The Nobel Memorial Prize in Economic Sciences — officially known as the Sveriges Riverbank Prize in Economic Sciences in Memory of Alfred Nobel — is one of the most prestigious honors in the world, recognizing individuals who have made groundbreaking contributions to the field of economics.
It was established in 1968 by the Sveriges Riksbank, which is Sweden’s central bank, on the occasion of its 300th anniversary. Unlike the original Nobel Prizes that were outlined in Alfred Nobel’s will, this prize was created later, but it follows the same principles, rules, and ceremony as the others. The prize is often simply called the Nobel Prize in Economics, even though it is technically a memorial prize.
The first Nobel Memorial Prize in Economic Sciences was awarded in 1969 to Ragnar Frisch from Norway and Jan Tinbergen from the Netherlands. They were honored for their pioneering work in econometrics — the use of mathematical and statistical models to analyze economic processes. This award marked the beginning of recognizing economics as a rigorous and impactful science.
The prize is administered by the Royal Swedish Academy of Sciences, the same body that awards the Nobel Prizes in Physics and Chemistry. The Sveriges Riksbank provides the financial endowment for the prize, while the Nobel Foundation manages the prize funds and coordinates the annual Nobel ceremonies.
The purpose of this prize is to recognize individuals whose research in economics has provided a deep understanding of how economies function and how their work has contributed to the betterment of humanity. This includes contributions in theoretical development, empirical studies, and policy applications that have had global significance.
The selection process for the Nobel Prize in Economics is highly rigorous. Each year, the Royal Swedish Academy sends out nomination invitations to thousands of qualified individuals — including professors, previous laureates, and recognized institutions. The Economic Sciences Prize Committee reviews the nominations, gathers expert evaluations, and prepares reports for consideration. The final decision is made by the Royal Swedish Academy of Sciences, usually in early October. The official announcement follows soon after, and the laureates receive their medals, diplomas, and prize money on December 10, the anniversary of Alfred Nobel’s death, at the Stockholm Concert Hall.
Each laureate receives a gold medal, a Nobel diploma, and a cash award funded by the Sveriges Riksbank. The prize money is equal in value to the other Nobel Prizes. In 2025, the award amount was 11 million Swedish kronor, which can be shared among up to three winners in one year.
Over time, the Nobel Prize in Economics has recognized a wide variety of contributions that have shaped global understanding of markets, growth, and behavior. Fields recognized include macroeconomics, microeconomics, labor economics, development studies, econometrics, game theory, behavioral economics, welfare theory, and innovation economics.
Some of the most famous laureates include Milton Friedman, honored for his work on monetary theory and consumption; Amartya Sen, who developed theories of welfare and poverty measurement; Daniel Kahneman, for integrating psychology with economic analysis; and Elinor Ostrom, for her research on the management of common resources — she was also the first woman to receive the economics prize in 2009. In later years, Esther Duflo became the youngest laureate and the second woman to win, recognized for her experimental approach to reducing global poverty, alongside Abhijit Banerjee and Michael Kremer in 2019. Claudia Goldin received the prize in 2023 for her work on understanding the role of women in the labor market.
The 2025 Nobel Prize in Economic Sciences was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their explanation of innovation-driven economic growth, recognizing their contributions to understanding how technological progress and innovation drive long-term prosperity.
Although it is often debated whether economics should be called a true “science” like physics or chemistry, the Nobel Memorial Prize has elevated the discipline’s status, showing how deeply economics affects global policy, development, and welfare. The award emphasizes that economics is not only about numbers and theories, but about improving human lives through better understanding of systems, markets, and behaviors.
The ceremony for this prize, like all Nobel Prizes, is held in Stockholm, Sweden, where laureates receive their award from the hands of the King of Sweden. It remains a symbol of the highest academic and social recognition for economists worldwide.
Over more than five decades, the Nobel Prize in Economic Sciences has evolved into one of the most respected honors globally — celebrating intellectual achievements that have profoundly shaped how the world understands growth, inequality, markets, and the global economy.