Written by Ryan McGuine // In October, economists Daron Acemoglu, Simon Johnson, and James Robinson were awarded the Nobel Prize in Economic Sciences “for studies of how institutions are formed and affect prosperity.” While the Solow Model explains income differences between countries by the accumulation of physical capital and human capital, and rate of technological progress, Nobel laureate Douglass North wrote that rather than driving economic growth, these factors are economic growth. One thing that actually drives growth is institutions. Continue reading