MIT and University of Chicago Economists Win Nobel Prize for Research on Wealth Disparities

Daron Acemoglu, Simon Johnson, and James Robinson honored for their groundbreaking work on the role of institutions in economic prosperity.

The Nobel Prize in Economics was awarded to Daron Acemoglu, Simon Johnson, and James Robinson for their analysis of how institutional frameworks impact national wealth.
Their research distinguishes between 'inclusive' institutions that promote economic growth and 'extractive' ones that benefit a select few, often leading to poverty.
The economists' work highlights historical examples, such as the differing prosperity levels in Nogales, Arizona, and Nogales, Sonora, due to institutional differences.
They argue that democratic institutions are crucial for sustained prosperity, while expressing concern over declining support for democracy in the U.S. and Europe.
Their findings suggest that countries with repressive political systems, like China, may struggle to maintain long-term economic growth.