Joel Mokyr, Philippe Aghion and Peter Howitt win 2025 Nobel Prize in Economics for Insights into Innovation and Growth
The Royal Swedish Academy of Sciences announced on October 13, 2025 that the prestigious Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt. The laureates received the award for their groundbreaking insights into how innovation can drive sustained economic growth. Joel Mokyr, a professor at Northwestern University, received half the prize "for having identified the prerequisites for sustained growth through technological progress". As an economic historian, he emphasized the importance of historical context and the societal openness to new ideas. Philippe Aghion is a professor at Collège de France/LSE/INSEAD and Peter Howitt a professor at Brown University. The were jointly honored with the other half "for the theory of sustained growth through creative destruction". The concept of creative destruction illustrates how new innovations lead to the obsolescence of older products, thereby fueling economic growth but also creating conflicts that must be managed effectively to prevent stagnation. In an accompanying paper "Scientific Background" paper, the Prize Committee commented on Mokyr's contribution as showing... "...how growth became sustained as a result of a set of key prerequisites that were not jointly present prior to the Industrial Revolution, but have been since then. Of central importance is how science interacts with technology, i.e., economic production in practice and that society welcomes technological change. One of his main study objects, quite naturally, was the Industrial Revolution, since it defined the transition between the two [pre-industrial and industrial] regimes." The paper summarizes the contribution of Aghion and Howitt by noting how they... "...were inspired by the sustained economic growth of modern times and how disruptive this process is underneath the aggregate. They developed a theory of growth through “creative destruction”, describing the process of innovation and “business stealing” and how the long-run growth rate of an economy is determined as a result. The theory contains fundamental building blocks of how new technology surpasses old, where some firms win at the expense of other firms, in an economy characterized by constant churning." In their research, the laureates highlight that the past two centuries marked an unprecedented period of sustained economic growth, lifting millions out of poverty. They elucidate how rapid advances in technology have perpetuated a cycle where old practices are continuously replaced by new methods, ultimately improving living standards worldwide. John Hassler, Chair of the Prize Committee, explained the choice of winners: “The laureates’ work shows that economic growth cannot be taken for granted. We must uphold the mechanisms that underlie creative destruction, so that we do not fall back into stagnation.” The total prize money awarded this year amounts to 11 million Swedish kronor (around 1 million Euro, or 1.15 million US Dollars), divided among the three laureates. The full details of their research and findings can be further explored via the official Nobel Prize website. A "Popular Science Background" paper can be downloaded here. The more extensive "Scientific Background" paper can be downloaded here. Read more about the 2025 Laureates: Joel Mokyr: Profile page at Northwestern University Philippe Aghion: Personal Website Peter Howitt: Profile page at Brown University Image Credits: Johann Jarnestad / The Royal Swedish Academy of Sciences / nobelprize.org / Tamara Sushko/Norrphoto via Canva Main Source: Press release. NobelPrize.org. Nobel Prize Outreach 2025. Mon. 13 Oct 2025.
The Sveriges Riksbank Prize in Economic Sciences for 2025 goes to Joel Mokyr, Philippe Aghion, and Peter Howitt for their work on innovation-driven economic growth. Mokyr receives half the prize for identifying conditions for sustained growth, while Aghion and Howitt jointly receive the other half for their theory of creative destruction.
Public Economics & Economic Policy (JEL H)
Economic Development, Innovation and Growth (JEL O)
Urban, Rural and Transportation Economics (JEL R)
Macroeconomics and Monetary Economics (JEL E)
Econometrics, Statistics and Quantitative Methods (JEL C)
Agricultural and Environmental Economics (JEL Q)
Dr. Nicolette Sullivan and Dr. Kiyohito Iigaya Receive 2025 Society of Neuroeconomics Early Career Award
Dr. Nicolette Sullivan, an Assistant Professor of Marketing at the London School of Economics and Political Science (LSE), together with Dr. Kiyohito Iigaya, Assistant Professor in the Department of Psychiatry at Columbia, have been awarded the prestigious 2025 Society of Neuroeconomics (SNE) Early Career Award. The ceremony took place at the SNE Annual Meeting, which was held in Boston, Massachusetts, October 3-5, 2025. This honor is bestowed upon researchers who have made exceptional contributions to the field of neuroeconomics within ten years of defending their PhD. In her response to receiving the award, published in a press release by LSE, Dr. Sullivan expressed her excitement, stating, "I'm thrilled to be the Early Career Award winner. It means a lot to me, as it recognizes the interdisciplinary work that I'm passionate about. This award energizes my commitment to advancing research that bridges neuroscience, economics, and consumer behavior, and opens exciting doors for future collaborations and impact." Neuroeconomics combines economics, psychology, and neuroscience to explore how human decision-making processes work. The SNE aims to foster collaboration among scholars from diverse fields to deepen understanding of economic behavior. Dr. Sullivan's groundbreaking research focuses on the neural mechanisms involved in decision-making and their implications for consumer behavior, public policy, and societal issues. By integrating computational neuroscience with marketing and economics, she sheds light on how various factors influence value-based decisions in different contexts. Dr. Ligaya's research focuses on identifying computational principles underlying learning and decision-making behavior. The recognition includes a monetary prize of $1,000 and an engraved plaque, underscoring Dr. Sullivan’s impactful contributions to the interdisciplinary study of neuroeconomics. Image Credits: lse.ac.uk
Dr. Nicolette Sullivan, Assistant Professor of Marketing at LSE, and Dr. Kiyohito Iigaya, of Columbia University, have been honored with the 2025 Society of Neuroeconomics Early Career Award, recognizing their significant contributions to neuroeconomics.
