Economics

Institute Prof. Daron Acemoglu and his colleagues make the case in a piece for Wired that using the Turing test to help develop AI technologies for businesses has led to a “fundamental mismatch between the needs of business and the way AI is currently being conceived by many in the technology sector.” They write: “Businesses that find a productive way of using machine intelligence will lead by example, and their example can be followed by other companies and researchers freeing themselves from the increasingly unhelpful AI paradigm.”

Greg Rosalsky of NPR’s Planet Money spotlights a new study co-authored by Prof. David Autor that examines the impact of the China Shock on Americans working in the manufacturing industry. Rosalsky notes that the research by Autor and his colleagues on the China Shock demonstrates what happens “when a bomb explodes on a community's main industry. The community doesn't just bounce back. Workers don't just shift to new sectors or move to new places. The social fabric of the community gets ripped apart. Destitution, squalor and depression set in.”

Gizmodo reporter Tom McKay explores a new report co-authored by Prof. Antoinette Schoar and Igor Makarov of the London School of Economics, which reveals that 10,000 individual investors control one-third of the Bitcoins in circulation. This “inherent concentration makes Bitcoin susceptible to systemic risk and also implies that the majority of the gains from further adoption are likely to fall disproportionately to a small set of participants,” the researchers explain.

Prof. Jon Gruber speaks with Jared Bowen and Jim Braude of GBH about his colleague and former thesis advisor Prof. Joshua Angrist, who recently was awarded a Nobel Prize in Economics. “I don’t think I’ve ever been more excited over someone’s professional accomplishment as I’ve been for Josh to win this award. It’s just incredibly exciting,” says Gruber.

Prof. Joshua Angrist, one of the winners of the 2021 Nobel Prize in Economics, speaks with Rachana Shanbhogue of The Economist’s Money Talks podcast about the evolution of his research and how his work has helped bring the field of economics closer to real life. “I like to tell graduate students that a good scholar is like a good hitter in baseball,” says Angrist of his advice for economics students. “You get on base about a third of the time you’re doing pretty well, which means you strike out most of the time.”

Times Higher Ed reporter writes that Rebecca Blank PhD ’83 will be the next president, and first female president, of Northwestern University. Blank said of the Nobel Prize in Economics awarded to Prof. Joshua Angrist and his colleagues: “They’ve taken on issues that are real-world problems, and told us something about them. That’s exactly what universities should be good at doing.”

Prof. Joshua Angrist has been named one of the winners of this year’s Nobel Prize in Economics for his work developing “a framework showing how precise conclusions about cause and effect could be drawn from natural experiments,” reports Delphine Strauss for the Financial Times. “The committee said this had ‘transformed’ applied work, and was now widely used in economics, and increasingly in other social sciences, epidemiology and medicine,” writes Strauss.

Rebecca Blank PhD ’83 has been selected as the next president of Northwestern University, reports Michael T. Nietzel for Forbes. “Blank’s selection as Northwestern’s 17th president represents something of a homecoming for her,” writes Nietzel. “She served on Northwestern's economics faculty from 1989-1999, where she was named the first tenured woman in the economics department. Her appointment will establish another record - she will be Northwestern’s first woman president.”

Wall Street Journal reporters Paul Hannon and David Harrison write that Prof. Joshua Angrist, who won the 2021 Nobel Prize in Economics along with David Card and Guido Imbens, “helped economists make better use of natural experiments, in which some people are randomly subjected to a policy while others aren’t.” Says Angrist of his work: “Whereas the generation that I’m part of and associated with the credibility revolution, we entered the arena with specific questions in mind and then we had a strategy for answering that question using this idea of natural experiments.”

The Associated Press spotlights the work of Prof. Joshua Angrist, one of the winners of the 2021 Nobel Prize for Economics. Angrist was honored “for working out the methodological issues that allow economists to draw solid conclusions about cause and effect even where they cannot carry out studies according to strict scientific methods.” Of winning a Nobel prize, Angrist said, “I can hardly believe it. It's only been a few hours and I am still trying to absorb it."

Prof. Joshua Angrist, Prof. David Card of the University of California at Berkeley and Prof. Guido Imbens of Stanford have been awarded the 2021 Nobel Prize in Economics for “pioneering ‘natural experiments’ to show real-world economic impacts,” reports Simon Johnson and Niklas Pollard for Reuters. “The Nobel committee noted that natural experiments were difficult to interpret, but that Angrist and Imbens had, in the mid-1990s, solved methodological problems to show that precise conclusions about cause and effect could be drawn from them,” write Johnson and Pollard.

New York Times reporter Jeanna Smialek explores the work of Prof. Joshua Angrist, who was honored as a recipient of the 2021 Nobel Prize in Economics for his work developing “research tools that help economists use real-life situations to test big theories, like how additional education affects earnings.” Angrist and his fellow recipients David Card and Guido Imbens “ushered in a new phase in labor economics that has now reached all fields of the profession,” said Prof. Trevon D. Logan of Ohio State.

Prof. Joshua Angrist was named a winner of the 2021 Nobel Prize for Economics for “a body of work stretching across decades that has sought to answer the complex questions at the crux of modern political discussion through the lens of proven research,” writes Andrew Brinker for The Boston Globe. “It’s just the greatest honor a person could have,” said Angrist. “It’s a high point of my life.”

Prof. David Autor joins On Point to discuss the economic and social crisis facing American men. “It matters because we care about the welfare of all individuals,” says Autor. “It affects the people they would partner with, their potential spouses. It affects their children. It affects the level of crime incarceration. It affects the tax base. it affects our ability to grow and innovate in all kinds of ways. We're all kind of in this together.”

Speaking at the Fast Company Innovation Festival, Profs. Esther Duflo and Abhijit Banerjee underscored the need for “governments need to do better in addressing different needs within their populations, and providing variations of cash relief for different circumstances.”