First Recipient of Nobel Prize in Economics, Know His Name

The first Nobel Prize in Economics was awarded in 1969 in Memory of Alfred Nobel. This category was added to the prestigious Nobel Awards decades after the initial prizes were established in 1901. The first-ever Nobel Prize in Economics was shared between two economists, Ragnar Frisch and Jan Tinbergen, who made significant contributions to the development of econometrics and economic modeling.

First Nobel Prize Winners in Economics – Ragnar Frisch and Jan Tinbergen

Ragnar Anton Kittil Frisch, born on March 3, 1895, in Kristiania, Norway, was a key figure in establishing economics as a quantitative science. He introduced the term “econometrics” in 1926, integrating statistical methods into economic theory. Frisch also coined the terms “microeconomics” and “macroeconomics” in 1933. His notable achievement was the creation of a statistically informed model of business cycles, which helped shape modern economic analysis.

Jan Tinbergen, born on April 12, 1903, in The Hague, Netherlands, was another significant contributor to econometrics. He developed the first national macroeconomic model, which provided a dynamic analysis of economic processes. Tinbergen’s contributions extended to solving the identification problem and enhancing the understanding of economic systems through the application of mathematical models.

Work by Ragnar Frisch in the Field of Economics

• Worked on time series analysis (1927) and linear regression analysis (1934).
• Introduced the Frisch-Waugh theorem (1933) with Frederick V. Waugh.
• Developed the conjectural variation approach in oligopoly theory.
• Coined the term “model” in economics during a 1930 Yale lecture.
• His 1933 research on business cycles helped shape New Classical business cycle theory.
• Brought econometric modeling into government economic planning.
• Co-founded the Econometric Society and edited Econometrica for over 20 years.
• The Frisch Medal is awarded for top econometric papers, named in his honor.
• His hobby was bee-keeping, where he conducted genetic studies.

Work by Jan Tinbergen in the Field of Economics

• Known for the “Tinbergen Norm,” suggesting income inequality should not exceed a 5:1 ratio.
• Developed the first national macroeconomic model in 1936 for the Netherlands, later used for the U.S. and U.K.
• Introduced the “Tinbergen Rule,” matching policy targets with equal numbers of instruments for effective control.
• His classification of economic targets and instruments is still used in modern monetary policy.
• Contributed to the inflation-targeting approach used by central banks, with interest rates as control tools.
• His work on macroeconomic models influenced Lawrence Klein’s Nobel Prize-winning research.
• Led debates with major economists like Keynes and Milton Friedman on econometric modeling (Keynes-Tinbergen debate).
• Received the Gouden Ganzenveer award in 1985 for cultural contributions.

An Overview of Nobel Prize

The Nobel Prizes, established by Alfred Nobel’s 1895 will, are prestigious awards given annually for outstanding contributions to humanity. First awarded in 1901, they honor achievements in Physics, Chemistry, Physiology or Medicine, Literature, and Peace. A sixth prize, the Nobel Memorial Prize in Economic Sciences, was introduced in 1969. The Nobel Foundation administers these prizes, which are widely recognized as the highest honors in their respective fields.