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Economics is one of the better-funded and more scientific social sciences, but in some critical ways it is failing us. The main problem is standards: They are either too high or too low. In both cases, the result is less daring and creative.
Consider academic research. In the 1980s, the ideal journal submission was widely thought to be 17 pages, maybe 30 pages for a top journal. The result was a lot of new ideas, albeit with a lower quality of execution. Nowadays it is more common for submissions to top economics journals to be 90 pages, with appendices, robustness checks, multiple methods, numerous co-authors, and every possible criticism addressed along the way.
There is little doubt that the current method yields more reliable results. But at what cost? The economists who have changed the world, such as Adam Smith, John Maynard Keynes or Friedrich Hayek, typically had brilliant ideas with highly imperfect execution. It is now harder for this kind of originality to gain traction. Technique stands supreme and must be mastered at an early age, with some undergraduates pursuing “pre-docs” to get into a top graduate school.
At the same time, the profession is pursuing a kind of “barbells” strategy. On Twitter (and, earlier, blogs), barriers to entry are very low and a Ph.D. is not required. That can be a good thing, but quality checks are extremely weak.
Here is the dirty little secret that few economics professors will admit: As those “perfect” research papers have grown longer, they have also become less relevant. Fewer people - including academics - read them carefully or are influenced by them when it comes to policy.
Actual views on politics are more influenced by debates on social media, especially on such hot topics such as the minimum wage or monetary and fiscal policy. The growing role of Twitter does not have to be a bad thing. Social media is egalitarian, spurs spirited debate and enables research cooperation across great distances. Still, an earlier culture of “debate through books” has been replaced by a new culture of “debate through tweets.” This is not necessarily progress.
To use a bit of economic terminology, economists have not fully internalized the lessons of the Laffer Curve. By demanding so much rigor in academic research, they have created an environment in which most of the economics people actually see is less rigorous.
Consider academic research. In the 1980s, the ideal journal submission was widely thought to be 17 pages, maybe 30 pages for a top journal. The result was a lot of new ideas, albeit with a lower quality of execution. Nowadays it is more common for submissions to top economics journals to be 90 pages, with appendices, robustness checks, multiple methods, numerous co-authors, and every possible criticism addressed along the way.
There is little doubt that the current method yields more reliable results. But at what cost? The economists who have changed the world, such as Adam Smith, John Maynard Keynes or Friedrich Hayek, typically had brilliant ideas with highly imperfect execution. It is now harder for this kind of originality to gain traction. Technique stands supreme and must be mastered at an early age, with some undergraduates pursuing “pre-docs” to get into a top graduate school.
At the same time, the profession is pursuing a kind of “barbells” strategy. On Twitter (and, earlier, blogs), barriers to entry are very low and a Ph.D. is not required. That can be a good thing, but quality checks are extremely weak.
Here is the dirty little secret that few economics professors will admit: As those “perfect” research papers have grown longer, they have also become less relevant. Fewer people - including academics - read them carefully or are influenced by them when it comes to policy.
Actual views on politics are more influenced by debates on social media, especially on such hot topics such as the minimum wage or monetary and fiscal policy. The growing role of Twitter does not have to be a bad thing. Social media is egalitarian, spurs spirited debate and enables research cooperation across great distances. Still, an earlier culture of “debate through books” has been replaced by a new culture of “debate through tweets.” This is not necessarily progress.
To use a bit of economic terminology, economists have not fully internalized the lessons of the Laffer Curve. By demanding so much rigor in academic research, they have created an environment in which most of the economics people actually see is less rigorous.
Which of the following can be concluded about those in positions of influence in the field of economics?
A. They are not giving due importance to academic rigor in deciding the practical aspects of theoretical economics.
B. They are getting swayed by the emotional response that popular economic policies generate.
C. They are openly choosing the help of social media in formulating their opinions of economic policy.
D. They are making impactful decisions on economic policy based on human impulse rather than cold logic.
A. They are not giving due importance to academic rigor in deciding the practical aspects of theoretical economics.
B. They are getting swayed by the emotional response that popular economic policies generate.
C. They are openly choosing the help of social media in formulating their opinions of economic policy.
D. They are making impactful decisions on economic policy based on human impulse rather than cold logic.
Why does the author mention economists who have changed the world?
A. To mention the tendency of people to discredit the geniuses for their not being understandable.
B. To make a reference to the challenging nature of the implementation of an idea despite its brilliance.
C. To highlight how brilliant thinkers of the past were rendered powerless because their ideas were impractical.
D. To give an example of how the translation of a complex idea into a simpler form is important for it to become popular.
A. To mention the tendency of people to discredit the geniuses for their not being understandable.
B. To make a reference to the challenging nature of the implementation of an idea despite its brilliance.
C. To highlight how brilliant thinkers of the past were rendered powerless because their ideas were impractical.
D. To give an example of how the translation of a complex idea into a simpler form is important for it to become popular.
How can the nature of the author’s viewpoint on using social media to formulate economic policy, be best described?
A. Openly hostile towards doing so.
B. Fearful of the intellectual merit in doing so.
C. Derogatory about the efficacy of doing so.
D. Doubtful of the benefit in doing so.
A. Openly hostile towards doing so.
B. Fearful of the intellectual merit in doing so.
C. Derogatory about the efficacy of doing so.
D. Doubtful of the benefit in doing so.
Which of the following ideas the author might agree with?
A. That democratising the making of economic policy has dire consequences.
B. Top level economics’ theorists need to give more value to research work however complex it is.
C. Twitter is being used for purposes other than what it was originally intended for.
D. The opinions on any economic policy inadvertently involve debate and dialogue.
A. That democratising the making of economic policy has dire consequences.
B. Top level economics’ theorists need to give more value to research work however complex it is.
C. Twitter is being used for purposes other than what it was originally intended for.
D. The opinions on any economic policy inadvertently involve debate and dialogue.
What could be a likely continuation of the above passage?
A. An overview of ways in which Twitter is impacting the lives of people in various other contexts.
B. Further incrimination of Economics professors.
C. A presentation of evidence of how social media influenced the election of Joe Biden.
D. A reminder that corrective measures are needed where economic policy making is concerned
A. An overview of ways in which Twitter is impacting the lives of people in various other contexts.
B. Further incrimination of Economics professors.
C. A presentation of evidence of how social media influenced the election of Joe Biden.
D. A reminder that corrective measures are needed where economic policy making is concerned
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