3rd Modern Finance Conference (MFC 2026)
SCOPE Topics include, but are not limited to: Asset pricing and valuation Banking and financial services Behavioral finance and decision making Capital structure Corporate finance Corporate governance Cryptocurrencies Derivatives Economic development Exchange rates and currency markets Finance and accounting standards Financial econometrics and quantitative methods Financial markets and instruments Financial, management, and tax accounting Financial regulation and supervisions Financial stability Fintech and financial innovation Green finance Investment and portfolio management Insurance Market microstructure Mergers and acquisitions Microfinance Monetary policy and central banking Risk management Sustainable finance and responsible investment KEYNOTE SPEAKERS: Marcin Kacperczyk is Professor of Finance at Imperial College London and Managing Editor of the Review of Finance and former President of the European Finance Association. His research spans climate finance, financial intermediation, and asset management, with publications in Econometrica, JF, QJE, and other top journals and frequent media coverage in FT, WSJ, and Bloomberg. Douglas Cumming is Professor of Finance and Steven Shulman ’62 Endowed Chair for Business Leadership. Research spans venture capital, private equity, crowdfunding, hedge funds, and law and finance. Author of 250+ papers and 20+ books, Editor-in-Chief of the Journal of Alternative Investments and Review of Corporate Finance. SUPPORTING JOURNALS Journal of International Financial Management & Accounting (CiteScore 12.5, IF 8.2) International Review of Financial Analysis (CiteScore 11.1, IF 9.8) Journal of International Financial Markets, Institutions and Money (CiteScore 9.7, IF 6.1) Journal of Multinational Financial Management (CiteScore 7.0, IF 4.0) Eurasian Business Review (CiteScore 6.9, IF 4.0) International Journal of Emerging Markets (CiteScore 7.2, IF 3.0) Innovation and Green Development (CiteScore: 19.6) Investment Analysts Journal (CiteScore 2.8, IF 2.2) Modern Finance EDITORS' FAST TRACK The Editors’ Fast Track connects authors of high-quality papers with editors from finance journals, including the International Review of Financial Analysis, Journal of International Financial Management & Accounting, Eurasian Business Review, and Innovation, Investment Analysts Journal, and Green Development. Selected authors present their work in concise sessions followed by direct editorial feedback and discussion. Outstanding papers may also be considered for a fast-tracked review process with partnering journals. BEST PAPER AWARDS Prizes will be awarded in the following areas: Best Paper Award: 1000 EUR and a fee waiver for the next MFC Runner-up Award: A fee waiver for the next MFC PAPER SUBMISSION Authors are invited to submit their papers (or extended abstracts) in English no later than July 20, 2026, through our submission system. No submission fee is required. Submissions will be reviewed by the Conference Committee, and accepted authors will be notified within four weeks. For more information, see https://mf-conference.com/. IMPORTANT DATES Paper/Extended Abstract Submission: July 31, 2026 Notification of acceptance: Within four weeks of submission Registration deadline: August 10, 2026 Conference: September 14-16, 2026 Submission for proceedings/ journals: December 31, 2026 CONFERENCE FEES Early bird: registration and payment by June 15, 2026. Main author (in-person presentation): 330 EUR Attending co-author / non-presenting attendee (in person): 280 EUR PhD student (in person): 230 EUR Additional paper fee: 200 EUR Online participant (main author or co-author): 200 EUR Regular: registration and payment by August 10, 2026. Main author (in-person presentation): 430 EUR Attending co-author / non-presenting attendee (in person): 380 EUR PhD student (in person): 330 EUR Additional paper fee: 250 EUR Online participant (main author or co-author): 250 EUR The Gala Dinner Fee: 40 EUR. Fee payment details will be provided after acceptance. CONTACT The conference will be organized jointly by the Modern Finance Institute and the Krakow University of Economics. Website: https://mf-conference.com/ Dr Adam Zaremba – zaremba@mf-institute.com Support Team – conference@mf-institute.com
We are pleased to invite finance researchers, academics, and practitioners to the 3rd Modern Finance Conference (MFC 2026), to be held at the Krakow University of Economics in Krakow, Poland, on September 14-16, 2026. The event aims to provide a platform for the dissemination of cutting-edge research, innovative ideas, and novel approaches in all areas of finance. The conference will be held in a hybrid format, combining in-person and online sessions.
1. Understand what type of PhD you want Perhaps surprisingly, there are different ways to acquire a PhD, and some of them are very likely to appeal to you more than others. There are American-style PhD programs and European-style PhD programs, each of which can suit different applicants better than others; further, there are research assistant positions that can lead into PhDs, Master’s programs that can lead to PhDs, and even Master’s programs that are considered part of a larger PhD program. For more detail about these different avenues, be sure to check out our article on the Master of Research (MRes) and our article on American vs. European-style PhD programs. Once you’ve got a good idea of which type of program interests you, next comes the difficult task of identifying the specific institutions you’re interested in. But the first step to doing this is often looking inward, first. 2. Think about your research interests and location preferences You are unique and have your own interests and skills, which unfortunately means that there’s no easy and quick way to discover which economics departments are the most interesting or best fit for you. While there are many places where you can begin your search, it really helps to have an understanding of what you want first. Your research interests are probably the single most important factor determining which economics departments will be a good fit for you. Even if you don’t have any strong research interests (yet!), you still very likely have general areas of economics that interest you more than others. If macroeconomics courses always excited you, you should naturally look for universities with a strong focus on macroeconomic research, and avoid programs with more of a microeconomics focus. If identifying your own interests seems daunting or overly prescriptive, here’s a great way to start narrowing it down: think about the research papers you’ve been exposed to before. If you’ve read any research papers that intrigued you, look up their authors and the institutions where those authors were (or are) employed. Chances are, those universities have a good economics department that conducts research in areas you find interesting, with several potential supervisors for your future work. Many programs will require you to write a research proposal, or at least a personal essay about research topic(s) that you would like to pursue. If you’re still unsure where exactly your interests lie, preparing these materials will help you solidify your feelings about what areas of research you would be most inclined towards. It’s worth noting that many PhD programs understand and accept that you may change your mind about your exact research topic once you start your PhD, and that’s okay. A notable exception to this are some European-style PhD programs that may require you to begin your research immediately; these are typically about 3 years long and you generally need to have a supervisor before being admitted to the program. In any case, in order to acquire a PhD, you will have to conduct research on a specific topic. Figuring out what interests you now is an excellent first step to help you succeed, so that you can ensure you’re studying in a department that can support you and your interests. 3. Find economics PhD programs and make a list of suitable ones After you’ve identified your research interests, you need to make a good list of economics PhD programs that you want to apply to. You ought to apply to four or five institutions minimum (but probably not more than ten). Start building your list with the programs you may have already found or heard about, but cast your net wider than this. Several resources can help you here. Organizations like RePEc and Times Higher Ed maintain ranked lists of economics departments, which can help you identify programs that you ought to look into. Don’t place too much emphasis on ranking alone, however. There are very many economics departments with excellent staff that will prepare you very well for your career as an economist. All else equal, aim for institutions that have consistently high rankings, but it’s more important to ensure that your interests align with those of the department, and that the institution is in a location you would enjoy (or at least not dislike) living in for several years. If you’d be willing to relocate, consider economics departments in other regions or even on other continents that would be suited to your interests. It may well be that a university far from you has the perfect program, and you’ll never know if you don’t look! INOMICS PhD Program Listings can help you get started here, as our program listings include universities around the world. This search process can be as thorough as you need. If you come into the process with a good idea of what institutions you are interested in, consider looking for similar institutions in other regions as a backup plan. If you have no idea where to start, you can avoid boiling the ocean by asking yourself which criteria are most important to you, and start by looking at institutions with those criteria — for example, economics departments that have at least one professor conducting research into microfinance, if that is one of your core interests. Or, perhaps you can filter by region, and begin your search in a specific country or region that you want to study in. 4. Narrowing your list At first, it might turn out to be easy to find dozens of programs at quality institutions that you might enjoy, but then it may be hard to narrow them down. If you’re struggling to differentiate the programs, you may need to do more research. We suggest trying to answer the following questions: What are the research interests of that economics department and its faculty? Are those topics exciting, and can you think of research you’d like to conduct that could build off of those areas? What papers in the last five years have the department’s faculty published? Do any of these interest you? Are there TA or RA opportunities that you could pursue at that university? What do the job placements of recent graduates from that program look like? Are new PhDs from that institution getting jobs that you’d want to have? Does the economics department have any specialized research groups? Does the economics department collaborate with other institutions? How competitive is your application compared to others for that institution? This may not be easy to answer, but sometimes economics departments post the average test scores and/or GPAs of their incoming class, which you can use to compare. Where is the institution located, and do you think you’d enjoy living there? A PhD is a lengthy process, and if you dislike big cities but are only applying to the Paris School of Economics, the London School of Economics, and Columbia University in New York City, perhaps you ought to de-emphasize these and look for campus-based universities, or options in smaller towns or cities. And, all else equal, take both the overall university and the economics department’s rank into consideration. 