Economics
Quotes in economics
"It's the economy stupid!"
- James Carville,
1992, wrote on a white board in the campaign headquarters of candidate Bill
Clinton during his run for the White House
"There's no such thing as a free lunch"
- Milton Friedman
"Clearly' sustained low inflation implies less uncertainty about the
future, and lower risks premiums imply higher prices of stocks and other
earning assets. We can see that in the inverse relationship exhibited by
price/earnings ratios and the rate of inflation in the past. But how do we
know when irrational exhuberance has unduly escalated asset values,
which then become subject to unexpected and prolonged contractions as they
have in Japan over the past decade? And how do we factor that assessment into
monetary policy? ..."
- Alan Greenspan, December 5, 1996, at the annual dinner and Francis Boyer
Lecture of the American Enterprise Institute for Public Policy Research,
Washington, D.C
“The peculiar character of the problem of a rational economic order is
determined precisely by the fact that the knowledge of the circumstances of
which we must make use never exists in concentrated or integrated form, but
solely as the dispersed bits of incomplete and frequently contradictory
knowledge which all the separate individuals possess. The economic problem of
society is thus not merely a problem of how to allocate 'given' resources - if
'given' taken to mean given to a single mind which deliberately solves the
problem set by these 'data'. It is rather a problem of how to secure the best
use of resources known to any of the members of society, for ends whose relative
importance only those individuals know. Or, to put it briefly, it is a problem
of the utilization of knowledge not given to anyone in its totality.”
- F. A. Hayek, September 1945, “The Use of Knowledge in
Society”, American Economic Review, Vol. 35, Issue 4, 1945, pp. 519-20
"Any man who is only an economist is unlikely to be a good one."
- F. A. Hayek, 1962, lecture, The Times, 9 May 1985
"Please find me a one-armed economist so we will not always hear 'on the
other hand ...'"
- Herbert Hoover
"The theory of economics does not furnish a body of settled conclusions
immediately applicable to policy. It is a method rather than a doctrine, an
apparatus of the mind, a technique of thinking, which helps its possessor to
draw correct conclusions."
- John Maynard Keynes
"In the long run we are all dead"
- John Maynard Keynes, 1923, Tract on
Monetary Reform
"Now, we are all Keynesians."
- Richard Nixon
"If all economist were laid end to end, they would not reach a
conclusion."
- George Bernard Shaw
"No society that values order above all else will be creative, but
without some degree of order, creativity disappears."
-
Lester Thurow, 1999, Building Wealth
"It is not from the benevolence of the butcher, the brewer, or the baker,
that we expect our dinner, but from their regard to their own interest."
- Adam Smith, 1776, An Inquiry into the Nature and Causes
of the Wealth of Nations, Vol. I, Book I, Chapter II
"He ... neither intends to promote the public interest, nor knows how much
he is promoting it ... he intends only his own gain, and he is in this, as in
many other cases, led by an invisible hand to promote an end which was
no part of his intention."
- Adam Smith, 1776, An Inquiry into the Nature and Causes
of the Wealth of Nations, Vol. I, Book IV, Chapter II
"It's a recession when your neighbor loses his job; it's a depression when
you lose your own."
- Harry S. Truman, April 6, 1958, The Observer
Awards in economics
I.
Nobel prize
In 1968, the Bank of Sweden (Sveriges Riksbank) instituted the "Bank of Sweden
Prize in Economic Sciences in Memory of Alfred Nobel" in time for the bank's
tercentenary celebrations.
|
Year |
Nobel Laureate(s) |
Contribution(s) |
Institution(s) |
|
2005 |
Robert J. Aumann, Thomas C. Schelling |
for having enhanced our understanding of conflict and
cooperation through game-theory analysis |
Hebrew University of Jerusalem, Maryland |
|
2004 |
Finn
E. Kydland, Edward C. Prescott |
The time consistency of economic policy and the driving
forces behind business cycles |
Carnegie-Mellon, Arizona State |
|
2003 |
Robert
F. Engle, Clive W. J. Granger |
Methods of analyzing economic time series with time-varying
volatility (ARCH) and with common trends (cointegration) |
New York University, UC San Diego |
|
2002 |
Daniel Kahneman, Vernon L. Smith |
Integrated psychological research into economic science,
laboratory experiments as a tool in empirical economic analysis |
Princeton, George Mason University |
|
2001 |
George A. Akerlof, A. Michael Spence, Joseph E.
