The 2021 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded with one half to David Card and the other half jointly to Joshua D. Angrist and Guido W. Imbens.

The Nobel in
Economics is different from the all the other Nobel prizes, to the effect that
the Economics Nobel is not a Nobel at all. What in popular parlance is referred
to as the Nobel Prize in Economics, the last of the awards announced among the
Nobel Prizes is really the Sveriges Riksbank Prize in Economic Sciences in
Memory of Alfred Nobel. Therefore, there is not really a Nobel Prize in
Economics.

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How did the
Nobel Prize in Economics come about?

When Alfred Nobel,
the Swedish scientist most well known for the discovery of dynamite, conceived
of the Nobel Prize in his will, he intended for five Nobel Prizes to be awarded
to luminaries in the field of Physics, Chemistry, Physiology or Medicine, Literature
and Peace.

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It was only in
1968, that the Sveriges Riksbank (Sweden’s central bank) established the Sveriges
Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.

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What is the Sveriges
Riksbank?

The Sveriges Riksbank,
also knows as Riksbank, is the central bank of Sweden. Sveriges Riksbank is the
world’s oldest central bank and the fourth oldest bank in operation, and has
been running since 1668. 


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Why did
Sveriges Riksbank announce a prize in memory of Alfred Nobel?

In 1968, on the
occasion of Sweden’s central bank’s 300th anniversary, the bank
pledged a donation to the Nobel Foundation to award a prize in memory of Alfred
Nobel. The prize was officially rechristened “Sveriges Riksbank Prize in
Economic Sciences in Memory of Alfred Nobel”. The prize is popularly known as
the “Nobel Memorial Prize in Economic Sciences”.

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The Sveriges
Riksbank pledged to match the prize money of the original Nobels, and bear all
administrative expenses. The prize is administered by the Nobel Foundation.

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How is the
Nobel Prize in Economics decided?

The Nobel Prize in
Economics is determined by the Royal Swedish Academy of Sciences (RSAS). RSAS
determines who will receive a secret invitation to nominate a candidate. The
list of nominees is not released for fifty years.

Who won the
first Nobel Prize in Economics?

Paul Samuelson was
the first person to win the Sveriges Riksbank Prize in Economic Sciences in
Memory of Alfred Nobel. The University of Chicago has the highest number of
Nobel laureates till date.