Economics

Researchers at MIT and elsewhere have published a study examining how extended “silence and a deliberative mindset create value in negotiation,” reports MSNBC reporter Selena Rezvani. “Our research suggests that pausing silently can be a simple yet very effective tool to help negotiators shift from fixed-pie thinking to a more reflective state of mind," says Prof. Jared Curhan. "This, in turn, leads to the recognition of golden opportunities to expand the proverbial pie and create value for both sides.”

Forbes reporter Howard Gleckman spotlights Prof. Amy Finkelstein’s new book, “We’ve Got You Covered: Rebooting American Health Care.” Finkelstein and her co-author propose a, “highly provocative, radical alternative to our current mess,” by combining, “a global health budget with universal, free, basic care for everybody,” Gleckma explains.

Prof. Iván Werning speaks with New York Times reporter Peter Coy about whether transitioning from pesos to the U.S. dollar could help control inflation in Argentina. Coy writes that Werning prefers “more conventional solutions such as bringing government budgets closer into balance.”

MIT Innovation Fellow Brian Deese speaks with Financial Times reporter Gideon Rachman to explain Bidenomics and how it is impacting the economy. “I think the term [Bidenomics] has taken on a lot of different elements,” says Deese. “To me, it’s a description of what are the three core economic policy priorities of the Biden administration that have played out over the course the last two years.”

A new study by Prof. Jonathan Gruber finds that helping undocumented immigrants in the U.S. connect with primary care doctors could help reduce ER visits, reports Cara Murez for HealthDay. “The data showed a 21% drop in emergency department use, as well as a 42% drop for folks with high-risk medical profiles,” writes Murez. 

Writing for The Washington Post, Brian Deese, an MIT Innovation Fellow, explores the resilience of America’s post pandemic economic recovery and the strength of the labor market. “This economic recovery is defying expectations,” writes Deese. “Enabling more people to work can extend this improbable progress and lay the groundwork for long-term economic growth.”  

 Prof. Arnaud Costinot and Prof. Iván Werning speak with TechCrunch reporter Brian Heater about their research examining the potential impact of a robot tax on automation and jobs. “The potential wages people can earn may become more unequal with new technologies and the idea is that the tax can mitigate these effects,” Costinot and Werning explain. “In a sense, one can think of this as pre-distribution, affecting earnings before taxes, instead of redistribution.”

Research fellow Michael Schrage speaks with Fortune reporter Sheryl Estrada about generative AI’s role in the digital economy.  “If you truly understand and structure your use cases for generative AI correctly, there’s much less risk associated with the investment,” says Schrage.

A new working paper, co-authored by Prof. Jonathan Gruber, explores the impact of the New Co-operative Medical Scheme (NCMS), “a health-insurance plan for rural Chinese that was launched in 2003 and folded into a more comprehensive program in 2013,” reports The Economist. “Though it is perhaps best known for being stingy, the NCMS saved millions of lives,” writes The Economist.

Prof. Simon Johnson speaks with Freakonomics guest host Adam Davidson about his new book, economic history, and why new technologies impact people differently. “What do people creating technology, deploying technology— what exactly are they seeking to achieve? If they’re seeking to replace people, then that’s what they’re going to be doing,” says Johnson. “But if they’re seeking to make people individually more productive, more creative, enable them to design and carry out new tasks — let’s push the vision more in that direction. And that’s a naturally more inclusive version of the market economy. And I think we will get better outcomes for more people.”

Prof. Kristin Forbes speaks with Bloomberg reporters Haidi Stroud-Watts and Sherry Anh about her outlook on the future of the economy and economic policy “We just don’t know right now where unemployment could settle, where inflation settles around 2%,” says Forbes. “We don’t know where interest rates could settle to balance growth and employment, according to the Fed’s mandate.”

A new working paper co-authored by Prof. Nathan Wilmers finds that affordable chain restaurants can provide “much more socioeconomic integration than do independently owned commercial businesses — or, for that matter, traditional public institutions,” reports Catherine Rampell for The Washington Post. “The authors analyzed a massive trove of geolocation data to assess where and when Americans come into contact with people of different income classes than themselves,” writes Rampbell, “if they do at all.”

Research by Alden Cheng PhD ‘23 “suggests that big college football games in October 2016 distracted voters from seeing fake news stories that favored Donald Trump,” reports Kevin Lewis for The Boston Globe. “Counties around colleges that played a big game in that month had fewer online searches for pro-Trump fake-news-related terms and had lower percentages of votes for Trump than would otherwise have been expected, given other political demographics,” writes Lewis.

Prof. Nina Roussille has found that “women on average asked for 3.3% less than men for a full-time engineering job, with that gap growing to 6% for women with more experience,” reports Alicia Wallace for CNN. “However, when salary transparency was employed on the site and a median wage was given, the gap closed.” 

Prof. Amy Finkelstein speaks with Politico reporters Erin Schumaker, Daniel Payne and Evan Peng about her new book “We’ve Got You Covered: Rebooting American Health Care.” “Health insurance is not delivering on its function,” says Finkelstein. “Over 1 in 10 Americans under 65 are uninsured at any given moment, and of the 30 million Americans who are uninsured, 6 in 10 are eligible for free or heavily discounted health insurance coverage. And yet they don’t have that coverage.”