The Nobel prize in economics went to two Americans and a British-Cypriot this year "for their analysis of markets with search frictions." Peter A. Diamond of the Massachusetts Institute of Technology, Dale T. Mortensen of Northwestern University and Christopher A. Pissarides of the London School of Economics and Political Science together won the 10 million Swedish kronor prize ($1.5 million).

President Barack Obama has nominated Diamond to serve on the Federal Reserve board. However, his nomination hasn't yet been approved because of Republican objections.

This year's three Laureates have formulated a theoretical framework for search markets. Diamond has analyzed the foundations of search markets. Mortensen and Pissarides have expanded the theory and applied it to the labor market. Their work can be used to answer such questions as: Why do so many people remain unemployed when there are a large number of job openings? And how can economic policy affect unemployment?

"The Laureates' models help us understand the ways in which unemployment, job vacancies, and wages are affected by regulation and economic policy," the Royal Swedish Academy of Sciences explains in a press release. "One conclusion is that more generous unemployment benefits give rise to higher unemployment and longer search times."

Search theory has been applied to other markets, particularly the housing market, but has also been used to study questions related to monetary theory, public economics, regional economics and family economics.

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RICHARD BONNET

President Obama should have received the Nobel Prize in Economics for the excellent job he's done for his Economic policies.

October 11 2010 at 7:53 PM Report abuse rate up rate down Reply
ksmwtm

Change the Nobel to Liberal & one might better understand criteria for receiving "THE PRIZE". Euro liberals stirring the pot.

October 11 2010 at 5:01 PM Report abuse +1 rate up rate down Reply
cvdunbar

Obama was not one of them, who would have thought. Obamas doing a bang up job, he just let our taes go up Jan 1st. Nice guy. Well i was going to by 2 new Freightliners for my company, I did hold off until this tax issue was cleared up.I was to hire 3 new people for a new contract that I will be starting in December, but I will not hire, I will keep the workers and drivers I have, I sat down with them and asked if they would like to make over time, if not I will new hire. Heck, they could'nt wait for me to ask. Its cheaper in the long run both on my taxes and healthcare not to buy any new trucks and hire. I do not make a ton of money , We are a local very small trucking compnay, now it looks as if thats the way to stay, Fuel prices are jumpimg up, taxes will go up, healthcare is a scare to say the least. It seems that Obama and clan will do what ever it takes to take care of wallstreet, Fred &Frann, govement programs such as his new created highway program that will be run by goverment and NOT!!!! the private sector. he like to take from those who are over the hill and give to those who are teens on welafre, do ya like his new name for welfare? "sanp" wtf, where did they come up with that name.God only knows. He has panderd to the unions, GM auto maker for one, he has bailed out many who lost there homes because they could not read? Nancy wants BANG!!! for the buck by giving out more food stamps, thats most likley the only bang she ever had. So it goes without saying, if your a small hard working company your going to get killed, it wont be long before Obama creates a goverment trucking company to cover all his hiring quotas. Mnay will give me the thumbs down and for good reason, there on the receiving end of all the programs and dont want to have to guys like me to crap on there crack party. This man is stupid to say the least or should I say those he had surronded himself with, there is no way one man can be so god dam stupid, no way. Say good by to your dreams, say good by to waking up every day and going for that goal because the only ones in america who are going to have it easy are those on goverment programs, those who get those no bid goverment contracts, those who dont have to pay for school, those who get free food, healthcare, welfare, child care and now there electric bills are being off set, nice. And whats funny most of theses people are young teens, they dont even try like we did. Welcome to the CHANGE!!!! its here and its going to be funny in the end becuase in the end there will be no one making it, we WILL be bought out by China and Russia, trust me. Its not all Obamas fault, its both the Dem's and the GOP who crreated this mess, its just Obama is more of the same stpupid micro minded crap on roids, this man never ever had to make payroll, order trucks, parts, hire fire, come to the needs of his workers late at night, ect... he was pulled thur the system as many are. yes he is a nice man, yes he is smart on paper, yes i like him hes ok, but that does not mean your the man for the job, Bush was no Gem but at least he didnt go nut's with my pocket book. Sorry for any bad spelling, also dont anyone pop out with the racist remak becuase I think Obamas stupid,that has nothing to do with my race and i sure as hell didnt say my race is better, that would be the true meaning of the word racist, not because you have a view of another person, so stay calm.

