24. Definitions of economic terms every learner should know

Word/concept Definition

Market The process through which prices are established. It is in fact any arrangement that enables buyers and sellers to get information about goods and services and the trading thereof.

Economics (Def 1) The study of how prices are formed on the micro level and how groups (aggregates such as markets and countries) relate to one another on a macro level.

Microeconomics The study of how individuals and individual businesses make decisions in utilising their limited resources to attain maximum utility.

Microeconomics is the branch of economics that analyzes the market behavior of individual consumers and firms in an attempt to understand the decision-making process of firms and households.Typically, it applies to markets where goods or services are bought and sold. Austrian School of Thought School of economic thought originating in Austria in the late nineteenth century which focuses on the concept of opportunity cost.

Austrian Economic Theory In economic theory, the term Austrian Economics stands for liberalism and laissez-faire-economics (where economic performance is optimised when there is limited government interference).

Business Cycles Central banks expand the money supply too quickly which leads to interest rates falling and more speculative longer term investments being undertaken which leads to a crowding out of productive resources from other projects.

Ceteris paribus Lit: All things being equal (held constant)

Capitalism An economic system where the private owndership of productive resources are employed to produce goods and services to meet the needs of people.

Communism A discredited system proposed by Marx of control and central planning in an attempt to achieve the maximum good for the people. Comparative advantage https://www.youtube.com/watch?v=xN3UV5FsBkU

Economic profit - see here (point 3 Mixed economy The economic system followed by most countries in an attempt to do better than what can be achieved by laissez faire capitalism and free markets. Often leads to less optimal results to also achieve political objectives.

Comparative advantage The insight by David Ricardo that trade could effectively take place between two nations though one country has absolute advantage in the production of all goods another country may have a relative or comparative advantage in the production of some of the goods.

Demand side economics A view proposed by Keynes that a recession (depression) is typified by a lack of demand in an economy and that government intervention was required to boost demand by either cutting interest rates and taxes and/or boosting government spending (a possible contradiction if done at the same time). Productivity Productivity is an average measure of the efficiency of production, It is expressed as the ratio of outputs to inputs used in the production process i.e. output per unit of input. When all outputs and inputs are included in the productivity measure it is called total productivity.

Terms of trade

https://en.wikipedia.org/wiki/Terms_of_trade

https://www.youtube.com/watch?v=wmqnCjjidEM


The Demand Curve (microeconomics) Explain the difference between a change in demand and a change in the quantity demanded. Answer: a change in the quantity demanded is represented by a movement along the demand curve that is related to a change in the price of a product., a change in demand is represented by shifts in the demand curve as a result of other factors such as a change in income or the changes of prices of supplementary (competitive) or complimentary products.

Elasticity of demand The relationship between the price and the quantity demanded of a product. The elasticity would be great if there is a relative large change in the quantity demanded in relation to the change in price.

Cross elasticity/substitutes/compliments - https://en.wikipedia.org/wiki/Complementary_good And https://en.wikipedia.org/wiki/Substitute_good And then: https://en.wikipedia.org/wiki/Cross_elasticity_of_demand Neoclassical economics A set of approaches to economics focusing on the determination of prices, outputs, and income distributions in markets through supply and demand. Economics (Def 2) The study of how people choose to use resources (factors of production), the time and talent people have available (Labour), the land and mineral resources (Land), buildings and tools, machines and equipment (capital), and the knowledge of how to combine them (entrepreneurship) to create useful products and services.

Factors of production Natural Resources (Land), Capital (Capital goods), Labour, Entrepreneurship

The Remuneration for the factors of production Substitute goods: Two goods that could be used for the same purpose. If the price of one good increases, then demand for the substitute is likely to rise. Therefore, substitutes have a positive cross elasticity of demand. Rent, wages, interest and profits.

The task of the economic system To provide an answer to the questions "What, How and for whom" should goods and services be produced?

The economic circular flow Firms and households - Factor market / Goods market; Spending and income.
Production Possibilities Frontier The boundary of what can be produced with the available resources and that which cannot

Opportunity cost The value of the next best alternative forgone.

Gross Domestic Product The market price of all the final goods and services produced within the borders of a country in a given period - normally one year. The Value add method to calculate GDP: The value added by firms is relatively easy to calculate from their accounts, but the value added by the public sector, by financial industries, and by intangible asset creation is more complex. These activities are increasingly important in developed economies, and the international conventions governing their estimation and their inclusion or exclusion in GDP regularly change in an attempt to keep up with industrial advances. In the words of one academic economist "The actual number for GDP is therefore the product of a vast patchwork of statistics and a complicated set of processes carried out on the raw data to fit them to the conceptual framework." Coyle, Diane (2014). GDP: A Brief but Affectionate History. Princeton University Press. p. 6. ISBN 9780691156798. Gross National Product The value of the products and services produced by the nationals of a country.

The three macroeconomic flows total production, total income and total spending The most important elements of spending consumption spending by households and investment spending by firms

Gross National Income The income earned by the nationals of a country.