5. Dive into specific application requirements Once you have a list of places to apply, the most important thing you can do to succeed is stay organized. Keep a spreadsheet or an easy-to-navigate word document where you can keep your notes. These notes should include things like your impressions of an institution, what stage of the application process you’re in, and why you’re interested in that program. Of course, some institutions may have application requirements that are difficult or onerous for you to complete — for instance, most economics departments in the US require at least three academic letters of recommendation, which can be difficult to acquire. Some institutions — particularly some located in northern European countries like Denmark and Sweden — may require you to apply to specific job openings rather than a more general PhD program entry. Many programs require test scores (usually the GRE), while some are waiving those entirely. In cases where the application requirements are difficult or even impossible for you to complete, it pays to know in advance so that you can spend your search time looking at other institutions. Further, there are often minor variations in the type or format of application materials that various institutions want you to submit. Sometimes, universities require that you contact a potential supervisor before applying; you must know this and attempt to do so well in advance of the application deadline. And, whether or not you need to write a personal statement or answer more specific essay questions can vary by institution. These are all examples of things you should keep track of in your notes. Keep it Structured and Start Applying! All of these together will lead you into compiling a pretty comprehensive overview of the institutions you want to apply to. This overview will help you recall the details you found during your search, and also make it easier to extend your search if you need to. Once you’ve begun the application process, use your notes to keep track of the latest correspondence you’ve had with each institution, and any lingering to-dos you may have with them. This will help reduce the stress you feel throughout the process, and when you’re accepted to a program you’re excited about, you can celebrate. We wish you all the best of luck with your search and your applications! Image Credit: James Wheeler / Pexels Free Licence (via Canva Premium)
Economists often need PhDs to reach their career goals. According to INOMICS’ Salary Report data — and as Figure 3 in our PhD pay premium article shows — the vast majority of professional economists earn a PhD at some point in their careers. Academic economists are expected to acquire one in order to do research, while a PhD can often be a prerequisite for high-level industry economist jobs. But no matter how experienced, all PhD economists, at one point, were mere students searching for a good place to study. While important, how to search for the right place to study is seldom discussed…and there are thousands of universities with great economics departments out there. Feeling overwhelmed, and curious for some tips for your own search? Read on!
University of Warwick Professor Dennis Novy Appointed Chief Economist at UK Foreign Office
Professor Dennis Novy from the University of Warwick is the new Chief Economist and Director of Analysis at the Foreign, Commonwealth & Development Office (FCDO). The appointment, originally announcement earlier in the year, has been communicated by both the University of Warwick and by the British Goverment as it came into effect on 1 October 2025. The position is a significant role within one of Britain’s most prestigious government departments. The FCDO is responsible for managing the UK’s diplomatic efforts, development aid, and consular services globally. Novy's appointment marks a pivotal moment for the FCDO, as Novy will serve as the lead economic adviser to the Foreign Secretary, currently Yvette Cooper, offering insight and analysis on foreign and international development policy. In his new position, Novy will not only guide policy based on thorough analysis and evidence but also lead the agency's analysts in creating data-driven recommendations. Novy, who joined the University of Warwick in 2006 after earning his PhD from the University of Cambridge, is widely recognized for his research in international trade and macroeconomics. He has a robust history of government engagement, having served as Specialist Adviser to the House of Lords and as a member of various economic advisory councils in the UK. His recent contributions include recommendations on enhancing the UK’s economic security presented to Parliament. Warwick Vice-Chancellor Professor Stuart Croft expressed his enthusiasm for Novy's appointment in a press release, saying: “It is a wonderful appointment for Dennis, who has an impressive track record in parliamentary and government engagement, and also fantastic news for Warwick. Croft also highlighted the impact of Warwick’s research on real-world problems and the university’s commitment to societal contribution. Novy himself expressed excitement about joining the FCDO at a critical time for the UK, emphasizing the importance of "rigorous economic analysis and principled economic thinking" during globally transformative times, while praising the Economics Department at Warwick for being "at the forefront of that intellectual endeavour". He also noted the many Warwick graduates among his new co-workers. Novy will remain on secondment from Warwick for the duration of his tenure at the Foreign Office. Image Credits: warwick.ac.uk / gov.uk
Professor Dennis Novy from the University of Warwick's Department of Economics has taken up his role as Chief Economist and Director of Analysis at the UK Foreign, Commonwealth & Development Office (FCDO).
The University of Mannheim is committed to increasing the share of women in research and teaching and thus encourages women with adequate qualifications to apply. Applications of equally qualified disabled candidates are given preferential consideration. CONTACT: Christoph Rothe, Department of Economics, University of Mannheim, D-68131 Mannheim, Department website: https://www.vwl.uni-mannheim.de Applications are requested online via EconJobMarket.org only until 23 November 2025. E-mail address for inquiries is jobmkt@uni-mannheim.de. If in individual cases an electronic application should be impossible, please send your documents to Prof. Christoph Rothe, Department of Economics at the University of Mannheim, D-68131 Mannheim. Please find detailed information on your rights regarding the collection of personal data according to article 13 of the General Data Protection Regulation (DSGVO) on the University of Mannheim website (https://www.uni-mannheim.de/en/about/working-at-the-university-of-mannheim/employment-opportunities/data-protection-during-the-job-application-process/). If you apply by e-mail, please note that protection of confidential data cannot be guaranteed as unauthorized third parties could gain access to unencrypted e-mails during transmission.
The Department of Economics at the School of Law and Economics at the University of Mannheim invites applications to fill a postdoctoral position in econometrics. The position is a full-time position for a period of three years starting September 1, 2026. The ideal candidate will have a strong background in econometric theory and statistics and research interests in microeconometrics. Applicants are expected to show outstanding commitment to research and must have obtained a Ph.D. when taking up the position or be near its completion.
Department of Economics, University of Mannheim
IMF Economist Shekhar Aiyar Appointed New Head of Indian Think Tank ICRIER
Shekhar Aiyar has officially taken over the position of Director and Chief Executive of the Indian Council for Research on International Economic Relations (ICRIER). This announcement was made in a press release published on their official website. Dr. Aiyar is currently assistant director of research at the IMF, and has extensive experience in various facets of economic research, international relations, and policy analysis from John Hopkins, NCAER and the Bank of England. He succeeds the Dr. Deepak Mishra, who left ICRIER in June 2025 to take on a senior advisory position at the World Bank. Having studied at Delhi University and Oxford University, he received his PhD from Brown University in the U.S. Under Aiyar’s leadership, the organization hopes to enhance its research capabilities and influence policy discussions that will aid in forming a progressive economic agenda for the country. Commenting on his appointment, Aiyar stated: "It’s an exciting time to be in India, where the ongoing changes to the global order present both enormous challenges and opportunities. I look forward to working with my fantastic colleagues at ICRIER on credible, independent, policy-oriented research to illuminate the path ahead.” Aiyar’s new role at ICRIER comes at a critical time as India’s economy faces numerous challenges amid global shifts in trade, technology, and finance. ICRIER, known for its rigorous economic analysis and research, aims to foster a better understanding of economic issues in India and its impact on global communities. Image Credits: icrier.org
Shekhar Aiyar has been appointed as the new Director and Chief Executive of the Indian Council for Research on International Economic Relations (ICRIER).
