Our grant program highlights and promotes critical areas in economic thinking and research to target some of the most challenging areas in economics. Grantees and research teams apply perspectives and insights from around the world, contributing to a growing community of new economic thinkers. Together, we’re creating the fresh body of economic theory and research the world needs.
This research project argues that economics currently lacks the capability to assess when mathematical modeling, on its own, is a sufficient means for understanding a given set of social phenomena.
This research project aims to better understand the impact of various forms of central bank communication by blending techniques from psychology and political science.
This research project proposes a large-scale simulation of how distress and growth propagate through the real economy via a network of trade credit between firms.
This research project explores the sources of and remedies for financial instability as well as the relationship between traders’ choice of a price-setting mechanism and market structure and the relationship between market freezes and the amount of intermediation in the market.
This research project formulates a new model of bounded rationality, based on the idea that agents will keep a simple, or “sparse,” model of the world.
This research project contends that Piero Sraffa tried to develop an economic theory that could stand up as an alternative to the orthodox theory of value and provide a foundation for the Keynesian and post-Keynesian alternatives.
This research project uses spatial cross-sectional variation in addition to time series variation to estimate fiscal multipliers; the impact of anti-predatory lending laws on housing prices, default rates, and foreclosures; and the impact of raising wages during recessions.
A Theory of Financial Market Instability Even Under Perfect Conditions: Bubbles and Crashes in Rational Belief Equilibrium
This research project seeks to develop a theory of how bubbles and crashes can arise even when all agents are rational, informed, and trading in perfect markets.
This research project develops theoretically coherent models that are open to unforeseeable structural change and avoid the presumption that market participants are irrational.
This research project focuses on the role of the representative agent in recent macroeconomics and general equilibrium theory, with a particular emphasis on how different the situation was in the economic theorizing of the first neoclassical synthesis during the 1950s.
This research project investigates the air quality co-benefits of climate policy. Reduced burning of fossil fuels curbs not only CO2 emissions but also emissions of hazardous co-pollutants, such as particulate matter. The extent of air quality co-benefits relative to CO2 reduction varies across regions and pollution sources, and hence the distribution of emissions reductions matters for both efficiency and equity.
This research project creates a computational model of the current financial crisis to discover the essential elements needed to reproduce the crisis, while investigating alternative policies that may have reduced its intensity and strategies for recovery.
This research project addresses in depth the questions of the nature of economic uncertainty, with the aim of revisiting from a new perspective many of the questions that have been raised by the recent crisis both in finance and macroeconomics.
This research project builds a new generation of models fit to analyze and manage the challenges of governing globalized and interconnected economies.
This research project analyzes the history of the concentration of bank regulatory authority within the Federal Reserve and explores the public policy issues arising from that concentration.
Archipelago Capitalism: Tax Havens, Eurodollars, and the Other International Political Economy, 1870s-1980s
This research project proposes to revise common interpretations of 20th-century economic history by unearthing the often overlooked story of tax havens and offshore finance, Eurodollars, and export processing zones between the 1870s and 1980s.
Becoming “Applied,” Becoming Relevant? Three Case Studies on the Transformation of Economics since the Mid-Sixties
This research project investigates how economists sought to make their science more relevant to real-world issues and policy design from the mid-1960s on, by becoming “applied economists.”
This research project develops a rigorous new theoretical way to study controls of international capital flows and determine their optimal magnitude using a promising new empirical methodology.
Causal Analysis in Economics: Philosophical Underpinnings and Econometric Tools for Non-Standard Settings
This research project addresses the problem of inferring causal relationships in economics. It investigates the philosophical roots of the problem and develops econometric tools which take into account the complexity of economic systems.
This research project studies the evolution of monetary policy since the financial crisis, as regards to changes in implementation mechanisms and use of conventional/unconventional instruments of monetary policy, as well as its mpact on macroeconomic variables, including income distribution.
This research project formulates a normative theory of learning both preferences and probabilities that explains a broad spectrum of economic behavior heretofore judged irrational.
This research project posits that increasing income concentration and erosion of the middle class are interrelated results of a change in the dominant corporate resource-allocation regime from “retain-and-reinvest” to “downsize-and-distribute,” manifested by massive distributions to shareholders and the disappearance of “collective and cumulative” careers.