Real national income per capita (per person): Is the total amount of goods and services produced in a particular period (or its equivalent in money income adjusted for variation in purchasing power) divided by the total population during the period.

The three methods of calculating GDP The production method, the income method and the expenditure method.

Marginal propensity to consume

The marginal propensity to consume (MPC) is a metric that quantifies induced consumption, the concept that the increase in personal consumer spending (consumption) occurs with an increase in disposable income (income after taxes and transfers). It is the rate at which consumption will take place (as opposed to savings). Economies of scale https://en.wikipedia.org/wiki/Diseconomies_of_scale Stagflation It denotes an increase in inflation without an increase in production levels, which means that unemployment may remain at unacceptable high levels. This happened in the 70's when policies to increase AD did not result in the desired effects. Regulatory unemployment. Those that are unemployed because of some regulation that is in place. This is very difficult to ascertain or quantify, it is however one of the most important reasons that exist. In a free market there is no real long term unemployment and sticky wages do not exist. Regulations makes it difficult for the market to clear at full employment levels.

Substitute goods are two goods that could be used for the same purpose. If the price of one good increases, then demand for the substitute is likely to rise. Therefore, substitutes have a positive cross elasticity of demand. Regulatory unemployment: Unemployment caused by laws and regulations. During the Apartheid years job reservation laws, pass laws and other measures caused hardship and misery through forced unemployment. In the same way do minimum wage laws, BEE legislation and other laws currently prohibit the entry into paid employment for many individuals and ensure that people who wish to enter the job market are restricted in doing so freely.

See www.aded.co.za/145 1. Marginal cost and revenue 2.Cross elasticity of demand and income elasticity. 3.Fixed costs and variable costs 4.Economic profit and normal profit 5.Economies of scale and deseconomies of scale

