Prof. Tavneet Suri has found that mobile money services helped lift almost 200,000 Kenyan households, many headed by women, out of poverty, reports Neda Wadekar for Reuters. Suri explains that when mobile payment systems “came to an area, women shifted their occupations and their savings went up."
Wall Street Journal reporter Bob Davis writes about a study by Prof. David Autor that shows U.S. industries facing increased competition from China reduced R&D spending. Autor notes the findings show the importance of federal support for R&D.
Writing for the Financial Times, Prof. Daron Acemoglu examines how a new administration in Washington, D.C. could impact Turkey’s growth. While the implications “are likely to be dire for the Turkish economy,” Acemoglu adds that “even modest attempts towards a more inclusive economy can spearhead rapid and relatively high-quality growth.”
A study co-authored by Prof. Christopher Knittel finds that technological advances are needed to reduce the use of oil in the car industry, according to The Economist. The researchers found that “the price of batteries to power EVs would need to fall by a factor of three, and they would need to charge much faster.”
Prof. Thomas Kochan writes for The Huffington Post that a new social contract is needed in America to ensure that the economy works for everyone. Kochan writes that “America needs to build a new social contract based on mutual respect and attuned to the needs of today’s workforce and economy.”
A study co-authored by Prof. David Autor shows that voters living in regions of the country that saw an increase in Chinese imports were more receptive to President-elect Donald Trump’s anti-free trade message, writes Bob Davis for The Wall Street Journal. The researchers found “import competition from China damaged local economies and undermined employment and wages.”
Writing for The Wall Street Journal, Senior Lecturer Robert Pozen argues that index stock options are the best way to ensure CEOs are paid based on their performance. “Indexed options are designed to reward managerial skill instead of fortuitous movements of the stock market,” he writes, citing Prof. Bengt Holmstrom’s Nobel-prize winning research on incentives.
Writing for The New York Times, David Leonhardt highlights a study by MIT researchers that examines the effectiveness of charter schools. Prof. Joshua Angrist explains that the study found that “relative to other things that social scientists and education policy people have tried to boost performance — class sizes, tracking, new buildings — these schools are producing spectacular gains.”
In a letter to The Boston Globe, graduate student Elizabeth Setren writes about her study examining whether charter schools can help benefit special education and English-language learners. Setren writes that her findings “paint a picture of impressive gains and increased inclusion for special-education students and English-language learners at Boston charters.”
The Washington Post’s Karin Brulliard writes that MIT researchers have found that like health care costs for humans, the cost of health care spending on pets is rising. Brulliard explains that the researchers found it was “‘noteworthy’ that the parallels between the two systems exist even though insurance and government regulation…are less prevalent in pet health care.”
Washington Post reporter Carolyn Johnson writes that a study by Prof. Amy Finkelstein finds that expanding Medicaid access increases emergency room visits. “People who gained Medicaid visited the emergency room about 65 percent more often than individuals who did not gain Medicaid in the first six months -- and the trend continued out to two years.”
NPR’s Steve Inskeep notes that in a 2010 episode of “The Simpsons” Milhouse van Houten predicts that Prof. Bengt Holmström will win a Nobel Prize in economics. Inskeep jokes that Milhouse was a visionary, who “knew way before the rest of the world that MIT's Bengt Holmström had genius in him.”
Nobel laureate Prof. Bengt Holmström speaks with NPR’s Steve Inskeep about the importance of incentives. Holmström recounts becoming interested in incentives while working at a multinational conglomerate after realizing computers could not “replace a lot of what the human mind is thinking,” adding that incentives are how “you influence people’s behavior.”
In an article for The Boston Globe, Steve Annear notes that during an episode of “The Simpsons” Milhouse Van Houten predicts that MIT Prof. Bengt Holmström will win a Nobel prize in economics. Annear writes that “Milhouse’s prediction was spot on — but a few years too early. On Monday, Holmström finally earned his due.”
BBC News reporter Atish Patel reports on a new study, co-authored by Prof. Abhijit Banerjee, that found informal health care providers in India can improve with modest training. The researchers found that those who had undergone training were more likely to “adhere to checklists after training and made big improvements in providing correct treatments.”