October 11 2010 at 4:34 PM Report abuse +4 rate up rate down Reply
Peter

So you have a Nobel Prize but you've not proven anything I already know and have said, but as in the WIZ of OZ people listen and then twist the facts Unemployment insurance is a circuit breaker to keep individuals botht solvent and partially protected from the supply & demand laws of capitalism and the exploitation of labor just like price subsidies given to Corporate farmers keep land productive when there is oversupply of crops. IF YOU HAVE ENGINEERS TAKING MENIAL WORK YOU LOSE THE TALENT POOL UPON WHICH FUTURE GENERATIONS DEPEND. Looking for skilled work for a time if the demand is still there is practical. What ailes this nation is three decades of the ousourcing of skilled labor, substituting McFRY jobs as "growth"

October 11 2010 at 4:34 PM Report abuse +3 rate up rate down Reply
babbtx

Maybe, however, consider: If you are an engineer between the ages of 50 and death, no one will hire you (I'm a former aerospace engineer - two Master's Degrees, Professional Engineer's License, and no job offers for extended periods of time). If you want to teach, understand that the schools will hire a 25-30 something person without credentials instead of a 50 year old teacher with a valid teaching certificate in math (again, bought that T-shirt). Finally, during the Great Deparession, we had no unemployment benefits and we still had 25%+ unemployment. The problem is that there are job openings for bottom feeders who want to pay Indian and Chinese salaries to American Workers.

October 11 2010 at 3:31 PM Report abuse +6 rate up rate down Reply
1 reply to babbtx's comment
Peter

You sir are an asset that this nation in its lust to satisfy the need of immediate gratification for the bottom feeders prefers to outsource at its peril. The GOP is not a party for anwers, just idealology that is obsolete when Communist China can obtain at no cost the technologies that took generations to develope, and the US has ignorant children with no prospects of other than cannon fodder

October 11 2010 at 4:40 PM Report abuse +3 rate up rate down Reply
David

Obama must be slipping, these left wing lunitics at the noble prize usually give it to him.

October 11 2010 at 2:44 PM Report abuse +1 rate up rate down Reply
1 reply to David's comment
bdinsight

David you're right. Obama now has 14-15 Nobel prizes in economics, 20+ in Chemistry and over 50 in math. By the way, what's a "noble prize"? /sarcasm

October 11 2010 at 4:35 PM Report abuse +2 rate up rate down Reply
jgoetz9174

"Why do so many remain unemployed when there are so many positions available." This needs a Nobel Laureate to figure out? THE PEOPLE ARE LAZY, STUPID. The people are not qualified either. Most unemployed are not making efforts to make themselves saleable to an employer. "I dint finish high school" or "I only went to 6th grade." Or my favorite, "my girl dint get me up to go for a interview." There are many good people out of work because of governmental interference with normal business conditions. People have no real idea of what the government is going to do next. The President wants to build new roads, rails and airport runways. This is good until you ask who pays for it. People with no money to pay extra taxes or people with a lot of money to give away and get nothing in return for the extra taxes they will have to pay. I'm just sayin'.

October 11 2010 at 1:38 PM Report abuse rate up rate down Reply
ThinkUp70

Looks like more ding-bats have come here to roost.

October 11 2010 at 12:52 PM Report abuse +2 rate up rate down Reply
Randy

The irresponsible behavior of Fannie Mae and Freddie Mac triggered a fiscal collapse across the economy that has spiraled into the prolonged economic recession we currently find ourselves living through. When Barney Frank was presented with a report demanding immediate action on both Fannie and Freddie in 2004 he and the Democrats under his leadership attacked those sounding the alarm, to protect their friends at Fannie and Freddie. Six years later, millions of Americans have lost their jobs and homes with millions more facing the negative impact of Barney Frank's negligence. Skyrocketing unemployment, plummeting home values, devastated pensions, and the pain and suffering of millions of Americans can all be traced back to Fannie, Freddie and the Congressman who lied to protect his friends, Barney Frank.

October 11 2010 at 9:28 AM Report abuse +5 rate up rate down Reply