This research project uncovers the economic forces which reshaped the evolution of the imperial examination system in traditional China, using a new dataset from archival sources of ancient Chinese Books.
This research project constructs a broad set of software tools designed to better facilitate the understanding and comparative features of various types of agent-based finical markets.
This research project studies the pricing and liquidity implications of sentiment and disagreement as origins of radical uncertainty in financial markets.
This research project improves our understanding of the effects of intellectual property rights—and in particular copyrights—on creativity and innovation.
This research project uses statistical physics and network analysis to understand and explain the contagion and panic effects associated with crises that are unexplained in standard economic models.
This resarch project examines the economic theory, policy, and international political economy of cross border finance in the run up to and in the wake of the global financial crisis of 2008.
This research project aims to change the conventional wisdom about how global banks take and manage risks and generate ideas that are both innovative and useful to realistic thinking about policy.
This research project explores ways to influence policy, starting with selected UK regulators, pension funds, and asset management groups, by testing the feasibility of “emotional finance” solutions to the prevention of future financial crises.
This research project develops an operational measure of systemic risk, as an input into the policy process by capturing the interaction of private and governmental sources of systemic risk during and in advance of the crisis.
This research project uses information from digitized Google books and library catalogues to create new measures of technological innovation and diffusion for OECD countries from 1850 to the present.
This research project addresses a need for a more comprehensive estimation of the distributional impact of various policies attempting to limit carbon emissions in the United States.
The objective of this proposal is to build distributional statistics of income and wealth consistent with national accounts aggregates for the United States.
This research project explores whether the financialization of the US economy has contributed to rising income inequality through complementary analyses at the individual, firm and industry levels.
Drivers of Technology Adoption and Consequences of the Dynamics of Technology Adoption for Economic Growth
This research project studies the drivers of technology adoption as well as the consequences of the dynamics of technology adoption for economic growth.
This research project develops a novel framework to capture both instantaneous and dynamic contagion mechanisms arising in financial networks when balance sheet linkages across entities exist.
This research project examines how the spatial pattern of inequality in US cities shapes the provision of public transit and more broadly the prospects for a more equitable and sustainable transportation policy.
Economic Policy and the Performativity of Economic Models: Looking at the Intersection between Theory and Policy
This research project aims at analyzing the role of economic models in economic policy-making. Specifically, we investigate the impact of CGE models, related to the TTIP debate, and potential output models, related to fiscal policy in the EU, on politicial decision-making and public debate.
This research project focuses on the sustainability of economic growth and implications for distribution, employment, stability, and economic policy.
This research project deepens the understanding of the history of economics as a discipline by making economic texts of historical importance available to students and scholars and by translating the important historical works of economics into English.
This research projects aims to understand Buddhist thinking in rational choice terms and apply that to some important contemporary economic problems.
This research project organizes a systematic database of policies implemented in response to crises, focusing on fiscal and monetary measures, in order to identify policy action rather than simply looking at endogenous outcome variables.
This research project develops an intellectual biography of the Hungarian economist Tibor Scitovsky (1910-2002), who is known primarily for his path breaking 1976 book, The Joyless Economy.
This research project demonstrates the ways in which fact and value are entangled in economic concepts and the implications of this entanglement for the ways in which various economic problems are approached.
This research project collects data that measures maternal knowledge about the impacts of investments on child development and estimates the role such knowledge plays in the determination of economic and social inequality.
This research project documents long-run trends in personal bankruptcy, with special emphasis on the use of the bankruptcy law at the local level and among women.
This research project offers a radical reconsideration of the centrality of the Corn Returns to the development of classical liberal political economy and shows how much the Corn Laws enriched agrarian interests and how their repeal represented a boost to British manufacturing.
This research project develops, estimates, calibrates, and deploys a new class of stock flow consistent macroeconomic models to try to understand Ireland’s macroeconomic collapse since 2007.
This research project develops a model of foreign exchange markets in which agents’ expectations are explicitly modeled and evolve over time and examines how these models perform in terms of capturing the behavior observed in the experiments with human subjects.
