Economics

Prof. Daron Acemoglu and Prof. Simon Johnson, recipients of the 2024 Nobel Prize in economics, join Boston Public Radio to discuss their research examining the role of institutions in creating shared prosperity. “For the longer-term health of the U.S. economy,” says Acemoglu, “there’s probably nothing more important than its institutions. If any president, any politician, any party damages those institutions, that’s the first thing we should focus on.” Johnson adds: “Democracy has to deliver on shared prosperity. Otherwise people get very annoyed and they question the system.”

Prof. Jon Gruber speaks with former Massachusetts Secretary of Public Safety and Security Andrea Cabral and GBH Boston Public Radio host Margery Eagan about the future of health care in the United States. 

Writing for The Boston Globe, Prof. Joshua Angrist, Prof. Parag Pathak and Amanda Schmidt of Blueprint Labs examine the effectiveness of Boston’s school assignment system and transportation policy. “Boston schools have improved greatly since 1974: Dropout rates for all students have declined, and gaps by race, while still present, have narrowed,” they write. “School assignment plans originating in 1974 may therefore be less useful today. It’s time to consider changing transportation policy in light of these changes in the city’s education landscape.” 

Prof. Simon Johnson, one of the recipients of the 2024 Nobel Prize in economics, speaks with Times Higher Education reporter Jack Grove about his journey from a childhood in Sheffield as the son of a screw manufacturer to studying for his PhD at MIT and serving as chief economist at the International Monetary Fund. Speaking about how to help ensure AI is used to benefit society and workers, Johnson explains: “Big tech doesn’t like us, but we need a plan for this, and the role of economists like us is to get ideas like this out there so they can be hammered out in the policy world.”

Writing for the Financial Times, Prof. Fiona Murray highlights the importance of developing a new approach to capital gains tax increases. “By focusing on the underlying behaviors we want to incentivize, we can structure taxes more effectively,” explains Murray. “When we provide tax breaks to companies for spending on R&D, we do it to spur behavior we know is good for the overall health of the economy.” 

Prof. Daron Acemoglu, a recipient of the 2024 Nobel Prize in economic sciences, speaks with CNBC about the challenges facing the American economy. Acemoglu notes that in his view the coming economic storm is really “both a challenge and an opportunity,” explains Acemoglu. “I talk about AI, I talk about aging, I talk about the remaking of globalization. All of these things are threats because they are big changes, but they’re also opportunities that we could use in order to make ourselves more productive, workers more productive, workers earn more. In fact, even reduce inequality, but the problem is that we’re not prepared for it.” 

Prof. Simon Johnson, who shared the 2024 Nobel Prize in economic sciences with Prof. Daron Acemoglu, speaks with CNBC “Squawk Box” about his reaction to hearing the news that he was a Nobel laureate and his research on the role of strong institutions in shaping economies. “I think going forward we need to strengthen the resilience of our democracy in the United States,” says Johnson. He adds that having a “resilient democracy, a legitimate democracy, a democracy that everyone believes in and adheres to the results of elections, is absolutely fundamental to everything that we’ve been able to build.” 

Writing for The New York Times, Institute Prof. Daron Acemoglu explores the “three epochal changes poised to reshape the U.S. economy in coming years: an aging population, the rise of artificial intelligence and the rewiring of the global economy.” Acemoglu makes the case that “if handled correctly, these challenges could remake work and deliver much higher productivity, wages and opportunities — something the computer revolution promised and never fulfilled.” He adds: “If we mismanage the moment, they could make good, well-paying jobs scarcer and the economy less dynamic. Our decisions over the next five to 10 years will determine which path we take.”

In a letter to the Financial Times, Prof. Daron Acemoglu and his colleagues highlight the importance of providing access to affordable financing for the world’s poorest countries. “IDA, the World Bank’s concessional financing facility for these countries, has a proven track record for providing this support and its upcoming replenishment is a moment for the international community to match their stated concern with a stepped-up financial contribution,” they write. “We urge finance ministers of the G20 countries to lead this effort and increase contributions to the 21st replenishment of the International Development Association (IDA21).”

Prof. Simon Johnson, a recipient of the 2024 Nobel Prize in economic sciences, joins Planet Money’s The Indicator podcast to discuss his research that demonstrates the importance of strong institutions for a country’s economic growth and prosperity. “Rejecting the result of a free and fair election, encouraging people to attack Congress when it's the process of formally validating that vote - that's not acceptable,” says Johnson. “Those moves - that kinds of actions can absolutely undermine, destroy any democracy. We've seen that many times around the world. It takes a long time to build strong institutions. It doesn't take long to overthrow them if you really put your mind to it.”

Prof. Simon Johnson, a recipient of the 2024 Nobel Prize in economic sciences, speaks with Marketplace host David Brancaccio about his research exploring how institutions shape economies and AI’s potential influence on the workforce. “I think there’s a lot we can do on redirecting technological progress and pushing AI and the innovators around that space towards inventing things that are more useful to people and boost the productivity of particularly people with less education.”

Prof. Simon Johnson, who along with Prof. Daron Acemoglu has received the 2024 Nobel Prize in economic sciences, speaks with Lynn Jolicoeur, host of WBUR’s All Things Considered, about his Nobel Prize winning research and how new technologies could play into the future of democracy. “My bumper sticker for this whole moment is, ‘more good jobs,’” says Johnson. He notes that along with his colleagues Profs. Daron Acemoglu and David Autor, he is “pushing for ways that we can tap into new technology, the latest technology, including artificial intelligence, to push the development and deployment of technology towards more good jobs. If you can do that, I think you can right the ship of democracy and more people will feel confident in their future.”

Prof. Simon Johnson, a recipient of the 2024 Nobel Prize in economic sciences, speaks with Bloomberg about his research on the impacts of technology on inequality and the future of democracy. “We have not generated enough new good jobs, jobs where you actually get paid good money and you can live well, and we have got to do better on that,” says Johnson. “Automation is going to happen, like it or not, so you have really got to work harder to generate more science, more technology, deploy that, commercialize that, scale it up and generate more good jobs across the country.” 

Prof. Daron Acemoglu and Prof. Simon Johnson are two recipients of the 2024 Nobel Prize in economic sciences for their work “highlighting that institutions set up during colonization have had an enduring impact on economic outcomes in the countries affected, “reports Delphine Strauss for the Financial Times. “Their research also indicates that more economically inclusive and politically democratic systems prove more conducive to technological innovation and long-run growth.” 

The Nobel Prize in economics has been awarded to Profs. Daron Acemoglu and Simon Johnson for their work studying the impact of societal institutions on country prosperity,” reports Neil Irwin for Axios. The awarded research uncovers why “some nations prosper while other are mired in poverty,” explains Irwin. “[It helps] explain why, showing that colonial societies built on extraction of wealth became poorer in the long run.”