How Has the COVID-19 Coronavirus Pandemic Affected the Academic Sector?
But the coronavirus has also affected economic sectors differently. How the pandemic hit the private and academic sectors, for example, has been highlighted by the ongoing INOMICS Salary Survey. The full results will be released in early 2020; however, we can already begin analysing which sectors were most affected. A difference of extent Every sector has been affected in some way, whether that means people having had their hours reduced or having lost their jobs completely. For our study, we designate someone as being affected if they either lost their job, their salary or hours were reduced, a contract was not extended or planned promotion was delayed or cancelled. This doesn’t include workers who have moved to remote working but maintained the same contract. However, the private sector has been hit harder than the public. Nearly half of those working in the private sector - 47% - have had their jobs affected by the pandemic, in comparison with precisely one-third of the public sector. But it’s the academic sector which came out the best according to our survey: only 28% of those working in academia reported having had their hours reduced or having lost their jobs as a result of COVID. Specifically, just 3% of those working in academia have been made redundant. 8% have had their hours reduced, and another 8% have had their salaries reduced. This shows that the academic sector is more resilient to the pandemic than both the public and private. Perhaps this is because many teachers have had to continue teaching even if classes moved online. The Anecdotal Evidence Still, the academic sector has experienced other problems. One of our respondents wrote My promotion is postponed because my research has stalled, I cannot go for visiting research stays in universities and research institutes locally and internationally. And without research, my work has been made redundant as I now do mostly teaching, lecturing and administrative work online from home. Some in the sector also noticed inconsistencies with how the problem was being dealt with. For example, PhD students, who are required to do extensive amounts of research, were often not able to travel or even use libraries. While a pause may be frustrating but isn’t necessarily a huge problem, some were given extensions to finish their research which weren’t long enough. One student wrote that they were unable to conduct research on their dissertation for six months, but were only given a two month extension to their deadline. Others who are more involved in teaching were able to carry on, as many seminars and lectures began to be held online. This meant the majority of these people were able to carry on working, albeit under vastly different circumstances to which they were forced to adapt. Not out of the woods The pandemic is still very much ongoing, with second lockdowns coming into force in many parts of the world. Although there is talk of a vaccine and governments ostensibly know how to handle the crisis better, the struggles of those working in the academic sector are far from over. Many will remain unable to do their research or lose funding, and more may lose their positions or be forced to work fewer hours if the pandemic doesn’t ease up. Only time will tell. Complete Economics Salary Survey
Although we’ve been told time and again that the pandemic doesn’t care about who you are, in reality it hasn’t affected everyone equally. Senior Editor William Pearse has already written about how COVID-19 has been harder on those from ethnic minorities and on poorer communities in the UK.
How has the Economics Job Market Been Affected by the Coronavirus? - Salary Report Introduction
INOMICS is in a unique position to survey a broad and engaged subset of economists from a wide range of countries and at a wide variety of career stages. Based on this data, while recognising the limitations of a restricted sample, we are able to make key observations about the overall and regional state of economist salaries, about the extent of gender diversity at different career stages, and about the value of different levels of education in terms of salary later achieved. Over 1,500 economists completed the survey so far, with data collection continuing until the end of December 2020. INOMICS will release the full results of our salary survey in the first half of 2021 as a standalone report. This report will also be slightly different to those we’ve done in the past, in that we also included a section where economists could recount their anecdotal experience of the pandemic. This adds a personal touch to the report. While we work on finalising the results of the overall salary report, in the coming weeks we will discuss some of our preliminary findings from the coronavirus section. This will include commentaries on the geographical discrepancies we found in the severity of the crisis and if and how pre-existing inequalities in the economics job market have been accentuated as a result of the pandemic. Key findings of the salary survey related to the pandemic include: One third of economist jobs have been negatively affected by the Coronavirus Pandemic. This includes being made redundant, having hours or salary reduced, a contract not extended and a scheduled promotion cancelled or delayed. This does not include changes in how people work such as working or teaching from home. 6% of economists said they have lost their job because of the pandemic. Economists in the private sector have been hit harder than those in the public sector or academia. Economists in the Global South have been more affected than those in the Global North. 62% of economists in Africa and 56% in South Asia reported being negatively affected by the pandemic professionally, compared with just 23% in North America, and only 16% in Western Europe. Over half of economists (55%) feel they have not received sufficient support and training for remote working or moving to digital tools. There is a clear trend towards remote working and significant shifts for economists in work/life balance. Fortunately, the majority of economists have been able to maintain their employment in some form. Despite current difficulties, the picture is not universally bleak. Although they have had to adapt to digital working and home office, the majority of economists in the Global North at least have broadly been able to continue with their professional lives. New jobs are still being posted to INOMICS all the time and with the prospect of some form of vaccination program in 2021 there is at least the potential for a recovery in the foreseeable future. Complete Economics Salary Survey If you are an economist and have not done so already, be sure to complete the salary survey - submissions until the end of December 2020 will be counted towards the report, with any later submissions being used for next year’s survey. Additionally, don’t forget to create an account on INOMICS to receive notifications about all our upcoming publications as well as tailored job, program and conference announcements straight to your inbox.
In 2020, INOMICS once again carried out its salary survey, examining the state and health of the economics profession worldwide. As in previous years, the survey considered pay, sector, seniority, location, gender and educational background. Our 2020 survey was launched in the spring as cases of coronavirus began to increase exponentially around the world. Consequently, we added new questions related to the coronavirus pandemic to assess the effect of the crisis on economists and economics students.
Macroeconomics and Monetary Economics (JEL E)
Who is Responsible for a Shipping Vessel? Ownership and Scrapping
There must be a link between the state on whose behalf the vessel is sailing and the vessel's flag state. But in reality, flag registers, which do not stipulate the registration of shipping companies, benefit from convenient financial benefits and lower taxes. All this is partly regulated by private companies, 'helping' shipowners to change their flag to a more advantageous one when they want to. It also helps shipowners to obtain lower taxes and lighter regulatory burdens. According to UNCTAD data, almost 73% of the world's fleet sail under flags of the states other than the actual owner of the ship. This is why there is a great deal of dissonance between the countries where the real shipowners are located and the flag states exercising regulatory control over the international fleet. Check out our job listings The choice of the flag state where the ship makes her last voyage to be scrapped calls for special attention. In most cases, vessels sail to the beaches of South Asia instead of ship recycling facilities elsewhere. No wonder many end-of-life ships are already wearing the flags of Asian countries. In addition, most of these flags are already blacklisted in the Paris Memorandum of Understanding (MOU). These flags also usually indicate poor compliance with international maritime standards. Several of South Asia's beaches offer a 'last voyage' package, which includes quick registration and no nationality requirements to be met. Who benefits? If a ship had to be recycled in European ports in compliance with all the required environmental and toll requirements, it would be quite expensive and disadvantageous for many private companies. According to the data published by the NGO Shipbreaking Platform in 2019, 674 ocean-going vessels and offshore units were sold for scrap metal. Of these ships, 469 large tankers, bunkers, floating platforms, cargo and passenger ships were dismantled. They are mainly delivered to three coast lines: Bangladesh, India and Pakistan, accounting for almost 90% of the total gross dismantled worldwide. The platform's data show that in 2018, 744 large ocean-going vessels were sold to scrap yards, of which 518 were dismantled. In 2017, 835 large ocean-going vessels were scrapped, of which 543 were cracked on the beaches of Bangladesh, India and Pakistan. Statistics for the last three years show that overall figures are declining for both scrapped and cracked vessels. Bangladesh still has a favourable landfill for end-of-life ships full of toxic substances, and profit is the only decisive factor for most shipowners who sell their ships for scrapping. For developing countries at risk of poverty, these transactions are profitable. Many countries in the world that own large merchant vessels would have to pay a lot of money for scrapping, as they would have to comply with international environmental pollution requirements and other conditions. In developing countries, though, these ships are dismantled on local beaches without complying with environmental pollution regulations or worker safety requirements. Every year these ship breaking centres employ workers without specific knowledge, equipment and safety standards, even children. Local authorities turn a blind eye to the number of people injured and killed each year who work in ship-breaking yards. Old shipowners do not have to worry about this and do not have to comply with strict international agreements. Last year, at least 30 workers were killed and even more seriously injured in ship breaking work. These ship-recycling facilities claim that the work there is safe, but they are not included in the list of EU approved ship-recycling facilities. International regulations that seek to improve ship recycling practices should fall outside the jurisdiction of the flag state. A lack of political will at international level has so far prevented shipowners from being held liable for ship recycling, but the solution must be global. Policymakers should take effective measures to redirect ships to places approved by the EU. The fact that old ships are registered under flags that are known to have poor implementation of international maritime law raises serious doubts about the effectiveness of such legislation, which is based solely on the jurisdiction of the flag state. However, it should be borne in mind that the EU Ship Recycling Regulation has been applicable since 1 January 2019 and requires EU-flagged vessels to be recycled in one of the currently approved facilities in the world, included in the EU list. There are 41 such facilities on the list. These facilities meet high standards of environmental protection and worker safety, ensuring sustainability for ship breaking yards.
The United Nations Convention on the Law of the Sea (UNCLOS) stipulates that the primary responsibility for vessels lies with the flag state of the vessel. Consequently, this means that each merchant vessel must be registered under the flag of a specific state. The flag state of the vessel is responsible for the inspection of the vessel and compliance with safety, pollution prevention, crew certification and international standards.
