Ones and Tooze The Economics Revolution and the Nobel Prize
Oct 15, 2021
This discussion dives into the Nobel Prize awarded to economists who transformed economic practices through empirical testing. It highlights innovative approaches, such as applying medical experimental designs to economic policy. The hosts also explore the faltering cap and trade efforts in the U.S. contrasting with Europe's more successful emissions trading scheme. Challenges within Europe's system are examined, including pollution certificate allocation and the impact of rising costs on different socioeconomic groups.
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The Mariel Boatlift Study
- David Card studied the Mariel Boatlift, a sudden influx of Cuban migrants to Miami, as a natural experiment.
- His research challenged the conventional view that migrants depress wages and increase unemployment.
Minimum Wage Research
- Card and Alan Kruger studied the impact of minimum wage increases in New Jersey and Pennsylvania.
- Their surprising finding was no negative effect on employment, challenging traditional economic theory.
Ongoing Minimum Wage Debate
- Despite Card's research, the debate about minimum wage and job loss continues.
- While Card's work influenced policy, later studies have yielded mixed results.