23. Link to first page

http://trainingineconomics.blogspot.com/2011_07_01_archive.html

22. What makes a person wealthy?

http://thewireless.co.nz/articles/the-pencilsword-on-a-plate

21 All the Nobel prize winners in Economics

All Prizes in Economic Sciences The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded 46 times to 75 Laureates between 1969 and 2014. Click on the links to get more information. The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2015 The 2015 Prize in Economic Sciences has not been awarded yet. It will be announced on Monday 12 October, 1:00 p.m. CET at the earliest. The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2014 Jean Tirole "for his analysis of market power and regulation" https://en.wikipedia.org/wiki/Jean_Tirole The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2013 Eugene F. Fama, Lars Peter Hansen and Robert J. Shiller "for their empirical analysis of asset prices" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2012 Alvin E. Roth and Lloyd S. Shapley "for the theory of stable allocations and the practice of market design" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2011 Thomas J. Sargent and Christopher A. Sims "for their empirical research on cause and effect in the macroeconomy" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2010 Peter A. Diamond, Dale T. Mortensen and Christopher A. Pissarides "for their analysis of markets with search frictions" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2009 Elinor Ostrom "for her analysis of economic governance, especially the commons" Oliver E. Williamson "for his analysis of economic governance, especially the boundaries of the firm" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2008 Paul Krugman "for his analysis of trade patterns and location of economic activity" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2007 Leonid Hurwicz, Eric S. Maskin and Roger B. Myerson "for having laid the foundations of mechanism design theory" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2006 Edmund S. Phelps "for his analysis of intertemporal tradeoffs in macroeconomic policy" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2005 Robert J. Aumann and Thomas C. Schelling "for having enhanced our understanding of conflict and cooperation through game-theory analysis" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2004 Finn E. Kydland and Edward C. Prescott "for their contributions to dynamic macroeconomics: the time consistency of economic policy and the driving forces behind business cycles" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2003 Robert F. Engle III "for methods of analyzing economic time series with time-varying volatility (ARCH)" Clive W.J. Granger "for methods of analyzing economic time series with common trends (cointegration)" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2002 Daniel Kahneman "for having integrated insights from psychological research into economic science, especially concerning human judgment and decision-making under uncertainty" Vernon L. Smith "for having established laboratory experiments as a tool in empirical economic analysis, especially in the study of alternative market mechanisms" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2001 George A. Akerlof, A. Michael Spence and Joseph E. Stiglitz "for their analyses of markets with asymmetric information" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2000 James J. Heckman "for his development of theory and methods for analyzing selective samples" Daniel L. McFadden "for his development of theory and methods for analyzing discrete choice" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1999 Robert A. Mundell "for his analysis of monetary and fiscal policy under different exchange rate regimes and his analysis of optimum currency areas" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1998 Amartya Sen "for his contributions to welfare economics" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1997 Robert C. Merton and Myron S. Scholes "for a new method to determine the value of derivatives" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1996 James A. Mirrlees and William Vickrey "for their fundamental contributions to the economic theory of incentives under asymmetric information" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1995 Robert E. Lucas Jr. "for having developed and applied the hypothesis of rational expectations, and thereby having transformed macroeconomic analysis and deepened our understanding of economic policy" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1994 John C. Harsanyi, John F. Nash Jr. and Reinhard Selten "for their pioneering analysis of equilibria in the theory of non-cooperative games" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1993 Robert W. Fogel and Douglass C. North "for having renewed research in economic history by applying economic theory and quantitative methods in order to explain economic and institutional change" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1992 Gary S. Becker "for having extended the domain of microeconomic analysis to a wide range of human behaviour and interaction, including nonmarket behaviour" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1991 Ronald H. Coase "for his discovery and clarification of the significance of transaction costs and property rights for the institutional structure and functioning of the economy" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1990 Harry M. Markowitz, Merton H. Miller and William F. Sharpe "for their pioneering work in the theory of financial economics" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1989 Trygve Haavelmo "for his clarification of the probability theory foundations of econometrics and his analyses of simultaneous economic structures" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1988 Maurice Allais "for his pioneering contributions to the theory of markets and efficient utilization of resources" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1987 Robert M. Solow "for his contributions to the theory of economic growth" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1986 James M. Buchanan Jr. "for his development of the contractual and constitutional bases for the theory of economic and political decision-making" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1985 Franco Modigliani "for his pioneering analyses of saving and of financial markets" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1984 Richard Stone "for having made fundamental contributions to the development of systems of national accounts and hence greatly improved the basis for empirical economic analysis" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1983 Gerard Debreu "for having incorporated new analytical methods into economic theory and for his rigorous reformulation of the theory of general equilibrium" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1982 George J. Stigler "for his seminal studies of industrial structures, functioning of markets and causes and effects of public regulation" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1981 James Tobin "for his analysis of financial markets and their relations to expenditure decisions, employment, production and prices" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1980 Lawrence R. Klein "for the creation of econometric models and the application to the analysis of economic fluctuations and economic policies" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1979 Theodore W. Schultz and Sir Arthur Lewis "for their pioneering research into economic development research with particular consideration of the problems of developing countries" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1978 Herbert A. Simon "for his pioneering research into the decision-making process within economic organizations" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1977 Bertil Ohlin and James E. Meade "for their pathbreaking contribution to the theory of international trade and international capital movements" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1976 Milton Friedman "for his achievements in the fields of consumption analysis, monetary history and theory and for his demonstration of the complexity of stabilization policy" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1975 Leonid Vitaliyevich Kantorovich and Tjalling C. Koopmans "for their contributions to the theory of optimum allocation of resources" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1974 Gunnar Myrdal and Friedrich August von Hayek "for their pioneering work in the theory of money and economic fluctuations and for their penetrating analysis of the interdependence of economic, social and institutional phenomena" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1973 Wassily Leontief "for the development of the input-output method and for its application to important economic problems" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1972 John R. Hicks and Kenneth J. Arrow "for their pioneering contributions to general economic equilibrium theory and welfare theory" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1971 Simon Kuznets "for his empirically founded interpretation of economic growth which has led to new and deepened insight into the economic and social structure and process of development" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1970 Paul A. Samuelson "for the scientific work through which he has developed static and dynamic economic theory and actively contributed to raising the level of analysis in economic science" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1969 Ragnar Frisch and Jan Tinbergen "for having developed and applied dynamic models for the analysis of economic processes"

20.15 Angus_Deaton

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2015 The 2015 Prize in Economic Sciences has not been awarded yet. It will be announced on Monday 12 October, 1:00 p.m. CET at the earliest. Here it is: http://www.theguardian.com/business/live/2015/oct/12/nobel-prize-sveriges-riksbank-in-economic-sciences-announcement--live

https://en.wikipedia.org/wiki/Angus_Deaton

20.14 Jean Tirole

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2014 Jean Tirole "for his analysis of market power and regulation" Tirole was awarded the Nobel Memorial Prize in Economic Sciences in 2014 for his analysis of market power and the regulation of natural monopolies.

20.13 Eugene F. Fama, Lars Peter Hansen and Robert J. Shiller

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2013 Eugene F. Fama, Lars Peter Hansen and Robert J. Shiller "for their empirical analysis of asset prices"

20.12 Alvin E. Roth and Lloyd S. Shapley

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2012 Alvin E. Roth and Lloyd S. Shapley "for the theory of stable allocations and the practice of market design"

20.11 Thomas J. Sargent and Christopher A. Sims

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2011 Thomas J. Sargent and Christopher A. Sims "for their empirical research on cause and effect in the macroeconomy"

20.10 Peter A. Diamond, Dale T. Mortensen and Christopher A. Pissarides

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2010 Peter A. Diamond, Dale T. Mortensen and Christopher A. Pissarides "for their analysis of markets with search frictions"

20.09 Elinor Ostrom

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2009 Elinor Ostrom "for her analysis of economic governance, especially the commons"

20.08 Paul Krugman

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2008 Paul Krugman "for his analysis of trade patterns and location of economic activity"

20.07 Leonid Hurwicz, Eric S. Maskin and Roger B. Myerson

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2007 Leonid Hurwicz, Eric S. Maskin and Roger B. Myerson "for having laid the foundations of mechanism design theory"

