Associated Press reporter Karl Ritter writes that Prof. Bengt Holmström has been honored with the Nobel Prize in economics. ‘‘I certainly did not expect it, at least at this time, so I was very surprised and very happy, of course,’’ Holmström said.
Prof. Bengt Holmström won the Nobel Economics Prize for his work on contract theory, Daniel Dickson and Ross Kerber report for Reuters. "This theory has really been incredibly important, not just for economics, but also for other social sciences," said Prof. Per Stromberg, a member of the prize committee.
A paper co-authored by Prof. Amy Finkelstein finds that “pet health care in the United States has exhibited growth, accessibility, and end-of-life spending patterns that almost directly mirror patterns in the American human health-care system,” writes Vann R. Newkirk II for The Atlantic.
A paper co-authored by Prof. Amy Finkelstein compares human and pet health care costs, reports Aimee Picchi for CBS News. The study found that, “spending on human medical care was 50 percent higher in 2012 than in 1996, while spending on pet health care jumped 60 percent,” writes Picchi.
A study by Prof. David Autor finds a shift in voting patterns in areas of the country impacted by trade with China, report Binyamin Appelbaum, Patricia Cohen and Jack Healy for The New York Times. “This undercurrent of economically driven dissatisfaction,” Autor explains, “works to the benefit of candidates who are noncentrist, and particularly right-wing candidates.”
Prof. Antoinette Schoar writes for The Wall Street Journal about her research examining how credit card companies are using customer data to target specific consumers. Schoar writes that “as more and more personal data becomes available, businesses are now able to target customers in a personalized and sophisticated way.”
Prof. Ricardo Caballero and his colleagues have found that due to the integrated nature of the world’s financial markets, “a slump in some economies can eventually engulf all of them.” The Economist notes that the researchers found “once a few economies become stuck in the zero-rate trap, their current-account surpluses exert a pull which threatens to drag in everyone else.”
During a Financial Times podcast, Prof. Heidi Williams speaks about her work studying the impact of patent policy and technology on medical research and health care. Williams explains that her work focuses on the role patents and policies play in developing "the medical technologies that are most beneficial to patients.”
In an article for The Wall Street Journal, Jason Zweig writes about how investors are buying high-risk bonds instead of high-quality bonds due to low interest rates. Zweig cites a new study co-authored by graduate student Chen Lian showing that “investors generally aren’t tantalized by risky alternatives to safe bonds until rates fall to 3%.”
In an article for Bloomberg View, Noah Smith highlights a paper by Prof. Daron Acemoglu, in which he argues that government is essential to economic development. Smith writes that Acemoglu’s new theory, makes the case that “a strong and effective state…isn’t the bane of innovation -- it’s a necessary and crucial input.”
In a Wall Street Journal series examining the roots of America’s current economic disillusionment and how it is impacting the presidential election, Jon Hilsenrath and Bob Davis highlight Prof. Erik Brynjolfsson and Research Scientist Andrew McAfee’s work examining how technology impacts jobs, and Prof. David Autor’s research on how trade with China has affected the U.S. labor market.
Wall Street Journal reporter Adam Creighton writes about a study co-authored by MIT researchers that found taxing wealth leads to a decrease in declared wealth. The authors found “a 0.1 percentage point increase in the rate of wealth tax prompts a 4% jump in the probability of a taxpayer’s reported net wealth dropping below the wealth tax-free threshold.”
Prof. David Autor spoke with The Economist about the impact of artificial intelligence and automation on jobs. “This notion that there’s only a finite amount of work to do, and therefore that if you automate some of it there’s less for people to do, is just totally wrong,” he says.
Umair Irfan of ClimateWire writes that a new paper by Prof. Jessika Trancik finds that renewable energy storage can be a good investment, and provides insight on which storage technologies are the most economically feasible. “One of the major technology challenges of scaling up renewables is developing economically feasible energy storage," says Jessika Trancik.
Writing for The Huffington Post, Richard Freed highlights a study by MIT researchers that found that a student’s academic performance tends to decline when personal computing technology is available. The researchers “compared West Point students’ final exam scores for those who used personal computers and tablets in class to those who didn’t.”