Frontiers of economic research
Remedying a global crisis such as this requires concerted, consensual, coordinated effort. But we’re told economists are divided on what to do next. Is this true? Are we divided? This column praises efforts such as the Economic Experts Panel from the Chicago Booth School of Business. It’s from panels like this – which comprise top economists with differing political views – that we can get a sense of consensus or disagreement on major economic issues.
The European Central Bank has often been criticised for inconsistencies in its policy communications. At the same time, several papers show how ECB communication has been effective. This column resolves this paradox by providing evidence showing that ECB introductory statements were, in fact, quite consistent over the first decade of its operations.
Reducing gender inequity will require a wide range of policies. This column describes a framework for quantifying the growth effects of gender policies in developing economies and, by applying an overlapping generations model to Brazil, shows that gender policy is likely to produce tangible economic results, but only in the long term.
Standard microeconomics ignores personalities, but business studies stress the importance of entrepreneurs. This column presents evidence that shows that personalities are important. Looking into the death of a firm’s founder during the first ten years of a company’s existence, the data suggest that entrepreneurs matter – they are the ‘glue’ that holds a business together.
Economists know that your peers’ behaviour affects your economic and social outcomes. But what mechanisms are at work here? This column highlights the two major approaches that hope to explain ‘peer effects’: either people don’t want to deviate from social norms; or they are affected by a ‘social multiplier’, the influence of the sum of their peers’ behaviour. Using detailed data on friendship networks, evidence suggests that there are strong social-multiplier effects in criminal behaviour whereas, for education, social norms matter the most. A detailed understanding of peer effects will undoubtedly help policymakers better tackle social problems.
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- How should macroeconomics be taught to undergraduates in the post-crisis era? A concrete proposal
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- Why teaching economics must now change in light of the crisis
- Leaders need industry experience: Evidence from Formula One
- Fiscal consolidation: At what speed?Blanchard, Leigh
- Public debt and economic growth, one more timePanizza, Presbitero
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
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- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
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- Debt, deleveraging, and the liquidity trap: A new modelKrugman
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Reichlin, Baldwin, 14 April 2013