Thumbnail for Understanding the risks banks pose to the financial system

Understanding the risks banks pose to the financial system

03 Mar 2017

Systemic risk, loosely defined, describes the risk that large parts of the financial system will collapse, leading to potentially far-reaching consequences both within and beyond the financial system. Such risks can materialize following...

Read more


Thumbnail for House of Lords Energy Report cites INET Oxford Research

House of Lords Energy Report cites INET Oxford Research

03 Mar 2017

The latest House of Lords Select Committee on Economic Affairs report cites research from INET Oxford's Prof Cameron Hepburn & Jacquelyn Pless. The report also mentions work by Prof Dieter Helm, Professorial Research Fellow of the Smith School of Enterprise and the Environment at the University of Oxford. The report is titled, "The Price of Power: Reforming the Electricity Market" and the full report can be read here.

Read more


Thumbnail for Restoring trust in finance: moral obligation meets Econ 101

Restoring trust in finance: moral obligation meets Econ 101

03 Mar 2017

Dishonest practices brought to light by the 2008 crisis have raised questions about the incentives faced by bankers, and about their training. Unfortunately, the remedy of using market discipline through competition policy to make bankers 'behave' is problematic. So there have been many calls for more ethical bankers, but what might this actually look like in practice? Our answer is given by the idea of 'principled agents' who at times exhibit a high degree of concern for others in standard economic calculations ...

Read more


Thumbnail for How can we understand our complex economy?

How can we understand our complex economy?

03 Mar 2017

Prof Farmer gave a lecture at the Mathematical Institute on “Understanding the Complex Economy” in a lecture series that has included figures such as Stephen Hawking and Sir Roger Penrose. Further details of the lecture and a full video are below. We are getting better at predicting things about our environment - the impact of climate change for example. But what about predicting our collective effect on ourselves? We can predict the small things, but we fail miserably when it comes to many of the big t...

Read more


Thumbnail for Macroeconomics and consumption: Why central bank models failed and how to repair them

Macroeconomics and consumption: Why central bank models failed and how to repair them

07 Feb 2017

The failure of the New Keynesian dynamic stochastic general equilibrium models to capture interactions of finance and the real economy has been widely recognised since the Global Crisis. This column argues that the flaws in these models stem from unrealistic micro-foundations for household behaviour and from wrongly assuming that aggregate behaviour mimics a fully informed ‘representative agent’. Rather than ‘one-size-fits-all’ monetary and macroprudential policy, institutional differences between countries ...

Read more


Thumbnail for INET Oxford academics receive research grant to continue work on visualising global development

INET Oxford academics receive research grant to continue work on visualising global development

07 Feb 2017

A $350,000 grant from the Bill & Melinda Gates Foundation is enabling INET Oxford and Oxford Martin School academics to expand their work visualising global development. The Our World in Data website presents research on living conditions around the world, how they are changing, and why, with the aim of building a comprehensive online resource on global development. It takes the form of accessible interactive data visualisations on aspects of global development, including poverty, violence, education...

Read more


Thumbnail for The US lags far behind its peers on “inclusive” economic growth

The US lags far behind its peers on “inclusive” economic growth

06 Feb 2017

We know the United States faces challenges on the subject of inclusive growth. But how has the US performed compared to other rich countries? To answer these questions, we have to think about how we measure income growth. GDP per capita is usually the first metric people use for this purpose. Yet, growth in GDP per capita does not tell us anything about the extent to which growth is shared among the population. INET Oxford researchers Max Roser & Stefan Thewissen look at these qusetions in their recent article on Vox. R...

Read more


Thumbnail for An improved approach to empirical modelling

An improved approach to empirical modelling

06 Feb 2017

There are numerous possible approaches to building a model of a given data set. In economics, imposing a `theory model’ on the data by simply estimating its parameters is common. This column makes the case for a combined theory-driven and data-driven approach under which it is almost costless in statistical terms to check the relevance of large numbers of other candidate variables when the theory is complete, yet there is a good chance of discovering a better empirical model when the theory is incomplete or incorrect. Read...

Read more


Thumbnail for A new narrative for a complex age

A new narrative for a complex age

30 Jan 2017

The starkness and magnitude of the recent crisis calls for a serious reflection to revisit policy approaches and build a new policy agenda for stronger, more resilient, inclusive and sustainable growth. The OECD initiative on New Approaches to Economic Challenges (NAEC) is a comprehensive organisation-wide reflection process to renew and strengthen the OECD’s analytical frameworks, policy instruments and tools. INET Oxford's Executive Director, Eric Beinhocker, has written a blog piece for...

Read more


Thumbnail for Economist Linus Mattauch awarded the 2016 Köppen Prize

Economist Linus Mattauch awarded the 2016 Köppen Prize

12 Jan 2017

The Wladimir Peter Köppen Prize for 2016 was awarded to Dr. Linus Mattauch. This year’s recipient, who holds degrees in mathematics and philosophy, was awarded the prize by the Cluster of Excellence CliSAP in recognition of the outstanding dissertation he submitted to the Technische Universität Berlin. He currently works at The Institute for New Economic Thinking at the Oxford Martin School (INET Oxford) as a postdoc in the research group “Economics of Sustainabilty.” This marks the first time the j...

Read more


Thumbnail for New publication in European Journal of Pure and Applied Mathematics

New publication in European Journal of Pure and Applied Mathematics

09 Jan 2017

The European Journal of Pure and Applied Mathematics has published the Sir Clive W.J. Granger Memorial Special Issue on Econometrics dedicated to the memory of Nobel Laureate Prof. Sir Clive W. J. Granger who was their Advisory Editor passed away in 2009. This special issue was edited by INET Oxfords Jennifer L. Castle and Prof Sir David F. Hendry. The issue contains articles from Hendry and Castle, alongside INET Oxford researchers Michael P. Clements and Ryoko Ito. ...

Read more


Thumbnail for Professor Sir Tony Atkinson, 1944-2017

Professor Sir Tony Atkinson, 1944-2017

03 Jan 2017

  Leading economist and inequality researcher Professor Sir Tony Atkinson, Senior Research Fellow at The Institute for New Economic Thinking at the Oxford Martin School, has died at the age of 72. Sir Tony, who pioneered the study of inequality, was Centennial Professor at the London School of Economics and a Fellow of Nuffield College, Oxford, where he was previously Warden. He was also a Fellow of the British Academy, and had been President of the Royal Economic Society, the Econometric Society, the European Economic A...

Read more