\/2024\/10\/image-110.jpeg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Academy of Sciences permanent secretary Hans Ellegren (C), Jakob Svensson (L) and Jan Teorell, of the Nobel assembly at the Swedish Riksbank announces the Swedish Riksbank&#8217;s prize in economic science in memory of Alfred Nobel 2024, which goes to Daron Acemoglu, Simon Johnson and James A Robinson, during a press meeting at the Royal Swedish Academy of Sciences in Stockholm, Sweden, 14 October 2024. EFE-EPA\/Christine Olsson\/TT SWEDEN OUT<\/em><\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><strong>Model of Institutional Change <br><\/strong>The laureates developed a model to explain how political institutions form and change, focusing on three components: conflict over resource allocation, the power of the masses to mobilize against elites, and the &#8220;commitment problem,&#8221; where elites must transfer decision-making power to maintain stability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Prize and Ceremony <br><\/strong>Acemoglu, Johnson, and Robinson will share the $1.1 million awarded to Nobel laureates this year. The awards ceremony will take place on December 10, with the Peace Prize in Oslo and the rest in Stockholm.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Nobel Memorial Prize in Economic Sciences, established in 1968 through a donation from the National Bank of Sweden, is the only Nobel Prize not created by Alfred Nobel. EFE<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">alc-ssk<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Copenhagen, Oct 14 (EFE).- Three US-based economists were awarded the Nobel Prize in Economics for their pioneering research showing how social institutions shape a nation\u2019s economic success and long-term prosperity. \u201cDaron Acemoglu, Simon Johnson, and James Robinson have demonstrated the importance of societal institutions for a country\u2019s prosperity,\u201d the Royal Swedish Academy of Sciences said &#8230; <a title=\"3 economists awarded Nobel for study on institutions, national prosperity\" class=\"read-more\" href=\"https:\/\/pre.efe.com\/en\/other-news\/2024-10-14\/3-economists-awarded-nobel-for-study-on-institutions-national-prosperity\/\" aria-label=\"Read more about 3 economists awarded Nobel for study on institutions, national prosperity\">Read more<\/a><\/p>\n","protected":false},"author":198164071,"featured_media":1402924,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[122143],"tags":[],"class_list":["post-1402923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v27.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>3 economists awarded Nobel for study on institutions, national prosperity - EFE<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"3 economists awarded Nobel for study on institutions, national prosperity - EFE\" \/>\n<meta property=\"og:description\" content=\"Copenhagen, Oct 14 (EFE).- Three US-based economists were awarded the Nobel Prize in Economics for their pioneering research showing how social institutions shape a nation\u2019s economic success and long-term prosperity. \u201cDaron Acemoglu, Simon Johnson, and James Robinson have demonstrated the importance of societal institutions for a country\u2019s prosperity,\u201d the Royal Swedish Academy of Sciences said ... 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