MIT economists Daron Acemoglu and Simon Johnson PhD ’89, whose work has illuminated the relationship between political systems and economic growth, have been named winners of the 2024 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. Political scientist James Robinson of the University of Chicago, with whom they have worked closely, also shares the award. “Societies with a poor rule of law and institutions that exploit the population do not generate growth or change for the better,” the Swedish Royal Academy of Sciences stated in the Nobel citation. “The laureates’ research helps us understand why.”
MIT President Sally Kornbluth congratulated both professors at an Institute press conference this morning, saying that Acemoglu and Johnson “reflect a kind of MIT ideal” in terms of the excellence and rigor of their work and their commitment to collaboration. Their research, Kornbluth added, represents “a very MIT interest in making a positive impact in the real world.”
In their work, Acemoglu, Johnson, and Robinson make a distinction between “inclusive” political governments, which extend political liberties and property rights as broadly as possible while enforcing laws and providing public infrastructure, with “extractive” political systems, where power is wielded by a small elite.
Jeremy Seidman, Executive Chair, MIT Sloan CFO Summit, commented, “We are honored to have had Simon Johnson featured at last year’s CFO Summit where he headlined our morning keynote, ‘Innovation: Distributing Results.’ I am proud to extend our congratulations for this international recognition of his work.”
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