Urban, Rural and Transportation Economics (JEL R)
5 Books You Should Read Before a Conference
But a good way to contend with this is to be well-read. There are some specific books you can pick up which can help you specifically with speaking publicly and networking. Read on for our list of aforementioned books. INOMICS and our parent company 11 Academia Networks are Amazon Associates, meaning we are a part of their affiliate program. This article contains affiliate links, which means we may earn money through any qualifying purchases made after you click through. However, this is not a sponsored post. 1. Confessions of a Public Speaker - Scott Berkun This funny, light-hearted book is nonetheless full of solid practical advice for successful public speaking and general communication skills. If you're giving a talk at a conference for the first time, or even if you're experienced but you want to brush up on your skills, this book by a professional public speaker can help. With advice that goes beyond giving a successful presentation and into topics like how to deal with a tough audience, combating nerves, and how to be engaging rather than boring, this will help make your talks better and give you confidence. These tips will also help you during smaller speaking events, such as if you're giving a poster presentation at the conference. 2. Never Eat Alone And Other Secrets to Success, One Relationship at a Time - Keith Ferrazzi Although this book is aimed at business professionals, it is packed full of advice on networking which will be helpful for academics too. Networking is one of the biggest advantages of conferences, and yet it is something that many academics struggle with and even feel embarrassed about. This book encourages you to build your network by creating connections with others with whom you have interests and work in common, rather than trying to network with absolutely everyone. This targeted advice can make networking at a conference more fun and less alien. 3. English for Academic Correspondence and Socializing - Adrian Wallwork If you're a non-native English speaker and you're attending an English language conference, then striking up conversations with the other attendees can be even more intimidating. This book is aimed at academics who are non-native English speakers and has advice on written English, such as writing and responding to reviews or sending emails. The sections which will be most useful for conferences are the chapters on interacting with native English speakers and on socializing. These sections cover all the aspects of English which you weren't taught at school, like how English is used colloquially, and typical social interactions and small talk. These can help you to ease into conversations at conferences and to get acquainted with your conversational partner before you start discussing your academic work. 4. The Charisma Myth: Master the Art of Personal Magnetism - Olivia Fox Cabane We all know those people who simply attract people, who become the lightbulb for the moths as soon as they walk into a room. Most people think this is a talent that people are born with, a gift, simply the way some people are. Introverts will remain introverts; the charismatic will always command the attention of the room. Olivia Fox Cabane is here to break down these preconceptions, and show and teach everyone that no matter who you were before, you can train yourself to become more charismatic. Charisma can help you in many situations - finding a job, being a leader, improving your relationships - but it's also an essential component of networking and can be an invaluable asset at a conference. Cabane shows how charisma can be sliced up into various categories and components and shows how anyone can learn them. She says it isn't about changing who you are, or about totally altering your personality: it's simply about learning a series of practices that will help you attain more attention and simply be more charismatic. 5. Superconnector: Stop Networking and Start Building Business Relationships that Matter - Scott Gerber, Ryan Paugh Scott Gerber and Ryan Paugh want you to stop networking. Their book breaks own the problems of the old networking procedures - networking for networking's sake - and instead contend that a more community-based approach is more effective. They talk of Suerconnectors, who understand how important it is to build valuable relationships with people, can solve problems effectively, and bring together different communities that can help each other. Gerber and Paugh will tell you what you need to do in order to become one of these lauded Superconnectors. They show how some of the best networkers in the game maximise the value of each of the communities they manage, and show that the best way to receive things that are valuable to you is by putting the needs of others first and waiting for the good karma to flow right back to you. They'll also show you how to be selective with whom you network, meaning you can focus on finding, building and maintaining the most important relationships to you. What else should I read? The latest book written by the keynote speaker There are a few good reasons that you should read the latest book that has been authored by the conference's keynote speaker. Firstly, reading the material beforehand will help you to understand the keynote speech and give you the chance to think of some questions which you might like to ask the speaker. Secondly, the work of the keynote speaker often sets the tone for the conference, guiding what the main topics to be discussed will be, so having read their latest book in advance lets you predict what kind of topics will be hot at the conference. Finally, it's a book that other attendees are also likely to have read, so you can strike up conversation by asking other people's opinion about it. Newspapers, magazines & journals in your field Finally, one of the best way that you can have rewarding conversations at conferences is to read broadly about current events in your field and in the world generally. You don't need to become an expert on every topic, but pick up a couple of issues of the top journals in your field, a few general magazines like New Scientist or The Economist, and a newspaper which you can flip through as you travel to the conference. Having a basic knowledge of the state of your field will make it much easier for you to converse with people who do work outside of your sub-field. Also, consider reading up a little bit about the history, culture, or current events of the location where the conference is being held. Being able to chat about the history of the area you're in or recommend some places to visit there will help you to talk casually with other attendees. Everything and anything As is now received wisdom, it's good practice to simply read everything you can get your hands on. Reading everything you can will increase your vocabulary, improve your articulation, and make you a better writer, all excellent skills to have in business and academia. Whether this be classic literature, genre fiction, non-fiction, academic papers, even comic books and newspaper articles (the sports sections are often particularly fluid), pick up everything and read, read, read.
Networking is one of the most important parts of a conference, but lots of people find it hard to engage with other people. At conferences it's even more difficult: you're talking with so many people, many of whom are successful businesspeople or established academics.
The Benefits of an Economics Background for an Engineer
Browse our programs listings for more opportunities Mixing subjects I was advised that economics was the most applicable choice for starting to understand certain concepts within business. Indeed, I was able to learn concepts in both micro and macroeconomic theory, as well as to complete courses within the more strictly business-related commerce program. One of the benefits of an engineer learning economics is the connection to mathematics. Engineering students complete a wide range of math and statistics courses during their studies, so most (if not all) math-oriented economic concepts were easier to grasp when introduced. The best of both worlds While the overlap in material between the two programs proved to be of clear and significant benefit in terms of the workload, the diversity provided both the greatest challenge and the greatest reward. For example, in my final year of study, I had to complete a real-life, multidisciplinary design project for my engineering degree. In the same time-frame, I was also involved in several in-class discussions about current economic trends. This contrast made me think from multiple perspectives, broadening my understanding of what economic and financial factors should be considered in engineering projects and vice-versa. It is this standpoint where an early leg-up in economic concepts is fundamental for an engineer, not only in order to have a management perspective, but also to develop a business perspective: technical knowledge is key, but an ability to consider the current and forecasted market trends may be just as important when completing more complex projects over longer periods of time. For example, in my current field of Aerospace Engineering, predicting the economic trends over the next 10, 25 and 50 years of anticipated technological advancements is a fundamental requirement for all companies in the field. In hindsight As I look back, I fully recommend any engineering students wishing to study for an MBA or simply advance their business understanding to enroll in an economics program. Though I still require an MBA and a considerable amount of work experience before considering a position in management, I feel that by gaining an economics background I have a better understanding of the current challenges at hand, and how the market and financial side of any project may be just as important as the technical requirements.
Ever since I was a kid, I dreamed of becoming an engineer. From playing with LEGO to being an active member of my high-school robotics team, I loved building things and breaking them down to learn how they worked. This being said, I have kept an open mind about a position in management down the road and from this perspective it was important to me to prepare for a career in both business and engineering. My answer: a dual degree program whereby I completed a BA in economics alongside a BSc in Mechanical Engineering.
We are all constantly facing tradeoffs in decisions we must make. For example, we’re considering tradeoffs when choosing between purchasing a new mobile phone or saving the money to pay for the next holiday. Or when deciding between staying up longer for drinks with friends or going home to rest before an exam. All of these situations are similar: no matter which decision we finally make, it will bring us closer to reaching one goal. But at the same time, it will make reaching another, competing goal harder. Let’s consider the first situation mentioned above to think about the tradeoff between saving and spending money. The tradeoff is the following: if you decide to buy the new phone, you will have to use some of your savings that were reserved for your holiday. If you choose to save the money for the trip, you will have to use your old mobile phone. Clearly, no matter what you decide, you will come closer to one goal (having a new phone or going on a special vacation). But at the same time it will become harder for you to reach the other goal. It’s important to note that these goals must be competing to truly be considered tradeoffs. In this case, since both goals cost money, using your money to reach one of the goals makes it more difficult to reach the other goal because both draw from the same resource. Scarce resources like time and money tend to be the limiting factors for many decisions involving tradeoffs. However, some decisions would not truly be considered tradeoffs. For example, suppose you decide to go to the park in the morning and watch a movie in the evening. There was not a tradeoff considered when reaching that decision, because neither event competed with the other for time, and both were free so they did not cost money. Instead, a tradeoff would be present if you considered going out to eat with friends instead of watching the movie. Tradeoffs in the economy Political decision-makers also face tradeoffs with decisions involving different economic policies. One central tradeoff in economics is the one between efficiency and equality (or equity). Economists overall tend to agree that the market does a pretty good job in assigning scarce resources efficiently, but less so when considerations of justice or fairness are taken into account as well. Therefore, redistribution plays a central role in most countries and taxes are a key instrument to reach redistributional goals. So, let's think about the tradeoff between efficiency and equity (or equality) when designing a tax system. Most countries have a progressive income tax which means that people with higher incomes pay higher taxes. Policymakers, economists and the general public agree generally that the country’s tax system should be progressive to some extent. However, there is a lot of debate concerning the exact income thresholds for each tax rate and how high the different tax rates should be. Some fear that excessively high tax rates for high incomes will harm the incentives of high-income earners to work and innovate. This stems from the idea that people are motivated by incentives and only work hard if they expect higher economic profit from their increased effort. Therefore, efficiency would call for more moderate tax rates also on high incomes. At the same time, taxes are an important instrument of redistribution as tax money is used to finance public infrastructure and other goods and services. Hence, there exists a tradeoff between economic efficiency and social welfare. Other notable 'tradeoffs' economists consider are the increase in budget deficit that comes from increasing government spending to stimulate investment, and the disincentive to work that comes from raising unemployment benefits. Consequently, one of the main tasks of economists is to provide empirical evidence and theoretical models that analyze and quantify these tradeoffs and thereby help decision-makers to reach (evidence-based) decisions that improve welfare. In economic theory, tradeoffs are measured using the concept of opportunity costs. Opportunity costs measure the costs of the best foregone alternative, i.e., it measures what we sacrifice in order to get something. You see that the concepts of tradeoffs and opportunity costs are closely related. The first describes the general problem of facing incompatible goals, while the second quantifies the costs of choosing one objective over another. Further reading In 1974 Arthur Okun’s book “Equality and efficiency – the big tradeoff” was published. In this book the famous macroeconomist, who is better known for Okun’s Law, writes about the great tradeoff between equality and efficiency. On the one hand, the capitalist system encourages people to economically do better than other members of the society. On the other hand, social norms and values emphasize the importance of social equality and consideration of others who may be less fortunate. This contradictory message asks for an egalitarian social system while at the same time fostering increased inequalities in economic well being. In an empirical investigation published roughly at the same time as Okun’s book, Browning and Johnson assess the social costs of redistributional measures (“The trade-off between equality and efficiency”, Journal of Political Economy, 1976). The authors estimate the marginal cost of reducing income inequality and find that this cost is quite high. Depending on the modeling framework they estimate that the disposable income of upper-income quintiles decreases by $3.49 - 9.51 for each dollar increase in the disposable income of lower- income quintiles. Good to know The English proverb “you can’t have your cake and eat it too” summarizes the concept of a tradeoff. Keeping the cake and eating it are two incompatible goals. In other words, we simply cannot have it all.
