The Importance of Ethical Testing in Economics

5min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

I think it's incredibly important when we're doing academic research or when the public is trying to find out what the effect of a policy is from that research. The answers aren't always what we might guess or what our theories would predict and apparently this is not always the way that people reach their conclusions. There has been a real um revolution I would say in in in empirical work within economics, says Nobel Prize winner Josh angris.

If you knew exactly when every person was going to die, or require medical care, you could make a killing buying and selling insurance. Nobody knows these things, of course -- the future is hard to predict -- but some people know something about the future that other people don't. This sets up adverse selection: the ability of one party to leverage information another party doesn't have, in order to gain an economic advantage. Economist Amy Finkelstein is an expert in this phenomenon, as well as the usefulness of empirical studies in economic research.

Support Mindscape on Patreon.

Amy Finkelstein received her Ph.D. in economics from the Massachusetts Institute of Technology. She is currently John & Jennie S. MacDonald Professor of Economics at MIT. She is the co-director and research associate of the Public Economics Program at the National Bureau of Economic Research, and the co-Scientific Director of J-PAL North America. Among her awards are a MacArthur Fellowship and the John Bates Clark Medal. Her recent book, with co-authors Liran Einav and Ray Fisman, is Risky Business: Why Insurance Markets Fail and What to Do About It.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.