ItemList
number of items: 20
total items: 249
item list element: Corruption Uniquely Alters How Institutions Promote Economic Growth
item list element: Sustainability May Be Bolstered By Income: Household Cooking Fuel Choice in a Developing Country
item list element: Economics: Times Have Changed
item list element: From Gambling to Economic Growth: how a Greek goddess inspired a new model for Italy’s local development
item list element: Mesoeconomics: Missing Link, or Needless Pedantry?
item list element: The INOMICS Questionnaire: Fratzscher vs Blanchard
item list element: Alfred Marshall
item list element: Austrian Economics: Historical Contributions and Modern Warnings
item list element: The economics of heavy metal music
item list element: Book Review: “Booms and Depressions”
item list element: Adam Smith
item list element: 2023 Nobel Prize in Economics - The Winner
item list element: Why So Serious? 10 Hilarious Economics Jokes to Lighten the Mood
item list element: The Job Outlook for Economists in the US
item list element: Scientists rejoice: the UK rejoins the Horizon Europe programme
item list element: John Maynard Keynes
item list element: The INOMICS Questionnaire: Fratzscher vs Wursten
item list element: Assessing Cryptocurrency's Potential to Overthrow the U.S. Dollar's Dominance in the Financial System
item list element: A primer on how popular AI models work and their current limitations
item list element: The Challenges Faced by Small Island Economies
links:
  self: https://inomics.com/api/v1/listings/it/top/blog
  first: https://inomics.com/api/v1/listings/it/top/blog
  prev: https://inomics.com/api/v1/listings/it/top/blog
  next: https://inomics.com/api/v1/listings/it/top/blog
  last: https://inomics.com/api/v1/listings/it/top/blog
  html: https://inomics.com/top/it/top/blog
meta:
  total: 249
  page: 2
  per page: 20
  total pages: 13
  generated at: 2026-08-26T02:36:37Z

Corruption Uniquely Alters How Institutions Promote Economic Growth
type: Article
title: Corruption Uniquely Alters How Institutions Promote Economic Growth
description: Welcome to the world of my research, where I explore this intricate relationship between institutional quality and economic growth. My work dives into how institutions shape economic dynamics, focusing on issues like corruption, the impact of the euro, and the role of institutional frameworks in economic convergence. Discovering Corruption’s Effect on Economic Growth When we think about the factors that drive or hinder economic growth, corruption often surfaces as a prime suspect. But how exactly does corruption influence the economic trajectory of a nation? Our recent study (Beyaert, García-Solanes and Lopez-Gomez, 2023) takes a fresh approach to answering this question, using innovative regression tree analysis and advanced econometric techniques to explore the nuanced effects of corruption on growth across 103 countries over the period from 1996 to 2017. Traditional economic growth models, like those developed by Barro and Sala-i-Martin (1992) and Mankiw et al. (1992), have typically treated corruption as a direct drag on growth. However, this study challenges that assumption by suggesting that corruption's impact is more indirect—and complex—than previously thought. Rather than applying a one-size-fits-all model, the researchers utilized regression tree methodology, which allowed them to segment countries into different subgroups based on specific characteristics (or "split variables") and then estimate distinct growth models for each group. The regression tree algorithm was allowed to determine endogenously whether the group divisions should be based on corruption, “Rule of Law”, or a combination of both. In particular, the analysis showed that separating countries into just two primary groups was best: those with high levels of corruption and those with low levels of corruption. This segmentation is crucial as it reveals how the impact of traditional growth factors—like capital accumulation and population growth—varies significantly across these groups. In nat…
disambiguating description: Imagine this: you're trying to solve a complex puzzle where every piece represents a different facet of economic performance. Now, imagine that the shape of some of these pieces are influenced by the quality of the institutions in place—things like governance, legal frameworks, and anti-corruption measures. As it turns out, the fit of these pieces can make or break the overall picture of economic growth. Institutions, in this sense, are not just background players; they are fundamental to how the economic puzzle comes together.
date posted: 2024-09-09T16:49:24Z
date modified: 2026-06-23T10:27:34Z
employment type: onsite
language: en
keywords: anticorruption
keywords: economic growth
keywords: economic institutions
keywords: Laura Lopez Gomez
keywords: euro zone
keywords: corruption
type: blog
disciplines: economics
disciplines: socialscience
disciplines: generaleconomics
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: General Economics (JEL A)

Sustainability May Be Bolstered By Income: Household Cooking Fuel Choice in a Developing Country
type: Article
title: Sustainability May Be Bolstered By Income: Household Cooking Fuel Choice in a Developing Country
description: The analysis revealed that an increase in durable asset accumulation heightens the likelihood of households adopting cleaner cooking fuels. Therefore, I find that the Ghanaian government could incentivize the adoption of clean fuels, consequently mitigating environmental pollution, by implementing policies aimed at augmenting household income. More broadly, this means that economic development can have positive effects on sustainability, something that policymakers in other regions should take note of. Introduction The seventh Sustainable Development Goal aims to ensure access to clean and affordable energy by 2030. This goal is crucial because reliance on unclean energy sources like firewood, charcoal, and kerosene cause significant environmental and health issues, including air pollution, deforestation, soil degradation, and harmful emissions that contribute to climate change. These sources emit harmful gasses such as CO2, methane, and nitrogen oxides, which adversely impact human health. Studies by Younger et al. (2022) and Amegah et al. (2012) reveal detrimental health effects from exposure to these gasses, including reduced birth weight and increased neonatal mortality in low-income countries like Ghana). In Ghana, the use of unclean energy stems from “energy poverty”, where households lack access to modern, clean and affordable energy sources. This forces them to resort to dirty and inefficient fuel sources. Factors contributing to this lack of access include low income levels, high prices of modern energy sources, and geographic location. Shockingly, energy poverty in Ghana is reported to be at a staggering 82.5% (Adusah-Poku and Takeuchi, 2019). This study aims to ascertain the impact of durable asset accumulation on the selection of household cooking fuels in Ghana. It posits that durable assets afford households greater financial capacity and purchasing power, enabling them to meet various needs, including access to cleaner fuels. The analysis distinguishe…
disambiguating description: The Sustainable Development Goals advocate ensuring universal access to clean and affordable energy by 2030, prompting a global push toward transitioning from unclean energy sources to cleaner alternatives. In response, Ghana has subsidized the cost of clean energy; however, the financial burden of this transition remains substantial for households. The role of household asset accumulation in facilitating this transition has been underexplored in existing literature; examples include Kafle and Dean (2015) and Ansong (2015). Utilizing logistic and instrumental variables (IV) regression methods along with data from the Ghana Living Standards Survey (round 6 & 7), I investigated how durable asset accumulation influences households' choice of cooking fuels in the research paper "The Nexus Between Household Durable Asset Accumulation And Household Cooking Fuel Choice in a Developing Country".
date posted: 2024-08-07T15:38:08Z
date modified: 2026-06-23T10:31:26Z
employment type: onsite
language: en
keywords: Nicholas Perigrino Palma
keywords: fuel
keywords: economic development
keywords: fuel choice
keywords: Ghana
keywords: cooking
keywords: Sustainable Development Goals
keywords: sustainability
type: blog
disciplines: economics
disciplines: socialscience
disciplines: economicdevelopmentgrowth
disciplines: agriculturalenvironmentaleconomics
disciplines: generaleconomics
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: Economic Development, Innovation and Growth (JEL O)
discipline labels: Agricultural and Environmental Economics (JEL Q)
discipline labels: General Economics (JEL A)