Stiglitz |
Markets with
asymmetric information |
Berkeley, Stanford,
Columbia |
|
2000 |
James J. Heckman, Daniel L. McFadden |
Selective samples,
discrete choice |
Chicago, Berkeley |
|
1999 |
Robert A. Mundell |
Monetary and fiscal
policy under different exchange rate regimes, optimum currency areas |
Columbia |
|
1998 |
Amartya Sen |
Welfare economics |
Trinity College (UK) |
|
1997 |
Robert C. Merton, Myron S. Scholes |
Derivatives valuation |
Harvard, Long-Term
Capital Management |
|
1996 |
James A. Mirrlees, William Vickrey |
Incentives under
asymmetric information |
Cambridge (UK),
Columbia |
|
1995 |
Robert E. Lucas Jr. |
Hypothesis of
rational expectations |
Chicago |
|
1994 |
John C. Harsanyi, John F. Nash Jr., Reinhard
Selten |
Equilibria in
non-cooperative games |
Berkeley, Princeton,
Rheinische Friedrich-Wilhelms-Universität (Germany) |
|
1993 |
Robert W. Fogel, Douglass C. North |
Economic theory and
quantitative methods in economic and institutional change |
Chicago, Washington
University |
|
1992 |
Gary S. Becker |
Microeconomic
analysis of human behaviour and interaction, including nonmarket behaviour |
Chicago |
|
1991 |
Ronald H. Coase |
Significance of
transaction costs and property rights for institutional structure and
functioning of the economy |
Chicago |
|
1990 |
Harry M. Markowitz, Merton H. Miller, William F.
Sharpe |
Financial economics |
City University of
New York, Chicago, Stanford |
|
1989 |
Trygve Haavelmo |
Probability theory
foundations of econometrics, simultaneous economic structures |
University of Oslo
(Norway) |
|
1988 |
Maurice Allais |
Markets and efficient
utilization of resources |
École Nationale
Supérieur des Mines de Paris (France) |
|
1987 |
Robert M. Solow |
Economic growth |
MIT |
|
1986 |
James M. Buchanan Jr. |
Contractual and
constitutional bases for theory of economic and political decision-making |
Center for Study of
Public Choice |
|
1985 |
Franco Modigliani |
Saving, financial
markets |
MIT |
|
1984 |
Richard Stone |
Systems of national
accounts |
Cambridge (UK) |
|
1983 |
Gerard Debreu |
New analytical
methods of economic theory, reformulation of general equilibrium |
Berkeley |
|
1982 |
George J. Stigler |
Industrial
structures, functioning of markets, causes and effects of public
regulation |
Chicago |
|
1981 |
James Tobin |
Financial markets,
and their relations to expenditure decisions, employment, production and
prices |
Yale |
|
1980 |
Lawrence R. Klein |
Econometric models,
and its application to analysis of economic fluctuations and policies |
Pennsylvania |
|
1979 |
Theodore W. Schultz, Sir Arthur Lewis |
Economic development,
particularly problems of developing countries |
Chicago, Princeton |
|
1978 |
Herbert A. Simon |
Decision-making
process within economic organizations |
Carnegie-Mellon |
|
1977 |
Bertil Ohlin, James E. Meade |
International trade,
international capital movements |
Stockholm School of
Economics (Sweden), Cambridge (UK) |
|
1976 |
Milton Friedman |
Consumption analysis,
Monetary history and theory, complexity of stabilization policy |
Chicago |
|
1975 |
Leonid Vitaliyevich Kantorovich, Tjalling C.