University of Chicago to sell research institute CRSP to Morningstar for $375 Million
The University of Chicago and Morningstar, Inc. have announced an agreement for Morningstar to acquire the CRSP, a UChicago-affiliated institution known for its historical market and returns data. The University of Chicago has produced some of the finest minds in the fields of finance and economics, and is considered a leading institution in the field, with the neoclassical "Chicago School" pioneered by UChicago economists. Valued at $375 million, the acquisition marks a significant step for CRSP, established over 65 years ago to support research in the field of finance. This transaction will enable CRSP's survival in the face of pressure on academic budgets in the US, instead setting it on a more commercially-aligned path as it increasingly engages in the investment sector, allowing it to further develop its stock indexes. Morningstar intends to capitalise on CRSP’s extensive data validation and indexing methodologies, bolstering its commitment to providing high-quality investment tools to clients. The deal is projected to close in the fourth quarter of 2025, and funds generated will support ongoing education and research initiatives at UChicago. "The acquisition will enable CRSP to explore additional commercial opportunities beyond its academic roots," said Madhav Rajan, dean of Chicago Booth and chair of CRSP’s Board of Directors. Kunal Kapoor, Morningstar's CEO, echoed this sentiment, emphasizing the potential for innovative investment strategies derived from CRSP’s resources. In a press release, Morningstar describe CRSP as the "premier provider of historical stock market data and indexes". Emphasising the CRSP market indexes as the benchmarks for "more than $3 trillion in US equities", Morningstar predicts that the move will catapult "it to one of the largest index providers for public US equity index funds". The news comes after a recent announcement by Paul Alivisatos, UChicago President, about cost-cutting measures at the University. In this, he communicated that the university is scaling back new building projects, reducing the number of doctoral positions, pausing some master's programs, assessing "certain long-term research outlays" and closing "some of the more than 140 centers and institutes that have grown and grown over time without sufficient periodic review". In this context, the sale of CRSP to Morningstar, as an alternative to closure, may well come as a relief to the staff and faculty employed at the center. Image Credits: uchicago.edu
Morningstar, Inc. has agreed to purchase the Center for Research in Security Prices (CRSP) from the University of Chicago for $375 million.
These concepts are often encountered when discussing macroeconomic models, or in econometrics contexts – like when conducting regression analysis. Put simply, "exogenous" is an adjective that refers to a variable, quantity, or phenomena that is derived outside of the current economic model or context. The Merriam-Webster dictionary defines it as follows: "caused by factors…from outside the organism or system". In economics courses, this typically means that you aren’t expected to know how the exogenous variable came to be. Its origins, and how it is determined, are not part of the analysis. "Endogenous" is the opposite; it’s something that is defined within the current context. Merriam-Webster defines it as: "[something] caused by factors inside the organism or system". This means that, given the current economic model, you are expected to be able to describe the origins and determination of the endogenous variable, unlike the exogenous case. These concepts are fairly intuitive once grasped, and often form the basis of more advanced assumptions in econometrics and economic model contexts. To illustrate this further, let’s use a simple market equilibrium example. Market equilibrium example Suppose that we’ve been given information about a market, and we want to find out what the market equilibrium will be. Suppose that the supply curve is defined by QS = 2p, and the demand curve is defined by QD = 12 - p. Then, equilibrium is where QS = QD, or where 2p = 12 - p. Solving, we arrive at an equilibrium price of p = 4, and therefore an equilibrium quantity of q = 8. In this example, we had two equations to describe the market’s equilibrium — the supply side and the demand side. With these two equations, we were easily able to solve for the resulting equilibrium. The equilibrium price was partly determined by the equilibrium quantity, and vice versa. Which parts of this problem — which variables, and which key concepts — were endogenous, and which were exogenous? The equilibrium price and the equilibrium quantity were both determined by the equations we had, and we calculated them as part of our main analysis. Therefore, these variables were endogenous. Conversely, the constant in the demand equation (12, in this case) was a number that was simply given to us. We don’t know how that number came to be there, nor were we concerned with it. It was exogenous. But there’s more. In order to find the price and quantity, we needed to use two equations that were defined for us: the supply curve and the demand curve. How did we know what those were? How did they come to be in such simple linear forms? We have no idea! In this case, both the supply curve and the demand curve were also exogenously given. It wasn’t part of our analysis to determine them, and we took them as given. This simple example points to a useful rule of thumb when trying to decide if something is exogenous or endogenous. Chances are, if a variable, equation, or fact is simply given and isn’t “supposed” to be questioned, it’s probably an exogenous variable. It’s needed to conduct our economic analysis, but how it came to be is not relevant. Another way to think about this is to consider which variables are held constant; these are probably exogenous. In our example, the number “12” was just a constant and was exogenous, while both q and p were not. Conversely, the variables that are given equations or relationships to other variables in the system are probably endogenous. If we changed the price (not the equilibrium price) in the previous example, the quantity would have needed to change, too, and vice versa; but the constant in the demand equation (12) wouldn’t be affected by just p or q changing. That, too, hints that “12” is exogenous and both p and q are endogenous. This is likely a good enough explanation for most introductory economics courses, but we can dive deeper. Let’s take the ubiquitous Cobb-Douglas production function as an example. Exogeneity and endogeneity in Cobb-Douglas The basic form of the Cobb-Douglas production function is as follows: Y = AL𝛼K𝛽 where Y is economic output, A represents technological progress, L stands for labor, K stands for capital, and 𝛼 and 𝛽 are constants. In this case, A, 𝛼, and 𝛽 are often considered exogenous; they are constants whose values are usually given to students, and they aren’t affected by other variables changing. But, this equation defines Y as a function of other economic variables, including the factor inputs of labor, capital, and technological progress. Thus, we can’t define Y without first knowing the values of all other variables. Clearly, in this case Y is endogenous. Any change in another variable will change Y, and further, the point of the Cobb-Douglas function is to see how economic output Y changes when other factors change. Sometimes, it may be unclear whether a variable is endogenous or exogenous. That’s because sometimes, economists can choose! Consider both L and K in the Cobb-Douglas equation above. If values for these variables are given to you on an economics test, then they’d most likely be exogenous for the purposes of the question. However, macroeconomists may use the Cobb-Douglas framework to examine how economic growth changes over time as a response to growth in L and K. To do this, they’d collect a time series of the values of Y, L, and K for many years, and use a computer to fit an equation to them and determine their relationship. In this case, L and K can be considered endogenous! In a time series, previous values of L and K will affect future values. That’s because the population grows at a rate defined by the size of the population itself, and because the economy doesn’t destroy all of its factor inputs and restart from scratch every year. So, L and K must be determined from their own starting values and their growth rates…but the starting values and growth rates can be thought of as exogenous, since we may not know exactly how they came to be. Exogeneity and endogeneity in regression analysis These terms appear very often in econometrics contexts, particularly with regression analysis. In regression analysis, there is typically one dependent variable (usually