A tradeoff refers to a situation where in order to come closer to reaching one objective, you must sacrifice another. In other words, when people or societies are facing a tradeoff, two or more goals are at odds and cannot be satisfied simultaneously. Any progress towards one of the goals is (at least partially) offset by a deterioration of the prospects of reaching another goal.
How to Survive Your Economics PhD Thesis Defense
Preparation before your defense The best way to get comfortable with your defense is to practise your presentation plenty of times. If you can, find a large room which is similar to the room you'll use, and practise presenting to your friends or colleagues. Run through your entire presentation, including slides and questions at the end, and familiarise yourself with the format. It can also be helpful to watch other people's defenses so you know what to expect. Attend a few defenses in your department to get a feel for the atmosphere and style which is appropriate. Remember to check in with your supervisor and thesis committee in the weeks before the defense, and find out if there are any particular concerns that they have or issues which they want you to address. Also talk to the admin staff and find out the details about which room you will be presenting in, what computer or audiovisual equipment is available, and how many people are likely to attend. Either on the day of your defense or a few days before, go to the room in which you'll present and check that you can load and display your slides. Pay particular attention to whether your images, tables, and graphs are displayed correctly. <11an>limit:3;categories:Postdoc;disciplines:Economics</11an> Presenting your defense You want your presentation to be smooth and well-practised, but not to be robotic. Don't try to memorise your presentation exactly, and definitely don't read straight from notes, but rather let yourself talk in a natural and conversational way, and use flashcards rather than a script. People tend to talk faster when they're nervous, so take a deep breath and try to slow yourself down while you're presenting. When you practise, be sure to time yourself, and make sure you're not too far over or under your time limit. It will be helpful for both you and your audience if your slides are minimalist, with not too much text on them. Have a few key points on each slide which you can look at to remind you of your topics, and which the audience can refer to for a basic outline – but don't fill your slides up with paragraphs of tiny text! Put numbers on your slides, and have an outline slide where you describe the structure of the upcoming presentation – this will help the audience to follow along. Bring along paper copies of your slides to give to your committee, so that they can easily refer to any slide if they need to. To really impress with your presentation, you can cut your material down to the bare essentials, and put all of your extra materials in appendix slides. If someone asks a question about specific data or ideas which you didn't have time to cover in your presentation, you can refer them to the relevant appendix slide. Dress smartly but comfortably – it's appropriate to wear a suit if you have one. If not, then smart trousers, an ironed shirt in a plain colour, and flat shoes are always a good choice. If you find yourself flapping your hands nervously, then grab a laser pointer, flashcards, or use a podium so you have something to do with your hands while you present. Dealing with questions The part of the defense which makes most people nervous is having to answer questions from the thesis committee and others after the presentation. The committee may ask probing or difficult questions, but they are not trying to fail you: they're just making sure you know your material. The most important thing to remember is that it's okay to say that you don't know the answer to a question! You can speculate about an answer, as long as it's clear that's what you're doing - for example, 'I haven't looked into whether this effect appears cross-culturally, but I would speculate that...' You can also talk about how you would address that issue in future research. Finally, people can sometimes ramble a bit while asking questions, so you can ask for clarification or repetition of a question if you didn't understand it. We wish you good luck with your thesis defense! Survived your defence? Check out postdoc job listings Header image credit: greymatters on Pixabay (free for use under the Pixabay Content License)
Once you've handed in your thesis, you still have one big challenge to overcome before you're finished with your PhD: the thesis defense. This is an opportunity for you to present your research publicly and to answer questions about it from your thesis committee. The process can be tough going, especially if you've never had to do anything like this before. That being said, there are a few ways to make sure you survive – and even perform very well in – your thesis defense.
Halloween is probably one of the best occasions to demonstrate how seriously you take yourself (or not!) and how far your creativity can go to show it. If you think that Halloween is below your intellectual level, well, they say that even Paul Krugman threw one economics-themed party, where “two guests came as Asian tigers, several came as hedge funds, one woman came as capital, dressed as a column..." Browse our PhD listings for more opportunities In keeping with the season, we have put together a short list of ideas, collected from various econ-related source (like a Halloween Edition from Economists Do It With Models), which may be useful if you are attending a Halloween party full of like-minded economists. 1. EconoTroll Take a look at this well-known post from Noah Smith about EconoTrolls and you may be surprised by the amount of ideas for Halloween costumes. In his witty blog post from last year, not only has Noah categorized all possible species of trolls in the econ blogosphere, but also explicitly illustrated them. Don’t miss out on the comments either. 2. Your favourite “evil” economist It might sound easy, but creating a good costume of a real person is an art that is hard to master. Although anyone can buy a mask of Ben Bernanke, only a few would be able to depict his persona in an allegoric way. To succeed: think of the most “infamous” policies or just a tiny character detail anyone would recognize about that person and play around them. 3. Economics theory & concepts There is no need to be creative if the great thinkers have already done it for you. Any economics textbook has a whole host of ideas for Halloween costumes – just read all the definitions literally. Invisible hand, indifference curve, price elasticity, budget constraint … it is a list without end. 4. Financial crisis related Financial crisis has become a buzzword, referred to by individuals regardless of profession and status. So if your Halloween party-mates happen to come from outside of the economics community, costumes related to financial crises might be the only ones that have a chance of being understood: just dress-up like an investment banker and add horns, or dress yourself up as a bubble. 5. Economics costumes for couples Although some might argue that a couple is a rare phenomenon among economists, ideas for Demand & Supply or Keynes vs Hayek could make it worth making an effort to find at least a temporary partner. There's also the classic 'bear and bull' duel Halloween costume, also financial crisis related, and relatively easy (bear and bull costumes aren't too difficult to come by). 6. An Econometrician An idea from one of the many anonymous users from econjobrumours: “Find a friend who dressed up as a statistician, blatantly copy his/her costume, get twice as much candy”. 7. The Wolf of Wall Street How do you make yourself look like Leonardo DiCaprio? Actually, you don't have to develop an inferiority complex by attempting this. A much easier way to do this is wear a suit, shove fistfuls of fake money (or real money, if you're into extravagant displays of wealth) into your pockets, and throw a wolf mask on top. Very easily done. 8. An Economist At the end of the day, is there a need for a costume at all? Just look at the pictures from your last academic conference and copy a look of a random audience member.
In keeping with the season, we have put together a short list of ideas, collected from various economics-related source, which may be useful if you are attending a Halloween party full of like-minded economists.