Economics: Times Have Changed
type: Article
title: Economics: Times Have Changed
description: Assumptions Mainstream economic theory is built upon a foundation of assumptions that are becoming increasingly outdated. For example, the way that businesses operate has changed drastically over the lifetime of the discipline, though many of the core assumptions of economics have remained unchanged. The shift towards the ‘knowledge economy’ and the idea of ‘economies of scale’ are proof of this business evolution. Both of these concepts have great appeal for capitalists – if companies get bigger, they benefit from cost savings. Bulk buying, advertising discounts, lower borrowing costs, and the ability to reduce fixed costs proportionally can all help bigger organisations reduce their average spend. Image credit: University of Bath. However, should companies get too large, ‘diseconomies of scale’ can set in. Perhaps production processes for different components can’t scale up at the same speed, communications get lost in translation, or workers start to feel less motivated. The theory implies that as businesses grow, they eventually hit limitations. This should mean that no company can grow large enough to corner the market. At least, that’s what we used to think. Grow – Continuously. While some companies still have scope for diseconomies of scale, in other cases, these forces can be offset by ‘increasing returns to scale’ which allow growing companies to reinforce their gains. Often described as ‘being ahead to get further ahead’, if a company grows by clever strategy – or even by chance – increasing returns can magnify this advantage. Therefore, the product, company, or technology can go on to lock in the market. In the new intangible economy, companies can grow – continuously. There are different sources of increasing returns, too. For example, the idea of ‘learning by doing’ (the more experience you have in doing something, the better you become) is one mechanism by which companies can experience increasing returns. Take the production of lithium-ion batteries f…
disambiguating description: In today’s world, the discipline of economics finds itself at an inflection point. The mainstream orthodoxy, often criticised for being made up of half-truths, is starting to unravel. As a result, a transformative shift is happening.
date posted: 2024-07-24T15:22:51Z
date modified: 2024-07-24T13:41:04Z
employment type: onsite
language: en
keywords: University of Bath
keywords: network effects
keywords: future of economics
keywords: economic assumptions
keywords: economies of scale
keywords: artificial intelligence
type: blog
disciplines: economics
disciplines: socialscience
disciplines: generaleconomics
disciplines: economicthoughtmethodology
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: General Economics (JEL A)
discipline labels: Economic Thought & Methodology (JEL B)

From Gambling to Economic Growth: how a Greek goddess inspired a new model for Italy’s local development
type: Article
title: From Gambling to Economic Growth: how a Greek goddess inspired a new model for Italy’s local development
description: In the author’s own words, “Strange, perhaps, for a book that intends to deal with economic issues to bring Greek mythology into question.” He continues: “Certainly, it was not my intention to disturb the Gods of Olympus except that, absentmindedly reopening a booklet on Greek mythology, I once again came across the myth of Athena after about thirty years…The rereading of this myth and this very original Goddess made me reflect on the qualities and characteristics that every healthy society should possess to guarantee balanced and constant progress over time.” According to Giliberto, for some years now there has been debate in Italy about the need to undertake new models of territorial development. To that end, the book hypothesizes a desirable “cultural conversion”. By encouraging local citizens to invest even small sums of their money into local development rather than gambling with it, economic growth could be stimulated. Further, citizens would become more aware of the businesses and economic details of their region, increasing civic involvement. The Athena Model: regional development via local stock exchanges Giliberto notes that research has shown that at a certain point, increasing wealth no longer increases happiness. But that doesn’t mean that development isn’t a worthy goal, particularly in areas where the local economy has declined. And, Giliberto asserts that this model of development could serve two purposes: not only economic development, but also fostering cultural growth by better serving under-developed areas. He writes: “On the one hand, new theoretical approaches to well-being tend to demonstrate that it is necessary to review traditional models of development. In the case of my book, the intention is to reverse a cultural trend...Often, parts of the local population are abandoned to intellectual isolation, which also leads to forms of addiction [such as] gambling, alcohol and drugs...Perhaps the time has come to involve citizens in participating …
disambiguating description: Is it possible to reinvigorate under-developed regions by turning the public’s penchant for gambling into a force for economic growth? That is one of the questions asked by labor policy economist Luigino Giliberto in his debut book, Athena’s Reasons (currently offered in Italian). The book details a model of regional economic growth that aims to reinvigorate Italy’s less developed areas, inspired by the ancient Greek goddess Athena.
date posted: 2024-07-11T18:12:20Z
date modified: 2026-06-23T10:37:39Z
employment type: onsite
language: en
keywords: economic growth
keywords: growth and development
keywords: gambling
keywords: Sean McClung
keywords: Luigino Giliberto
keywords: stock market
keywords: Italy
type: blog
disciplines: economics
disciplines: socialscience
disciplines: economicdevelopmentgrowth
disciplines: generaleconomics
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: Economic Development, Innovation and Growth (JEL O)
discipline labels: General Economics (JEL A)