called the y-variable) that the analysis attempts to explain with a set of independent variables (usually called the x-variables). This language already hints at which variables are endogenous and exogenous in this setting. The dependent or y-variable is usually endogenous, and very often the purpose of the regression is to study how that endogenous variable is affected by, or dependent on, economic forces in the real world. Those economic forces are often measured by collecting data, which then form the independent or x-variables. These are often considered exogenous; the regression model is not concerned with how those variables came to be, but rather with how they affect the y-variable that the model is attempting to explain. For example, consider a regression model that attempts to explain house prices (the dependent or y-variable) using the size of the house in square meters, the distance to the nearest grocery store, and the quality of the school district as independent variables. In this model, the house price is endogenously determined, while the house’s size, proximity to groceries, and location in a good school district are exogenous factors that the price itself probably does not influence (said differently, those factors likely influence the house’s price rather than vice versa). This is a general rule of thumb, but there are a wide variety of regression models and a wide variety of economic variables, and not all of them follow this pattern. Be careful about assuming exogeneity or endogeneity! For example, suppose you’ve constructed a simple regression model to see how various economic factors affect annual GDP. You collect data on inflation, unemployment, and whether or not there was a recession to use in this model. The dependent variable is GDP, which you might consider endogenous, since you’re constructing a model to see how other factors affect it. In this case, you might consider inflation, unemployment, and recession to be exogenous; they’ve been collected to explain how GDP changes from year to year. But there’s a problem with simply applying these labels, because GDP itself can affect all of these other variables! If an economy has a higher GDP in a certain year, it’s much less likely to be in a recession, it’s more likely to experience some inflationary pressure, and it’s more likely to see a reduction in unemployment over the period. This is a thorny case where it’s very difficult to say if any of the variables in the model are truly exogenous. Since all of them can affect each other, they may all be endogenous after all. Advanced regression techniques — such as finding suitable proxy variables — can be employed to test these theories and help the model work. Fortunately for this article, the moral of the story is already clear: it can be very helpful to be aware of the difference between “exogenous” and “endogenous”, to begin understanding other economic relationships. This will be particularly important for higher-level economics courses. After all, your test scores will be endogenously determined by your own understanding (and diligence in studying)!
"Exogenous" and "endogenous" are two words that get thrown around a lot in higher-level economics courses. Since these are real words and not specifically "economics terms", classes seldom define them for you (just like the word "autarky"!). But it can really help to know what they mean before starting some upper-level courses!
New Zealand Appoints Swedish Economist Anna Breman as New Reserve Bank Governor
In a move signalling a new chapter for New Zealand's monetary policy, the government has officially announced the appointment of Swedish economist Anna Breman as the new Governor of the Reserve Bank of New Zealand. Notices of the appointment were shared both by the government, and by the Reserve Bank. Breman, who has previously held notable positions within the Sveriges Riksbank and the European Central Bank, will take over from Christian Hawkesby, who has filled the role on a temporary basis since April 2025 after the previous incumbent, Adrian Orr, stepped down amid criticisms regarding the bank's management and policy directions. Breman's selection has been widely viewed as a positive shift towards reforming the Reserve Bank, which has faced challenges surrounding inflation and interest rates in recent years. The deputy chairman of the RBNZ Board, Rodger Finley, praised the appointment: “Anna’s experience spans central banking, academia and financial markets. She has strong technical knowledge within monetary policy, financial stability and payments systems after several years at the Executive Board at the Riksbank and an extensive international experience.” Since the bank is crucial in controlling inflation and ensuring economic stability, Brennan's appointment is seen as a vital step in restoring confidence among investors and the public. As she transitions into her new role, Breman is expected to focus on balancing inflation control with sustaining economic growth, a task that has proved challenging for many central banks worldwide. The Reserve Bank has already hinted at reviewing its policy framework under her lead, indicating potential updates to ensure more effective economic management. With Breman at the helm, New Zealand hopes to establish a robust monetary policy that not only addresses immediate economic concerns but also prepares for future challenges. Brennan's inauguration as the 14th Governor will formally take place on 1 December 2025, with many stakeholders watching closely to see how her leadership shapes the future of New Zealand's economy. Image Credits: rbnz.govt.nz
Anna Breman has been appointed as the new Governor of the Reserve Bank of New Zealand, marking a significant step in the bank's reform approach following the departure of Adrian Orr earlier this year.
German Government Appoints Martin Blessing as Investment Tsar
The German Federal Government has announced the appointment of former Commerzbank CEO Martin Blessing to the new position of "Personal Representative for Investment". The role could be understood as equivalent to a "Chief Investment Officer", or "Investment Tsar" advisory role to the government. Apart from his tenure at Commerzbank, Blessing has also held senior positions at UBS and most recently led Danske Bank from 2022-2025. He comes from a banking family: his grandfather was President of the German Bundesbank in the 1960s, and his father a board member of Deutsche Bank in the 1980s. He is married to Dorothee Blessing, who led J.P. Morgan's DACH (Germany, Austria and Switzerland) operations from 2016-2024, and who is now co-head of investment banking internationally. Announcing the appointment at a press conference, German Chancellor Friedrich Merz emphasised the importance of the new role in making Germany attractive for foreign investors. Blessing will act as a personal contact for foreign companies and individuals, and represent Germany as an investment destination internationally. By gaining an overview of the priorities and needs of investors, Blessing will act as an advisor for the government on how to optimise investment frameworks, reduce bureaucracy and accelerate decision processes. Additionally to this advisory and representative role, he simultaneously takes over a formal role as head of Germany Trade and Invest (GTAI), an advisory body for foreign companies investing in Germany. A focus of the new role will be to mobilise private capital for investments in innovation and infrastructure projects. In this sense, Blessing was quoted as saying "Germany needs growth, and growth needs investment". During the press conference, Merz emphasised the challenge ahead for Germany to win back the trust of investors. He also pointed out the success of the government during its first six months, having attracted over 60 major investments worth a total of over 630 Billion Euros over the next three years through the initiative "Made for Germany". Apart from the appointment of Blessing, Merz also signalled the government's intent to initiate major Public-Private Partnerships (PPPs), especially in infrastructure projects. Through this, he presented a strategy to drive economic development, positioning Germany as a destination not only for large industrial companies, but also for middle sized companies. The appointment of Blessing and the announcement of the further initiatives and intentions comes in the context in a stagnation of the Germany economy in recent years. According to the GTAI's own figures, the number of investments continued to decline in 2024, a trend the new government is clearly hoping to reverse. Image Credits: bundesregierung.de
German Chancellor Friedrich Merz has appointed Martin Blessing to the new position of "Personal Representative for Investment", tasked with positioning Germany as an attractive destination for foreign investment.