20.06 Edmund S. Phelps

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2006 Edmund S. Phelps "for his analysis of intertemporal tradeoffs in macroeconomic policy"

20.05 Robert J. Aumann and Thomas C. Schelling

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2005 Robert J. Aumann and Thomas C. Schelling "for having enhanced our understanding of conflict and cooperation through game-theory analysis"

20.04 Finn E. Kydland and Edward C. Prescott

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2004 Finn E. Kydland and Edward C. Prescott "for their contributions to dynamic macroeconomics: the time consistency of economic policy and the driving forces behind business cycles" One traditional method, pioneered by the Nobel-winning macroeconomist Ed Prescott, is called the Hodrick-Prescott Filter, or H-P Filter. Basically, an economist just picks a time horizon -- say, three months, or five years, or 20 years -- that he thinks represents the business cycle, and the H-P Filter will separate the squiggly line into a cycle and a trend(Smith, 2014). References Smith, Noah (2014: Maybe There's No Such Thing as a Business Cycle. http://www.bloombergview.com/articles/2014-12-18/maybe-theres-no-such-thing-as-a-business-cycle [Accessed 15 September 2015].

20.03 Robert F. Engle III

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2003

Robert F. Engle III

"for methods of analyzing economic time series with time-varying volatility (ARCH)"

20.02 Vernon L. Smith & Daniel Kahneman

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2002 Daniel Kahneman

"for having integrated insights from psychological research into economic science, especially concerning human judgment and decision-making under uncertainty"

Vernon L. Smith

"for having established laboratory experiments as a tool in empirical economic analysis, especially in the study of alternative market mechanisms"

20.01 George A. Akerlof, A. Michael Spence and Joseph E. Stiglitz

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2001 George A. Akerlof, A. Michael Spence and Joseph E. Stiglitz "for their analyses of markets with asymmetric information"

20.00 James J. Heckman

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2000 James J. Heckman "for his development of theory and methods for analyzing selective samples"

Anyone looking for upstream solutions to the biggest problems facing America should look to Nobel Prize-winning University of Chicago economics professor James Heckman's work to understand the great gains to be had by investing in the early and equal development of human potential.

19.99 Robert A. Mundell

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1999 Robert A. Mundell "for his analysis of monetary and fiscal policy under different exchange rate regimes and his analysis of optimum currency areas"

19.98 Amartya Sen

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1998 Amartya Sen "for his contributions to welfare economics"

For instance, his theoretical work on inequality provided an explanation for why there are fewer women than men in India[18] and China despite the fact that in the West and in poor but medically unbiased countries, women have lower mortality rates at all ages, live longer, and make a slight majority of the population. Sen claimed that this skewed ratio results from the better health treatment and childhood opportunities afforded boys in those countries, as well as sex-selective abortions.

19.97 Robert C. Merton and Myron S. Scholes

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1997 Robert C. Merton and Myron S. Scholes "for a new method to determine the value of derivatives"

19.96 James A. Mirrlees and William Vickrey

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1996 James A. Mirrlees and William Vickrey "for their fundamental contributions to the economic theory of incentives under asymmetric information"

During his time at Oxford, he published papers on economic models for which he would eventually be awarded his Nobel Prize. They centred on situations in which economic information is asymmetrical or incomplete, determining the extent to which they should affect the optimal rate of saving in an economy. Among other results, they demonstrated the principles of "moral hazard" and "optimal income taxation" discussed in the books of William Vickrey. The methodology has since become the standard in the field. Mirrlees and Vickrey shared the 1996 Nobel Prize for Economics "for their fundamental contributions to the economic theory of incentives under asymmetric information".

19.95 Robert E. Lucas Jr.

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1995 Robert E. Lucas Jr. "for having developed and applied the hypothesis of rational expectations, and thereby having transformed macroeconomic analysis and deepened our understanding of economic policy"Lucas (1976) challenged the foundations of macroeconomic theory (previously dominated by the Keynesian economics approach), arguing that a macroeconomic model should be built as an aggregated version of microeconomic models (while noting that aggregation in the theoretical sense may not be possible within a given model). He developed the "Lucas critique" of economic policymaking, which holds that relationships that appear to hold in the economy, such as an apparent relationship between inflation and unemployment, could change in response to changes in economic policy. This led to the development of new classical macroeconomics and the drive towards microeconomic foundations for macroeconomic theory.


(From Wikipedia)
He received his B.A. in History in 1959 and Ph.D. in Economics in 1964, both from the University of Chicago. Lucas studied economics for his PhD on "quasi-Marxist" grounds. He believed that economics was the true driver of history, and so he planned to fully immerse himself in economics and then migrate back to the history department.[2] Following graduation, Lucas taught at the Graduate School of Industrial Administration (nowTepper School of Business) at Carnegie Mellon University until 1975, when he returned to the University of Chicago.[3]

His ex-wife, Rita Lucas, upon their divorce in 1988, had a clause placed in their divorce settlement that she would receive half of any Nobel Prize won by Lucas in the next seven years. When Lucas did win the Nobel Prize in 1995 (falling just within the time limit), she was awarded half of the prize money.[4] He has lived with Nancy Stokey. They have collaborated in papers on growth theory, public finance, and monetary theory.

