Articles
Articles and analyses from the INET community on the key economic questions of our time.
Thirteen Ways to Split a Cake*
Axiomatic bargaining is presented in MWG in the context of welfare economics (Ch. 22), the aim being the formulation of reasonable criteria for dividing gains resulting from cooperative endeavors (the “joint surplus”). It is further presented as an application of cooperative game theory, in which an arbitrator distributes the joint surplus in a manner that reflects “fairly” the bargaining strength of the different agents (although we could conceive of a situation where the parties are bargaining without an external party). If bargaining fails, the outcome is the parties’ own fallback positions (the threat point, or status quo).
The rise of economics as engineering I : setting the scene
The rise of the economist as engineer is, economists and historians say, an essential characteristic of the development of economics in the postwar period.
Economics Needs Replication
The recent debate about the reproducibility of the results published by Carmen Reinhart and Kenneth Rogoff offers a showcase for the importance of replication in empirical economics.
Why Raising the Minimum Wage Makes Economic Sense
A minimum wage is a small minnow in an ocean of deficient aggregate demand
Voth vs. Ferguson: And How Austerity Leads to Worse Outcomes
At dinner yesterday Niall Ferguson made the argument that China (or the East) were perhaps no longer looking to how Western countries had built their social institutions and formed their empires, and were instead now doing their own thing as the Western approach was shown to be flawed
Meeting New Challenges in China
Further system reforms will enable China to overcome middle-income trap and push forward social progress
The Consequences of a Leaderless Economy
What happens when there’s no leader in the global economy?
Fixing finance: The missing piece in banking reform
Eric Beinhocker and Tony Dolphin argue that lasting reform to the financial sector will not be achieved without tackling the price rigging and anti-competitive behaviour that is rife in the industry.
Jurassic Economics at ASSA-AEA 2013
The History of Economics Society (HES) held four sessions at the Allied Social Science Associations (ASSA) 2013 meeting, in San Diego, Jan. 4-6: “Keynes and the International Monetary System” (co-organized by Robert Dimand and Rebeca Gomez Betancourt), “Writing MIT’s History” (organized by E. Roy Weintraub and having our blog fellow Yann Giraud presenting), “Looking for Best Practices in Economic Journalism: Past and Present” (organized by our blog fellow Tiago Mata), and “Real Business Cycle after Three Decades: Past, Present and Future” (a panel discussion co-organized by Warren L. Young and Sumru Altug).
Blending the Economy and Science
What should every non-econ student know about economics?
When they told me I was expected to teach “Introduction à l’économie” this year, I thought, OK, this is straight. Every economist knows how to do that.