Mesoeconomics: Missing Link, or Needless Pedantry?
type: Article
title: Mesoeconomics: Missing Link, or Needless Pedantry?
description: Microeconomics is generally concerned with the optimal decision-making of individual economic actors, while macroeconomics considers the behavior of economies and economic data from a bird’s-eye view. But what if these two labels aren’t sufficient to encompass all of economics? Are economists missing something by failing to think outside of these “big or small” labels? That’s the question asked and answered by the term “mesoeconomics”, which purports to be the crucially important in-between that the field of economics has been missing. This term has been around for some time (it was first coined in 1986 by economist Yew-Kwang Ng) but has yet to become very popular among mainstream economists. That may be because there hasn’t been enough attention on the term to produce a significant body of research for it yet. Or, it could be because it’s a distinction that is simply not necessary to have within the field of economics. This article will dive into both sides of the argument, helping you make your own informed opinion. Will mesoeconomics become the next exciting new sub-field, like game theory, behavioral economics, and others before them – or is it overly pedantic? Before discussing the potential pros and cons of popularizing this new label, let’s first define it. Defining mesoeconomics Mesoeconomics is often defined as “the intermediary between micro- and macro-economics”, but this definition is quite lacking, as it does not explain what, exactly, is in between. Where “micro” is concerned with an individual economic agent’s decision-making, and “macro” is concerned with larger-scale economic behavior, mesoeconomics studies how society’s institutions – made up of individuals – interact based on the incentives that they face. As such, two existing sub-fields of economics can already be considered mesoeconomic; regional economics (often considered macroeconomics) and industrial organization (often considered microeconomics). To learn more about mesoeconomics, let’s ta…
disambiguating description: Everyone’s heard of micro- and macroeconomics. The two terms are so deeply ingrained in the world of economics that even lay people generally know what they refer to. Almost everything economists analyze can be arguably given one of these labels.
date posted: 2024-07-09T19:02:28Z
date modified: 2026-06-23T10:41:13Z
employment type: onsite
language: en
keywords: economic thought
keywords: economic theory
keywords: realistic
keywords: Sean McClung
keywords: mesoeconomics
type: blog
disciplines: economics
disciplines: socialscience
disciplines: generaleconomics
disciplines: economicthoughtmethodology
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: General Economics (JEL A)
discipline labels: Economic Thought & Methodology (JEL B)

The INOMICS Questionnaire: Fratzscher vs Blanchard
type: Article
title: The INOMICS Questionnaire: Fratzscher vs Blanchard
description: Olivier Blanchard is the C. Fred Bergsten Senior Fellow at the Peterson Institute for International Economics and the Robert M. Solow Professor of Economics emeritus at the Massachusetts Institute of Technology (MIT). After obtaining his PhD in economics from MIT in 1977, he taught at Harvard University before returning to MIT in 1982. He was chair of the economics department from 1998 to 2003. In 2008, he took a leave of absence to serve as economic counselor and director of the research department at the International Monetary Fund, where he stayed until 2015. He then joined the Peterson Institute. Blanchard has worked on a wide set of macroeconomic issues, including the role of monetary and fiscal policy, speculative bubbles, the labor market and determinants of unemployment, economic transition in former communist countries, the nature of the Global Financial Crisis, and the recent burst of inflation. He is the author of many books and articles, including two textbooks on macroeconomics (one at the graduate level with Stanley Fischer and the other at the undergraduate level). He is a past editor of the Quarterly Journal of Economics and the NBER Macroeconomics Annual; he is also a founding editor of the American Economic Journal: Macroeconomics. He is a fellow and former Council member of the Econometric Society, a past president of the American Economic Association, and a member of the American Academy of Arts and Sciences. Marcel Fratscher: What is your favorite place on earth? Olivier Blanchard: The French island where I have spent most of my summers, and, with time, a longer and longer period of time each year. Zen, sea, and fortunately and unfortunately, zoom. MF: Outside of economics, what occupation would you choose if you could be absolutely anything? OB: Concert pianist (although there is zero evidence that I have the slightest gift in that particular direction). But music moves me more than nearly anything else. MF: What is your favorite piece of music…
disambiguating description: The following article first appeared in the INOMICS Handbook 2024. Download the INOMICS Handbook Professor Marcel Fratzscher, esteemed macroeconomist and president of the DIW Berlin, once again asks questions about economics and life in general to a peer in the 2024 edition of the INOMICS Handbook Questionnaire. This time, he poses the questions to Dr. Olivier Blanchard, a prominent macroeconomist, who graciously took to the spotlight in this latest round. Thus, the back-and-forth has been dubbed Fratzscher vs. Blanchard, as is tradition. Dr. Blanchard offers us some interesting food for thought: the interview touches on the joy of conducting research with former students, the sometimes counterintuitive things we learn from economics, an analysis of Real Business Cycle Theory, and more.
date posted: 2024-06-17T19:19:18Z
date modified: 2026-06-23T10:42:58Z
employment type: onsite
language: en
keywords: INOMICS Handbook
keywords: macroeconomist
keywords: macroeconomics
keywords: Olivier Blanchard
keywords: Real Business Cycle theory
keywords: INOMICS Questionnaire
type: blog
disciplines: economics
disciplines: socialscience
disciplines: generaleconomics
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: General Economics (JEL A)

Alfred Marshall
type: Article
title: Alfred Marshall
description: Indeed, Alfred Marshall is considered one of the founding thinkers of neoclassical economics. He was a mathematician and philosopher who later became a microeconomist. His work formalized foundational economic concepts and theories such as supply and demand, price elasticity of demand, consumer and producer surplus, marginal utility, and production costs to produce some of the earliest cohesive economic models. He was even instrumental in making economics its own separate subject for the very first time at Cambridge, where he taught for much of his career. The entire field of economics was greatly influenced by both Marshall and several of his pupils, including famous economists Arthur Pigou and John Maynard Keynes. Alfred Marshall’s life Marshall was born in 1842 in London, England. He was at one time considering a career in the clergy, but abandoned the idea after he demonstrated significant talent for mathematics. Thereafter, Marshall attended St. John’s College in Cambridge, earning accolades in math (such as “Second Wrangler” in the Cambridge Mathematical Tripos) and securing his future as an academic. At first, Marshall wasn’t an economist – few in his time were! Rather, he studied subjects like math, physics, philosophy, and ethics, like many other thinkers of his time. It was allegedly Marshall’s love for ethics that led him to eventually study economic decision-making, as he saw economics as a means of improving the human condition for the common man. This was an ideal he shared with Adam Smith, another (earlier) important British thinker in economics. Thus, Marshall lent his considerable intellect to economic pursuits. In 1865, he was elected to a fellowship at St. John’s College at Cambridge. He married in 1877, left St. John’s, and taught at the University of Bristol and then at Oxford for a period afterward. In 1885, he became the Professor of Political Economy at the University of Cambridge, where he remained until his retirement in 1908. During this t…
disambiguating description: Alfred Marshall is a famous economist who made great contributions to the field when it was still relatively new towards the end of the 19th century. Yet, students often learn about important figures in economics only briefly and in passing, although the content taught in economics courses often comes from brilliant economists such as Marshall.
date posted: 2024-05-08T13:32:42Z
date modified: 2026-06-24T12:06:55Z
employment type: onsite
language: en
keywords: Economist Profiles
keywords: economic theory
keywords: neoclassical economics
keywords: classical economics
keywords: Sean McClung
keywords: Marginal Revolution
keywords: Alfred Marshall
type: blog
disciplines: economics
disciplines: socialscience
disciplines: generaleconomics
disciplines: economicthoughtmethodology
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: General Economics (JEL A)
discipline labels: Economic Thought & Methodology (JEL B)