19.94 John C. Harsanyi, John F. Nash Jr. and Reinhard Selten

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1994 John C. Harsanyi, John F. Nash Jr. and Reinhard Selten "for their pioneering analysis of equilibria in the theory of non-cooperative games"

He is best known for his contributions to the study of game theory and its application to economics, specifically for his developing the highly innovative analysis of games of incomplete information, so-called Bayesian games. He also made important contributions to the use of game theory and economic reasoning in political and moral philosophy (specifically utilitarian ethics[1]) as well as contributing to the study of equilibrium selection. For his work, he was a co-recipient along with John Nash and Reinhard Selten of the 1994 Nobel Memorial Prize in Economics.

19.93 Robert W. Fogel and Douglass C. North

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1993 Robert W. Fogel and Douglass C. North "for having renewed research in economic history by applying economic theory and quantitative methods in order to explain economic and institutional change"

A portion of Time on the Cross focused on how slave owners treated their slaves. Engerman and Fogel argued that because slave owners approached slave production as a business enterprise, there were some limits on the amount of exploitation and oppression they inflicted on the slaves. According to Engerman and Fogel, slaves in the American South lived better than did many industrial workers in the North. Fogel based this analysis largely on plantation records and claimed that slaves worked less, were better fed and whipped only occasionally—although the authors were careful to state explicitly that slaves were still exploited in ways which were not captured by measures available from records. This portion of Time on the Cross created a firestorm of controversy, although it was not directly related to the central argument of the book—that Southern slave plantations were profitable for the slave owners and would not have disappeared in the absence of the Civil War. Some criticisms mistakenly considered Fogel an apologist for slavery. In fact, Fogel objected to slavery on moral grounds; he thought that on purely economic grounds, slavery was not unprofitable or inefficient as previous historians such as Ulrich B. Phillips had argued.

19.92 Gary S. Becker

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1992 Gary S. Becker "for having extended the domain of microeconomic analysis to a wide range of human behaviour and interaction, including nonmarket behaviour" Becker recognized that people (employers, customers, and employees) sometimes do not want to work with minorities because they have preference against the disadvantaged groups. He goes on to say that discrimination increases the cost of the firm because in discriminating against certain workers, the employer would have to pay more so that work can proceed without them. If the employer employs the minority, low wages can be provided, but more people can be employed, and productivity can be increased.[20]

19.91 Ronald H. Coase

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1991 Ronald H. Coase "for his discovery and clarification of the significance of transaction costs and property rights for the institutional structure and functioning of the economy"

property rights should be assigned such that the owner of the rights wants to take the economically efficient action.

Coase noted, however, a number of transaction costs involved in using the market; the cost of obtaining a good or service via the market actually exceeds the price of the good. Other costs, including search and information costs, bargaining costs, keeping trade secrets, and policing and enforcement costs, can all potentially add to the cost of procuring something from another party. This suggests that firms will arise which can internalise the production of goods and services required to deliver a product, thus avoiding these costs. This argument sets the stage for the later contributions by Oliver Williamson: markets and hierarchies are alternative co-ordination mechanisms for economic transactions.[17] There is a natural limit to what a firm can produce internally, however. Coase notices "decreasing returns to the entrepreneur function", including increasing overhead costs and increasing propensity for an overwhelmed manager to make mistakes in resource allocation. These factors become countervailing costs to the use of the firm.

Nearing his 100th birthday, Coase was working on a book concerning the rise of the economies of China and Vietnam.[8] An interview with Coase was conducted by Wang Ning (co-author of the book How China Became Capitalist) 28–29 December 2010, in Chicago. In the interview, Coase explained the mission of the Coase China Society and his vision of economics and the part to be played by Chinese economists.[9][10] Coase was honoured and received an honorary doctorate from the University at Buffalo Department of Economics in May 2012.[11]

19.90 Harry M. Markowitz, Merton H. Miller and William F. Sharpe

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1990 Harry M. Markowitz, Merton H. Miller and William F. Sharpe "for their pioneering work in the theory of financial economics"

19.89 Trygve Haavelmo

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1989 Trygve Haavelmo "for his clarification of the probability theory foundations of econometrics and his analyses of simultaneous economic structures"

In 1989, Haavelmo was awarded the Nobel Prize in Economics "for his clarification of the probability theory foundations of econometrics and his analyses of simultaneous economic structures."

19.88 Maurice Allais

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1988 Maurice Allais "for his pioneering contributions to the theory of markets and efficient utilization of resources"

His name is particularly associated with what is commonly known as the Allais paradox, a decision problem he first presented in 1953 which contradicts the expected utility hypothesis.

19.87 Robert M. Solow

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1987 Robert M. Solow "for his contributions to the theory of economic growth"

For almost 40 years, Solow and Paul Samuelson worked together on many landmark theories: von Neumann growth theory (1953), theory of capital (1956), linear programming (1958) and the Phillips curve (1960).

