Nobel in economics to scholars who developed tools to address questions of institutional design


Posted on October 16, 2007  /  0 Comments

Much of LIRNEasia’s work is focused on design of institutions.   While we have been drawing on Shiller (not an awardee this time) we will be looking at the work of Hurwicz, Maskin and Myerson in more detail as we move into our third cycle of research.

3 Americans Win Nobel in Economics – New York Times

The work begun by Mr. Hurwicz, and advanced by Mr. Maskin and Mr. Myerson, gave economists and policy makers new intellectual tools to address questions like those listed in the academy’s citation: “How well do different such institutions, or allocation mechanisms, perform? What is the optimal mechanism to reach a certain goal, such as social welfare or private profit? Is government regulation called for, and if so, how is it best designed?”

The institutional focus of this year’s laureates, economists say, is an important contribution. “Economists’ most lasting influence comes from the design of institutions,” said Robert J. Shiller, a professor of economics at Yale University. “It is these mechanisms we use day to day that really matter to our lives.”

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