Claudia Steinwender Awarded 2025 Hermann Heinrich Gossen Prize
The award, which carries a prize of €10,000, was presented by Klaus M. Schmidt, chairman of the Verein für Socialpolitik (VfS), on September 16, 2025, at the University of Cologne. Steinwender’s research focuses on the impact of trade liberalization, information frictions, and research spillovers on productivity and economic development. Her work is recognized for its scientific excellence, innovative methodologies, and international visibility, contributing crucial insights into global economic processes. The Gossen Prize is awarded annually to a German-speaking economist in Central Europe under the age of 45, whose work has achieved international acclaim. Its purpose is to bolster the internationalization of economic research originating from Germany, Austria, and Switzerland, with a key emphasis on publications in global academic journals. Named after the Prussian lawyer Hermann Heinrich Gossen, the award commemorates the contributions of economists to the field. Gossen’s influential work laid the groundwork for modern marginalist theory, despite its initial lack of recognition. Claudia Steinwender’s receipt of the Gossen Prize underscores her remarkable contributions to the understanding of economics in a rapidly globalizing world and her role in shaping contemporary economic discourse. Image Credits: socialpolitik.de
Cologne, Germany – Claudia Steinwender, a prominent economist from LMU Munich, has been announced as the winner of the prestigious Hermann Heinrich Gossen Prize for her significant contributions to empirical trade and innovation economics.
WTO Appoints Robert W. Staiger as Chief Economist
The World Trade Organization (WTO) has appointed Professor Robert W. Staiger as its Chief Economist and Director of the Economic Research and Statistics Division (ERSD). Professor Staiger holds a prominent academic role as the Loren M. Berry Professor of Economics at Dartmouth College, where he has significantly contributed to research in international economics. Additionally, he is affiliated with the National Bureau of Economic Research as a Research Associate. An American national, Staiger earned his Bachelor of Arts in Economics from Williams College and completed his PhD in Economics at the University of Michigan. His extensive background positions him as a leading voice in the field of world trade and is expected to bring valuable insights to the WTO during his tenure. The WTO, as an intergovernmental organization that regulates international trade, is keen on enhancing its research capability to support informed decision-making in global trade policies. The announcement comes during a time of increasing complexity in international trade dynamics, especially in the 2025 context of new (reciprocal) tariffs and renegotiated trade deals from the US Government under President Trump. Staiger expressed scepticism about this approach in an article just before Trump took office for his second term, stating that tearing down a "rules-based multilateral trading system and replace it with a power-based system will likely end in disappointment — if not disaster". Announcing the appointment, the Director-General Ngozi Okonjo-Iweala expressed her enthusiasm about Staiger's expertise in international trade policy, particularly regarding the economics of the General Agreement on Tariffs and Trade (GATT) and the WTO itself. Staiger will take up the position at the start of 2026. Image Credits: wto.org
The World Trade Organization has announced the appointment of Professor Robert W. Staiger as its new Chief Economist and Director of the Economic Research and Statistics Division.
Five Postdoctoral Positions in Microeconomics
We seek candidates with a research focus in industrial organization (theoretical and empirical), financial economics, and microeconomic theory. Applicants are expected to show outstanding commitment to research and must have obtained a Ph.D. when taking up the position or be near its completion. The University of Mannheim is committed to increasing the quota of women in research and teaching and thus encourages women with adequate qualifications to apply. Applications of equally qualified disabled candidates are given preferential consideration. CONTACT: Thomas Tröger, Department of Economics, University of Mannheim, D-68131 Mannheim, Department website: https://www.vwl.uni-mannheim.de Applications are requested online via EconJobMarket.org only until 9 November 2025. E-mail address for inquiries is jobmkt@uni-mannheim.de. If in individual cases an electronic application should be impossible, please send your documents to Prof. Thomas Tröger, Department of Economics at the University of Mannheim, D-68131 Mannheim. Please find detailed information on your rights regarding the collection of personal data according to article 13 of the General Data Protection Regulation (DSGVO) on the University of Mannheim website (https://www.uni-mannheim.de/en/about/working-at-the-university-of-mannheim/employment-opportunities/data-protection-during-the-job-application-process/). If you apply by e-mail, please note that protection of confidential data cannot be guaranteed as unauthorized third parties could gain access to unencrypted e-mails during transmission.
The Department of Economics at the School of Law and Economics at the University of Mannheim invites applications to fill up to five postdoctoral positions in microeconomics. The positions are a full-time position for a period of three years starting September 1, 2026.
Environmental Economists Paloma Peligry and Grégoire Sempé win FAERE Award 2025
Paloma Peligry, a PhD student at Sciences Po in Paris, and Grégoire Sempé, a PhD student at the Paris School of Economics have been awarded the FAERE Award for the year 2025. The FAERE Award is a significant honor in the French and European academic community, recognizing exceptional individuals for their impactful research and contributions to economics. The ceremony took place recently, celebrating the hard work and dedication of Peligry and Sempé in their respective research areas. Both researchers have demonstrated remarkable innovation, pushing the boundaries of economic theory and application. Their winning paper, titled "Climate Policies in the Housing Market", focused on the macroeconomic and redistributive impacts of climate policies applied to the French residential housing market. The FAERE (French Association of Environmental and Resource Economists) Award intends to highlight new academic talents and encourage further development in economic science. The recognition of Peligry and Sempé showcases the Paris School of Economics' commitment to fostering a vibrant research environment that produces influential scholars. This award serves not only to commend the recipients' achievements but also to inspire future economists to engage in rigorous research aimed at addressing pressing economic challenges. Image Credits: FAERE
At the Paris School of Economics, researchers Paloma Peligry and Grégoire Sempé received the prestigious French Association for Environmental and Resource Economists (FAERE) Award 2025 for their outstanding contributions to the field of economics. This recognition highlights their innovative research and dedication to advancing economic understanding.
Inter-American Development Bank Announces Winners of 2025 IDB Young Economist Award
WASHINGTON - The Inter-American Development Bank (IDB) has announced the recipients of the 2025 IDB Young Economist Award, an esteemed honor acknowledging exceptional research by emerging PhD graduates in economics focusing on Latin America and the Caribbean. Pascuel Plotkin from Argentina secured the first prize for his paper, "Dinner at Your Door: How Delivery Platforms Affect Workers and Firms," which explores the effects of online delivery platforms on restaurants and workers in Brazil, assessing both challenges and benefits particularly in informal economies. The second prize was awarded to Daniel Jaramillo Calderón from Ecuador for his research investigating the impact of mass amnesty on crime rates influenced by former convicts in their neighborhoods. Renata Motta Café from Brazil claimed the third prize with her analysis on how access to government-backed loans influences municipal public spending in her country. Also recognized were Francisco Eslava Sáenz from Colombia, Karla Hernández from Costa Rica, Isaac Martínez Centeno from Chile, Laura Pérez Cervera from Spain, and Víctor Zuluaga from Colombia, who received honorable mentions for their significant contributions. “Recognizing the talents of young economists is critical” stated Laura Alfaro Maykall, the IDB's Chief Economist. “This award underlines the potential of economic research in addressing pressing challenges within the region.” The winners will be honored at the 2nd IDB Research Conference, scheduled for September 15-16 at IDB’s Washington, DC headquarters, which will also tackle how digital technologies are transforming economic development. Image Credits: iadb.org
The Inter-American Development Bank (IDB) has awarded the 2025 Young Economist Award to three outstanding researchers for their impactful studies on economic issues in Latin America and the Caribbean, showcasing academic excellence and policy relevance in economic development.