19.86 James M. Buchanan Jr

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1986 James M. Buchanan Jr. "for his development of the contractual and constitutional bases for the theory of economic and political decision-making"

James McGill Buchanan, Jr. (/bjuːˈkænɨn/; October 3, 1919 – January 9, 2013) was an American economist known for his work on public choice theory, for which he received the Nobel Memorial Prize in 1986. Buchanan's work initiated research on how politicians' and bureaucrats' self-interest, utility maximization and other non-weath maximizing considerations affect their decision making.

Buchanan is considered to be a quasi-member of the Austrian school of economics, not formally associated with the school but sharing many common beliefs.[17] As Buchanan puts it: "I certainly have a great deal of affinity with Austrian economics and I have no objections to being called an Austrian. Hayek and Mises might consider me an Austrian but, surely some of the others would not." Buchanan went on to say that: "I didn't become acquainted with Mises until I wrote an article on individual choice and voting in the market in 1954. After I had finished the first draft I went back to see what Mises had said in Human Action. I found out, amazingly, that he had come closer to saying what I was trying to say than anybody else."

19.85 Franco Modigliani

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1985 Franco Modigliani "for his pioneering analyses of saving and of financial markets"

Along with Merton Miller, he formulated the important Modigliani–Miller theorem in corporate finance (1958). This theorem demonstrated that under certain assumptions, the value of a firm is not affected by whether it is financed by equity (selling shares) or debt (borrowing money). He was also the originator of the life-cycle hypothesis, which attempts to explain the level of saving in the economy. Modigliani proposed that consumers would aim for a stable level of consumption throughout their lifetime, for example by saving during their working years and spending during their retirement.

19.84 Richard Stone

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1984 Richard Stone

"for having made fundamental contributions to the development of systems of national accounts and hence greatly improved the basis for empirical economic analysis"

However, Stone's quantitative mind had been greatly influenced by Colin Clark, Stone's teacher in statistics at Cambridge. Colin then introduced Stone to his project in measuring the national income. This project then brought the greatest name for Stone as he received Nobel Prize because of this topic. After their meeting at Cambridge, Stone and Clark then became best friends.

In his new office, the Central Statistical Office, Stone became John Maynard Keynes' assistant.

https://en.wikipedia.org/wiki/Richard_Stone/

19.83 Gerard Debreu

Gerard Debreu "for having incorporated new analytical methods into economic theory and for his rigorous reformulation of the theory of general equilibrium"

In 1954, he published a breakthrough paper, entitled Existence of an Equilibrium for a Competitive Economy, together with Kenneth Arrow, in which they provided a definitive mathematical proof of the existence of a general equilibrium, using topological rather than calculus-based methods.

19,82 George J. Stigler

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1982 George J. Stigler "for his seminal studies of industrial structures, functioning of markets and causes and effects of public regulation"

Stigler is best known for developing the Economic Theory of Regulation, also known as capture, which says that interest groups and other political participants will use the regulatory and coercive powers of government to shape laws and regulations in a way that is beneficial to them. This theory is a component of the public choice field of economics. He also carried out extensive research in the history of economic thought. Stigler's most important contribution to economics was disseminated in his landmark article titled "The Economics of Information".[3] According to Friedman, Stigler "essentially created a new area of study for economists." In this article, Stigler stressed the importance of information by writing, "One should hardly have to tell academicians that information is a valuable resource: knowledge is power. And yet it occupies a slum dwelling in the town of economics."

19.81 James Tobin

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1981 James Tobin "for his analysis of financial markets and their relations to expenditure decisions, employment, production and prices"

James Tobin (March 5, 1918 – March 11, 2002) was an American economist who, in his lifetime, served on the Council of Economic Advisors and the Board of Governors of the Federal Reserve System, and taught at Harvard and Yale Universities. He developed the ideas of Keynesian economics, and advocated government intervention to stabilize output and avoid recessions. His academic work included pioneering contributions to the study of investment, monetary and fiscal policy and financial markets. He also proposed an econometric model for censored endogenous variables, the well-known "Tobit model". Tobin received the Nobel Memorial Prize in Economic Sciences in 1981. Outside of academia, Tobin was widely known for his suggestion of a tax on foreign exchange transactions, now known as the "Tobin tax". This was designed to reduce speculation in the international currency markets, which he saw as dangerous and unproductive.

19.80 Lawrence R. Klein

Lawrence R. Klein "for the creation of econometric models and the application to the analysis of economic fluctuations and economic policies"

Lawrence Robert Klein (September 14, 1920 – October 20, 2013) was an American economist. For his work in creating computer models to forecast economic trends in the field of econometrics in the Department of Economics at the University of Pennsylvania, he was awarded the Nobel Memorial Prize in Economic Sciences in 1980 specifically "for the creation of econometric models and their application to the analysis of economic fluctuations and economic policies." Due to his efforts, such models have become widespread among economists. Harvard University professor Martin Feldstein told the Wall Street Journal that Klein "was the first to create the statistical models that embodied Keynesian economics," tools still used by the Federal Reserve Bank and other central banks.

