Thumbnail for The Radical Remaking of Economics: Interview with Eric Beinhocker

The Radical Remaking of Economics: Interview with Eric Beinhocker

03 Oct 2016

This year marks the 10th anniversary of Eric Beinhocker’s influential book The Origin of Wealth: Evolution, Complexity, and the Radical Remaking of Economics. Like an earthquake tremor, Beinhocker’s book rattled the windows of the economic establishment by proposing a new foundation for the discipline that was paradigmatically different than its current foundation inspired by Newtonian physics. Eric has been in conversation with Evonomics editor, David Sloan Wilson, about his book and offers his thoughts on...

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Thumbnail for It’s employment status, not class, that affects mental health

It’s employment status, not class, that affects mental health

28 Sep 2016

What causes psychological well-being to be unequally distributed by social class? It is usually explained in terms of several “causal pathways”. One possible pathway is that people who in the lower classes not only have lower incomes but also probably have less stability in their incomes, making life more stressful. A second pathway is that people in lower classes may experience more job-related stress. Third, people in the lower classes tend to engage in more unhealthy behaviour (including smoking and la...

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Thumbnail for Helicopter money is back in the air

Helicopter money is back in the air

23 Sep 2016

Fiscal policy is edging back into fashion, after years, if not decades, in purdah. The reason is simple: the incomplete recovery from the global crash of 2008. Europe is the worst off in this regard: its GDP has hardly grown in the last four years, and GDP per capita is still less than it was in 2007. Moreover, growth forecasts are gloomy. In July, the European Central Bank published a report suggesting that the negative output gap in the eurozone was 6%, four percentage points higher than previously thought. “A possi...

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Thumbnail for Matchmaking to Find Homes for Refugees

Matchmaking to Find Homes for Refugees

20 Sep 2016

'Refugees who end up in unsuitable communities are more likely to be unemployed and their children are more likely to perform badly at school. When refugee placements fail due to misallocation, the long-term burden on society is much greater than if refugees are smoothly integrated. The solution to these frequent mismatches is a comprehensive, algorithm-based matching system. In the past half-century, matching systems have been used to match medical residents to hospitals,connect kidney donors with dial...

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Thumbnail for It's Time to Junk the Flawed Economic Models That Make the World a Dangerous Place

It's Time to Junk the Flawed Economic Models That Make the World a Dangerous Place

19 Sep 2016

It’s 26 years since Paul Romer shook the discipline of economics with a single research paper. Entitled Endogenous Technological Change, Romer’s article showed how information technology changed something fundamental about our world – moving the focus of economics away from land, labour and capital towards “people, ideas and things”. Last week, a generation later, Romer published what many see as an equally significant intervention. Macroeconomics, he argues, is like a science that has not only stalled...

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Thumbnail for Professor Sir Tony Atkinson honoured by the Royal Statistics Society

Professor Sir Tony Atkinson honoured by the Royal Statistics Society

13 Sep 2016

Professor Sir Tony Atkinson, Senior Research Fellow at The Institute for New Economic Thinking at the Oxford Martin School, has been awarded an honorary fellowship by the Royal Statistics Society for his pioneering work in social economics. Professor Atkinson's research focuses on the measurement of inequality and its wider implications for society. Announcing the fellowship, the Royal Statistics Society praised his research as "rooted in important substantive questions, and informed b...

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Thumbnail for John Muellbauer fact-checks Trumponomics

John Muellbauer fact-checks Trumponomics

07 Sep 2016

In a letter the the FT Prof John Muellbauer of INET Oxford criticises the economic understanding of Donald Trump’s advisor Wilbur Ross. Read the full letter here.

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Thumbnail for Modelling and forecasting mortgage delinquency and foreclosure in the UK

Modelling and forecasting mortgage delinquency and foreclosure in the UK

02 Sep 2016

INET Oxford's John Muellbauer  & Janine Aaron look at three key drivers of delinquency and foreclosure rates in the UK in a new Vox column. Mortgage delinquencies and foreclosures have serious implications, not just for the households affected, but for the financial stability of the economy. The solvency of the mortgage lenders is affected, and their ability to extend credit. This column identifies three key drivers of delinquency and foreclosure rates in the UK – the debt service ratio, the proportion of...

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Thumbnail for Stagnating median incomes despite economic growth: Explaining the divergence in 27 OECD countries

Stagnating median incomes despite economic growth: Explaining the divergence in 27 OECD countries

02 Sep 2016

INET Oxford's Prof Brian Nolan, Max Roser & Stefan Thewissen have written a column for Vox describing the divergence between household income and GDP per capita for 27 OECD countries. With inequality rising and household incomes across developed countries stagnating, accurate monitoring of living standards cannot be achieved by relying on GDP per capita alone. This column analyses the path of divergence between household income and GDP per capita for 27 OECD countries. It finds several reasons why GDP per capita has...

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Thumbnail for Forecasting Facing Breaks

Forecasting Facing Breaks

31 Aug 2016

Economic forecasting may go badly awry when there are structural breaks, such that the relationships between variables that held in the past are a poor basis for making predictions about the future. INET researchers, Jennifer Castle, Michael Clements, and David Hendry, review a body of research that seeks to provide viable strategies for economic forecasting when past relationships can no longer be relied upon. They explain why model mis-specification by itself rarely causes forecast failure, but why structural break...

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Thumbnail for Combining different technologies can help secure a low-carbon energy system, but market design needs to catch up

Combining different technologies can help secure a low-carbon energy system, but market design needs to catch up

19 Aug 2016

Integrating renewable energy resources into electricity grids will be fundamental in the transition to a low carbon energy system. However, doing so in a way that is affordable while ensuring system security and reliability does not come without its challenges. Electricity produced from wind and solar renewable resources is intermittent and increases complexity for power system operators, and it generally increases demand for greater flexibility from all the assets connected to the grid. This opens a unique opportunity to exploi...

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Thumbnail for Prof Sir Tony Atkinson advises Commission on Global Poverty

Prof Sir Tony Atkinson advises Commission on Global Poverty

26 Jul 2016

In June 2015, The World Bank’s Chief Economist convened the Commission on Global Poverty to report on the best ways to measure and monitor poverty around the world and help the World Bank Group achieve its twin goals of ending extreme poverty by 2030 and boosting shared prosperity. The Commission, made up of 24 leading international economists, was chaired by Sir Anthony Atkinson, an authority on the measurement of poverty and inequality, INET Oxford Senior Research Fellow, the Centennial Professor at London School ...

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