AcouBatt and Hovanka Triumph at INNOVA Europe Competition
Berlin – In a thrilling Grand Finale held at ESMT Berlin on September 5, 2025, the startups AcouBatt and Hovanka emerged as the champions of the third annual INNOVA Europe competition. This prestigious event witnessed participation from teams representing ten of Europe’s elite business schools plus the SPJIMR business school in India, all vying for a share of €25,000 in prize money while addressing crucial sustainable initiatives. AcouBatt, a team from London Business School led by Arthur Fordham and Chris Haoxin Xu, secured the grand prize in the Rising Stars category, receiving €20,000 and a year of free incubation support. They presented groundbreaking technology that utilizes acoustic sensors and machine learning to optimize battery formation processes, significantly reducing waste and promoting environmentally-friendly production methods. Meanwhile, Hovanka, hailing from the Kyiv School of Economics, won the Young Hopes category. Led by CEO Kris Nadiryan, they were awarded €5,000 to further their innovative mental health app, Mindset Architect. This app is designed to enhance emotional literacy and support users between therapy sessions, demonstrating a strong commitment to mental well-being. The INNOVA Europe competition, founded in 2022 by EDHEC Business School, POLIMI Graduate School of Management and ESMT, focuses on nurturing entrepreneurial talent and sustainable practices that align with the United Nations’ Sustainable Development Goals. This year also marked the debut of the INNOVA Barometer, aimed at evaluating responsible entrepreneurship across European startups. The whole event including the pitches by each of the eleven entries, as well as the announcement of the winners in each category, is available on youtube. Image Credits: esmt.berlin
In a showcase of innovation and sustainability, start-up teams from Europe’s leading business schools competed at the INNOVA Europe competition, where AcouBatt won the Rising Stars category and Hovanka secured the Young Hopes award.
What my Finance Internship Taught me about Economics
1. Finance is a rich area of research…and the industry can be artificially complex Finance is not primarily concerned with the stock market, although that’s what most people immediately think of. TIAA-CREF stands for “Teachers Insurance and Annuity Association of America-College Retirement Equities Fund”. It’s a massive firm that began when US entrepreneur Andrew Carnegie decided to create a not-for-profit pension service for academic professors in 1918. He later created a board of governors to allow educators themselves to help run the non-profit. Even within this one single firm, I was blown away by the sheer amount of different things that existed. Products and services across this huge firm were varied and sometimes had little to do with each other. TIAA has dozens upon dozens of financial products: annuities, IRAs, HSAs, guaranteed and variable lifetime income vehicles, and more. I could scarcely wrap my head around them all…but that’s, I suspect, a natural result of how the finance industry has evolved. For example, if finance was easy to navigate, anyone would be able to plan and execute a sufficient retirement plan for themselves. Choosing the right investment vehicles or the right mix of assets would be straightforward. There are other benefits that firms like TIAA could end up serving — for instance, the ability to pool money with other investors to create larger funds — but overall, from a microeconomics perspective, the finance industry is heavily disincentivized from making finance easy to understand to laypeople. That may be partly because it would cost the finance industry, or society in general, money to broadly educate the public, and partly because some firms’ services benefit from general lack of knowledge about finance. Financial advisors are a great example of this: they’re a useful and thriving service in part because many people don’t have the knowledge (or time to acquire said knowledge) that would let them invest or pursue their financial goals effectively on their own. This isn’t necessarily malicious. After all, medical doctors are hardly incentivized to educate patients about injuries or diseases that they’re not currently facing, just as financial advisors are likely to provide advice about a specific financial need to specific clients, and not attempt to fill in all of the gaps in their understanding. (Keep in mind that many financial advisors exist to help wealthy clients manage their fortunes, too, which is a useful service that falls outside the bounds of this analogy). Still, the dark side of this complexity can be seen in the fallout of the 2008-2009 market crisis, which was made worse by banks packaging subprime mortgages (and other assets of questionable value) into new, nearly-inscrutable investments and selling them off. Overvaluation of these assets — which didn’t properly take into account the risks of default, or how rising interest rates and falling home prices could lead to it — led to a devastating butterfly effect that crashed the global economy. And this is just one example of one type of financial asset, mainly sold by commercial banks involved in real estate. There are many, many different banks, insurance companies, brokerage firms, accounting and tax firms, credit card and payment processing companies, real estate companies, and more, along with plenty of sub-categories for each of these. Each of these organizations might package and sell dozens of products with difficult-to-parse names: CDs, HSAs, ETFs, annuities, commodities, etc. In short, the finance industry is massive. This means that the movement of money throughout the economy can be very complex, too. The interplay between all of these different firms and the markets they participate in, not to mention foreign markets (and the foreign exchange market itself), determine how much money is available in M1 and M2, affect interest rates, can signal the onset of a recession or recovery, and much more. By working alongside the TIAA executives during my internship, I got a very interesting glimpse into how keeping all of this complexity straight was difficult — even for them! In fact, the entire premise of their strategy retreat suggested that… 2. Human capital is critical, even in “quantitative” industries It might be easy to picture a financial firm as a cut-throat, number-crunching entity that doesn’t need any help allocating its resources. Simply get the most money possible from every interaction, and mercilessly cut off any projects that fall below some (at times arbitrary) level of ROI. Yet the entire point of my internship was to help executives strategize about their portfolios, and also give them tools — via a management consulting skills framework — to think strategically in the future as well. It’s not easy to determine what the best course of action is, even for finance executives! And finance is one of the most quantitative industries that exists; finding the optimal course of action is likely even harder in industries that don’t have the ability to measure performance as “easily” or “objectively”. How should an art gallery, nail salon, museum, or fast fashion company decide what product mix to offer, or when a new initiative isn’t worth continuing? The answer usually boils down to the following: people with a lot of experience in the industry make an informed, but not all-knowing, decision. In other words, human capital is extremely important for organizations, something that firms have known for a long time. Salaries are higher for more experienced employees, after all, reflecting this (among other factors) — and it’s much easier to get a job in an industry where you already have experience compared to one you’ve never worked in before. Human capital is the key ingredient that allows companies to parse through uncertain data and find the best course of action. It’s also where innovation comes from — which is the driving force behind creative destruction, and arguably economic growth itself. My finance internship showed me that even in a deeply quantitative organization, human capital was still a key component of success, and was seen as worth investing in. It also challenged many core assumptions of the more basic economic models I’d learned in class — clearly, perfect information was not something the firm had. Of course, this doesn’t necessarily invalidate those models — many of them have specific uses that make them still perfectly valid to teach and utilize. 