Austrian Economics: Historical Contributions and Modern Warnings
type: Article
title: Austrian Economics: Historical Contributions and Modern Warnings
description: Although these “schools” are separately defined, many modern economists probably consider themselves to fall into an ideological mix of several, and theories from a school can be useful even if an economist considers themselves a “member” of another. This article focuses on the latter of these schools of thought, which happens to be set apart from the others in a unique way. Austrian economics is considered “heterodox”, or not mainstream. The Austrian school of economics may not even be considered legitimate economics by some modern economists. This article provides a brief history of the school, its contributions to economic theory and the reasons it’s generally no longer considered orthodox. Finally, there is a gentle warning about how the label may be misused in modern discourse. Defining Austrian economics To an Austrian economist, economics is about individual people making choices based on their preferences – in other words, human behavior (or “praxeology”, as Austrian school thinkers like to reference). Austrian economists are often also concerned with the unintended consequences of these individual choices, which have lasting effects on economic activity. Due to this concept of unintended consequences, Austrian economists tend to purport the idea that economic institutions form in unintentional and inefficient ways, as the result of individual agents’ own decisions and actions. In this view, it’s no one person who designs the economic systems we put in place – rather, they result as a by-product of the self-interested actions that individuals take. Then, because these systems are not purposefully designed, and because it’s impossible to know the preferences and utilities of every individual, Austrian economists tend to believe that government activity is usually harmful. In this way, they agree with classical economists who believe that government intervention is neutral at best. However, Austrian school economists disagree with the classical economists on o…
disambiguating description: There are many schools of thought in economics. Each rallies around one or more different theories about how the world works, and builds models to support those theories and explain the economy. These schools include the (neo)classical, (neo)Keynesian, monetarist, and Chicago schools. Readers may have heard about the Austrian school of thought as well.
date posted: 2024-04-10T19:18:04Z
date modified: 2026-06-24T16:43:39Z
employment type: onsite
language: en
keywords: Austrian economics
keywords: Sean McClung
type: blog
disciplines: politics
disciplines: economics
disciplines: socialscience
disciplines: generaleconomics
disciplines: economicthoughtmethodology
discipline labels: Politics
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: General Economics (JEL A)
discipline labels: Economic Thought & Methodology (JEL B)

The economics of heavy metal music
type: Article
title: The economics of heavy metal music
description: Cultural goods Heavy metal is an example of a cultural good. Cultural goods, like books, art, and music, can be studied using the standard tools of economics, such as supply and demand. Yet, cultural goods have unique characteristics that require further examination. Cultural goods embody aspects of both experience goods and information goods. Assessing their quality without experiencing them is challenging, as their value lies in the information they contain rather than in tangible commodities that are more easily compared. As a consequence, heavy metal music relies on word-of-mouth advertising within underground social networks to build a following. Quality signals, like fans wearing band T-shirts and posting on social media platforms, contribute to the genre’s growth, even amidst fluctuations in commercial popularity. Cultural goods like heavy metal music also generate positive externalities, meaning they produce value beyond private consumption. Heavy metal music helps develop social cohesion among its dedicated fanbase, and it inspires future musicians. These types of positive externalities are a common feature of cultural goods; part of their value is in helping groups of like-minded people form communities. On the other hand, cultural goods can also produce negative externalities, as not everyone will appreciate the noise pollution of their neighbor blaring death metal around the clock. Superstar theory Another way to consider the distinct attributes of cultural goods is to apply Sherwin Rosen’s superstar theory. Rosen (1981) demonstrated why a small number of top performers appropriate the majority of the earnings in certain industries like music, art and professional sports. We can apply this theory to heavy metal by considering two American thrash metal bands that became popular in the 1980s: Anthrax and Metallica. Both bands have a similar style and sound, but Metallica has a slight edge over Anthrax in terms of catchy, memorable melodies. In other words,…
disambiguating description: Economics can be used to study almost anything, including popular music. For example, the late Alan Krueger analyzed the music industry, examining live concert revenue, copyright protection, and streaming services in the book Rockonomics. Similarly, economics can offer insights about heavy metal specifically, a type of rock music characterized by loud distorted guitars, intense rhythms, and powerful vocal styles.
date posted: 2024-03-22T14:17:01Z
date modified: 2026-06-24T18:14:38Z
employment type: onsite
language: en
keywords: Sahar Milani
keywords: heavy metal music
keywords: music
keywords: heavy metal
keywords: cultural goods
keywords: metal music
keywords: cultural good
keywords: music economics
type: blog
disciplines: economics
disciplines: socialscience
disciplines: generaleconomics
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: General Economics (JEL A)

Book Review: “Booms and Depressions”
type: Article
title: Book Review: “Booms and Depressions”
description: The Author Irving Fisher is a revered mathematical economist and is considered by some to be "the greatest economist the United States has ever produced" (Schumpeter, 1997), despite his record of promoting harmful ideas (Fisher was known to be a proponent of eugenics, and endorsed racist ideas). Nevertheless, his books and reports in economics have been praised for their clarity and ease of understanding. Known in economics for his inveterate outlook, Fisher is credited with championing a range of reforms to the monetary system, including the compensated dollar, price level stability rule, 100% Money, Stamped Money Prohibition, and government-funded medical care, among others. Fisher’s inspiration for writing the book: losing in stocks In the 1920s, Fisher computed a stock market index that was regularly reported and published in reputed papers. On October 15, 1929, the New York Times quoted Fisher's statement at a meeting of the Purchasing Agent Association. The Times believed that Fisher's attitude "fell into almost unqualified optimism". A few days later on October 24, also known as Black Thursday, the stock market crash of 1929 (Bordo & Rockoff, 2011) proved the Times right and Fisher very wrong. The Great Depression had begun. Fisher's wrong prediction has become legendary. But rather than let it keep him down, the debacle influenced Fisher to reflect on his predictions and to write the book "Booms and Depressions". It went on to become the holy grail for research into business cycle fluctuations, debt cycles, and economic downturns. Book Overview In the book "Booms and Depressions", Fisher compiles nine main factors that caused the depression and accelerated its adverse effects, with over-indebtedness as the first main factor. The other factors include volume of currency, price level, net worth, profits, production, trade and employment, and optimism and pessimism. Over-indebtedness is when outstanding debts (whether they are individual, corporate, or national…
disambiguating description: The 1932 book "Booms and Depressions" by Irving Fisher, along with his 1933 Econometrica paper "The Debt-Deflation theory of Great Depression" earmarked the start of a new era for modern macroeconomics and financial literature. This article reviews the book in light of the current economic and financial scenario.
date posted: 2024-02-05T19:00:10Z
date modified: 2026-06-25T12:51:16Z
employment type: onsite
language: en
keywords: Booms and Depressions
keywords: economics books
keywords: business cycle
keywords: book review
keywords: Irving Fisher
keywords: Simtiha Ishaq Mir
keywords: recession
keywords: expansion
type: blog
disciplines: economichistory
disciplines: economics
disciplines: macroeconomicsmonetary
disciplines: socialscience
disciplines: generaleconomics
disciplines: economicthoughtmethodology
discipline labels: Economic History (JEL N)
discipline labels: Economics
discipline labels: Macroeconomics and Monetary Economics (JEL E)
discipline labels: Economics and Social Sciences
discipline labels: General Economics (JEL A)
discipline labels: Economic Thought & Methodology (JEL B)

