Douglass North (1920–2015)

Who They Were

Douglass North (1920-2015) was an American economic historian who helped transform how economists study the long-run development of economies. Working from the mid-twentieth century onward, he argued that economic performance over long periods cannot be understood without examining institutions - the rules, property rights and organisations that shape how people trade and produce. He applied economic theory and quantitative methods to history, and became a leading figure in what is often called the new institutional economics. In 1993 he shared the Sveriges Riksbank Prize in Economic Sciences with Robert Fogel for having renewed research in economic history by applying economic theory and quantitative methods. His emphasis on institutions influenced not only economic history but also development economics and political economy.

Key Contributions

North's central contribution was to place institutions at the heart of economic history. He argued that the rules of the game in a society - property rights, contracts, and the organisations that enforce them - are decisive in explaining why some economies grow while others stagnate. By applying economic theory and quantitative methods to the historical record, he helped move economic history toward systematic, evidence-based explanation of long-run change. His 1993 Nobel, shared with Robert Fogel, recognised this renewal of research in economic history. His work encouraged economists to treat institutional change as something to be explained and analysed, rather than taken as a fixed background, and remains influential in debates about the deep determinants of prosperity and development.

On EconRecall

American economic historian who renewed the study of institutions and economic change, sharing the 1993 Nobel with Robert Fogel. Play the games that feature Douglass North:

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