Koopmans |
Optimum allocation of
resources |
Academy of Sciences
(USSR), Yale |
|
1974 |
Gunnar Myrdal, Friedrich August von Hayek |
Money and economic
fluctuations, interdependence of economic, social and institutional
phenomena |
Stockholm University
(Sweden), University of London (UK) |
|
1973 |
Wassily Leontief |
Input-output method,
and its application to economic problems |
Harvard |
|
1972 |
John R. Hicks, Kenneth J. Arrow |
General economic
equilibrium, welfare theory |
All Souls College
(UK), Harvard |
|
1971 |
Simon Kuznets |
Empirical
interpretation of economic growth, which leads to understanding of
economic and social structure and process of development |
Harvard |
|
1970 |
Paul A. Samuelson |
Static and dynamic
economic theory, analysis in economic science |
MIT |
|
1969 |
Ragnar Frisch, Jan Tinbergen |
Dynamic models for
analysis of economic processes |
Oslo University
(Norway), Netherlands School of Economics (Netherlands) |
History
of economic thought
Free-market philosophy and Its Roots in
Ancient China (by Michael Vatikiotis, Far Eastern Economic Review, 10 June
1999)
The basic notions of a free-market economy were derived with
the help of observations made in China by Jesuit missionaries in the mid-18th
century. The source of these ideas was the Tao Te Ching, the basic text of
Taoism. The French translated the concept of wu wei into laissez-faire. Francois
Quesnay first coined the term "laissez-faire" in 1758 which then inspired Adam
Smith with his "Wealth of Nations".
Confucianism
in the Era of Globalization (by Mary Kwang, Straits Times, 2002)
Find out if Confucius' teachings are compatible with modern
business climate in globalization era. Doctrine of the Mean, or the middle road,
in decision making where the best choice is the one between what are seen as
unworkable extremes. Also morals and values, honesty and sincerity, and
patriarchy.
Lecture Review: Chinese
Economic Thought Before Adam Smith (lecture by Zagros Sadjadi, review by
William Dwyer)
Identify three main schools of
thought: the Legalists, the Taoists, and the Confucians. The Legalists believed
in maximal power to the state. The Taoists favors virtually no state
interference in economy. The Confucians were middle of -the-roaders on this
issue.
The Tao of
Adam Smith (by James A Dorn, Asian Wall Street Journal, 18 August, 2001)
Learn "market Taoism" that was thought out 2000
years before Adam Smith. The principle of wu-wei (nonaction) where rulers rule
best when they rule least; that is when they take "no unnatural action."
The Tao of Laissez-Faire (by Ken McCormick,
Eastern Economic Journal, Volume 25, Issue 3, 01 July 1999)
Those interested in a theoretical defense of laissez-faire can
add the arguments of Lao Tzu and Chuang Tzu to those of people like Smith and
Hayek. Taoism is a tradition which is different from Classical Liberalism, but
there is complete agreement on the very important subject of the propriety of a
policy of laissez-faire. One can speculate that the startling success of
economic liberalization in the People's Republic of China might in part be
explained by the fact that the idea of free markets is embedded in the culture.
Microeconomics
List of microeconomics concepts in teaching
sequential order (by Effendy Juraimin, 2003)
My thought of economics as
intermediary science in business school displayed as a diagram (by Effendy Juraimin, May 26,
2003)
The Economics of Love and Marriage
(by David D. Friedman, Price Theory: An Intermediate Text, chapter 21, 1990)
What and why is marriage? Looking at marriage as a two-person
firm. Then understanding the existence of transaction costs, specialization, the
costs of bilateral monopoly, and contract enforcement problems as reasons for
marriage.
Macroeconomics
List of macroeconomics concepts in teaching
sequential order (by Effendy Juraimin, 2003)
Economic freedom of the world (The Fraser Institute)
Economic freedom is the extent to which one can pursue
economic activity without interference from government. Economic freedom is
built upon personal choice, voluntary exchange, the right to keep what you earn,
and the security of your property rights. Under the leadership of
Michael Walker and Milton Friedman,
the Fraser Institute published The annual Economic Freedom of the World Report
that ranks countries on their level of economic freedom.
Religion and Political Economy in an
International Panel (by Robert J. Barro and Rachel M. McCleary, working
paper, May 2, 2002)
Economic and political developments affect religiosity, and
the extent of religious participation and beliefs influence economic performance
and political institutions. Church attendance and religious beliefs are
positively related to education and negatively related to urbanization.
Attendance also declines with higher life expectancy and lower fertility.
Economic growth responds positively to the extent of some religious beliefs
("believing") but negatively to church attendance ("belonging").
Economy of the United
States
Economic Statistics
Briefing Room (White House)
Easy access
to the most current federal economic indicators. All of the information are
produced and maintained by the statistical units of those agencies.
