Economics vs Business

sakky
Tue, 25 Dec 2007 09:01:39 +0000

It is considered a bona fide social science, and recognized as such by the Nobel Committee.



Uh, while this may be quibbling, it isn’t really quite true that economics is “recognized by the Nobel committee”, strictly speaking. Strictly speaking, the Nobel Prize in Economics isn’t really a true Nobel Prize at all in the sense that it is not actually administered and awarded by the Nobel Foundation and is not stipulated by the will of Alfred Nobel.

The true and full name of the ‘Nobel Prize in Economics’ gives it away: “The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel”. That’s right, it is an award run and awarded by the Sveriges Riksbank (which is the central bank of Sweden) in memory of Alfred Nobel. Furthermore, the actual cash prize of the award is not actually derived from a gift from Alfred Nobel’s estate, but is rather funded out of a separate endowment established by the Sveriges Riksbank. The Economics Prize was first awarded in 1968, almost 70 years after the other real Nobel Prizes started to be awarded. Why 1968? In order to celebrate the 300th anniversary of the founding of the Sveriges Riksbank. It has nothing to do with Alfred Nobel’s death or estate.

However, we should note that Alfred Nobel was never affiliated with the Sveriges Riksbank. Neither do the Sveriges Riksbank and the Nobel Foundation have any formal relationship. Nevertheless, the two organizations often times cooperate with each other in terms of marketing and promotion, and the Sveriges Riksbank does mimic the award criteria used by the Nobel Foundation.

Nevertheless, it is still a matter of controversy as to whether the ‘Nobel Prize in Economics’ should be called a Nobel Prize. Many of Alfred Nobel’s relatives seem to strongly believe that the prize ought to be abolished, or at least, that the Nobel moniker should be removed.

[The Local - Nobel descendant slams Economics prize](http://www.thelocal.se/2173/20050928/)
http://news.independent.co.uk/europe/article146932.ece
[Abolish the Nobel in Economics, Many Scientists Agree by Hazel Henderson](http://www.hazelhenderson.com/editorials/abolishTheNobel.html)