This research project explores the implications for the economics of gender stereotypes that consider self-interested economic behavior and risk-taking to be masculine and care and caution to be feminine.
This research project develops a software program for economic simulation that makes it easy to develop dynamic, monetary models of the macro-economy.
This research project examines the relationship between the creation of money, price formation, and income flows, assuming no restrictions to the volume of credit, while abstracting from the existence of speculative crises and the role of the public sector in the process of monetary creation.
This research project combines 140 years of economic history with state-of-the-art econometric methods to gain new insights into the relationship between finance, growth, and crises.
This research project studies contagion among financial institutions and the role of financial market regulation in weakening or strengthening the transmission of financial turmoil across institutions.
The project provides new ideas and policy proposals to contain the spread of systemic risk in the financial system through appropriate regulation of financial markets and intermediaries, as well as the design of monetary policy.
This research project establishes the conditions under which international capital flows are a force for stability, thereby improving the capacity for macroeconomic policy to avoid large boom-bust cycles.
This research project develops a “Money View” analysis of the recent evolution of China’s financial system.
This research project studies how the Basel Committee on Banking Supervision and the International Swaps and Derivatives Association operate and the factors that help shape the extent to which they are able to ensure financial stability from a public-interest standpoint.
This research project develops a theoretical framework to examine the relation between arbitrage capital and the price properties of different asset markets.
This research project integrates two research paradigms to understand the degree to which financial markets can be reformed in order to nurture value creation and :capital development” rather than value extraction and destruction.
Free from What? Evolving Notions of 'Market Freedom' in the History and Contemporary Practice of US Antitrust Law and Economics
This research project investigates the reasons behind the US financial crisis by applying the tools of the history of economic thought to the postwar evolution of US antitrust law and economic
This research project studies the innovation of mortgage-backed securities in the 18th century in order to understand the effects of securitization on financial and real markets.
This research project explores how genomic data can inform the understanding of social science questions. The genomic revolution means that social scientists are able to correlate a range of outcomes and behaviors with genes. This research studies what these correlations mean.
This research project provides the mathematics for a second marginal revolution enabling the natural modeling of heterogeneous agents with unstable beliefs, fully dynamic preferences, and allowances for an increased level of self-inconsistency.
This research project traces the history of German energy policy from 1945 to the present. It explores the political economy behind Germany’s transition from coal, to oil, to green energy, the crises driving these shifts, and the evolving efforts to balance affordability with security and environmental protection.
This research project analyses the possibility of achieving economic and financial stability, high employment, and good social outcomes, in the presence of clearly defined resource and environmental limits, even if these mean some limits to economic growth.
This research project explores the relationship between environmental regulation, innovation, and competitiveness through a meta-analysis, which extracts key implications for economic thinking and future research, and unique datasets on patented “environmental” inventions.
This research project explores the origins of covered mortgage bonds and tests for the impact of financial development on economic growth by analyzing the Prussian Landschaften.
This research project develops a new behavioral paradigm of heterogeneous expectations that can help explain the sources of financial and macroeconomic instability and find possible policy remedies.
This research project explores the interaction between group identities and decisions to engage in collective action to secure access to public goods, such as education.
This project brings new mathematical tools and ideas from high-dimensional statistics to bear on the problem of creating reliable macroeconomic forecasting models.
This project studies a broad array of financial institutions to discover the impacts of financial regulations on functionally efficient finance, productivity growth, and income distribution.
This research project models financial interdependencies in the form of dynamic networks and propose policy and risk measurement tools to pre-identify contagion.
This research project analyzes the role of investment in the operation and performance of three broad high-technology sectors: communication technology, biopharmaceutical drugs and medical technologies, and wind power, solar power, electric vehicles, and the smart grid.
This research project explores how the output of firms outside of the financial sector is affected by the health of the banks and other financial institutions.
Income Distribution, Asset Prices, and Aggregate Demand Formation, 1850-2010: A Post-Keynesian Approach to Historical Macroeconomic Data
This research project uses macroeconomic data going back to the mid-19th century to analyze issues such as the relation between income distribution and economic growth; and how debt, asset prices, and growth moved together the last 160 years.
