Question

What has the Nobel winner North C. Douglas done to receive his Nobel prize?

Answer 1

North C. Douglas, a well known U.S. economist known for his work in economic history. In 1993 he received Nobel prize in Economic Sciences. Douglass Cecil North renewed research in economic history with usage of quantitative methods and economic theory for providing an explanation on economic and institutional change. North primary was focus on economic history as he believed that an economy must first develop an understanding of what determined the economy’s performance through time before it can make an attempt to enhance country's current performance. His analysis of the economic performance also considered the institutional role. These are the humanly devised constraints which structure interaction among humans. Institutions include rules, laws, constitutions, conventions and social norms. His belief that institutions affect transaction costs acts as the underlying economic performance determinants thus plays as a vital factor. North applied the notions in regard to the institutions importance more broadly and ambitiously. North emphasised that time had an important participation in the determination of economic performance and institutions.