Adam Smith
type: Article
title: Adam Smith
description: Adam Smith is arguably the most famous economist. His name is almost inevitably thrown around within the first few minutes of every introduction to economics course, and of course his famous book An Inquiry into the Nature and Causes of the Wealth of Nations is oft-discussed. But neither Adam Smith nor his contemporaries would have described him as an economist for most of his life. Instead, Smith was a philosopher, professor of logic, and sociologist. Today, he is often credited with launching the field of economics. Some even call him the “father of capitalism”, although Smith himself never used that word. So who was Adam Smith really, and why did he become so famous in economics? The life of Adam Smith Smith was born in Scotland in 1723 and lived until 1790. He was a philosopher as well as economist – indeed, economics as a field didn’t really exist until after Adam’s transformational The Wealth of Nations had been published. In 1737, Adam Smith matriculated at the University of Glasgow, graduating in 1740 at the age of 17. He then undertook graduate studies at Oxford, leaving there in 1746. In 1751, Smith was appointed professor of logic at the University of Glasgow, and a year later he was appointed the Chair of Moral Philosophy at the same institution. He was a fully participating member of university society, giving lectures daily and being elected the dean of the faculty in 1758. Adam Smith published his first book, The Theory of Moral Sentiments, in 1759. In it, he theorized on human nature, which laid a foundation for his later assertions about economic behavior. The work is primarily concerned with the moral character of humans and how reason interacts with selfish passion. It’s worth noting that even in this book Smith had stated that some “invisible hand” compelled the self-seeking rich to improve society, leading to benefits for everyone, although it would not be until Smith’s later writings that the phrase gained more recognition. Smith was offered a …
disambiguating description: Students often learn about important figures in economics only briefly and in passing, yet the content taught in economics courses often comes from brilliant economists such as these.
date posted: 2024-01-08T16:43:46Z
date modified: 2026-06-25T13:00:50Z
employment type: onsite
language: en
keywords: economic theory
keywords: Economist Profiles
keywords: neoclassical economics
keywords: mercantilism
keywords: classical economics
keywords: Adam Smith
keywords: An Inquiry into the Nature and Causes of the Wealth of
keywords: Sean McClung
keywords: Wealth of Nations
keywords: economists
type: blog
disciplines: economichistory
disciplines: politics
disciplines: economics
disciplines: socialscience
disciplines: generaleconomics
disciplines: economicthoughtmethodology
discipline labels: Economic History (JEL N)
discipline labels: Politics
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: General Economics (JEL A)
discipline labels: Economic Thought & Methodology (JEL B)

2023 Nobel Prize in Economics - The Winner
type: Article
title: 2023 Nobel Prize in Economics - The Winner
description: Receiving this prize makes Claudia Goldin only the third woman to win the Nobel Prize in Economic Sciences (following Elinor Ostrom in 2009 and Esther Duflo in 2019), and makes her the first to do so alone, i.e. without sharing the prize with another economist. The research that awarded the prize The research that won Dr. Goldin the Nobel Prize examines the gender pay gap between men and women through the centuries. To start, Dr. Goldin gathered U.S. data across the past 200 years. She analyzed this data to look for trends in employment and earnings for both men and women to study how the gender pay gap evolved – and to explain why it still exists today. Part of the reason for her Prize is that this information can help society to fight the gender pay gap, ensuring that equally qualified men and women are paid the same amount. According to the Royal Swedish Academy’s press release1, Chair of the Committee for the Prize in Economic Sciences Jakob Svensson had this to say about Dr. Goldin’s research: “Understanding women’s role in the labour market is important for society. Thanks to Claudia Goldin’s groundbreaking research we now know much more about the underlying factors and which barriers may need to be addressed in the future.” A few of Dr. Goldin’s findings stand out. First, the participation of women in the workforce has evolved over time in a roughly U-shaped pattern (see Figure 1, which was illustrated by Johan Jarnestad for the Nobel Prize organization). A few centuries ago, before the Industrial Revolution – when society was more agrarian – women participated in the labor force at a rate of almost 60%. During the decades from the late eighteenth century through the start of the twentieth, women’s workforce participation steadily declined as society industrialized. Then, in the early twentieth century, it started to rise again. Dr. Goldin postulates that several factors gave rise to this resurging increase in women’s workforce participation. First, education…
disambiguating description: The famous 2023 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, colloquially known as the Nobel Prize in Economics, has been awarded to a Harvard University economist this year: Dr. Claudia Goldin. The prize – worth 11 million Swedish crowns, or about $1 million or roughly €949.000 – was awarded to her by the Royal Swedish Academy of Sciences “for having advanced our understanding of women’s labour market outcomes…Her research reveals the causes of change, as well as the main sources of the remaining gender gap.”1
date posted: 2023-10-10T13:42:20Z
date modified: 2026-06-25T13:10:00Z
employment type: onsite
language: en
keywords: Gender Wage Gap
keywords: Nobel Prize
keywords: Gender Pay Gap
keywords: Dr. Claudia Goldin
keywords: Sean McClung
keywords: Gender inequality
keywords: Nobel Prize in Economics
keywords: Claudia Goldin
type: blog
disciplines: economichistory
disciplines: economics
disciplines: socialscience
disciplines: labordemographiceconomics
disciplines: generaleconomics
discipline labels: Economic History (JEL N)
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: Labor and Demographic Economics (JEL J)
discipline labels: General Economics (JEL A)