This research project analyzes the country-specific effects of inequality within a stock-flow consistent macro model and within a DSGE model with heterogeneous and interacting households.
This research project investigates how gender and race affect the earnings of African American, Latina, and Asian American women in the United States over five decades, from 1970 to 2010.
This research project studies the macroeconomic effects of rising inequality by focusing not on top incomes but instead on the economics of the “bottom 99%” which has been squeezed out by rising inequality and falling labor shares.
This research project explores the causes and consequences of the way countries innovate and the economic foundations for the government’s direct involvement in conducting innovation.
This research project offers a historical taxonomy of organizational ways that governments fund and implement industrial and innovation policy as well as a taxonomy of contemporary implementation practices.
Institutional Investors and the Offshore Hedge Fund Industry: Investigating Patterns of Linkage, Organization, and Governance
This research project combines interdisciplinary expertise with a wholly unique database on hedge funds compiled by the Foundation for Fund Governance to examine the organization and governance of the offshore hedge fund industry.
This research project incorporates recent US data to update empirical analyses of regional growth and utilizes case study strategies of American regions to investigate the underlying causal mechanisms of inequality.
This research project re-examines the debates around the time of the Great Depression and compares them with those before and since the start of the Long Recession in 2007/8, focusing on Keynes, Hayek, and their followers.
This research project examines the informational inefficiency of market prices in the presence of Knightian uncertainty or ambiguity by modeling the decision making of financial market traders.
This research project provides us with a greater understanding of why the Coase theorem came to captivate the minds of economics and legal scholars and how its impact on economics and law reshaped both the theoretical landscape and legal-economic policymaking.
This research project designs and evaluates new strategies that can address the issues of financing human capital investments by developing and estimating a unified framework.
This research project examines the role of political and social unrest by analyzing their effects on bond and stock markets over the period 1900-2000.
Living Standards, Inequality, and Poverty around the World, 1815-2015: A New Household Budget Approach
This research project lays a foundation for new and better long-run estimates of poverty and inequality around the world through the collection, digitisation, and harmonisation of household budget data.
Long Term Costs of Macroeconomic Instability: The Destruction of Innovative Networks in Cleveland, Ohio, 1920-1940
This research project will examine the long-term costs of macroeconomic instability in a major metropolitan area and the direct impact of macroeconomic shocks on technological discovery.
Macroeconomic Instability and Microeconomic Financial Fragility: A Stock-Flow Consistent Approach with Heterogeneous Agents
This research project introduces heterogeneous microeconomic behavior into a demand-driven stock flow consistent model to study the links between microeconomic financial fragility and macroeconomic instability.
This research project provides guidance to policymakers for designing policies that are able to bring economies out of recessions by identifying the best policies to fight unemployment and stabilize the business cycle while alleviating inequality.
This research project explores the process of modern (shadow) money creation in hierarchical and interconnected monetary systems. In theorizing the dynamic instability of shadow money, it provides a comparative account of the structural and institutional specifics of shadow money in the US, Eurozone and China, and the policy challenges thereof.
This research project develops a new field of anthropology: the anthropology of financialization, focusing on China and two main institutions of financialization, management consultancies and fund managers.
This research project extends proven techniques in statistical learning theory so that they cover the kind of models and data of most interest to macroeconomic forecasting.
This research project improves the mathematical capabilities of non-Neoclassical economics and uses modern techniques from nonlinear dynamical systems to model the expansion and contraction of credit and its effect on real economic output and asset prices.
Monetary Reform and the Bellagio Group: Selected Letters and Papers of Fritz Machlup, Robert Triffin and William Fellner
This research project compiles and annotates the archival legacy of the Bellagio Group’s founders Fritz Machlup, Robert Triffin, and William Fellner as they sought to reform the international financial system between 1963 and 1974.
This research project recounts the intellectual history of the dollar as an international reserve currency, starting with World War I, which brought the international gold standard to an end, and continuing all the way up to the present global financial crisis.
This research project captures systemic risk of the credit market by combining information about the level of fragility of individual economic entities with the network structure of their mutual credit exposures.