Economics Topics

Economics Topics

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Nobel Prize in Economics


October 22, 2007, 7:33 am, 224780
David Warsh, who writes the Blog, Economic Principals, has featured on Lost Legacy, usually in the critical section, in mild disputes over Adam Smith. This difference between us is not serious nor personal (and having met David Warsh and heard him lecture, he personifies the American gentleman) and if ...


October 22, 2007, 5:04 am, 224770

The "oldest person ever to be recognized by the Swedes, in any discipline":

The Road to a System that Works (Without Shooting People), by David Warsh, Economic Principles: ...It is a truism that most Nobel Prizes are won by researchers who tumble onto their topics in their twenties and often ...


October 18, 2007, 10:49 am, 224148
Estelle Cantillon, Patrick Legros, 18 October 2007

Mechanism design theory is a major breakthrough in the modern economic analysis of institutions and markets. It revolutionalised the way economists think about optimal institutions and regulation when governments don't “know it all.” It has had a major impact on current policy-making and will ...


October 17, 2007, 4:44 pm, 223997
The 2007 Nobel Prize in Economics went to Leonid Hurwicz, Roger Myerson, and Eric Maskin for “having laid the foundations of mechanism design theory.”

Mechanism design isn’t covered in the typical introductory economics class. ...


October 17, 2007, 10:37 am, 223883

This year the Nobel Prize for Economics went to Leonid Hurwicz, Eric S. Maskin, Roger B. Myerson for the rather esoteric field of mechanism design.

What is mechanism design? Well it is basically a branch of game theory (a field in mathematics) that looks at how to come up ...


October 16, 2007, 3:03 pm, 223727


October 16, 2007, 3:03 pm, 223726


October 16, 2007, 2:46 pm, 223724

Barkley Rosser is unimpressed by the InTrade speculation about the winner of the Nobel Prize in Economics:

The various betting markets on the Sveriges Riksbank Prize for Economics in Memory of Alfred Nobel, such as intrade.com, were just way off. ...


October 15, 2007, 2:40 am, 223668
(October 15, 2007 06:40 AM, by Arnold Kling) From this year's citation While direct mechanisms are not intended as descriptions of real-world institutions, their mathematical structure makes them...


October 16, 2007, 10:45 am, 223638
Yesterday Leonid Hurwicz, Eric Maskin and Roger Myerson won the Nobel Prize in Economic Science for their pioneering work in the field of "mechanism design." Strangely, some have used this occasion to disparage free-market economics. But the truth is the deserving recipients owe a direct debt to free-market thinkers ...


October 16, 2007, 9:15 am, 223626

Overall, mechanism design increases our appreciation of markets, if only by showing how difficult it is to produce good outcomes while respecting the constraints that markets must satisfy. In a sense, mechanism design is to markets what genetic algorithms are to life. Theorists may one day design a better market mechanism or a better genetic ...


October 16, 2007, 9:42 am, 223625

While I remain disappointed that the Nobel Prize in Economic Science has yet to be awarded to Gordon Tullock, Armen Alchian, Harold Demsetz, and Jagdish Bhagwati, after reading this essay (from today's Wall Street Journal) by my GMU colleague Pete Boettke ...


October 16, 2007, 8:28 am, 223605

This is the best quick-and-dirty explanation you will get, courtesy of Alex Tabarrok.


October 15, 2007, 7:08 pm, 223501
OK, not quite, but the work of Leonid Hurwicz, Eric Maskin and Roger Myerson has much relevance to sports economics and the design of sporting contests such as leagues, championships and so on. Their key insights relate to the design of mechanisms when agents have private information. The ...


October 15, 2007, 4:49 pm, 223473

Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, said mechanism design theory, which won its architects a Nobel prize today, offers insight into what happened in financial markets this summer.

Lacker

Mechanism design theory, ...


October 15, 2007, 12:46 pm, 223413

This Nobel prize is exactly the sort of thing that journalists have nightmares about. They wake up early, and read a citation from the Royal Swedish Academy of Sciences giving the Economics prize to three economists they've never heard of, ...


October 15, 2007, 12:05 pm, 223401

Tyler Cowen on the Nobel prize going to the mechanism design crowd.

In other words, no incentive scheme, no matter how clever, can get people to tell the truth. Grove, Clarke, Tideman, and Tullock lurk in the hallways. Note that a second price auction (let everyone bid ...