Let’s first see how an increase in government spending can accelerate economic growth. Part of the aggregate demand in an economy comes directly from the money spent by the government. Like private households and firms, governments themselves can buy goods and services and participate in the labor market. For instance, when governments set out to construct roads or other infrastructure, they hire private companies to do so, putting government money back into the economy directly (and increasing aggregate demand). Further, when governments attempt to hire new employees and workers to perform different services, they increase the demand for labor. If a government increases spending on nationally produced goods and services - such as construction of the aforementioned roads - this will translate into a direct increase in aggregate demand. Firms will raise production and hire additional workers to meet this demand. Thus, an increase in government spending leads to an increase in output (GDP) and a decrease in unemployment. One important question is by how much output will increase if the government decides to spend an additional million euros. Of course, aggregate output will increase by at least the same amount (in this case one million euros), but that’s not all. The initial stimulus will generate an increase in income which in turn will increase demand. From there, the production will rise by more than that initial increase in government spending. Why is that the case? Firms will sell more because of the increased demand and make higher revenues. Part of this revenue they will keep as profits and part will be used to pay their workers. Hence, the incomes of the workers and business owners increase. Because of increased demand, firms might be induced to hire new workers. Then, some workers who were formerly unemployed will gain a job and an income. They can therefore buy more goods and services. This in turn increases again the income in certain sectors and thereby aggregate demand. This effect – that government spending can increase aggregate demand by more than the amount spent – is known as the multiplier effect. The magnitude of the multiplier effect crucially depends on the marginal propensity to consume (MPC) of the households in the economy. This term refers to the fraction of income that households consume and do not save. For example, say you spend 80% of each euro that you earn while the remaining 20% you deposit in your bank account and save for later. Your marginal propensity to consume is equal to 0.8, and your marginal propensity to save is equal to 0.2. In a simplistic world (without income taxes or imports) an increase of 1 million in government spending will increase GDP by: Change in gdp = Change in government spending * multiplier = 1,000,000 \(\frac{1}{1-mpc}\). The term \(\frac{1}{1-mpc}\) is the multiplier. If households consume 80% of their income, the multiplier will be equal to 5 (\(\frac{1}{1-0.8}\)). Clearly, the higher the marginal propensity to consume, the higher will be the multiplier effect. If, for example, households only consume 50% of each euro that they earn, the multiplier will be equal to 2. So, on the one hand, an increase in government spending will boost GDP by more than the initial increase in spending due to the multiplier effect. On the other hand, however, an increase in government spending may cause a "crowding out" effect which will hinder growth. The crowding out effect works in the following manner: to finance the increase in government spending, the government must borrow funds. This rise in the demand for loanable funds will cause the price of money, i.e., the interest rate, to increase. At a higher interest rate, it will be less attractive to borrow money and more attractive to lend money. Firms and households with savings will prefer to lend the money instead of spending or investing the money. Those without their own savings may not be able or willing to borrow money at this higher interest rate. If households and firms borrow less money, they cannot invest in new structures, buildings or machinery. Thus, public investment displaces (or crowds out) private investment. Another instrument of fiscal policy is tax law. Tax reductions may stimulate private consumption if the tax cut leads to a direct increase in households’ disposable income. Part of this additional income the households will spend on goods and services (the other part will be saved). This, in turn, increases demand. This increase in demand can only be met if firms increase production. In order to do so, they will have to hire more workers. So, production increases and unemployment decreases. Another channel through which tax reductions may stimulate economic growth is the impact tax cuts have on the investment activity of firms. Tax cuts may stimulate investment, and an increase in investment leads to an increase in the demand for goods and services. Hence, production will increase and unemployment decrease. Now you may wonder what are the downsides of the fiscal policies we just described. The main problem is the increase in public debt. An increase in government spending without an increase in taxes will increase the budget deficit. In a similar manner, tax cuts that are not accompanied by a decrease in spending will also increase the deficit. High levels of debt are problematic for a variety of reasons. The government might face high debt interest payments in the future, which could necessitate raising taxes at the cost of output. Debt can also cause the crowding out effect that we mentioned above. The type of tax cut or government spending will determine its effects. For example, the effect of a reduction of the income tax will be different from the effect of a reduction of the value added tax. Similarly, government spending can benefit some sectors more than others. Additionally, the type of spending determines the overall effect on the economy. Further reading For policy makers, it’s important to have an idea which types of fiscal policies work best for the goal in question. Consequently, empirical economists have spent a lot of effort trying to analyze and quantify the effects of different types of fiscal policies on growth and employment. Kneller, Bleaney and Gemmell, for example, studied fiscal policy in a panel of 22 OECD countries for the years 1970-95. The authors found in “Fiscal policy and growth: evidence from OECD countries” (Journal of Public Economics, 1999) that government expenditure only fosters growth if it is productive. Meaning, if it is defined as the sum of expenditure on education, health, defense, housing, economic affairs and general public services. Meanwhile, the authors found that non-productive government spending in the form of social security or recreation expenditure tends to hinder economic growth. Good to know During the COVID-19 pandemic many countries reacted with severe lockdown measures to stop the expansion of the virus. These actions had severe economic consequences such as rising unemployment and decreasing production. The measures to prevent COVID-19 from spreading differ from country to country as did the public policies implemented to protect the economy. The International Monetary Fund provides on its website a policy tracker. It contains information on the main economic responses governments are taking to limit the economic impact of the COVID-19 pandemic. With it, you can have a look at the fiscal policies taken by several different countries as a response to the crisis.
Government authorities use taxes and/or government spending to influence the economy of a country. This is known as fiscal policy. The government can use various tools to influence a country's economy if it thinks it's needed. During recessions or in times of economic crisis, for instance, production is low and unemployment rates are high. To stimulate economic growth the government may use tax cuts or an increase in government spending. These types of measures are known as expansionary fiscal policy.
Public Economics & Economic Policy (JEL H)
Browse our PhD program listings for economics 1. Cookie Monster teaches you about supply and demand It's so much easier to understand the basic principals of economics when cookies are involved, isn't it? This is the kind of Sesame Street content that we are in support of. From https://www.pinterest.co.uk/pin/15058979980424165/ 2. Opportunity costs we can all understand We all remember our student days: grassy campuses, intellectual stimulation, and the eternal question of whether to force yourself out of bed and away from Netflix and get to class. It's opportunity costs in action. From https://www.pinterest.co.uk/pin/15058979980424089/ 3. The truth of being an economist We've all had the experience of trying to explain what it is that we actually do at parties. The reactions you get when you tell people that you are an economist can be... wide ranging. That's why we can all sympathise with the image below: Photo credit: Fgcu.edu 4. The free trade debate rages on The ethics and effectiveness of free trade is surely not a debate that we've going to solve any time soon. So why not make debate points through the endlessly eloquent world of memes? From https://i.pinimg.com/originals/ac/d4/f4/acd4f482eb52da528fb773ae31f12629.png 5. Ash makes full use of comparative advantage When you've caught them all, you've cornered the market. Pokemon trainers understand that better than most. From https://i.pinimg.com/originals/ee/6f/4b/ee6f4b07247287e29d3f70dc867c5280.jpg 6. The conundrum of internet shopping Do you really need that new sofa? Those new shoes? That gadget you've been coveting? You just looked at the online shopping page briefly, but it's on sale. Maybe you should snap it up now while it's on offer? From https://www.pinterest.co.uk/pin/15058979979756752/ 7. We've all been there We all know that the candy you eat after eating 50 other candies doesn't taste as good as the first one. And yet... we can't seem to put the bag down. Bam! That's diminishing marginal returns. From https://i.pinimg.com/564x/33/27/45/33274534de5cb25af02fafadbf9d8740.jpg 8. Economics in action Who can resist a student happy hour? Not most economists, that's for sure. After all, it only makes economic sense... From https://www.quickmeme.com/user/artcarden/ 9. The realities of negative externalities We all like to think that we are not the problem – that the ills of society are caused by someone else. Except when it's something that we really need to do, like driving our cars. That's negative externalities for you. From https://i.pinimg.com/564x/ee/f8/8b/eef88b56844de8742f228363626c90aa.jpg Header Image Credit: White77 on Pixabay (free for use under the Pixabay Content License)
Economics is serious business, but sometimes we all need a break! And that's when the internet is there: to sympathise, to commiserate, and to make us smile at the end of a tough day. Fortunately the stereotype of economists being humourless is not true – there are plenty of fun and funny economists who are out there sharing their humour. From students to senior professors, there are memes on the internet to express all aspects of the study and practice of economics. Below you'll find 10 of our favourite memes that we know all economists will love!
Yes, because economic sanctions provide an alternative to military action One of the primary arguments for economics as a method of preventing war is that it provides alternative mechanisms for nation states to respond to each other without necessitating military involvement. Both nation-states and international bodies such as the UN have tools for censuring other nations that are behaving dangerously, without having to engage military tactics as a first step. For example, if a nation is behaving aggressively towards its neighbours and threatening to destabilize an area, then other nations can impose economic sanctions as a first step rather than sending in troops straight away. Economic sanctions can include trade barriers, higher tariffs, or restrictions on financial transactions. In more serious cases, an embargo or trade ban can prevent trade between the nations entirely. The nation which is the subject of the sanctions will certainly experience a drop in trade, which will negatively impact their growth and development. Additionally, they may come to be seen as a pariah on the international stage. For these reasons, a nation may decide to curb its aggressive behaviour in order for sanctions to be lifted, all without risking the loss of life or military operations. Yes, because global economic interdependence necessitates peace Connected to the use of economic sanctions is the concept of economic interdependence. The idea is that as our world becomes increasingly globalized, nations rely on each other more and more. States rely on each other even for essential tasks like food production, where large quantities of basic foodstuffs may be imported from other locations around the globe. Certainly, this is true in business, when huge multinational corporations have offices or points along their supply chain in many different countries. This is termed economic interdependence. This means that for both the political leaders of nations and for many business people living within the state, maintaining a good relationship with other states is essential for the continued well-being of the state and its businesses. If a nation needs the support of another nation, either to buy or sell goods to them, then they are incentivised to maintain a positive and peaceful relationship, and to find answers to conflicts that do not involve war. Thomas Friedman termed this the Dell theory: “No two countries that are both part of a major global supply chain, like Dell’s, will ever fight a war against each other as long as they are both part of the same global supply chain". Yes, because free trade bolsters peace and improves human rights Finally, there is a moral argument that free markets support peace and promote human rights. The idea is this: take a country with a strong economy but a dubious humans rights record, such as China. If people in developed Western nations want to improve the well-being of people in China, then they need to maintain a political connection with them. If countries decided that they would stop trading with China because of its human rights abuses, then not only would they likely harm Chinese workers, but also the Chinese government would have no incentive to improve their human rights record. In order to influence the behaviour of another nation, you need free trade with them to use as a bargaining chip. The second part of this argument states that human rights are best improved by modelling them for other countries. In order to improve human rights, nations have to interact with each other and show how a nation can progress and thrive without human rights abuses. It is therefore essential for nations to interact with each other through trade, because this is how human rights will eventually be improved globally. However, there are also arguments to the contrary: No, because war drives economies An argument against the above goes as follows: economics cannot prevent war, because economic well-being is itself supported and driven by war. In wartime, a nation's manufacturing and infrastructure are increased in order to build military structures and weapons and to mobilize those elements around and beyond the state. This increase in manufacturing leads to lower unemployment, increased efficiency, more production, and therefore a stronger and growing economy. In the end, wars can be seen as “necessary” in that they provide justification for economic growth. George Orwell popularized the concept of perpetual war, in which wars are fought endlessly not because of the actions of other states, but to preserve order within a state: “[War] eats up the surplus of consumable goods, and it helps to preserve the special mental atmosphere that a hierarchical society needs... The war is waged by each ruling group against its own subjects, and the object of the war is not to make or prevent conquests of territory, but to keep the structure of society intact.” Under this view, economics can never prevent war because war is such an effective economic driver. No, because economic sanctions eventually lead to military actions Another argument can be marshalled against the use of economic sanctions to prevent war, and that is that such sanctions are either ineffective enough to be ignored, or effective enough to harm the people of the target nation – and in this case, military actions are often not far behind. An economic sanction such as a blockade can help cut off supplies to a nation and impress upon that nation the displeasure of another. But when this blockade threatens the stability of the nation, then military action can be justified in response. For example, consider the Cuban Missile Crisis. The partial blockade of Cuba in 1962 was established by the US to prevent Soviet missiles from being moved to Cuba where they would be close to US soil. But this blockade did not alleviate tensions between the US and the Soviet Union, it increased them. Not only this, but it also pulled other nations into the conflict and obliged them to choose a side. Although eventually an agreement was reached between the US and Soviet Union, the blockade came extremely close to kicking off a third world war. Similarly, those convinced that, unlike war, economic sanctions are not harmful to the well-being of citizens should consider the blockade of the Gaza Strip that has been ongoing since 2007. The situation within Gaza is horrendous, with water that is undrinkable, not enough food to go around, a lack of fuel, regular power cuts, and the destruction of trade and industry. It would be hard to argue that economic sanctions are a more humane alternative to war when they cause such suffering. No, because history demonstrates otherwise Regarding the value of economic interdependence in an increasingly globalized society, one need only look to history to see how effective this has been at stopping war in the past. The pre-WW1 period was marked by a strong internationalisation of trade and business, with economic interdependence a key feature of the European landscape in particular. The widespread use of the gold standard made trade between nations easy, and therefore common. But this interdependence utterly failed to stop the first world war. If interdependence failed to keep the peace then, what reason is there to believe it will work now? Some writers have even argued that economic interdependence creates war by bringing powerful nations into contact with each other. As Kenneth Waltz put it, “It is impossible to get a war going unless the potential participants are somehow linked.” When states are dependent on each other, especially for essentials like food, this is perceived as a vulnerability. States, therefore, seek to control each other in increasingly severe ways as a response to this perceived vulnerability, and are more likely to end up in a situation of war. Conclusion Clearly, there are strong arguments both in favour and against economics as a method of preventing war. The difficulty is in untangling the particular effects of economic policies - the consequences can often be far-reaching, and in some cases unforeseen. The historical context, potential for a military response, and the overall state of global politics must also be taken into consideration - it really is a complex matter.