U.S. Economic Calendar (Yahoo! Finance)
Economic indicators for current week.
Economies of the Asia-Pacific
Asia-Pacific Economic Cooperation
Economic report and indicators of APEC members: Australia,
Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, Korea, Malaysia,
Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore,
Taiwan, Thailand, United States, Vietnam. Also available free publications,
tariff database, project database, labor market information, member action
plans.
Indonesian Economic Recovery Process
and The Role of Government (by Sri Mulyani Indrawati, Journal of Asian
Economics, Volume 13, Issue 5 , September-October 2002, Pages 577-596)
Sustainability of economic recovery process in Indonesia depends
on two important programs, stability in the macroeconomic environment, and the
implementation of a sound and credible restructuring of corporate debts along
with strengthening of the banking institution. Weak legal and judicial systems
combined with the new political competition will, at least in the short run,
result in more policy distortions, with the burden of cost shouldered by public
interest.
Corruption Perceptions Index 2002
(Transparency International)
Transparency International (TI) , the world's leading non-governmental
organization fighting corruption, releases their latest Corruption Perceptions
Index (CPI) 2002. The CPI reflects the perceptions of the degree of corruption
as seen by business people, academics and risk analysts, and ranges between 10
(highly clean) and 0 (highly corrupt). It ranks 102 countries. Seventy countries
- including many of the world's most povertyy-stricken - score less than 5 out of
a clean score of 10.
Also: TI's
Global Corruption Barometer 2003 where citizen of 44 countries were asked:
"If you had a magic wand and you could eliminate corruption from one of the
following institutions, what would your first choice be?"
Economic Growth Research
(The World Bank Group)
This website features published articles and working papers, with
the associated data sets, about globalization, poverty, corruption, human
capital, social capital, political institutions. Also:
news, reports & publications,
and data & statistics of East Asia & Pacific countries.
Growth Competitiveness Index 2005 (by World Economic Forum, Geneva)
The
study assigned scores to nations by looking at factors like government
economic policy, the strength of local institutions and the degree to which
technology has been used to bolster growth.
World
Competitiveness Rankings 2003 (by IMD business school of Lausanne,
Switzerland)
The rankings "analyze and rank the ability
of nations to create and maintain an environment that sustains the
competitiveness of enterprises".
Criteria used to measure
competitiveness factors are categorized into: economic performance,
government efficiency, business efficiency, and infrastructure.
Economics links
Anomalies of economic behavior
Prof. Richard Thaler (University of
Chicago) compiled a list of paradoxes and anomalies that challenges mainstream
economics' rational behavior assumption. Examples of such anomalies are why the
winners at auctions are often the real losers - they pay too much and suffer the
"winner's curse" - why gamblers bet on long shots at the end of a losing day,
"the endowment effect", and "the flypaper effect".
Armchair Economics
Prof. Bryan Caplan (George Mason University)
employed "economics to common sense in order to understand the world". He posts
article regarding "theory of fraud, "the economics of
insanity", etc.
How the
Dismal
Science Got Its Name?
Economics is called the dismal
science. But why? David M. Levy shows that it came from Thomas Carlyle’s 1849
“Occasional Discourse on the Negro Question,” in which Carlyle attacked
classical liberal economists for their support of black emancipation.
Economics of religion
This scientific study of religion seeks
to explain religious behavior from an economic (or "rational choice")
perspective. The economic approach rests upon the fundamental assumptions of
economic analysis: maximizing behavior, stable preferences, and market
equilibrium.
Middle of Nowhere
Economics Archive (by Brad Cox)
Find articles about internet
economics,
electronic property,
Japan,
Bionomics,
Hayek's "The
Use of Knowledge in Society" and "The
Road to Serfdom" (condensed and
cartoon versions)
Schools of thought in
economics
Learn the history of economic
thoughts. What are they? Who belongs to what?
Social Science Research Network (SSRN)
A well organized site of
Economics Research Network (ERN) that is dedicated to increasing
communication among economics scholars, practitioners, and policymakers
throughout the world.
"You have Two Cows" Jokes
How do you explain to your kids differences between Capitalism,
Communism, and Enron? What about Arthur Andersen and Other Capitalism?
Working Papers in Economics (WoPEc)
is a service for finding and downloading the latest research results in
economics. It contains over 50,000 documents in electronic format.