3. Within firms, it’s not all about the money TIAA is a not-for-profit and was built around the idea of helping professors invest for retirement. As such, it doesn’t have quite the same environment as a for-profit finance entity might. However, my internship still showed me — quite clearly — the value of what economists call a “warm glow”, which is a feeling that comes when you feel good about the work that you’re doing. The TIAA “retreat” I interned with began with a clear reminder to the executives that their company was not for profit, and aimed to serve people and help them reach their financial goals. Framing the business in this way clearly resonated with the executives, and gave them that “warm glow” feeling. The company’s appeal to their core values and the fact that the executives’ work ultimately helps people reinforced the idea that their work was important and meaningful, and helped the executives to feel proud of their role and excited to strategize. I’ve witnessed plenty of for-profit companies using similar tactics as well, such as healthcare companies sharing stories of heroic hospital workers or patients who received care within their facilities. These appeals can increase employee productivity, and in many cases probably firm loyalty as well. In recent decades, there’s been an increasing focus on “corporate social responsibility” (CSR). Firms are increasingly expected to use some of their profits to help improve society around them, and are simultaneously expected to reduce their negative impacts on the environment as much as possible. Certifications have popped up in the past several decades to help consumers find particularly responsible companies, including the “B Corp” designation. This “corporate responsibility” is another important aspect for firms to consider that can be hard to quantify, but can absolutely affect the bottom line. Some for-profit firms are even founded with an explicit mission to make the world a better place in some measurable way — like Patagonia, which aims to have a positive environmental impact (“Protect our home planet” being one of the core values listed on their website). In some countries there are even novel legal corporate forms, for example since 2005 “Community Interest Companies” (CICs) in the UK, or “gemeinnutzliche” (literally “publically beneficial”) limited companies ( gGmbH) since 2013 in Germany. Beyond the firm’s perspective, workers themselves are often increasingly searching for jobs that can give them a sense of purpose, or a “warm glow” from the course of their regular job. Deloitte’s “2025 Gen Z and Millennial Survey” found that “Roughly nine in 10 Gen Zs (89%) and millennials (92%) consider a sense of purpose to be important to their job satisfaction”. When searching for a new job, many potential employees nowadays need a bit more motivation than just earning a salary. This conflicts with the general premise of a cold, hard, economic look at an industry — firms dedicated only to optimizing profits, and employees dedicated only to optimizing their output and thus paychecks — though it doesn’t necessarily disprove it. It’s clear to see how firms could enjoy a boost from a good reputation garnered through CSR initiatives, for one. And, applying an economics perspective, a student might consider how utility-maximizing workers might flock to companies with a strong “warm glow”-giving purpose, because that sense of purpose may increase their personal utility more than a few extra thousand dollars of salary would. Whether or not your internship is within the finance industry or in another sector, the experience is highly likely to teach you valuable things about the real world that you can take into your studies, and consider again through an economic lens. After all, economics is an amazing field with plenty of theory about the economy and how it works — but it can help to get some real, on-the-ground experience too. If you’re considering an internship, be sure to check out INOMICS’ internship listings; we wish you the best of luck in your search. 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Towards the end of my undergraduate degree, I had the chance to work with upper-level managers on a strategy retreat as part of a summer finance internship. The internship was at TIAA-CREF (now known as just TIAA), and the retreat intended to help the firm strategize about the direction they should take in several aspects of the company. As a Bachelor’s student specializing in consulting, it was my responsibility to help them make use of a management consulting framework and mindset while doing it. This experience was my first foray into the finance industry. As I’ve progressed in my own studies, it’s given me plenty to reflect on as I’ve encountered various economic theories of the firm. Read on for the top three things I learned about economics from my finance internship!
The State University of New York (SUNY) College at Canton invites qualified applicants for a Full-time, Economics/Finance Assistant Professor position in the Business Department beginning September 1, 2026. This position is focused on Economics and Finance to meet the needs of an ever-changing global economic landscape. Salary: $65,000 – $70,000 Job Requirements & Essential Functions of the Job Delivering and developing a variety of Economics and Finance (and other business) courses in the face-to-face, online, and hybrid (flex) formats. Advising students enrolled in the Business Department majors, guiding them through their academic and career pathways. Contributing to the strategic initiatives of the Business Department. Actively participating in faculty governance and other university service activities. Engaging with local businesses, entrepreneurs, and community organizations to create partnerships that benefit students and enhance their learning experiences. Documents needed with application: CV, cover letter, statement of teaching philosophy, statement of research, sample peer-reviewed publication, statement of diversity, equity, and inclusion and three professional references. Prior to final offer of employment, the selected candidate will be required to submit to a background check including, but not limited to, employment verification, educational and other credential verification, and criminal background check. Application Deadline: open until filled; application review begins immediately. Persons interested in the above position should apply online at: https://employment.canton.edu/ SUNY Canton, a unit of the State University of New York, is an affirmative action, equal opportunity employer. The college is located in Canton, a village in the St. Lawrence River valley of northern New York. Located 20 miles from the St. Lawrence River and the Adirondack Park, and 70 miles from the Canadian capital city of Ottawa, Ontario, Canton holds excellent opportunities for the outdoor or cultural enthusiast. Required Qualifications Ph.D. in Economics or Finance or equivalent. Preferred Qualifications Three or more years of teaching at the college level. Managerial experience working in corporate finance or economic setting. Experience working in or with a Financial Trading Lab in an academic setting. Experience mentoring people in the field of finance and/or economics. Experience building relationships with corporate and industry partners. For any inquiries, please contact: Phone: 315-386-7325 Email: hr@canton.edu
Join the Business Department at SUNY Canton as a full-time Assistant Professor focusing on Economics and Finance.
UK Prime Minister appoints Minouche Shafik as Chief Economic Advisor and Darren Jones as Chief Secretary
The Prime Minister has announced significant appointments within Downing Street. On 1 September 2025, Darren Jones MP was appointed as the new Chief Secretary (Minister of State) to the Prime Minister. This newly created role involves working collaboratively across the UK Government to ensure the successful implementation of critical policies and priorities directly under the Prime Minister's direction. Additionally, Baroness Shafik has been appointed as the Chief Economic Advisor, a position aimed at enhancing the government's economic strategy. Baroness Shafik is a well-established economist, and brings a wealth of experience from her previous roles, including in the UK’s Department for International Development and at the IMF. She also served as Deputy Governor of the Bank of England, as well as academic roles at Columbia University in New York, and at LSE in London. Her expertise will play a vital role in driving economic growth and improving living standards throughout the UK. Both appointments coincide with the return of Parliament, indicating a new term focused on the pursuit of the government’s "Plan for Change". The Prime Minister emphasized that these appointments are designed to bolster the government's efforts in delivering on their objectives and addressing the pressing needs of citizens. In the announcement the UK government describes the appointments as representing a proactive approach from the government to support UK citizens in a rapidly evolving economic landscape. Image Credits: gov.uk
In a strategic move to enhance the UK government leadership team, the Prime Minister has appointed Darren Jones MP as Chief Secretary and Baroness Minouche Shafik as Chief Economic Advisor, aiming to drive economic growth and address key policy areas.