Is economics a useful tool for maintaining peace? Can nations use economic policies to avoid war? With globalization an established fact of modern politics, this question is more important than ever. In this piece, we'll consider arguments both for and against.
Tuition Fees at Czech Universities – How and Where to Learn Czech and Study for Free
Browse our programs in the Czech Republic Study in Czech for free Have you ever considered learning the Czech language? Knowing Czech has much more advantages than easier communication with the locals! Whatever you nationality is, if you study a degree programme taught entirely in the Czech language at a public or state university in the Czech Republic, there are no tuition fees, according to the country's Higher Education Act. This Act says that the foreign students have the same rights and duties as their Czech colleagues. The students can only expect paying the fees that are connected with their studies. These are administrative fees related to the entrance procedure or fees for exceeding the standard length of studies by more than one year. Programmes in foreign languages are available The offer for international students at Czech universities is expanding and there are 1,000 accredited study programmes in English offered at present. Should a Czech public or state university offer degree programmes carried out in foreign languages, it sets tuition fees for these study programmes. Even if you opt for studies in foreign language instead of a free-tuition public higher education, the costs will be lower when compared to other countries with an equally good educational reputation. The tuition fees differ from 0 - 22,350 USD per year and the amount depends on the relevant institution and study programme. Studying at private higher education institutions is always paid, no matter what the teaching language is and it varies with every institution. Czech language for foreigners Foreign students who wish to enrol in a Czech taught study programme must prove the adequate knowledge of the language and pass the entrance exams in the Czech language just like Czech applicants. If you don't know how and where to start learning Czech, you can find some useful links at the Study in the Czech Republic website. For example, you can register for one of the year-long preparatory courses of Czech language for foreigners that are organized by some Czech universities. Such courses can help you to master the language and prepare you for studies at universities in the Czech Republic. The language preparatory courses are usually paid, but there may be exceptions, e.g. in case the preparatory course is a part of the government scholarship. An alternative method of mastering the Czech language are courses organized by Czech Centres. Czech Centres were established by the Ministry of Foreign Affairs of the Czech Republic to promote the Czech Republic abroad and they are systematically expanding Czech language tuition abroad. Czech is being taught at lots of Czech Centres abroad, including Berlin, Bratislava, Budapest, Bucharest, Kyiv, London, Milan, Munich, Moscow, New York, Paris, Sofia, Tokyo, Warsaw, Vienna. For those who are not yet decided whether studying Czech language would be the right decision, summer schools of Czech culture and language might be the first step. Several public universities in the Czech Republic organize Summer Schools of Slavonic Studies which offer Czech language courses. The courses are held during the summer months, their length ranges from 2 to 4 weeks and are designed for foreign students, teachers, translators and interpreters and other experts active in the field of Czech/Slavonic studies. The Summer Schools offer language courses at various levels of proficiency, seminars on the Czech literature, culture and history, free-time activities including theatrical, musical and dance performances, trips etc. Each year the Czech Ministry of Education, Youth and Sport offers a limited number of scholarships for participation in the Summer Schools of Slavonic Studies to applicants from certain countries. More information is available here. Find out more about studying in the Czech Republic at www.studyin.cz.
More than 43.000 foreign students are currently studying at universities in the Czech Republic. Many of them don't have to pay tuition fees, because they are enrolled in Czech taught degree programmes and therefore they study under the same conditions as Czech students do. While it might be difficult right now to move during the pandemic, it's always worth keeping yourself informed of what your future options are.
Alarming Trend due to COVID-19 – Maritime Piracy on the Rise
It is more difficult for poorer countries to fight piracy, as the global pandemic has further weakened their economies. In 2019, it seemed to everyone that there was a decline in maritime piracy, with the lowest number of attacks in the world in 25 years. However, this year showed the opposite. The global pandemic did not weaken the occupation, but allowed it to flourish again. This, in turn, opened up new opportunities for maritime piracy. Due to restrictions, low trade and diseases, there are fewer crew members on board. Reduced global consumer spending means a drop in trade, which gives companies less revenue to provide greater protection on board ships, such as armaments or other equipment against attacks. As a result, ships are likely to become an easier target for sea pirates. Check out our job listings Profile of a pirate from our century Nowadays, pirates do not sail with big ships, do not wear tricorn hats like in movies and do not fly pirate flags. Modern sea pirates travel in small high-speed motorboats. Their goal is to stop quickly and rob a slower ship. Pirates are usually well-armed with firearms. The pirates aim to hijack parts, oil, crew members' personal valuables, and communication equipment - anything that can later be sold on the black market for money. In more severe cases, pirates take the ship's crew hostage for later ransom. One third of pirate attacks take place on large container ships and tankers. This type of attack is usually planned in advance, but ships are observed and tracked. One of the reasons for robbery is that criminals need resources and weapons for their fights on land, which is why ships passing by or nearby are robbed. Which countries are affected? A lot of maritime piracy affects poor countries with weak economies, weak leaders, poverty and official corruption. These include South America, Venezuela, Brazil, West Africa, Nigeria, Somalia, Yemen, Guinea, etc. These countries are also experiencing a particularly high outbreak of COVID-19, which is why the government is now focusing more on what is happening on land, while forgetting about the situation at sea. Ecuador, for example, is not a pirate's favourite place at sea, but armed robbers regularly attack ships in and around the port of Guayaquil. It is the seventh busiest port in Latin America, handling most of Ecuador's agricultural and industrial imports and exports. Cases of piracy have also doubled across Asia, with 50 incidents in the region in the first half of the year, compared with 25 in the same period in 2019. The Singapore Strait, one of the world's busiest commercial routes, has experienced 16 incidents between January and June. The number of attacks has also increased in Bangladesh, India, Indonesia, the Philippines, Vietnam and the South China Sea. Meanwhile, the International Maritime Bureau (IMB) reports that a total of 77 seafarers have been taken hostage or abducted for ransom since January. This highlights, for example, the Gulf of Guinea near West Africa, which accounts for just over 90% of all hijackings in the world. Meanwhile, in 2008, the large area of the Gulf of Aden off the coast of East Africa became the most dangerous place in the world due to pirate attacks. Somali pirates regularly hijacked large commercial ships for five years. The situation was stabilized by 2019, but there is no longer any certainty as to how things can change in the near future. In Southeast Asia, better and more coordinated air and maritime surveillance has reduced the threat of piracy through better coordination between national governments. As a result of these efforts, the number of attacks and attempts in the world has dropped significantly over the last decade, from almost 450 incidents in 2010 to less than 165 incidents in 2019, which has been the lowest number of actual attacks and attempts since 1994. Ship hijacking, which is the most serious and visible form of maritime piracy, has also decreased since 2010. But already this year, about 200 pirate attacks have been registered in the world, drawing many ship-owners’ attention. It is possible to follow the cases of maritime piracy attacks and the live piracy map on the website of the IMB Piracy Reporting Centre.