19.79 Theodore W. Schultz and Sir Arthur Lewis

Theodore W. Schultz and Sir Arthur Lewis "for their pioneering research into economic development research with particular consideration of the problems of developing countries"

While he was chair of economics at the University of Chicago he led research into why post-World War II Germany and Japan recovered, at almost miraculous speeds from the widespread devastation. Contrast this with the United Kingdom which was still rationing food long after the war. His conclusion was that the speed of recovery was due to a healthy and highly educated population; education makes people productive and good healthcare keeps the education investment around and able to produce. One of his main contributions was later called Human Capital Theory, and inspired a lot of work in international development in the 1980s, motivating investments in vocational and technical education by Bretton Woods system International Financial Institutions such as the International Monetary Fund and the World Bank.

19.78 Herbert A. Simon

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1978 Herbert A. Simon

"for his pioneering research into the decision-making process within economic organizations"

Herbert Alexander Simon (June 15, 1916 – February 9, 2001), a Nobel laureate, was an American political scientist, economist, sociologist, psychologist, and computer scientist whose research ranged across the fields of cognitive psychology, cognitive science, computer science, public administration, economics, management, philosophy of science, sociology, and political science, unified by studies of decision-making.[5] With almost a thousand highly cited publications, he was one of the most influential social scientists of the twentieth century. For many years he held the post of Richard King Mellon Professor at Carnegie Mellon University[6]

All Prizes in Economic Sciences The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded 46 times to 75 Laureates between 1969 and 2014. Click on the links to get more information. The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2015 The 2015 Prize in Economic Sciences has not been awarded yet. It will be announced on Monday 12 October, 1:00 p.m. CET at the earliest. The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2014 Jean Tirole "for his analysis of market power and regulation" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2013 Eugene F. Fama, Lars Peter Hansen and Robert J. Shiller "for their empirical analysis of asset prices" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2012 Alvin E. Roth and Lloyd S. Shapley "for the theory of stable allocations and the practice of market design" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2011 Thomas J. Sargent and Christopher A. Sims "for their empirical research on cause and effect in the macroeconomy" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2010 Peter A. Diamond, Dale T. Mortensen and Christopher A. Pissarides "for their analysis of markets with search frictions" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2009 Elinor Ostrom "for her analysis of economic governance, especially the commons" Oliver E. Williamson "for his analysis of economic governance, especially the boundaries of the firm" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2008 Paul Krugman "for his analysis of trade patterns and location of economic activity" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2007 Leonid Hurwicz, Eric S. Maskin and Roger B. Myerson "for having laid the foundations of mechanism design theory" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2006 Edmund S. Phelps "for his analysis of intertemporal tradeoffs in macroeconomic policy" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2005 Robert J. Aumann and Thomas C. Schelling "for having enhanced our understanding of conflict and cooperation through game-theory analysis" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2004 Finn E. Kydland and Edward C. Prescott "for their contributions to dynamic macroeconomics: the time consistency of economic policy and the driving forces behind business cycles" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2003 Robert F. Engle III "for methods of analyzing economic time series with time-varying volatility (ARCH)" Clive W.J. Granger "for methods of analyzing economic time series with common trends (cointegration)" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2002 Daniel Kahneman "for having integrated insights from psychological research into economic science, especially concerning human judgment and decision-making under uncertainty" Vernon L. Smith "for having established laboratory experiments as a tool in empirical economic analysis, especially in the study of alternative market mechanisms" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2001 George A. Akerlof, A. Michael Spence and Joseph E. Stiglitz "for their analyses of markets with asymmetric information" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2000 James J. Heckman "for his development of theory and methods for analyzing selective samples" Daniel L. McFadden "for his development of theory and methods for analyzing discrete choice" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1999 Robert A. Mundell "for his analysis of monetary and fiscal policy under different exchange rate regimes and his analysis of optimum currency areas" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1998 Amartya Sen "for his contributions to welfare economics" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1997 Robert C. Merton and Myron S. Scholes "for a new method to determine the value of derivatives" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1996 James A. Mirrlees and William Vickrey "for their fundamental contributions to the economic theory of incentives under asymmetric information" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1995 Robert E. Lucas Jr. "for having developed and applied the hypothesis of rational expectations, and thereby having transformed macroeconomic analysis and deepened our understanding of economic policy" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1994 John C. Harsanyi, John F. Nash Jr. and Reinhard Selten "for their pioneering analysis of equilibria in the theory of non-cooperative games" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1993 Robert W. Fogel and Douglass C. North "for having renewed research in economic history by applying economic theory and quantitative methods in order to explain economic and institutional change" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1992 Gary S. Becker "for having extended the domain of microeconomic analysis to a wide range of human behaviour and interaction, including nonmarket behaviour" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1991 Ronald H. Coase "for his discovery and clarification of the significance of transaction costs and property rights for the institutional structure and functioning of the economy" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1990 Harry M. Markowitz, Merton H. Miller and William F. Sharpe "for their pioneering work in the theory of financial economics" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1989 Trygve Haavelmo "for his clarification of the probability theory foundations of econometrics and his analyses of simultaneous economic structures" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1988 Maurice Allais "for his pioneering contributions to the theory of markets and efficient utilization of resources" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1987 Robert M. Solow "for his contributions to the theory of economic growth" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1986 James M. Buchanan Jr. "for his development of the contractual and constitutional bases for the theory of economic and political decision-making" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1985 Franco Modigliani "for his pioneering analyses of saving and of financial markets" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1984 Richard Stone "for having made fundamental contributions to the development of systems of national accounts and hence greatly improved the basis for empirical economic analysis" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1983 Gerard Debreu "for having incorporated new analytical methods into economic theory and for his rigorous reformulation of the theory of general equilibrium" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1982 George J. Stigler "for his seminal studies of industrial structures, functioning of markets and causes and effects of public regulation" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1981 James Tobin "for his analysis of financial markets and their relations to expenditure decisions, employment, production and prices" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1980 Lawrence R. Klein "for the creation of econometric models and the application to the analysis of economic fluctuations and economic policies" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1979 Theodore W. Schultz and Sir Arthur Lewis "for their pioneering research into economic development research with particular consideration of the problems of developing countries" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1978 Herbert A. Simon "for his pioneering research into the decision-making process within economic organizations" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1977 Bertil Ohlin and James E. Meade "for their pathbreaking contribution to the theory of international trade and international capital movements" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1976 Milton Friedman "for his achievements in the fields of consumption analysis, monetary history and theory and for his demonstration of the complexity of stabilization policy"

