India, Oct. 14 -- Three economists have been awarded the Nobel Prize for their studies of how institutions are formed and affect prosperity.

Daron Acemoglu, Simon Johnson and James A. Robinson have been awarded the Nobel Prize, the Royal Swedish Academy of Sciences announced on Monday.

This years laureates in the economic sciences Daron Acemoglu, Simon Johnson and James Robinson have demonstrated the importance of societal institutions for a countrys prosperity. Societies with a poor rule of law and institutions that exploit the population do not generate growth or change for the better. The laureates research helps us understand why.

When Europeans colonised large parts of the globe, the institutions in those societies changed. This w...