Nobel Memorial Prize in Economic Sciences
The first prize in economics was awarded in 1969 to Ragnar Frisch and Jan Tinbergen "for having developed and applied dynamic models for the analysis of economic processes". In 2009, Elinor Ostrom became the first woman awarded the prize.
Tepper School of Business
In the 1950s and 1960s, the Tepper School of Business led the intellectual movement known as the Carnegie School, a freshwater economics approach which emphasized behavioral, decision-making, and quantitative methods. As an example, the school has produced nine Nobel Prize winners in Economics: Robert Lucas, Jr., Merton Miller, Franco Modigliani, Herbert A. Simon, Oliver E. Williamson, Edward Prescott, Finn Kydland, Dale Mortensen, and Lars Peter Hansen. Lucas was awarded the prize for developing and applying the theory of rational expectations, an econometric hypothesis that directly challenged Keynesian orthodoxy. Modigliani's prize recognized his life-cycle hypothesis, which attempts to explain the level of saving in the economy. Modigliani proposed that consumers would aim for a stable level of income throughout their lifetime, for example by saving during their working years and spending during their retirement. Miller's prize was awarded in recognition of his contributions to corporate finance. The results of his research—in collaboration with Franco Modigliani—are now taught in every business school in the country. Simon's prize was given for his development of the idea of bounded rationality in economics, described as "pioneering research into the decision-making process within economic organizations". In 2004, Kydland and Prescott received the Nobel Prize for "their contributions to dynamic macroeconomics: the time consistency of economic policy and the driving forces behind business cycles".