October 15, 2007, 11:35 am, 223400

I'm looking forward to all the ways the media will butcher their work - mechanism design is not the easiest to explain to a lay audience.

The Prize in Economics 2007 - Press Release

Press Release

The Royal Swedish Academy of Sciences has decided to award The Sveriges Riksbank Prize in Economic ...


October 15, 2007, 5:45 am, 223398
The biggest influence on my research, Eric Maskin, has won the Econ Nobel! (along with Leonid Hurwicz and Roger Myerson) I've brought up Prof. Maskin's work a couple...


October 15, 2007, 10:50 am, 223378

Economic bloggers weigh in on the award of the Nobel Prize in economics to Americans Leonid Hurwicz, Eric S. Maskin and Roger B. Myerson.

This is precisely the kind of work which is going out of style in the broader profession. These guys are smart, smart, smart, and Hurwicz ...


October 15, 2007, 8:42 am, 223365

The Nobel Scientific Background paper is the best introduction to all of these people, and a good introduction to mechanism design in general.

As for Myerson, here is his home page. Here is his CV. Here is one overview. Here is Myerson in Google Scholar.

His most ...


October 15, 2007, 9:08 am, 223364

Here is Wikipedia on Hurwicz. He is the granddaddy of the group, and the Nobel Committee sums it up nicely:

The seminal work of Leonid Hurwicz (1960,1972) marks the birth of mechanism design theory. In Hurwicz’s formulation, a mechanism is a communication system in which participants exchange messages with ...


October 15, 2007, 9:12 am, 223363

Ok, Grandma may still have some difficulty but in honor of today's Nobelists, Hurwicz, Maskin and Myerson let's give it a go. Suppose that you are selling a rare painting for which you want to raise the maximum revenue. There are two potential buyers, Tyler, who values the painting at ...


October 15, 2007, 9:59 am, 223360

Hurwicz, Maskin, and Myerson share it.


October 15, 2007, 8:39 am, 223348

Leonid Hurwicz (along with Roger Myerson and Eric Maskin) have been named the 2007 Nobel Prize winners in economics for their foundational work in mechanism design theory.

Mechanism design theory ---- which seeks to find rules of the game so that the institutional structure operating under ...


October 15, 2007, 9:21 am, 223347

Leonid Hurwicz, Eric Maskin, and Roger Myerson won the Nobel Prize “for having laid the foundations of mechanism design theory.” Tyler Cowen thinks that their contributions are going out of style. I see ...


October 15, 2007, 8:06 am, 223345

Damn John, they skipped us again:

Americans Leonid Hurwicz, Eric Maskin and Roger Myerson won the Nobel Memorial Prize in Economic Sciences on Monday for work that helps explain situations in which markets work well.

The three researchers "laid the foundations of mechanism design theory," the Royal Swedish Academy ...


October 15, 2007, 9:01 am, 223337
Lynne Kiesling Mechanism design is the topic awarded this year's economics Nobel, with the award going to Leonid Hurwicz, Eric Maskin, and Roger Myerson (two Northwestern connections there!). Mechanism design was the bread and butter of my graduate training, and...


October 15, 2007, 8:49 am, 223334

Read the Royal Swedish Academy of Sciences’s statement on its decision to award the Nobel economics prize for 2007 to Leonid Hurwicz, Eric S. Maskin and Roger B. Myerson.

The Royal Swedish Academy of Sciences has decided to award The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel ...


October 15, 2007, 7:46 am, 223333

Leonid Hurwicz, Eric Maskin, and Roger Myerson won this year's Nobel Prize in Economics. And it is a well-deserved prize too.

I don't have much to add, except to note that NONE of these 3 economists appeared in the list of "favorites" in the Intrade marketplace ...


October 15, 2007, 8:41 am, 223331

Congratulations to Leonid Hurwicz, Eric S. Maskin, and Roger B. Myerson! It was their work on mechanism design that the Nobel Committee decided to honor this year, demonstrating once again that all that pre-announcement speculation rarely gets it right. Well, there is always another year...


October 15, 2007, 8:03 am, 223326

Here is an interview with Eric Maskin. His 1970s work explored when societies can choose procedural rules which lead to a social optimum. In the 1980s he focuses on optimal auction theory and how to raise the most revenue. In the 1990s he considered the existence of equilibria in ...


