3 Economists & A Revolution
The Times of India Mumbai|October 15, 2021
2021’s economics Nobel laureates freed the discipline from limiting bonds of theory
Esther Duflo & Abhijit Banerjee
3 Economists & A Revolution

This year’s Nobel prize in economics is probably one where there was the broadest support. It was our favourite pick for this year’s prize, but also that of several people we polled. The influence of the idea that natural experiments are often the best way to make causal claims in the social sciences, is so pervasive that many younger social scientists probably do not know that there was a time when this was not what we did.

Of course, there are grumbles (not at MIT, where Josh Angrist is universally admired, for his seriousness and commitment to the field). One hears that this is a prize for statistics, not economics. This goes back to an old battle inside economics: Economics used to be a field where theory had primacy – we believed what our models told us, and if there was a correlation that fitted the claim, all the better.

Practising economists knew that this was not entirely kosher, that correlation did not have to mean causation: Countries with higher minimum wages like those in Western Europe have higher unemployment than the US, but perhaps it is not because of the minimum wage, but because people in these countries value dignity, and prefer to be unemployed rather than take up a “shit” job. In other words, maybe it is the “selection” of countries that choose high minimum wages that is driving the correlation between high wages and unemployment and not the minimum wage itself.

This story is from the October 15, 2021 edition of The Times of India Mumbai.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the October 15, 2021 edition of The Times of India Mumbai.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM THE TIMES OF INDIA MUMBAIView All
US soccer scrubs Islamic emblem from Iran flag
The Times of India Mumbai

US soccer scrubs Islamic emblem from Iran flag

The federation said in a statement Sunday that it decided to forego the official flag on social media accounts to show “support for the women in Iran fighting for basic human rights.”

time-read
2 mins  |
November 28, 2022
Pyar Ke Saat Vachan Dharam Patnii begins on TV tonight
The Times of India Mumbai

Pyar Ke Saat Vachan Dharam Patnii begins on TV tonight

What happens when kismet takes over the lives of two couples belonging to two different sections of society?

time-read
1 min  |
November 28, 2022
Arijit serenades music lovers in Mumbai
The Times of India Mumbai

Arijit serenades music lovers in Mumbai

Arijit Singh casts a spell with his voice

time-read
2 mins  |
November 28, 2022
ARGENTINA LIVE TO FIGHT ANOTHER DAY
The Times of India Mumbai

ARGENTINA LIVE TO FIGHT ANOTHER DAY

Messi's Strike Rattles Mexico And Lusail, Brings Team Back From The Brink

time-read
4 mins  |
November 28, 2022
Costa Rica come alive
The Times of India Mumbai

Costa Rica come alive

Los Ticos Stun Japan With Late Fuller Winner

time-read
1 min  |
November 28, 2022
Morocco's moment under the sun
The Times of India Mumbai

Morocco's moment under the sun

Inspired Atlas Lions Shock Belgium For First WC Win In 24 Years

time-read
3 mins  |
November 28, 2022
ON YOUR MARK, GET SET, SOAR
The Times of India Mumbai

ON YOUR MARK, GET SET, SOAR

Athletics Icon Usha Set To Become First Woman President Of IOA

time-read
2 mins  |
November 28, 2022
Industry body calls for slower rate hikes
The Times of India Mumbai

Industry body calls for slower rate hikes

CII Asks RBI To Moderate Pace Of Raising Repo As Global Woes May Impact Growth

time-read
2 mins  |
November 28, 2022
The Times of India Mumbai

Insurance reforms may see PE funding surge in sector

Irdai Raises Investment Cap, Allows PEs To Be Promoters

time-read
1 min  |
November 28, 2022
Cut ties with child-killing regime, Khamenei's niece tells world, held
The Times of India Mumbai

Cut ties with child-killing regime, Khamenei's niece tells world, held

Iranian authorities have arrested a niece of supreme leader Ayatollah Ali Khamenei after she recorded a video describing the authorities led by her uncle as a “murderous and child-killing regime”.

time-read
1 min  |
November 28, 2022