Time to kill the Nobel Memorial Prize in Economic Sciences?

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shoch
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Time to kill the Nobel Memorial Prize in Economic Sciences?

Post by shoch » 12 Dec 2010 08:03

1) Prizes for “efficient markets” and “rational actors”: capital asset pricing, Value-at-Risk, Black-Scholes Options Pricing many of which led to the financial crash of 2008 that continues unabated. One of the few exceptions is Elinor Ostrom but she gets little attention because her research does not particularly fit a growth-based consumer capitalist society. It's more appropriate to a stead-state economy.

2) Peter Nobel:
"There is nothing to indicate that he [AlfredNobel] would have wanted such a prize."
"It's most often awarded to stock market speculators", which does not reflect Alfred Nobel's spirit of improving the human condition, he fumes.

"The Economics Prize has nestled itself in and is awarded as if it were a Nobel Prize. But it's a PR coup by economists to improve their reputation," he bristles.
3) It ain't even a Nobel prize, just a central bankers' wet dream.
When man interferes with the Tao, the sky becomes filthy, the earth becomes depleted, the equilibrium crumbles, creatures become extinct.
- Lao Tzu

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ghariton
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Re: Time to kill the Nobel Memorial Prize in Economic Scienc

Post by ghariton » 14 Dec 2010 21:16

shoch wrote:One of the few exceptions is Elinor Ostrom but she gets little attention because her research does not particularly fit a growth-based consumer capitalist society.
Perhaps.

Many economists thought she won mostly because she was not George Bush.

George
The plural of anecdote is NOT data.

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shoch
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Re: Time to kill the Nobel Memorial Prize in Economic Scienc

Post by shoch » 16 Dec 2010 05:59

When man interferes with the Tao, the sky becomes filthy, the earth becomes depleted, the equilibrium crumbles, creatures become extinct.
- Lao Tzu

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ghariton
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Re: Time to kill the Nobel Memorial Prize in Economic Scienc

Post by ghariton » 17 Dec 2010 16:08

shoch wrote:Your view isn't share by some.
It would be a dull world if everyone agreed. Note that the reaction is not against institutional economics. I haven't heard any criticism of the award to Oliver Williamson, who has done excellent work in this area, and who has indeed influenced other many economists. Rather, the scepticism was addressed to Ms. Ostrom, who is a political scientist and has had very little impact on economics. Even Krugman says he wasn't familiar with her work.

That said, I'm not too surprised that Joe Stiglitz and Paul Krugman would take anti-Bush positions, even by proxy.:wink:

There is a large literature on different forms of ownership of enterprise, from the corporate (owned by suppliers of capital) to workers' cooperatives (owned by labour), to producers' cooperatives (owned by the suppliers of a key input or intermediate m,aterial, e.g. dairy cooperatives), to consumer cooperatives (owned by the customers). If you are really interested in alternative institutional forms, I strongly recommend Henry Hansmann, The Ownership of Enterprise.

But of course Hansmann is a lawyer, and so beyond the pale. As well, perhaps he is not as critical of corporations as the proto-Nobel committee would have liked.

As to the problem of the commons, in law school I was taught property law by a Marxist (a preponderance of property law professors seem to be Marxists). His position was that the problem of the commons was not that the grazing land was in common, but rather that the catttle were private property. The solution was ovbvious -- nationalize the cattle. The farm could then be run as a collective. (I made myself very unpopular by pointing out than this had already been tried -- on a very large scale.)
Economists should not try comedy. They're much funnier when they stick to economic theory.
I dare say. But not as funny as conspiracy buffs. But YMMV.

Anyway, your posts always yield me great pleasure. I especially like the way you include an entire quote as the URL.

George
The plural of anecdote is NOT data.

ig17
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Re: Time to kill the Nobel Memorial Prize in Economic Scienc

Post by ig17 » 14 Oct 2013 11:42

Fama, Shiller, Hansen Win 2013 Nobel Prize in Economics

I have no opinion on whether Eugene Fama deserves a Nobel.

But:

How could they give it to him and not his cojoined twin Kenneth French? :roll: That makes little sense to me. What am I missing?

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tidal
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Re: Time to kill the Nobel Memorial Prize in Economic Scienc

Post by tidal » 14 Oct 2013 12:06

ig17 wrote:Fama, Shiller, Hansen Win 2013 Nobel Prize in Economics

I have no opinion on whether Eugene Fama deserves a Nobel.

But:

How could they give it to him and not his cojoined twin Kenneth French? :roll: That makes little sense to me. What am I missing?
They are pretty clearly giving it to Fama for work he did on efficient markets that pre-dates his work with French. If anything, the Fama-French collaborative work hints at potential asset-pricing inefficiencies. What is more surprising is that they are sharing the award in the same year with Shiller who argues pretty strongly for inefficiences in asset pricing (at least at the macro level, and at least temporarily.)
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Re: Time to kill the Nobel Memorial Prize in Economic Scienc

Post by parvus » 14 Oct 2013 19:18

Quite delightful, this mixed decision. Nothing proven, but merit badges to all.
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