Why So Serious? 10 Hilarious Economics Jokes to Lighten the Mood
type: Article
title: Why So Serious? 10 Hilarious Economics Jokes to Lighten the Mood
description: 1. An Economist's Guessing Game Did you hear about the trained professionals who get paid to guess wrong? They're called economists! With their expertise in analyzing complex systems, economists often find themselves making educated guesses about the future. And let's face it, sometimes their predictions can be quite off the mark. But hey, at least they're trying! As Laurence J. Peter once said, “An economist is an expert who will know tomorrow why the things he predicted yesterday didn't happen today.” 2. The Light Bulb Conundrum How many economists does it take to change a light bulb? None. If the light bulb needed changing, the market would have already done it! After all, many economists prefer a hands-off approach to the economy, believing that market forces will naturally lead to optimal outcomes. In this case, they're taking that approach quite literally! 3. Handling the Gross Domestic Product What do an economist, plumber, and garbage disposal worker have in common? They all handle the gross domestic product! It turns out that the economic concept of GDP has a lot in common with the everyday work of different professions. It reminds us that even the most mundane tasks can have an economic impact. 4. Avoiding Rollercoaster Rides Why did the economist refuse to go on a roller coaster? Because he didn't want to experience any "ups" or "downs"! The economist's preference for stability and avoiding unpredictable or volatile situations is well-known. Perhaps this extends even to a recreational context like going on a roller coaster. 5. Noah, the Economist Which biblical character would have made a great economist? Noah! After all, while everyone's stocks were in liquidation, his were afloat. It shows that even in difficult times, there's always room for a bit of humor. Just ask the biblical Noah, or your friendly neighborhood economist. 6. An Economist’s Career in Fortune Telling Why did the economist take a job as a fortune teller? Because he wanted to specialize…
disambiguating description: Are you feeling overwhelmed by the complexities of economics? Do you need a break from the serious and often confusing world of resource distribution, scarcity, and production? Look no further! We have collected 10 hilarious economics jokes that are sure to bring a smile to your face. So sit back, relax, and get ready to laugh!
date posted: 2023-09-28T05:00:00Z
date modified: 2026-07-01T09:16:46Z
employment type: onsite
language: en
keywords: Sara Taha
keywords: economics jokes
type: blog
disciplines: economics
disciplines: socialscience
disciplines: generaleconomics
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: General Economics (JEL A)

The Job Outlook for Economists in the US
type: Article
title: The Job Outlook for Economists in the US
description: Are economists in demand? Is it a good idea to pursue a Master’s degree or Ph.D. in economics right now? If you’re pondering questions like these, good news. In today’s world, the answers appear to be “yes”, and “yes”, respectively. This article will examine growth in economics jobs in the US using Bureau of Labor Statistics (BLS) data together with our own data from the 2022 INOMICS Salary Report. If you would like to anonymously help INOMICS continue to learn about the economics job market, and empower economists to make informed career decisions, we implore you to take 3-5 minutes to answer our anonymous Salary Survey. Job growth for economist roles in the US The US BLS publishes job outlooks for various careers, showing how demand for those jobs is expected to change in the US over time. This data gives a sense of the future growth of economist roles, and can help economics students get an idea of the job opportunities they can expect. Although this article dives into US data, these findings can be thought of as an indicator for other regions with comparable socioeconomic profiles as the US, too. Last updated on September 6, 20231, the BLS reports that the number of positions for economists from 2022 through 2032 is expected to grow at a rate of 6% over the decade. This is roughly twice as fast as the economy-wide average; the BLS states that “The average growth rate for all occupations is 3 percent”. Economist job growth also beats out job growth in other social sciences, which are projected to grow at 5%. The data shows that there are currently about 17,600 economists employed in non-academic roles in the US. 6% job growth means that by 2032, the BLS expects there to be about 18,650 non-academic economists employed in the US (though they also project 1,100 new positions, which would represent a 6.5% increase). Similarly, the BLS estimates that there are 11,640 economics faculty positions in the US as of May 2022. A job growth estimate for economics professors …
disambiguating description: Being (or becoming!) an economist probably seems like a good idea. After all, you’re reading the INOMICS Blog! Beyond reading relevant advice and interesting articles, it can be helpful to have real data to answer questions about the job market for economists.
date posted: 2023-09-26T17:11:40Z
date modified: 2026-07-01T09:30:51Z
employment type: onsite
language: en
keywords: economics jobs
keywords: academic economist
keywords: United States
keywords: economist jobs
keywords: INOMICS Salary Report
keywords: Bureau of Labor Statistics
keywords: Sean McClung
keywords: industry economist
keywords: economist careers
type: blog
disciplines: economics
disciplines: socialscience
disciplines: generaleconomics
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: General Economics (JEL A)

Scientists rejoice: the UK rejoins the Horizon Europe programme
type: Article
title: Scientists rejoice: the UK rejoins the Horizon Europe programme
description: This general maxim can be applied to the growth of knowledge as well as the trade of physical goods. When researchers are allowed to specialize in their own topic areas and then collaborate with the other researchers around the world, knowledge – and therefore human capital – grows more than it would otherwise. Research and innovation can therefore be thought of similarly to the trade of physical goods; the more that is shared, the merrier. That’s part of why news about an agreement between the UK government and a prominent EU research program have given European and UK-based researchers – including many economists – renewed hope in the future of science. The Horizon Europe program On September 7, 2023, it was announced that the UK is set to rejoin the Horizon Europe research programme, after an agreement between the UK’s Prime Minister Rishi Sunak and European Commission president Ursula von der Leyen. It is expected that the UK will rejoin the programme effective January 1, 2024. The Horizon Europe programme is a framework for collaborating research across borders in the EU (and around the world) that includes researchers from top research institutes, technology companies and universities. The programme presents a framework of societal goals, some shared by member nations, and some (such as the UN’s Sustainable Development Goals) that are not just limited to relevance in the EU. The programme benefits researchers by streamlining complex administrative requirements and allowing access to a wide pool of potential funding; together, this makes it easier for a diverse body of researchers to work together, which lowers the barriers to advancing science. The programme notably features an open science mandate as well, helping to break down artificial barriers to sharing knowledge. According to a fact sheet released by the European Commission, as of 2021 the programme accounted for 17% of global R&D expenses and was at least partially responsible for 25% of the world’s to…
disambiguating description: International cooperation is important for economic growth, because it allows societies to grow more than they could on their own. When countries specialize in the economic areas they are relatively more productive in (utilizing their comparative advantages) and trade with other nations, everyone is made better off.
date posted: 2023-09-13T14:16:46Z
date modified: 2026-07-01T09:34:24Z
employment type: onsite
language: en
keywords: economics research
keywords: Horizon Europe
keywords: Brexit
keywords: Sean McClung
keywords: United Kingdom
type: blog
disciplines: politics
disciplines: economics
disciplines: socialscience
disciplines: generaleconomics
discipline labels: Politics
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: General Economics (JEL A)

