A wonderful Nobel Prize to the founders of modern development economics.
Between them they've each logged millions of miles, written scores of papers, trained a new generation of students, and transformed many poor communities.
Between them they've each logged millions of miles, written scores of papers, trained a new generation of students, and transformed many poor communities.
It wasn't long ago that development econ belonged to the "country doctors" who would fly from country to country making grand pronouncements without much of a sense of what life in poverty meant.
Abhijit, Esther and Michael took a very different—much more modest, and much more scientific approach.
They took what we've learned about market failure, about behavioral economics, and the lives of the poor, to design new policies that might help.
Then they tested them.
They took what we've learned about market failure, about behavioral economics, and the lives of the poor, to design new policies that might help.
Then they tested them.
And that's what makes modern development economics so different: It's all about the evidence. Theory inspires the new interventions they try; evidence is how they judge whether it works.
Governments around the world talk about evidence-based policy; these three live it.
Governments around the world talk about evidence-based policy; these three live it.
A common critique of their approach is that it is modest—they're not selling a silver bullet that creates development miracles. Instead they're looking to make incremental changes in the lives of the poor.
A string of incremental improvements beats a magic cure that may not work
A string of incremental improvements beats a magic cure that may not work
Can we talk about age and timing for a moment?
I think a lot of use saw a development econ Nobel coming at some point. But these guys are still young, and their revolution is still in progress.
I think a lot of use saw a development econ Nobel coming at some point. But these guys are still young, and their revolution is still in progress.
There are plenty of econs who can't sleep on Nobel day, hoping it's their turn. I bet Abhijit, Esther and Michael slept just fine last night, and the fact that a big prize was about to be awarded barely registered.
And this is the first prize to go to folks who are close to being contemporaries of mine, and it's an odd thing to contemplate.
Esther was just a couple of years ahead of me in graduate school. Michael was the young hotshot just hired at Harvard when I was a grad student there.
Esther was just a couple of years ahead of me in graduate school. Michael was the young hotshot just hired at Harvard when I was a grad student there.
It's an amazing prize.
It's about a big and important question—how to alleviate poverty in poor countries.
It recognizes a methodological revolution—experiment, process the evidence, and iterate.
And it goes to a trio who are extraordinary economists with wonderful people.
It's about a big and important question—how to alleviate poverty in poor countries.
It recognizes a methodological revolution—experiment, process the evidence, and iterate.
And it goes to a trio who are extraordinary economists with wonderful people.
Today's Nobel makes me happy for my field, for my friends, and for the future of economics.
