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STOCKHOLM - A Cypriot British Economist and two American win 2010 Nobel Prize economy Monday that contributes to develop a theory to explain why many people can remain unemployed despite a large number of vacancies.

FED Board candidate Peter Diamond has been honoured with Dale Mortensen and Christopher Pissarides with the prize of 10 million Swedish kronor ($1.5 million) for their analysis of the barriers that prevent the buyers and sellers of pairing effectively markets.

Diamond - a former mentor to EDF current Chairman Ben Bernanke - analyzed the foundations of what is called the research markets, while Mortensen and expanded Pissarides theory and applied it on the labour market.

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Their work, dating from the 1970s and 1980s, sheds light on why conventional markets, including the prix sight are fixed so that buyers and sellers always find each other and all resources are fully used, still applies to reality.

An example is the market of housing, where shoppers can struggle to find new homes even though there are a number of unsold properties.

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Another is the market of the travail.parce job search takes time and resources, it creates friction in the labour market, help to explain why there are job and unemployment at the same time, the Royal Academy of sciences Sweden said.

"Winners models help us understand the ways in which unemployment, offers of employment and wages are affected by regulatory and economic policy," said the quote.

Their work resulted in the so-called model of Diamond-Mortensen-Pissarides, a tool commonly used to estimate how unemployment benefits, interest, rate the effectiveness of the agencies for employment and other factors can affect the labour market.

"A conclusion is that the more generous unemployment benefits give rise to higher unemployment and search time over", said the Academy.

Diamond, 70, is an economist at the Massachusetts Institute of Technology and a social security authority, pensions and taxation.

President Barack Obama designated Diamond membership fédérale.Toutefois reserve, the Senate did not approve its appointment before legislators to congressional elections midterm campaign left.

Senate Republicans have objected to what they consider as limited diamond experience in dissecting the workings of the economy.

Bernanke was a Diamond to MIT.Quand Bernanke students in his doctoral thesis in 1979, one of the people he thanked Diamond to be generous in its time and read and discuss the work of Bernanke.

Diamond said returning to his home in Boston suburb of New Zealand when he discovered on the woman prix.Sa and pencils son Logan Airport he received a telephone call from a friend.

"Fortunately I was seated and was behind the wheel", said Diamond.

Pissarides, 62 years old professor at the London School of Economics, was the first winner of the Nobel Prize to Cypriot citizenship, spokesman for the Academy Erik Huss.

Speaking at his home in North London, Pissarides told the Associated Press announcement was "a complete surprise" even if his work had already contributed of thought in the form of both sides of the Atlantic.

For example, the new deal for young people, an initiative of the British Government is intended for young people 18-24 year-old on the labour market after long periods of unemployment, "much is based on our work," he said.

"One of the main things we found is that it is important to ensure that people don't stay unemployed too long so that they lose their printing for the labour market" Pissarides told journalists in London. "" ""The ways of dealing with it is not expensive training - it might be as simple as providing work experience.?

Mortensen, 71, is Professor of Economics at Northwestern University in Evanston, Illinois) it is currently visiting professor at the University of Aarhus, Denmark, where Academy reached him by telephone that he was having lunch with colleagues.

Mortensen said AP, was asked not to share the news until the announcement in Stockholm 30 minutes later.

"If I was sitting there at the table and I think that they know the smile on my face was arrivé.Tout world knows it's the day", he said.

Diamond has written an article in the early 1980s this unemployment allowance can lead to work "have become more selective in the jobs they accept" mieux.Travailleurs matches by .and, which makes for better matches and increases efficiency, employment aid he found.

He told a Senate Committee hearing appointment in July a central theme of his research was how the economy deals with risks which affect individuals and the economy-wide.

"In all my fields of central research I thought and wrote about the risks to the economy and markets and the Government can combine to improve function saving for individuals," he said at the hearing.

The price of economy is among the original prize created by the industrial Swedish Alfred Nobel in his 1895 will, but was created in 1968 by the Swedish Central Bank in its memory.

The Board of the economy was the last to announce the winners of 2010 Nobel committees.

Last week, Professor British Robert Edwards won the award of research that led to the first baby éprouvette born .Russie scientific Andre Geim medicine and Konstantin Novoselov shared the prize for Physics for the revolutionary experiments with GRAPHENE, the material stronger, better known to mankind.

The chemistry prize went to Richard Heck researchers and Ei-ichi Negishi and Akira Suzuki Japanese design techniques to bind together the carbon atoms.

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Peruvian novelist Mario Vargas Llosa won the award for literature and Chinese pro-democracy jailed activist Liu Xiaobo was named the winner of the Nobel Prize for peace.

Price is always delivered on 10 December, the anniversary of Nobel's death in 1896.

? 2010 msnbc.com

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