Speaking of current issues under the influence of COVID-19, events on the water, or sea, which is another parallel world with its written and unwritten laws, are somewhat undeservedly forgotten. Looking at the latest data, we need to talk about a very worrying trend over the last year. Although global maritime piracy is not as high as between 2009 and 2012, in 2020 the number of pirate attacks and attempts has increased by 24% compared to 2019.
Economic Development, Innovation and Growth (JEL O)
Letters of Reference for UK University Applications
Most students ask for letters of reference from their thesis advisor, academic advisor or professors with whom they have taken multiple courses or who are very familiar with their work. Such a close relationship will allow for a thorough and well-written letter. If you do not have more than one professor who you feel would be qualified or willing to write a positive letter on your behalf, it is also acceptable to ask employers or other mentors to act as a referee. If you chose this route, it is advisable to include an explanatory note detailing the grounds for your selection. Browse our UK economics programs listings here Content of the Letter The letter of reference should be no more than one page in length and should explicitly reference your overall work ethic, career interests, research skills and ability to meet deadlines. Your referee should explain their relationship to you and highlight important milestones or achievements from your academic career. Moreover, a good reference letter offers clear insight into why you are interested in the course to which you are applying and how it would fit into your academic trajectory. Your referee should be able to comment specifically on your level of engagement with material, thereby emphasizing your particular strengths. Your reference letter might indicate that you sought out extra discussion during office hours, highlighting your added commitment to go above and beyond what is required of you. Additionally, if your referee is familiar with your extracurricular work, including positions in clubs, teams or even student jobs, it is perfectly acceptable for them to mention such engagements if they are relevant to the course. If you engaged in voluntary work, it is always positive for a referee to mention such an endeavour. By referencing such activities, your referee is showing that he or she is familiar with you as a person, while also highlighting your numerous positive attributes and qualifications. <11an>limit:2;categories:jobs|courses|conferences;countries:United States;disciplines:General Economics (JEL A)</11an> Structure of the Letter A letter of reference should be written on the official letterhead of your referee’s home institution. It should contain their name and contact information on the right side and the name and address of the course to which you are applying on the left. Before the letter begins, the referee has the option to include a subject line identifying the aim of the letter. This line is not required, however. The letter should open with the formal “To Whom it May Concern,” unless you are aware of a specific person who will be heading the admissions committee, in which case that person’s name can be included. Be careful with titles, however, and if you do include a name always double check spelling for any unintentional errors that could bring down the value of the whole letter. There is no specific requirement in terms of how a reference letter is organized, though it is important that your referee display a certain level of knowledge regarding the course to which you are applying before delving into your skills and qualifications. Such a display indicates both a high level of professionalism as well as a certain level of commitment to you as a student and applicant. Admissions committees inherently acknowledge such commitment, though it may or may not be intentional on the part of your referee. Your letter of reference should conclude with an offer for further contact from your referee. Moreover, be sure that he or she personally signs the letter, or else uses an electronic signature. A letter of reference without a signature is not official. Letters of reference are often sent or uploaded separately from the rest of your application, in order for them to remain private. Just be sure that you have clearly communicated all deadlines to your referees so that no application remains incomplete due to an error in timing. If you are asked to include an uploaded version of reference letters, simply ask your referees to create a signed PDF, which you can add to the rest of your application. Header Image Credit: alexxis on Pixabay (free for use under the Pixabay content licence)
Regardless of where you are applying, nearly every course requires at least one, if not two or three letters of reference. Such documents are sometimes also referred to as letters of recommendation. In general, it is best for reference letters to be written by professors with whom you have worked closely, so they can offer detailed insight into you and your work.
MBA and PhD programs have the potential to transform your career. A PhD allows you to become a professor and pursue a lifetime of research while an MBA can open up job opportunities at the top of business and drastically increase your salary expectations. No wonder it’s a difficult decision for many people. INOMICS as the leading career website for economists wants to help you make the right decision. Therefore, we are going to run through the key factors in this decision: career direction, requirements and cost. For a quick overview check out our video on just this topic! Requirements Most Master of Business Administration programs require that you have at least two years of work experience. PhD programs meanwhile normally require that you have already attained a master’s degree or have an exceptional bachelor transcript. Obviously, your academic past will shape your choice between a doctorate and an MBA. A good tip is to read some actual MBA and PhD program overviews and their requirements. Transform a theoretical question into a practical choice. You can find hundreds or the latest MBA and PhD course right here on the INOMICS website. <11an>limit:3;categories:PhD Programs;disciplines:Economics</11an> Career Direction The key question is what ultimate career direction do you want to go in? Ask yourself this question, would you like to end up working in academia or as a researcher? If the answer is yes, then you should start by looking at PhDs. A doctorate is a pre-requisite for nearly all academic jobs. If no, then an MBA or another career training opportunity will be the better choice. Taking a PhD can be a demanding process. It takes years of hard work with little immediate financial reward. You need to love doing research and have a genuine interest in what you are studying. If you are looking at a PhD purely in terms of future salary maximisation then best look elsewhere. There are a number of pros and cons to a career in research. But there is more to life than amassing every last dollar, right? Harder to quantify factors such as job satisfaction and independence are often cited as pros of taking an academic route. Also, bear in mind your preference can change overtime. There are job opportunities outside of academia where having a PhD is a plus. Our advice is simply that if your end goal is to work outside academia then a PhD is typically not the best route to take. MBA programs are designed specifically to teach you about how businesses work and set you up to thrive at the top level of business. They are focused on practical skills and knowledge and often involve group work to mimic the cooperation required by many businesses. On a reputable MBA program, the networking with other students and alumni can often be more important for opening up new and well-paid career paths than the teaching itself. If your goal is to work at the top end of the business world then an MBA is the better choice. Cost MBA programs are normally very expensive, however. Unlike most PhD programs where funding is often provided, there are few scholarships or funding options available for MBA's aside from expensive private loans. An MBA should be viewed as an investment. How risky that investment is depends on the quality of the MBA program. Check out the quality of the school and the career prospects of graduates before proceeding. Both MBA and PhD programs involve a degree of risk. Either financial, in time or both. Remember, you might be able to reach your career goal without committing years of your life and potentially loads of cash on an MBA or PhD. There are always additional courses to improve your prospects in a career in economics. Make sure you consider other routes before committing to either a PhD or MBA. If you plan to start your PhD application this autumn, download our free guide "How to successfully apply to a PhD in Economics" Browse our PhD program listings for economics Browse our MBA program listings
Every year thousands of economics students decide to continue education, either straight away after graduation or after a year or two of “real world” work experience. Often at this point comes the question: should I pursue a PhD or enroll in a Master of Business Administration program?
Which countries own the world's largest container ships?
Leader – Panama According to the available global data, Panama currently has the largest number of ships with a capacity of more than 20,000 TEU, with at least 20 such ships, and about 10 more ships with a capacity of up to 20,000 TEU. This is quite a triumph in the international container shipping arena. Why is that? Panama is a transcontinental country in Central and South America. The Panama Canal is an economically important geographical location for the country, generating millions of dollars in tolls for the national economy and providing huge employment, as well as a significant share of Panama's GDP. Its economy has grown steadily over the past decade, making Panama the country with the highest GDP per capita in the region. The transfer of the canal and military facilities to the United States has led to major construction projects. The expansion of the Panama Canal, the large foreign and domestic investment and its strong logistics industry make sea freight to Panama a safe investment, as it is generally assessed by risk rating agencies. In total, Panama has five seaport areas: Panamas City, Manzanillo, Balboa, Colon, and Cristobal. These seaports export and import $16,000 and $17,000 million, which is the annual value of Panama's foreign trade. Due to its central geographic location, Panama's economy is mainly based on a well-developed service sector, in particular trade and tourism, which are important and growing sectors. Therefore, Panama is considered a high-income country. In addition, in politics, Panama is one of the founders of the United Nations and other international organizations such as the OAS, LAIA, G77, WHO and NAM. The world's largest container ships are also owned by Hong Kong and Denmark Hong Kong is the next largest container ship leader in the world. At least 17 of the world's largest container ships are owned by Hong Kong, but both Hong Kong and China are among the shipping operators of these ships. Hong Kong is one of the most densely populated areas in the world and has become one of the world's most important financial centres and trading ports. Hong Kong is also the world's tenth largest exporter and ninth largest importer. The economy of Hong Kong is a highly developed free-market economy characterized by low taxation, almost-free port trade and a well-established international financial market. The strengths of the Hong Kong economy are a stable banking system, almost no public debt, a strong legal system and extensive foreign exchange reserves. At the end of the 20th century, Hong Kong was the seventh largest port in the world. Hong Kong is also a full member of the World Trade Organization and owns the largest container port complex in Asia. Denmark, with at least 11 such container ships, is the third leading country in the world with the largest container ships. Not only do they belong to Denmark, but they are also operated by Danish companies. Denmark is an example of the Nordic model: its economy is modern, and the country boasts a high standard of living, well-developed public services and a high dependence on foreign trade. It is not yet possible to judge whether these leadership positions among countries could change in the near future for large container ship owners. However, given the economic stability of these countries and the well-developed freight industry, these positions are likely to remain for a long time.
According to the International Chamber of Shipping, more than 50,000 container ships are currently active in the oceans. These are large vessels that carry cargo in closed containers. The capacity of a container ship is measured in twenty-foot equivalent units (TEU), while a vessel with a capacity of more than 20,000 TEU is defined as a very large container ship.
