Charles Duxbury and Mike Bird write for The Wall Street Journal that Prof. Bengt Holmström is one of the recipients of the 2016 Nobel Prize in economics. Holmström was honored, in part, for developing a model that examines “how pay should be linked to performance and how an optimal contract carefully weighs risks against incentives.”
Prof. Bengt Holmström received the Nobel Prize in economics for his research on contract theory, writes Chris Giles for the Financial Times. Holmström, who said he was “dazed … very surprised and very happy” about winning the award, found “an optimal contract should link payments to outcomes that reveal the performance of either party to a contract.”
Lisa Mullins of WBUR’s All Things Considered speaks with Prof. Bengt Holmström about winning the Nobel Prize in economics for his work examining how contracts motivate and affect people’s behavior. Holmström explains, “incentives are not just about paying people, it is also about job design.”
Prof. Bengt Holmström and Harvard Prof. Oliver Hart were awarded the Noel Prize in economics for their work on how to design better contracts, Deirdre Fernandes and Hiawatha Bray report for The Boston Globe. “Bengt and Oliver’s research has not only helped us to better understand incentives and institutions, it has helped us design better ones,” explains Prof. James Poterba.
Jeff Guo writes for The Washington Post about Prof. Bengt Holmström, one of the recipients of this year’s Nobel Prize in economics. “It’s just such a richly deserved prize,” said Glenn Ellison, head of MIT’s economics department. “Bengt’s work is outstanding both for answering really important questions, and for how beautifully crafted it is mathematically.”
Associated Press reporter Karl Ritter writes that Prof. Bengt Holmström has been honored with the Nobel Prize in economics. ‘‘I certainly did not expect it, at least at this time, so I was very surprised and very happy, of course,’’ Holmström said.
Prof. Bengt Holmström won the Nobel Economics Prize for his work on contract theory, Daniel Dickson and Ross Kerber report for Reuters. "This theory has really been incredibly important, not just for economics, but also for other social sciences," said Prof. Per Stromberg, a member of the prize committee.
A paper co-authored by Prof. Amy Finkelstein finds that “pet health care in the United States has exhibited growth, accessibility, and end-of-life spending patterns that almost directly mirror patterns in the American human health-care system,” writes Vann R. Newkirk II for The Atlantic.
A paper co-authored by Prof. Amy Finkelstein compares human and pet health care costs, reports Aimee Picchi for CBS News. The study found that, “spending on human medical care was 50 percent higher in 2012 than in 1996, while spending on pet health care jumped 60 percent,” writes Picchi.
A study by Prof. David Autor finds a shift in voting patterns in areas of the country impacted by trade with China, report Binyamin Appelbaum, Patricia Cohen and Jack Healy for The New York Times. “This undercurrent of economically driven dissatisfaction,” Autor explains, “works to the benefit of candidates who are noncentrist, and particularly right-wing candidates.”
Prof. Antoinette Schoar writes for The Wall Street Journal about her research examining how credit card companies are using customer data to target specific consumers. Schoar writes that “as more and more personal data becomes available, businesses are now able to target customers in a personalized and sophisticated way.”
Prof. Ricardo Caballero and his colleagues have found that due to the integrated nature of the world’s financial markets, “a slump in some economies can eventually engulf all of them.” The Economist notes that the researchers found “once a few economies become stuck in the zero-rate trap, their current-account surpluses exert a pull which threatens to drag in everyone else.”
During a Financial Times podcast, Prof. Heidi Williams speaks about her work studying the impact of patent policy and technology on medical research and health care. Williams explains that her work focuses on the role patents and policies play in developing "the medical technologies that are most beneficial to patients.”
In an article for The Wall Street Journal, Jason Zweig writes about how investors are buying high-risk bonds instead of high-quality bonds due to low interest rates. Zweig cites a new study co-authored by graduate student Chen Lian showing that “investors generally aren’t tantalized by risky alternatives to safe bonds until rates fall to 3%.”
In an article for Bloomberg View, Noah Smith highlights a paper by Prof. Daron Acemoglu, in which he argues that government is essential to economic development. Smith writes that Acemoglu’s new theory, makes the case that “a strong and effective state…isn’t the bane of innovation -- it’s a necessary and crucial input.”