John Maynard Keynes
type: Article
title: John Maynard Keynes
description: John Maynard Keynes was a philosopher and economist who made a massive impact on the field. He is often placed next to luminaries such as Adam Smith and Karl Marx as one of the great founding thinkers in economic theory, and for good reason. Keynes’ ideas formed the basis of Keynesianism, a school of economic thought that was the first to seriously challenge the classical way of thinking. Keynesianism is one of the major disciplines or philosophies of economics, as opposed to the classical, Neoclassical, or monetarist (and etc.) schools of thought. Until Keynes’ new theories, economists had been stuck with classical models of economics that were a great starting point for economic theory, but were ultimately too inflexible and unrealistic. (Eventually, economists who saw value in the classical models gave rise to the Neoclassical school of thought, which has updated and improved classical economic thinking to remedy some of the criticisms thrown at it). Economics was forever changed as a result of this new perspective, giving rise to many new models and theories and cementing Keynes’ place in the history books. <11an>limit:3;categories:Bachelor Programs, Master Programs;disciplines:Economics</11an> The life of Keynes Keynes was born in Cambridge, England, and remained there to study at King’s College in Cambridge. He received his degree in mathematics in 1905. There, he was influenced by the eminent economists Alfred Marshall and Arthur Cecil Pigou, whom he studied under. Keynes bounced around between academic and government employment during his adult life. In 1908, he became a lecturer at King’s College. He left to work for the British government in the India Office, which was tasked with overseeing British rule in India. Here he wrote his first major book, Indian Currency and Finance, in 1913. Later, he returned to the university to teach again until 1915. Keynes left university employment again to work for the British Treasury, where he was the chief representat…
disambiguating description: Students often learn about important figures in economics only briefly and in passing, yet the content taught in economics courses often comes from brilliant economists such as these.
date posted: 2023-09-11T23:04:57Z
date modified: 2026-07-01T09:47:07Z
employment type: onsite
language: en
keywords: Economist Profiles
keywords: Keynesianism
keywords: Sean McClung
keywords: John Maynard Keynes
type: blog
disciplines: economichistory
disciplines: publiceconomicspolicy
disciplines: economics
disciplines: socialscience
disciplines: generaleconomics
disciplines: economicthoughtmethodology
discipline labels: Economic History (JEL N)
discipline labels: Public Economics & Economic Policy (JEL H)
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: General Economics (JEL A)
discipline labels: Economic Thought & Methodology (JEL B)

The INOMICS Questionnaire: Fratzscher vs Wursten
type: Article
title: The INOMICS Questionnaire: Fratzscher vs Wursten
description: Jesse Wursten is a postdoctoral researcher at the Faculty of Economics and Business at KU Leuven in Belgium, and is funded by the Flemish Science Foundation (FWO); he is additionally affiliated with CWED-IRLE and UC Berkeley. Dr. Wursten’s main research focus is on applied labor economics. Other research interests of his include innovation economics and monetary policy. MF: What is your favorite place on earth? Jesse Wursten: Home. MF: Outside of economics, what occupation would you choose if you could be absolutely anything? JW: IT Entrepreneur. There's something exciting about owning your own business that is hard to match in a classic employer-employee relation. In a way, it is the ultimate sign that what you do is relevant to other people, otherwise you wouldn't have any customers. IT has the advantage of having relatively modest entry barriers, as you generally don't need expensive equipment or large teams to get to a first product (you could make a bad mobile app in a day so to speak, which is unheard of for physical products). I also feel like it’s an industry where I have the right skills to succeed: once you've identified a gap in the market, you need to figure out a technical solution (programming), but also interface that solution with the customer, especially if the solution is to show data of some sort. This is exactly what you do during an empirical economics PhD: you gather data and develop code to address an issue and then need to explain your solution as clearly as possible in a paper. So many apps fail at the customer interface aspect. For example, the app of an extremely popular brand of sports electronics produces post-workout graphs that are absolutely useless because a single outlier completely squashes all other data, or because the scales are not multiples of 5 (try interpolating between 13 and 20 on a smartphone screen). MF: What is the virtue you appreciate the most? JW: Honesty. MF: Your all-time favorite figure in economics? JW: Keynes. M…
disambiguating description: Professor Marcel Fratzscher, esteemed macroeconomist and president of the DIW Berlin, once again asks questions about economics and life in general to a peer in the field. This time, he has the pleasure of being joined by postdoctoral researcher Dr. Jesse Wursten, who generously agreed to take the hot seat in this exchange. Thus, the back-and-forth has been dubbed Fratzscher vs. Wursten, as is tradition. What follows is a conversation that offers insight into some of the challenges of balancing family with an economics career, the usefulness of economists when it comes to analyzing policy externalities, and more.
date posted: 2023-09-07T14:07:22Z
date modified: 2026-07-01T09:53:43Z
employment type: onsite
language: en
keywords: INOMICS Questionnaire
keywords: Marcel Fratzscher
keywords: Jesse Wursten
type: blog
disciplines: economics
disciplines: socialscience
disciplines: generaleconomics
disciplines: economicthoughtmethodology
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: General Economics (JEL A)
discipline labels: Economic Thought & Methodology (JEL B)

