গ Goran K, Secretary General of the Reuters Royal Swedish Academy of Sciences. And Guido Embence was presented on screen during a press conference at the Academy in Stockholm, Sweden, October 11, 2021. Sweden out. There are no commercial or editorial sales in Sweden.
By Simon Johnson and Nicholas Pollard
STOCKHOLM (Reuters) – Economists David Card, Joshua Angrist and Guido Imbens won the 2021 Nobel Economics Prize on Monday for “natural experiments” to show real-world economic impact in areas ranging from minimum wage increases in the US fast food sector to migration. From Castro-era Cuba.
Unlike medicine or other sciences, economists cannot conduct strictly regulated clinical trials. Instead, natural experiments study the effects in the world using real-life situations, a method that has spread to other social sciences.
Peter Frederickson, chairman of the Economic Science Awards Committee, said: “We have significantly improved our ability to answer key causal questions in their research, which is very beneficial to society.”
U.S. institutions have dominated the Nobel economy in the past, and this is no exception. Card of Canadian descent currently operates at the University of California, Berkeley; Angrist, a dual U.S. and Israeli citizen at the Massachusetts Institute of Technology; And Imbens of Dutch descent at Stanford University.
Card, a test of 65, highlighted the prevailing wisdom in economics in the early 1990s on the impact of minimum wage growth on the fast-food sector in the U.S. state of New Jersey that such growth could always lead to job losses.
His work on the subject, often in collaboration with prominent economist Alan Kruger, who died in 2019, has been used as experimental evidence for legislation in the United States, including the Biden administration, for a minimum wage of 15 15.
Another studied the impact of a move by Fidel Castro in 1980 to allow all Cubans who want to leave the country to do so. Despite higher immigration to Miami, the card found no negative wage or labor impact for Miami residents with lower levels of education.
“It’s about trying to do more scientific bonding and evidence-based analysis of the economy,” Card, who initially thought his friends were playing a practical joke when he received the phone call from Sweden, said on the Berkeley website after the announcement. “Most old-fashioned economists are very theoretical, but nowadays, a large part of the economy is really very nut and bolt.”
Steve Pishke, a professor of economics at the London School of Economics, who is studying under the card, said the impact of the work of the three researchers on the use of natural experimentation was far-reaching.
“It’s been absolutely huge,” Pish said. “Everyone was very impressed by it and I think … the research was started very differently and it has spread to many areas of the economy where these methods are now used regularly.”
‘Didn’t take my call’
In an online briefing hosted by MIT, Angrist described a recent project on the issue of hot-button admissions to elite public schools where he and co-researchers found that improving school graduates has more to do with education than education.
“So basically we’re arguing that the kind of public that wants to improve education shouldn’t be at the top of the list of policy concerns,” he said at an online briefing hosted by MIT.
Angrist, Ang1, said he missed a phone call from the Nobel Committee and had to get the number from another Nobel laureate.
“Initially they didn’t take my call,” he said. “I finally found the right person.”
The Nobel Committee noted that natural experiments were difficult to explain, but to show the systematic problems that Angrist and Imbens solved in the mid-1990s, to show that they could make precise decisions about causes and effects.
“I was absolutely shocked to receive a telephone call, then I was absolutely thrilled to hear the news,” Imbens, 58, said in an appeal to reporters in Stockholm.
Officially known as the Sveriges Riksbank Prize in Economic Sciences in memory of Alfred Nobel, the award sees the Nobels share the last crop of the year and the winners 10 million Swedish crowns (১ 1.114 million).
The prestigious awards for achievements in science, literature and peace were created and funded by the will of the Swedish dynamite inventor and wealthy businessman Alfred Nobel.
They have been awarded since 1901, although the Economics Prize – created by a grant on the 30,000th anniversary of the Central Bank of Sweden – is a later addition that was first given in 1969.
(1 = 8.7275 Swedish crown)