The Full Value of the Nobel Prize - Part 1: Mining “Data Without Theory”

Amavilah, Voxi Heinrich (2011): The Full Value of the Nobel Prize - Part 1: Mining “Data Without Theory”.

Abstract

This paper comes in two parts, this being the first. Part 1 is not a research paper in the sense of the Scientific Method; it is rather unsophisticated data mining - a cheap data mining exercise for that matter, because it does not follow any received economic, or other, theory. In the sense of Ed E. Leamer, it is “data without theory,” and data without theory does not speak for itself, despite the common cliché of “letting the data speak for itself.” The objective here is to adjust the money value of the Nobel Prize to include the values of the Nobel Prize medal and diploma. It is an arithmetic exercise that reveals that Alfred Nobel’s monetary contribution to humanity is huge. More importantly, the calculations generate data that make it possible to focus on the economic implications of Nobel’s bequest for human capital accumulation, technological progress, and long-run economic growth, which are subjects of a separate effort in Part 2. In this “paper” I indicate some basic relationships among and between key variables in Section 4, and remark in the last section that the Nobel Prize is a massive contribution, even without taking into account the time value of money. For instance, the unadjusted value of the Economics Nobel Prize in 1969 awarded to Ragnar Frisch and Jan Tinbergen was only 2.92 million SEK (US$0.57 million), but adjusted for the medal and diploma values the award was 5.85 million SEK (US$1.14 million).

• Item Type: MPRA Paper
• Language: English
• Keywords: Nobel Prize full value, Nobel Prize and human development, nobel prize and human capital, Nobel Prize and technological change, Nobel Prize and economic performance
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration; Y - Miscellaneous Categories > Y1 - Data: Tables and Charts > Y10 - Data: Tables and Charts; Y - Miscellaneous Categories > Y1 - Data: Tables and Charts; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness; D - Microeconomics > D6 - Welfare Economics > D60 - General; C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology ; Computer Programs > C80 - General

References

Amavilah, Voxi Heinrich (2005) Resource intra-actions and interactions: Implications for technological change and economic growth. http://129.3.20.41/eps/ge/papers/0508/0508004.pdf.

Amavilah, Voxi Heinrich and Newcomb, Richard T. (2004) Economic Growth and the Financial Economics of Capital Accumulation under Shifting Technological Change: http://ideas.repec.org/p/wpa/wuwpge/0404001.html.

Amavilah, Voxi Heinrich (1996) Resources, Technology, and Mineral Trade in the Economic Growth of Namibia. (Ph.D. Dissertation). University of Arizona.

Atkinson, Anthony (2011) The restoration of welfare economics. American Economic Review Papers and Proceedings (Denver, January 7-9), 101 (3), pp. 157-161.

Bhagwati, Jagdish (2011) Markets and morality. American Economic Review Papers and Proceedings (Denver, January 7-9), 101 (3), pp. 162-165.

Blaug, Mark “The quality population in developing countries, with particular referecne to education and training,” In World population and Development: Challenges and Prospects. Philip M. Hauser (Editor). New York: Syracuse University Press, pp. 361-402

Brittan, Samuel (2003) “The not so noble Nobel Prize.” The Financial Times, 19/12/2003: http://www.samuel.brittan.co.uk/text172_p.html.

Cassidy, John (1996) “The decline of economics,” The New Yorker, December 2, p. 50.

Choi, Kwang (1983) Theories of Comparative Economic Growth. Ames: Iowa State University. Chapters 3 and, pp. 62-119.

Dasgupta, Partha (2002) The not so Nobel Prize”: http://cactus.eas.asu.edu/Columns/2002/04-08-ignoble.htm.

Davis, Lee and Davis, Jerome (2007) How Effective Are Prizes as Incentives to Innovation? Evidence from three 20th Century Contests: http://www.druid.dk/uploads/tx_picturedb/ds2004-1343.pdf.

Finn, Robert (1998) “Eponymous prizes honor scientists, but draw criticism,” The Scientist, 12(8), p. 12 (April 13): http://the-scientist.com/images/yr1998/apr/index_980413.html.

Friedman, Benjamin (2011) Economics: A moral inquiry with religious origins. American Economic Review Papers and Proceedings (Denver, January 7-9), 101 (3), pp. 166-170.

