Nobel Prize in Economics 2025 Awarded To Joel Mokyr, Philippe Aghion And Peter Howitt

The Nobel Prize in Economics 2025 was awarded to Joel Mokyr, Philippe Aghion and Peter Howitt on October 13. This marks the conclusion of the Nobel season. The trio was recognised for their contributions to understanding innovation-driven economic growth. Mokyr received half of the prize for identifying prerequisites for sustained growth through technological progress, while Aghion and Howitt shared the other half for their theory on creative destruction.

Philippe Aghion and Peter Howitt's work delved into the mechanisms behind sustained economic growth. In a 1992 article, they developed a mathematical model illustrating "creative destruction." This concept describes how new products entering the market can render older technologies obsolete. While innovation is creative, it also disrupts existing companies whose technologies become outdated.

Historical Insights and Technological Progress

Joel Mokyr's research utilised historical sources to uncover why sustained growth became prevalent. He argued that for innovations to build upon one another, scientific explanations are essential. Before the industrial revolution, such explanations were often missing, hindering further advancements. Mokyr also highlighted society's need to embrace new ideas and changes.

The economics prize is formally known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. Established by Sweden's central bank in 1968, it honours Alfred Nobel, who invented dynamite and founded the original five Nobel Prizes. Despite some purists arguing it's not a true Nobel Prize, it is presented alongside other awards on December 10, marking Nobel's death anniversary.

Recent Winners and Historical Context

The 2024 award was given to economists Daron Acemoglu, Simon Johnson, and James A. Robinson. Their research explored why some nations are wealthy while others remain poor. They concluded that societies with more freedom and openness tend to prosper more effectively.

Nobel prizes in medicine, physics, chemistry, literature, and peace were distributed last week. Since its inception in 1968, the economics prize has been awarded 56 times to a total of 96 individuals.