Abhijit Banerjee, a Nobel laureate and MIT Professor, dives into the interplay of theory and practical economics, emphasizing that randomized trials are more than just data, but tests of theoretical hypotheses. He explores challenges like premature deindustrialization in emerging markets and shares insights on Kolkata's vibrant food scene, contrasting Indian and French sweets. The conversation also touches on Bengali intellectualism, the evolution of leftist thought, and the importance of enriching graduate economics training to connect theory with real-world applications.
In this book, Abhijit V. Banerjee and Esther Duflo tackle the major economic issues of our time, such as immigration, job losses due to automation and trade, inequality, and climate change. They argue for intelligent interventionism and a society built on compassion and respect, using their experiment-based approach to provide clear and accessible explanations. The book covers essential issues like migration, unemployment, growth, free trade, political polarization, and welfare, and offers practical solutions based on decades of research[2][3][5].
The Narrow Corridor
States, Societies, and the Fate of Liberty
Daron Acemoglu
James A. Robinson
In 'The Narrow Corridor', Daron Acemoglu and James A. Robinson explore the delicate balance between state capacity and societal power, arguing that this balance is crucial for achieving liberty and prosperity. They introduce the concept of the 'Shackled Leviathan', where a strong state is kept in check by an active society, preventing both despotism and statelessness. The book uses historical examples to illustrate how this balance can lead to successful governance and economic growth.
Long before Abhijit Banerjee won the 2019 economics Nobel with Michael Kremer and Esther Duflo, he was a fellow graduate student at Harvard with Tyler. For Tyler, Abhijit is one of the brightest economic minds he’s ever met, and “a brilliant theorist who decided the future was with empirical work.” But according to Abhijit, theory and practice go hand in hand: the real benefit of a randomized control trial isn’t getting unbiased estimates, he says, but in testing hypotheses borne out of theory.
Abhijit joined Tyler to discuss his unique approach to economics, including thoughts on premature deindustrialization, the intrinsic weakness of any charter city, where the best classical Indian music is being made today, why he prefers making Indian sweets to French sweets, the influence of English intellectual life in India, the history behind Bengali leftism, the best Indian regional cuisine, why experimental economics is underrated, the reforms he’d make to traditional graduate economics training, how his mother’s passion inspires his research, how many consumer loyalty programs he’s joined, and more.
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