| Peter Klein |
Because O&M is an econ-themed blog, I guess we’re obligated to post something about next week’s Nobel prize announcement. I confess I don’t follow the buzz that closely; the committee’s picks often make little sense to me and there are better things to do with one’s time. But, along the lines of this 2007 post, I note that several folks on Mankiw’s list of favorites work in the general area of organizational economics: Tirole, Milgrom, Hart, Holmström, Ostrom, Williamson, and Wilson.
Update: After today’s peace prize announcement, there is an obvious frontrunner: Ben S. Bernanke. Clearly actions and accomplishments don’t matter, only image and self-promoting rhetoric. (See also Mankiw’s take.)
- Whereas Tirole, Nordhaus, Milgrom, and others have made important and fundamental scholarly contributions to economic theory and policy analysis, only Obama has the audacity to hope for better economic policy in the future. Can he design a health care system that covers everyone and saves money? Yes, he can! Can he reengineer the financial system to eliminate systemic risk, protect consumers while maintaining the benefits of modern finance? Yes, he can! Can he reduce greenhouse emissions without reducing jobs and economic growth? Yes, he can! What actual economist would dare say those things? For his vision alone, he deserves the prize.
- Obama has never been associated rational expectations theory or the efficient markets hypothesis. In fact, he’s turned his administration into one big Behavioral Economics Seminar.
- I’ve heard rumors that Obama still plans to broker a peace treaty between Paul Krugman and Bob Lucas. Unfortunately, the track 2 negotiations seem to have broken down.
- The Scandinavians could really stick it to George Bush by giving Obama two Nobel Prizes.
- He taught at the University of Chicago.