NBER Research Associates Peter A. Diamond of MIT and Dale T. Mortensen of Northwestern University shared the 2010 Nobel Prize in Economics with Christopher Pissarides of the London School of Economics. Both Diamond and Mortensen are members of the NBER's Program on Economic Fluctuations and Growth; Diamond is also a member of the Public Economics Program.
The award citation prepared by the Prize Committee of the Royal Swedish Academy of Sciences highlighted the three researchers' analysis of "markets with search frictions." Their research has found broad application in the study of markets for labor, housing, and many other commodities. A particularly current application is to an understanding of how unemployment can remain high in the United States and other developed countries despite the presence of a substantial number of job vacancies.
Diamond and Mortensen join a long list of current and past NBER affiliates who have received the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, which is better known as the Nobel Prize in Economics. Past NBER-affiliated winners include: Paul R. Krugman, 2008; Edward C. Prescott and Finn Kydland, 2004; Robert F. Engle, 2003; George Akerlof and Joseph E. Stiglitz (shared with Michael Spence), 2001; James J. Heckman and Daniel L. McFadden, 2000; Robert C. Merton and Myron S. Scholes, 1997; Robert E. Lucas, Jr., 1995; Robert W. Fogel, 1993; Gary S. Becker, 1992; and the late George J. Stigler, 1982, Theodore W. Schultz, 1979, Milton Friedman, 1976, and Simon Kuznets, 1971.
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