Henderson, Hazel (2004) “ Abolish the “nobel” in Economics: Many scientists agree” : http://www.hazelhenderson.com/editorials/abolishTheNobel.html.

Hofmeister, Robert (2011) Measuring the value of reseach: A generational accounting approach: http://www.wiwi.uni-konstanz.de/workingpaperseries/WP_Hofmeister-7-11.pdf.

Hsiao, Frank (1968) Technical progress and the prouction function, a synthesis,” In Papers in Quantitative Economics !. James P. Quirk and Arvis M. Zarley (Editiors). Lawrence: University Press of Kansas, pp. 381-398.

Keynes, John (1936) The General Theory of Employment, Interest, and Money. San Diego/New York: Harvest/HBJ Book. Book 7, Chapter 24, p. 383.

Lemmel, Birgitta (2010) “The Nobel Diplomas”: http://nobelprize.org/nobel_prizes/about/diplomas/. Lemmel, Birgitta (2010) “The Nobel Medals” : http://nobelprize.org/nobel_prizes/about/medals/.

Mazloumian, Amin, et. al. (2011) “ How citation boosts promote scientific paradigm shifts and Nobel Prizes” PLoS ONE, 6 (5), p. e18975.

Merton, Robert (1968) The Matthew effect in science. Science, 159 (3810), pp. 56-63): http://www.garfield.library.upenn.edu/merton/matthew1.pdf.

Merton, Robert (1988) The Matthew effect in science, II: Cumulative advantage and the symbolism of intellectual property rights, ISIS, 79, pp. 606-623.

Mickey’s (undate) http://www.mickeys.net/hi-famous-trophies.htm. Accessed on 07/21/2011.

Myrdal, Gunnar (1969) Objectivity in Social Research: The 1967 Wimmer Lecture. Pantheon Books. New York.

Newcomb; Richard, and Tsuji, Karl (1990) “The price of gold”, Mineral Processing and Extractive Metallurgy Review: An International Journal, 1547-7401, 6 (1 & 4), pp. 1– 42.

Nordhaus, Williams (2009 The perils of the learning model for modeling endogenous technological change. Cowles Foundation Discussion Paper No. 1685. January. http://cowles.econ.yale.edu/P/cd/d16b/d1685.pdf.

Phelps, Edmund [Editor] (1969) The Goal of Economic Growth: An introduction to a current issue of public policy. New York: W.W. Norton and Company, Inc.

Reich, Yoram (1995 Measuring the value of knowledge. International Journal of Human-Computer Studies, 42 (1) (Janua ry).

Romer, Paul (1990) Endogenous Technological Change. The Journal of Political Economy, 98 ( 5), Part 2: The Problem of Development: A Conference of the Institute for the Study of Free Enterprise Systems. (Oct.), pp. S71-S102

Romer, Paul (1993) Idea gaps and object gaps in economic development, Journal of Monetary Economics, 32(3), pp. 543-573.

Schultz, Theodore W. (1979) “Investing in population quality throughout low-income countries,” In World population and Development: Challenges and Prospects. Philip M. Hauser (Editor). New York: Syracuse University Press, pp. 339-360

Shiller, Robert and Shiller, Virginia (2011) Economists as worldly philosophers. American Economic Review Papers and Proceedings (Denver, January 7-9), 101 (3), pp. 171-175.

Soderbaum, Peter (2010) On the ‘Nobel Prize in Economics’ and the monopoly of neoclassical theory at the university departments of economcs. February 12: http://www.paecon.net/workingpapers/Soderbaum1.pdf.

Solow, Robert (1997) Learning from ‘Learning by Doing’: Lessons for economic growth. Stanford: Stanford University Press.

Sterdy, Andrew (1960) Budget Control and Cost Behavior. Englewood Cliffs (NJ): Prentic-Hall, Inc.

Stroombergen, Adolf, Rose, Dennis, and Nana, Gansh (2002) Review of the Statistical Measurement of Human Capital. Statistics New Zealand Infometrics Consulting Ltd (November).

UNDP (2007/2008) Technical Note 1: Calculating the human development indices: http://hdr.undp.org/en/media/HDR_20072008_Tech_Note_1.pdf. .