Financial analyst The job of a financial analyst is to research and create reports on the status of companies, industries, stocks, or other financial products. These analyses usually consist of statistical tests using the advanced quantitative skills that economics majors have often acquired. But in addition to mathematical and statistical skills, such work also requires the ability to write reports and to convey this mathematical information in a clear way. This is a skill which economists tend to have more practice in than mathematicians or hard scientists, so the job is a good fit. As long as there is a market for financial products and investments, there will be a need for financial analysts so this is a job that will be in demand for the foreseeable future. Browse our analyst job listings Actuary Actuaries most often work in the field of insurance, and their job is to create models which will determine how likely it is that a given event will happen: fires, earthquakes, accidental deaths, natural deaths, businesses failing, and more. The idea is to quantify how much risk there is of a particular event occurring so that insurance companies can use this information to set the costs of their coverage. Like working as a financial analyst, this role also requires exceptional quantitative skills, although it has less of an emphasis on written reports. The insurance industry is one of the more stable industries over the long term, so this job will continue to be in high demand. Auditor An auditor works to check and verify the financial statements of companies to ensure that they have paid the correct taxes and that their finances are in good order. This requires skills in quantitative analysis, but even more so it requires recognising patterns and identifying outlying or suspicious data points. As economics researchers often focus on analysing patterns, this is a task they are well suited to. Auditing is important for all big companies and will be especially important as computerisation and automation take over more and more tasks. There is a big need for auditors who can check and verify the numbers produced by automated systems to ensure they are in compliance with all relevant regulations. Browse our auditing job listings Information security analyst An information security analyst works to create and maintain the security measures that an organisation has in place to protect them from cyber attacks. While this is traditionally a job more linked to computer science than economics, in fact, there is quite some crossover in the skill required. Security analysts require excellent attention to detail as well as a degree of creative thinking to imagine all of the ways that a security system might be vulnerable. This job is hugely in demand thanks to recent high profile hacking events, and it is a job that an economics major with an interest in computers and digital security could be well suited for. Environmental or resource economist A major growth area is the environmental sector, as companies become more aware of the importance of sustainability and the need to follow environmental regulations. Environmental economists perform empirical or theoretical studies into the economic impact of environmental issues and policies, such as examining the economic impact of new air pollution regulations, carbon tax initiatives, plans to dam a river. Environmental projects such as working to reduce waste or improve air quality have economic effects as well as ecological effects, so environmental economists are required to predict the economic outcomes of these projects. With an increased emphasis on environmental awareness all around the world, this job is one that is highly demanded. Browse our environmental job listings
When it comes to choosing a career path, pragmatic people know that they shouldn't select a job purely based on how interesting they find it. In order to have a stable, long-term career, the job path chosen should be based on the needs of the market as well as the interests and skills of the individual. For this reason, we've rounded up some potential jobs for economists which are highly in demand today.
Additional Courses to Improve Your Prospects in a Career in Economics
From business to programming to statistics, there are plenty of areas which can help you improve your chances of getting a job and widen your skillset more generally, if you've got the money and time to enrol on one. Of course, not everyone will be able to attend these courses due to aforementioned money and time limitations; however, those who are able to will find that improvement in these areas will greatly help your career prospects, and of course, if one looks to websites like Coursera and Udemy, many introductory and intermediate courses can be found for free. But which are the best areas to improve upon? Browse our course listings to help maximise your career prospects Business and finance As there is a great deal of crossover between economics and business in the job market, you can widen the potential pool of jobs to which you can apply by taking some units in business or finance. You might have such units as part of your course, or you may be able to take units from the Business Studies department in addition to your regular units. You could consider studying topics like management, marketing, leadership, or accounting, all of which can give you an edge when it comes to applying for jobs and will be useful when you start work too. Moreover, courses on business and finance are easy to find online, often for free, especially for beginners. Programming and IT You probably already have basic IT skills like online research, word processing, using spreadsheets, and perhaps using databases. Improving these skills, though, particularly alongside your studies, can be extremely useful in all sorts of jobs. Even if you're not hugely technical, you can can find some IT skills which you can learn – for example, HTML is easy to learn and being able to build basic websites will be useful to many employers. On top of this, basic coding courses, and even coding which takes you to the intermediate and advanced levels, can often be found online. Bear in mind that coding is literally another language, meaning many hours of hard work will have to be put in to become competent. Statistics and data analysis It's not always the most exciting of topics, but gaining a good understanding of statistics will help you during your degree and beyond. If your program doesn't include a methods course to teach you the basic principles of statistics, then consider taking this as an extra unit. Also think about honing your data analysis skills by learning to use software like MATLAB, SPSS, R, or Stata. This will benefit you when you are performing data analysis for your projects, and will also show to employers that you have highly technical skills. Real world projects An excellent way to make yourself stand out in the job market as a recent graduate is to have experience on a real-world project. One of the best ways to do well when applying for jobs is being able to demonstrate that you have already succeed in the type of work which they are hiring for. You can impress an employer by showing that you don't just have knowledge from your studies, but also that you know how to apply that knowledge to a real-world business challenge. Courses sometimes offer an optional placement year, and some modules will allow you to work for a time at an organisation or business; you should jump at the chance to attend courses and modules like this. Also, make sure that you record the results of your project and write them down somewhere: if you can show that your project resulted in a 10% increase in sales, for example, or made a company's processes more efficient, then you can add this to your CV and it will be a real eye-catcher for hiring managers. Moreover, keeping a diary of your efforts or a log of your duties will be helpful during the dreary task of waffling on about yourself in a cover letter. On top of all of this, internships and placement years sometimes offer full-time roles after the completion of a degree for particularly successful candidates, meaning the immediate post-degree job search is made somewhat less stressful. Soft skills One area which you shouldn't neglect in your degree is soft skills. These are non-technical skills which allow you to interact with other people more effectively, but are sometimes overlooked by students as they are not tested academically. However, you can get a lot of benefit from taking a course of a day or two on topics like giving academic presentations, writing a CV, writing grant proposals, communication skills, etc. If you're looking to improve your job hunting skills by getting better at interviews, then you can certainly benefit from such a course. Universities typically offer soft skill courses either through graduate schools (for graduate students), or through the library or research department (for Bachelor's and Master's students). Sometimes these courses are offered online, which can be useful for those unable or unwilling to head to the campus. On top of this, there is a wealth of information about soft skills online, whether in article or course-format. Check out places like Coursera or Udemy where you'll be able to find often-free courses on many soft skills.
If you're doing an economics degree and thinking about ways to maximise your career prospects once you graduate, there are lots of courses outside the realm of economics for you to choose from.
Econometrics, Statistics and Quantitative Methods (JEL C)
According to some economic theories, changes in the money supply affect investment and consequently economic growth. Economists who subscribe to Keynesian or monetarist theories believe that increases in the money supply foster investment and spending, which results in higher production and lower unemployment. At the same, though, increases in money supply raise inflation. The same is true in reverse for the opposite situation: a decrease in the money supply dampens investment and spending, which leads to a decrease in production and higher unemployment, while at the same time lowering inflation. Students should note that classical economists, however, may disagree with these views and assert that the money supply does not affect real economic variables, a theory known as monetary neutrality. This article ignores the classical viewpoint and considers monetary policy as it is typically introduced in macroeconomics courses. The role of the central bank So, how does the central bank influence the money supply? Central banks directly control the monetary base. But, they cannot completely control the entire supply of money since the monetary base only forms part of the money supply. Central banks have three main instruments available to influence the money supply of a country: the discount rate, open market operations, and the reserve requirement. The discount rate Readers may already be familiar with the idea that central banks “set” interest rates. But, central banks cannot do this directly; rather, they use the discount rate to influence interest rates in the economy. The discount rate is the interest rate at which commercial banks can take out a loan from the central bank. It is an important macroeconomic variable that has cascading effects for all other interest rates in the economy. Banks typically borrow money from the central bank when they don’t have enough liquid assets on hand to pay some unexpected obligation (i.e., withdrawal requests from customers) or to satisfy increased reserve requirements. At a lower discount rate, borrowing money from the central bank is more attractive for commercial banks (as there is less to pay back) and hence the demand for those loans increases. The same is true for the reverse; a higher discount rate increases the cost of borrowing from the central bank and decreases the demand for loans. Money borrowed by commercial banks from the central bank is then made available to private households and businesses, also in the form of loans. So, central banks can increase the money supply by reducing the cost of banks borrowing from them. Similarly, a higher interest rate makes borrowing more expensive and less attractive, incentivizing commercial banks to borrow less money from the central bank. Consequently, there is less money available for the bank to give out as loans for private households and firms. So, if the central bank wants to decrease the money supply, it can raise the discount rate. Open market operations and reserve requirements Open market operations refer to the purchase or sale of government bonds “on the open market” by the central bank. In other words, when the central bank buys and sells securities like a normal individual or firm, it’s called open market operations. If the central bank decides to buy government bonds that are held by private households, companies or commercial banks, it increases the amount of money that's circulating in the economy. This is because the central bank can simply create the money used to buy the security, adding it to the economy during the purchase. Similarly, by selling government bonds, the central bank reduces the money supply as individuals or firms give the central bank their money to purchase the asset. Then, the central bank can take that money out of circulation, reducing the money supply. The central bank has a third main instrument to control the money supply: the reserve requirement. The reserve requirement is the fraction of each unit of money deposited in a bank that the bank is legally obliged to keep as a reserve. In other words, the bank must have some amount of cash on hand that they are not allowed to use for anything