October 20, 2021

Three Americans have been awarded the Nobel Prize in Economic Sciences

The Nobel Prize in Economic Sciences was awarded to David Card, Joshua D. Angrist and Guido W. Impence were awarded for their work on natural experiments, especially their contribution to a better understanding of how the job market works.

Economics and Other Social Sciences For practical and ethical reasons, there are limited opportunities to conduct randomized experiments in physiology that allow researchers to test causal relationships.

But in recent decades, the work of the three winners has helped economists make better use of natural experiments, some of which are subject to approximately one policy, while others are not.

“Their research has significantly improved their ability to answer key causal questions, which is of great benefit to society,” said Peter Frederickson, chairman of the Economic Science Prize Committee.

The various policy responses to the Govt-19 epidemic by many economists have prompted a large number of natural trials that could be used to explore causal relationships, which would otherwise be difficult to investigate.

Mr. Kart was born in Guelph, Canada in 1956 and is currently a professor at the University of California, Berkeley; Mr. Angrist was born in 1960 in Columbus, Ohio and is currently a professor at the Massachusetts Institute of Technology; And Mr. Impence was born in 1963 in Eindhoven, Netherlands and is a professor at Stanford University.

In awarding the prize to Mr. Guard, he challenged the usual notion that a minimum wage increase would lead to a fall in employment, citing a 1993 paper co-authored with the Royal Swedish Academy of Sciences Alan Krueger.

The natural trial in question increased the minimum wage in New Jersey from $ 4.25 to $ 5.05 per hour. Two economists surveyed more than 400 restaurants in the state and neighboring eastern Pennsylvania, but found that the minimum wage did not fall on increased employment.

Similar experiments have allowed economists to answer questions about the impact of education on income.

Natural experiments differ from laboratory experiments in that physicists test their theories in which economists cannot choose the subjects in which they participate.

The Royal Swedish Academy of Sciences, Messrs. Angrist and Impence have developed an understanding of the conditions under which natural experiments can cause causal interactions.

Eva Mark, an economics professor at the University of Uppsala in Sweden, said, “They have shown that they can assess the well-defined causal effect of an intervention, even if they cannot control who participates in the intervention.”

In a 1994 paper, both economists established the principle that the impact of policy should be determined by those who do not follow it in other ways. In the case of examining the impact of the Vietnam Draft on future revenues, only the draftsmen’s income is relevant, excluding the income of the volunteers.

All three economists have worked on one of the papers, Mr. Impense said Mr Angrist was the best man in his marriage.

“I was very happy to hear this news, especially when I heard that I shared this with Josh Angrist and David Card,” Mr Impense said. “They’re both good friends of mine.”

Write to Paul Hannan at [email protected]

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