Douglass North
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Douglass North

Douglass Cecil North (November 5, 1920 – November 23, 2015) was an American economist known for his work in economic history. Along with Robert Fogel, he received the Nobel Memorial Prize in Economic Sciences in 1993. In the words of the Nobel Committee, North and Fogel "renewed research in economic history by applying economic theory and quantitative methods in order to explain economic and institutional change."

North was an influential figure in New Institutional Economics, which emphasizes the impact of institutions on economic behaviors and outcomes. North argued, "Institutions provide the incentive structure of an economy; as that structure evolves, it shapes the direction of economic change towards growth, stagnation, or decline." Rational and wealth-maximizing individuals lack complete information and have difficulties monitoring and enforcing agreements. Institutions can provide information and reduce transaction costs, thus encouraging economic activity.

Douglass North was born in Cambridge, Massachusetts, on November 5, 1920. He moved several times as a child due to his father's work at MetLife. The family lived in Ottawa, Ontario, in Lausanne, Switzerland, in New York City, and in Wallingford, Connecticut.

North was educated at Ashbury College in Ottawa and the Choate School in Wallingford. He was accepted at Harvard at the same time that his father became the head of MetLife on the West Coast, so North chose instead to attend the University of California, Berkeley. During his time at Berkeley, North was a member of Chi Phi fraternity. In 1942, he graduated with a general B.A. in the humanities. Although his grades amounted to slightly better than a "C" average, he managed to complete a triple major in political science, philosophy and economics. That same year, he entered the US Merchant Marine Academy, graduated a year later and went to sea for three years as a deck officer.

A conscientious objector in World War II, North became a navigator in the Merchant Marine, traveling between San Francisco and Australia. During that time, he read economics and picked up his hobby of photography. He taught navigation at the Maritime Service Officers' School in Alameda during the last year of the war, and struggled with the decision of whether to become a photographer or an economist.

North returned to UC Berkeley, where he obtained a Ph.D. degree in economics in 1952. He subsequently began his career as an assistant professor at the University of Washington.

From 1951 to 1983, North taught economics at the University of Washington, where he was an assistant professor till 1956, an associate professor from 1956 to 1960, and a full professor till 1983; he also chaired the economics department at Washington from 1967 to 1979. In 1960, North became co-editor of the Journal of Economic History, where he helped popularise cliometrics. In 1979 he served as the Peterkin Professor of Political Economy at Rice University, and in 1981–82 as the Pitt Professor of American History and Institutions at Cambridge University, before joining the faculty of Washington University in St. Louis in 1983 as the Henry R. Luce Professor of Law and Liberty in the Department of Economics (where he also directed the Center for Political Economy from 1984 to 1990). He also served as the Bartlett Burnap Senior Fellow at the Hoover Institution at Stanford University.

In 1991, he became the first economic historian to win the John R. Commons Award, which was established by the International Honors Society for Economics in 1965.

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