October 15, 2007, 7:07 am, 223327

Win the Nobel Prize in Economics. That's funny, because this is precisely the kind of work which is going out of style in the broader profession. These guys are smart, smart, smart, and Hurwicz is probably the best known of the three. They are all high-powered theorists, doing incentives, ...


October 15, 2007, 2:40 am, 223325
(October 15, 2007 06:40 AM, by Arnold Kling) From this year's citation While direct mechanisms are not intended as descriptions of real-world institutions, their mathematical structure makes them...


October 15, 2007, 7:36 am, 223322
This year's Nobel Prize in economics goes to Leonid Hurwicz, Eric S. Maskin, and Roger B. Myerson.

Eric is used to teach economic theory at Harvard and was a great teacher and colleague. If my recollection is correct, when he moved from Harvard to the Institute for Advanced ...


October 14, 2007, 12:49 pm, 223218

The Austrian Economists started posting in 2005 with the stated purpose of highlighting the insights of the Austrian school to bear on the conversation within the academic economics profession and to broader issues of political economy and public policy. We have spent some time discussing the ultimate professional ...


October 14, 2007, 10:45 am, 223205
Front runner Robert Barro:

The Nobel Prize in Economics will be announced in the ...


October 13, 2007, 3:35 am, 223082
Here, according to one London bookmaker, are the odds on various econ Nobel Prize candidates.


October 12, 2007, 4:44 pm, 223001
Next week, we can expect the winner to be announced for this year's Nobel Prize in Economics. (Last year, the Aplia Econ Blog posted an article about the previous winner, Edmund S. Phelps.) This weekend will ...


October 12, 2007, 3:33 am, 222863
The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel will be announced on Monday.

There’s much angst among the Blogs with the usual suspects predicted to be in the running.

Greg Mankiw, a leading Blogger, Harvard Professor, author of one of (if not ...


October 11, 2007, 7:36 pm, 222781

The winner will be announced on Monday.

Many candidates out there: Grew Mankiw's favorites are Fama, Feldstein, or Barro. Thompson Scientific'sare Helpman, Grossman, Tirole, Wilson or Milgrom.Tylor Cowen would give it to Krueger, Bhagwati and Tullock.

If you have your own favorite, ...


October 10, 2007, 3:57 pm, 222478


InTrade has opened a market for predictions of the Economics Nobel Prize. Fama is the current favorite.

In Trade market for Economic Nobel

HT: Mankiw


October 9, 2007, 4:46 pm, 222264

Here, and so far the posted numbers don't mean anything. Hat tip to the ever-vigilant Greg Mankiw.


October 9, 2007, 3:01 pm, 222222

A few years ago, I made some guess regarding who will the Nobel Prize in Economics (as I do every year). One of my picks- Thomas Schelling- won in 2005. The others remain contenders. Again, I ...


October 9, 2007, 12:16 pm, 222204

The previous post reminds us that The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel will be announced on Monday. Any picks? For years, I've been thinking that Jagdish Bhagwati would be a very good choice. Oliver Hart, Bengt Holmstrom, and Oliver Williamson ...


October 9, 2007, 11:36 am, 222154
Intrade has set up a trading market for the Nobel Prize. Scroll down for the economics award.

There is no trading yet, but soon it will provide a way for my senior colleagues to hedge the risk.


October 8, 2007, 4:10 pm, 221988
As regular readers know, I think the next Nobel Prize in Economics should be given to Richard Posner. But his receiving it is a very long shot.

Mike Moffat thinks Eric Maskin deserves it. Greg Mankiw thinks it will go to Eugene Fama ...


October 7, 2007, 5:37 pm, 221812

Tyler Cowen states he would give it for rent-seeking. I would be thrilled if they did, but every October I start hoping against hope that it will go for entrepreneurship and to Israel Kirzner and Bill Baumol.

Neither Tyler nor I are predicting those ...


October 6, 2007, 9:09 am, 221608

Greg Mankiw asks and receives many answers.

One guess is William Nordhaus, for his concept of "green accounting." An environmental prize is overdue but perhaps Nordhaus is too skeptical about stringent anti-global warming measures to get the appropriate reception in Stockholm.

Another option is Eugene Fama, both for testing


October 5, 2007, 5:35 pm, 221519
Think you know who's going to win the Nobel prize in economics? Have a dollar you can afford to lose (to a charity to be named later)? If you answered "yes" to both questions, then ...