19.77 Bertil Ohlin and James E. Meade

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1977 Bertil Ohlin and James E. Meade "for their pathbreaking contribution to the theory of international trade and international capital movements"

19.76 Milton Friedman

All Prizes in Economic Sciences The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded 46 times to 75 Laureates between 1969 and 2014.

. The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2015 The 2015 Prize in Economic Sciences has not been awarded yet. It will be announced on Monday 12 October, 1:00 p.m. CET at the earliest.

d The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel

1976 Milton Friedman "for his achievements in the fields of consumption analysis, monetary history and theory and for his demonstration of the complexity of stabilization policy" The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1969 Ragnar Frisch and Jan Tinbergen "for having developed and applied dynamic models for the analysis of economic processes"

19.75 (Call) Kantorovich & Koopmans

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1975 Leonid Vitaliyevich Kantorovich and Tjalling C. Koopmans "for their contributions to the theory of optimum allocation of resources"

19.74 (car) Gunnar Myrdal and Friedrich August von Hayek

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1974 Gunnar Myrdal and Friedrich August von Hayek "for their pioneering work in the theory of money and economic fluctuations and for their penetrating analysis of the interdependence of economic, social and institutional phenomena"

19.73 (Cameo) Wassily Leontief

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1973 Wassily Leontief "for the development of the input-output method and for its application to important economic problems"

19.72 (Can) John R. Hicks & Kenneth J. Arrow

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1972 John R. Hicks and Kenneth J. Arrow

"for their pioneering contributions to general economic equilibrium theory and welfare theory"

Sir John Richard Hicks (8 April 1904 – 20 May 1989) was a British economist and one of the most important and influential economists of the twentieth century. The most familiar of his many contributions in the field of economics were his statement of consumer demand theory in microeconomics, and the IS/LM model (1937), which summarised a Keynesian view of macroeconomics. His book Value and Capital (1939) significantly extended general-equilibrium and value theory. The compensated demand function is named the Hicksian demand function in memory of him.

In 1972 he received the Nobel Memorial Prize in Economic Sciences (jointly) for his pioneering contributions to general equilibrium theory and welfare theory

19.71 (Cat) Simon Kuznets

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel

1971

Simon Kuznets

"for his empirically founded interpretation of economic growth which has led to new and deepened insight into the economic and social structure and process of development"

Simon Smith Kuznets (April 30, 1901 – July 8, 1985) was an American economist, statistician, demographer, and economic historian who won the 1971 Nobel Memorial Prize in Economic Sciences "for his empirically founded interpretation of economic growth which has led to new and deepened insight into the economic and social structure and process of development."

A THEORY OF ECONOMIC GROWTH

Research program that involved extensive empirical studies on the four key elements of economic growth. In fact, the demographic growth, the growth of knowledge, in-country adaptation to growth factors and external economic relations between the countries. The general theory of economic growth should explain the development of advanced industrial countries, and the reasons that prevent the development of less developed countries, It should include the differences between both market and planned economies, large and small, developed and developing countries, consider the impact on growth of foreign economic relations.

19,70 (Case) Paul A. Samuelson

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1970 Paul A. Samuelson "for the scientific work through which he has developed static and dynamic economic theory and actively contributed to raising the level of analysis in economic science"

https://en.wikipedia.org/wiki/Paul_Samuelson