September 2011

Grant application deadline approaching: September 15, 2011

This is a friendly reminder to let you know that the deadline for grant applications is quickly approaching. The Institute for New Economic Thinking is looking forward to reviewing all grant applications, so if you have not yet submitted yours, please do so by September 15th 2011. Read more

On the Playground: Ethics in Economics

The History of Economics Playground began life when a small group of young historians of economics created an independent blog. INET saw the opportunity to give their thoughtful ideas a wider audience, and the History of Economics Playground is now a featured blog on ineteconomics.org. Read more

Leanne Ussher and Sorin Solomon - Financial Fragility in a Network of Trade Credit

30 Ways to Be an Economist is INET's grantee interview series - INET grantees talk about how they do their work, and how they came to be doing it. This week: Leanne Ussher and Sorin Solomon - Financial Fragility in a Network of Trade CreditRead more

Leanne Ussher and Sorin Solomon - Financial Fragility in a Network of Trade Credit

About the Interview

The physicist Sorin Solomon begins to feel dizzy when the economist Leanne Ussher talks econ lingo. Yet he listens, because the two of them have found a productive area of collaboration: some economic phenomena, they find, can be explained without recourse to the quirks that feed into human decision making. Sometimes, they say, we can model people as if they were particles, and explore consequences of the social structure that constrains their possible actions. Ussher and Solomon set up a model of Italian industry, stock-flow consistent and grounded in firm-level data on trade credits, to trace out the relation between network structure and financial fragility -- this is new economic thinking. Read more

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Doyne Farmer - Macroeconomics From the Bottom Up

30 Ways to Be an Economist is INET's grantee interview series - INET grantees talk about how they do their work, and how they came to be doing it. This week: Doyne Farmer - Macroeconomics From the Bottom Up. Read more

Doyne Farmer - Macroeconomics From the Bottom Up

About the Interview

In 2006, the Fed asked its macroeconometric model what would happen if house prices dropped by 20%. The model projected the past into the future and said: "Not much." Well, the financial crisis proved it wrong. Meanwhile, DSGE models, the main alternative up to this date, do not feature financial institutions; "They are not even good enough to be wrong," says Doyne Farmer. That's why Farmer and his team are developing an agent-based model, of the housing market first and of the entire economy next, to mimic the current financial crisis. The team collects data on actual people to calibrate a rich model with millions of interacting agents. This is a bottom-up approach to macroeconomics -- this is new economic thinking. Read more

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