Winners of the
2nd International 'Vernon Smith Prize'
For The Advancement of Austrian Economics

Sponsored and organized by ECAEF - Ideas Promoting Freedom
European Center of Austrian Economics Foundation, Vaduz (Principality of Liechtenstein)

Topic:

"This process of Creative Destruction is the essential fact about capitalism. 
It is what capitalism consists in and what every capitalist concern has got to live in."
(Joseph A. Schumpeter, "Capitalism, Socialism, and Democracy")

Schumpeter's famous phrase is meant to reflect not only the current state of economic affairs, but also to suggest ways and means to tackle a serious challenge to free markets, individual freedom, self-responsibility, and limited government. The ECAEF invited papers on this topic in English from individuals of up to 30 years from individuals. The deadline for all entries was November 30, 2009. Prizes are not transferable and will be awarded on the basis of originality, grasp of subject, and the logical consistence of the argument. Essays have been judged by an international jury and the winners will be invited to present their papers at a special event in Vaduz, the Principality of Liechtenstein on April 29th, 2010. The winners are:

--- First Prize EUR 5,000 ---

 Tyler Watts (USA) for his essay on
"Entrepreneurial Externalities"

--- Second Prize EUR 2,500 ---

Luciana Lopes Nominato Braga (Brazil) for her essay on
"Change and Action: Implications for the Market Process"

--- Third Prize EUR 1,000 ---

Juan Ramon Rallo (Spain) for his essay on
"Destruction and Reconstruction of the Capital Structure"