Assessing Cryptocurrency's Potential to Overthrow the U.S. Dollar's Dominance in the Financial System
type: Article
title: Assessing Cryptocurrency's Potential to Overthrow the U.S. Dollar's Dominance in the Financial System
description: While it’s true that the United States wields considerable influence over the global financial system because it controls the dollar, it is not the sole determinant of the system’s direction and functioning. Other major economies, such as China, the European Union, and Japan, also play significant roles in shaping the global economic landscape. Additionally, international organizations like the International Monetary Fund (IMF) and the World Bank exert influence through their policies and lending practices. Central banks, such as the Federal Reserve in the United States and the European Central Bank in the Eurozone, have a pivotal role in the global financial system as well. They are responsible for managing monetary policy, regulating financial institutions, and maintaining financial stability. Central banks exert influence over the global economy indirectly through their control of domestic interest rates, the money supply, and exchange rates. Their decisions have far-reaching implications for inflation, employment, and economic growth. On a national scale, banks are also a key source of credit for households, businesses, and governments, and their lending activities have a crucial impact on the health of the economy. In fact, investment banking and investment firms alone make up a significant portion of the current financial system. These institutions not only provide access to capital, but they also play a key role in managing risk, influencing corporate governance, and contributing to market liquidity. Challenges and Limitations of the Current Financial System While the current financial system has served the global economy in roughly the same form since the 1950s, it is not without its challenges and limitations. One of the main criticisms is its vulnerability to financial crises and economic downturns. The global financial crisis of 2008, for example, exposed many of the weaknesses and risks inherent in the system. The interconnectedness of financial institut…
disambiguating description: For decades, the U.S. dollar has reigned supreme as the world's primary reserve currency. Its dominance can be attributed to several factors, including the size and stability of the U.S. economy, the political influence of the United States, and the widespread acceptance of the dollar in international trade and finance. The dollar's status as the de facto global currency has significant implications for the functioning of the global financial system.
date posted: 2023-08-28T06:00:00Z
date modified: 2026-07-01T11:30:29Z
employment type: onsite
language: en
keywords: cryptocurrency
keywords: Sara Taha
keywords: international trade
keywords: monetary policy
type: blog
disciplines: politics
disciplines: economics
disciplines: macroeconomicsmonetary
disciplines: financialeconomics
disciplines: socialscience
disciplines: generaleconomics
disciplines: finance
discipline labels: Politics
discipline labels: Economics
discipline labels: Macroeconomics and Monetary Economics (JEL E)
discipline labels: Financial Economics (JEL G)
discipline labels: Economics and Social Sciences
discipline labels: General Economics (JEL A)
discipline labels: Finance

A primer on how popular AI models work and their current limitations
type: Article
title: A primer on how popular AI models work and their current limitations
description: As AI continues to feature prominently in the news cycle, there’s bound to be speculation about the future. Indeed, AI’s potential to disrupt the labor market has been perhaps the biggest subject of discussion. But often, these conversations are had by people who haven’t studied the actual workings of these new AI tools. In many news articles or public discussions, the actual capabilities of current AI tools can be poorly defined or understood, particularly the capabilities of large language models (LLMs) as ChatGPT has nearly become a household name. Therefore, it’s worth spending time to learn how current LLMs work, so that we will all have a better understanding of how LLMs might realistically shape the economy as these conversations continually arise. This article will therefore focus on LLMs, though there are other types of AI still being researched and developed. <11an>limit:3;categories:Conferences</11an> How do these LLMs work? ChatGPT, and many models like it – such as Google’s Bard (or LaMDA), Microsoft’s Bing AI, and a host of others – is a large language model (LLM). LLMs are algorithms that generate text based on training data that is given to the model during development. These models are usually made up of a neural network – a software structure modeled after the way human neurons function. Specifically, these models make use of transformer architecture, a specific type of neural network developed by data scientists interested in deep learning. These models can respond to questions that humans ask them, and generate (usually) accurate responses. They “learn” when people provide feedback, helping the model to re-weight certain responses if they were incorrect. The core process at work for all these activities is an algorithm that aims to accurately predict the most likely word that comes next. When queried, the model builds a response by using probabilities to determine those most likely next words. It will do this repeatedly until the response is fini…
disambiguating description: Artificial intelligence tools are becoming more and more ubiquitous with each passing week. The development of ChatGPT-3.5 in particular launched conversations about the capabilities of AI into the mainstream. Since then, news stories and speculation about AI supplanting (and sometimes replacing) human workers continue to be released. The economics of AI is, as a result, becoming an important topic in our field.
date posted: 2023-08-21T06:00:00Z
date modified: 2026-07-01T11:41:05Z
employment type: onsite
language: en
keywords: AI and the economy
keywords: Sean McClung
keywords: large language model
keywords: machine learning
keywords: artificial intelligence
type: blog
disciplines: economics
disciplines: socialscience
disciplines: datascience
disciplines: generaleconomics
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: Data Science
discipline labels: General Economics (JEL A)

The Challenges Faced by Small Island Economies
type: Article
title: The Challenges Faced by Small Island Economies
description: Although visiting an island might not inspire most people to think about economics (except, of course, for our inquisitive readers!), after reading this overview you will likely notice these challenges – and the ways that different islands have mitigated them – when visiting one. We suggest you find yourself a good, cozy spot on the beach as you read on. Prelude: extending these challenges to other areas This article is focused on smaller islands – for instance, in the Pacific or Caribbean. Larger islands (such as Japan, the UK or New Zealand) or those that are part of a major land-based nation typically do not face as many of these challenges. Nevertheless, many of the challenges discussed in this article are also applicable to small countries on the mainland, too. In 1984 Benito Legarda wrote the article “Small island economies” for the IMF, still relevant today. It gives an overview of some of the challenges that apply to both islands and other small economic areas. Interested readers can refer to Legarda’s article for more context on not just small islands, but other small economic areas too. Without further ado, read on for the economic challenges faced by small island economies. Natural resources are scarce on most islands When people think of small island economies, they often think of two things – beaches and tourists. While it’s true that some natural resources (such as fish and beautiful natural sights) abound for many islands, the reality is that other important natural resources are generally hard to come by. Most islands simply do not have much land area. Thus, the bounty of natural resources available tends to be severely limited compared to countries on the major continents. Many of the resources that allow societies to thrive – such as mineral deposits, nearby forests, abundant wild animals, freshwater sources, etc. – are much less likely to form on small landmasses. Indeed, somewhat ironically, freshwater availability can be a major problem for many…
disambiguating description: Islands bring to mind a particular vision of beaches, coconuts, and relaxation that’s hard to beat. Many people think of them as the ultimate vacation destination, and indeed tourism is important for many islands. Yet due to their unique geography, most islands in the world face a set of economic challenges that many mainland nations don’t experience.
date posted: 2023-08-15T13:37:43Z
date modified: 2026-07-01T12:44:25Z
employment type: onsite
language: en
keywords: economic geography
keywords: island economy
keywords: islands
keywords: small islands
keywords: Sean McClung
keywords: small economies
keywords: free trade agreement
type: blog
disciplines: economics
disciplines: socialscience
disciplines: economicdevelopmentgrowth
disciplines: generaleconomics
discipline labels: Economics
discipline labels: Economics and Social Sciences
discipline labels: Economic Development, Innovation and Growth (JEL O)
discipline labels: General Economics (JEL A)