Krugman Wins

Cite this Article
Joshua D. Wright, Krugman Wins, Truth on the Market (October 13, 2008),

Here’s the announcement.  The Prize is for his “analysis of trade activity and location of economic activity.”  Tyler Cowen has a lengthy write up with lots of links and information.   The WSJ article is here.  Here’s Krugman in the NYT:

“There was something very beautiful about the old existing trade theory, and its ability to capture the world in a surprisingly simple conceptual framework,” Mr. Krugman said. “And then I realized that some of the new insights coming through in industrial organization could be applied to international trade.”

Tyler writes that “this was definitely a “real world” pick and a nod in the direction of economists who are engaged in policy analysis and writing for the broader public.”  I hope so.  That would be a good thing.  Whatever one thinks of his political commentary, Krugman’s contributions to economics place him on the list of deserving candidates though I admit that I (now obviously incorrectly) thought that current events made him less likely to win this year.  But I’m still very disappointed that Alchian and Demsetz didn’t win.  It gets worse.  I think I owe Geoff dinner again as the result of his courageous gamble to take “the field” against my pick yet again.