except meeting their obligations (such as fulfilling withdrawal requests). The reserve requirement is set by the central bank. By increasing the reserve requirement, the central bank decreases the money supply because commercial banks must hold more of their money in the form of cash that is sitting “unused”. Therefore, they have less money to give out in the form of a loan. Conversely, if the central bank wants to increase the money supply, it can decrease the reserve requirement, which frees up more of the bank’s “unused” reserves to be lent out. While changes in the discount rate and open market operations are commonly used to alter the money supply, changes in reserve requirements are rare in practice. Contractionary vs. expansionary monetary policy Expansionary monetary policy describes policies that lead to an increase in the money supply, like decreasing the discount rate or purchasing government bonds through open market operations. According to economic theory, expansionary monetary policies will stimulate investment and consumer spending, shifting aggregate demand to the right; this leads to an increase in production and a decrease in the unemployment rate. Therefore, expansionary policies are deemed appropriate to stimulate growth during recessions when unemployment is high and production is low. But, an increase in the money supply will lead to higher inflation rates. Thus there is widespread agreement among economists that expansionary monetary policies should not be used when the economy is already performing well. Conversely, contractionary monetary policy is policy that reduces the money supply and lowers aggregate demand. While this may seem like a bad thing, in times of high inflation contractionary monetary policies are the main tool used to lower inflation and stabilize the economy. Contractionary monetary policies include increasing interest rates or selling government bonds through open market operations. A higher interest rate makes saving more attractive than spending and decreases the demand for loans as borrowing becomes more expensive. Consequently, investment and consumption decrease, and so does production. Lower production in turn will lead to higher unemployment, which may further dampen consumption. Other interest rate targets When a bank needs cash, it generally has two options for borrowing: from the central bank and from other commercial banks. The “discount rate” sets the cost of borrowing from the central bank, which was discussed above. But when commercial banks borrow from other commercial banks, they don’t use the discount rate. The interest rate at which banks borrow from each other is very important, though it can have different names depending on the country and the context. It’s important because this interest rate often sets a benchmark by which other interest rates are determined. So, if this interest rate increases, borrowing generally becomes more expensive across the whole economy. Thus, central banks may want to influence (or outright set) the interest rate that banks face when they borrow from each other. For example, in the United States, this rate is known (somewhat confusingly) as the “federal funds rate”. The U.S. Federal Reserve sets a target interest rate range, and commercial banks can borrow money from each other at an interest rate within this range. This rate is one of the key subjects of the widely-referenced “Taylor Rule”, a rule of thumb posited by an American economist that describes optimal monetary policy responses. It has often been used by analysts to predict future monetary policy. Although the federal funds rate may be used as a benchmark by financial institutions around the world, it’s specific to the US. Other countries and other financial institutions around the world may reference other rates. For example, the London Interbank Offered Rate (LIBOR) played a similar role until 2023, where it began to be replaced by the Secured Overnight Finance Rate (SOFR). These interest rates in turn influence the “prime rate” in different regions, which is the interest rate that banks give to high-quality borrowers. If you have a good financial history and healthy credit score, you’ll likely be offered the prime rate for many financial products. Further Reading The main objective of monetary policy is to ensure steady, long-term economic growth and to stabilize the economy in times of a crisis. Many economists have studied the reactions of governments during financial crises to assess the effects of monetary policies on production, inflation and unemployment. Jannsen et. al. show in their article “Monetary policy during financial crises: Is the transmission mechanism impaired?” (International Journal of Central Banking, 2019) that the effects of monetary policy on production and inflation depend on the timing of their implementation. They also show that these policies have greater effects during financial crises. The authors found that the differences in the timing and size of the monetary policies taken during the financial crisis of 2008-2009 helped explain differences in the macroeconomic performance of different countries after the crisis. Good to Know Because contractionary monetary policy can increase unemployment and slow economic growth, it can be very unpopular with individual voters. Thus, politicians may be reluctant to implement contractionary policy even during times of high inflation, to avoid becoming unpopular. Similarly, because expansionary policy encourages growth while lowering the unemployment rate, it can be tempting for politicians to implement expansionary monetary policy during an election year – even if the economy doesn’t need it. In this case, expansionary policy can lead to very high inflation that will ultimately harm the economy. These are two major reasons why most countries today keep monetary policy in the hands of a central bank that is not beholden to political leadership. This allows the central bank to conduct monetary policy that is right for the economy without interference from political pressure. Of course, this is a simplification. In the real world, different central banks may feature different levels of actual independence in practice. As research from Caixa Bank shows, central banks in many Western countries have been becoming more independent over time. In many of these countries, historical episodes of inflation or stagflation demonstrated the need for an independently operating central bank, causing the nation to be more inclined to increase central bank independence. However, while independence has proven useful, if the central bank makes mistakes or fails to react to the economy appropriately or in a timely fashion, it may cause additional hardship. This type of situation has led Australia, for example, to attempt to increase accountability for central bank officials. For more on this topic, visit Caixa Bank’s article about central bank independence.
Monetary policy refers to the set of policies that monetary authorities such as central banks use to influence the money supply of a country and thereby economic activity.
Although referencing football – specifically, the English variety - the sentiment was also thought applicable to sport more generally. Because eye-catching qualities like creativity and flair are difficult to quantify, the consensus was that judgement of sporting prowess was best left to those well-versed in said sport - in the majority of cases, former players. Certainly, the very notion that statisticians had anything to contribute in terms of team selection, acquisition, or even strategy was given little consideration. Statistical Analysis, the Roots In the UK, this began to change in the 1990s, when - as documented in the New Statesmen - undergrads at Lancaster University analysed, in-depth, goal-scoring probability in a hypothetical football match. While rudimentary in its technique, the analysis attracted the attention of more senior statisticians, namely Stuart Coles, who then expanded on the students' findings. His resultant work was to have far-reaching consequences. Across the pond, a similar development was already underway. This one, however, was to be even more transformative, radically altering the way certain sports, particularly baseball, were conceived. Owing to its easily isolated ‘one-on-one’ contests - pitcher v batter, for example - baseball lends itself well to statistical analysis. Indeed, the use of sabermetrics, ‘the empirical statistical analysis of baseball’, has been employed in some capacity ever since the sport was first professionalised. Its current use, though, both its universality and sophisticated nature, has its roots in Billy Beane’s tenure as General Manager (GM) of the Oakland Athletics, and his now much-famed ‘Moneyball Effect’. The 'Moneyball' Effect As GM of the (relatively) cash-strapped Oakland A’s, Beane’s innovative approach was the perfect manifestation of necessity being the mother of invention. With no way to meet compete with the spending power of their deep-pocketed rivals, Beane adopted an analytical, ‘sabermetric’ approach when planning the assembly of his squad, bringing into his management team a number of statisticians for the purpose. Through rigorous and incredibly time-consuming analysis, the team learnt that ‘stolen bases’, ‘runs batted in’, and ‘batting averages’ – for years the yardsticks by which a player’s ability was measured - were not necessarily the best gauges of overall effectiveness. Rather, it was not-so-glamorous ‘on-base percentage’ and ‘slugging percentage’ that were more accurate indicators of players’ potential offensive success. Historically, scouts overlooked these traits in favour of speed and contact, meaning their market price was undervalued, and players possessing said traits could thus be acquired on the cheap. It was following these new principles, heeding the word of his statisticians that Beane assembled his team. The result dismayed many, for on paper, the newly formed roster was a motley crew of old, in some cases injured, has-beens. Their appearance alone drew ire from the purists already angered by the cold scientific approach. How could a team of such visible misfits go onto success? Well, initially they didn’t. The Athletics fared so poorly during the first part of the season - enduring at one stage a 5-16 streak - that many were quick to declare the method a failure. And yet, as many will know through its dramatisation in the film ‘Moneyball’, their fortunes reversed, the A’s eventually winning the American League West, breaking the long-standing record of 19 consecutive victories in the process. The Spread Around the world, these developments did not go unnoticed. The sporting community watched keenly as baseball laid down the statistical blueprint for success. It was not long before comparable models were incorporated into the management systems of football teams, both American and English, Ice Hockey, Basketball, and many others. One of the highest profile converts was American football coach Bill Belichick. Although denouncing its use publically (to guard his methods), the New England Patriots boss had long held ‘a Moneyball sort of attitude’. In fact, the whole management team at the Patriots was imbued with a Moneyball-esque philosophy. From the owner Robert Kraft, described as the ‘biggest believer in data and analytics’, to Belichick's most trusted advisor Ernie Adams, the Patriots’ football research director and previous bonds trader, most were willing converts. Even Belichick himself holds a degree in economics. Such expertise, NBC has commented, is easily read into the team’s recruitment which is highly suggestive of a sophisticated understanding of ‘hyperbolic discounting’ - the result, thus far, has been the acquisition of high-quality players at bargain prices. On the field this has led to five Super Bowl triumphs - it seems to be working. Professional basketball teams were also quick to jump on the bandwagon, compiling huge databases of information from games that were then used in the offseason to inform decisions regarding contracts and free-agent signings. Many a romantic will be turned off by the use of intensive, analytical thinking almost instinctively. The deployment of cold, emotionless figures to make sense of sport, something that by nature is highly dynamic, emotional, and capricious, just doesn't sit right. Such a mindset, though, ignores the creative latitude many of these models allow, particularly in more fluid games like English football and basketball, where a value judgement must still be made as to which parts of the game are prioritised. But in the End... Obviously, it will never be possible to reduce human behaviour to a simple formula - no matter how badly the betting enthusiast may wish. Yet, what analysts have proven, through the employment of statistical models, is their ability to get teams punching above their weight - a weight normally dictated by financial restrictions. That said, the advantage gained, history has shown, can often be short-lived. As the A’s experienced, the problem was that as soon as these models gained credibility, they were quickly adapted, and in some cases, bettered by other teams. Just two years after the A's experiment, the Boston Red Sox also adopted a sabermetrics model to aid recruitment. The result? They won the 2004 World Series, their first since 1918.
‘Chance dominates the game’ concluded C. Reep and B. Benjamin in their 1968 study ‘Skill and Chance in Association Football’ - and not without consequence. Until recently, this statement stood as received wisdom, the phrase deemed self-evident, its veracity left unquestioned. Predictions based on statistics were a folly they said, the game was ‘too fluid, too unpredictable’.