Institutions, Economics, and AI Dynamics

This chapter examines the critical influence of inclusive institutions on a country's economic success and the limitations of applying scientific methods to social issues. It contrasts historical perspectives on European colonies' prosperity, emphasizing the role of human capital and institutions while addressing critiques of these theories. Additionally, the discussion explores the evolving impact of AI on economic thought, labor markets, and the complexities of data analysis in understanding these relationships.

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This week on Econ 102, Noah Smith and Erik Torenberg tackle the shift in economic research from empirical studies to "big think" theories, critically examine Acemoglu's work on institutions and AI's impact on jobs, and debate the future of economics as a science.

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TIMESTAMPS:

(00:00) Intro

(01:14) Shift in economic theories

(07:16) Influence of economic theories on practice