Economics, Applied

Host Steven Davis sits down with guest Glenn Hubbard, former dean of Columbia Business School and chairman of the US Council of Economic Advisers under President George W. Bush. They critique industrial policy as practiced under Presidents Trump and Biden and contrast that practice to the insights of Adam Smith, Milton Friedman and Friedrich Hayek. They also sketch some elements of an economically sound industrial policy. Lastly, they turn to Hubbard’s vision of how to harness "Markets for the People” to advance prosperity for all Americans, while respecting individual liberties. Tune in for a thought-provoking take on the past, present and future of economic policy in the United States.

Immigrants directly account for one-quarter of the economic value generated by U.S. patents. They account for more than one-third of that value after factoring in the collaboration benefits that immigrant inventors bring to native American inventors. Immigrant inventors also play a major role in the two-way flow of scientific and technical knowledge between the United States and other countries. Choking off the flow of immigrant inventors would hamstring the American innovation enterprise and slow the development and diffusion of scientific knowledge.

ABOUT THE SPEAKERS:

Rebecca Diamond is The Class of 1988 Professor of Economics at Stanford Graduate School of Business where she teaches Data and Decisions. Her current research studies the causes and consequence of diverging economic growth across U.S. cities and its effects on inequality. She is an applied micro economist and founder and director of the Cities, Housing, and Society Lab. Rebecca was a postdoctoral fellow at the Stanford Institute for Economic Policy Research from 2013 to 2014. She received her PhD in economics from Harvard University in 2013 and her BS in physics and economics and mathematics from Yale University in 2007. 

Steven Davis is the Thomas W. and Susan B. Ford Senior Fellow and Director of Research at the Hoover Institution, and Senior Fellow at the Stanford Institute for Economic Policy Research (SIEPR). He is ann economic adviser to the U.S. Congressional Budget Office, elected fellow of the Society of Labor Economists, and consultant to the Federal Reserve Bank of Atlanta. He co-founded the Economic Policy Uncertainty project, the U.S. Survey of Working Arrangements and Attitudes, the Global Survey of Working Arrangements, the Survey of Business Uncertainty, and the Stock Market Jumps project. He co-organizes the Asian Monetary Policy Forum, held annually in Singapore. Before joining Hoover, Davis was on the faculty at the University of Chicago Booth School of Business., serving as both distinguished service professor and deputy dean of the faculty.

RELATED RESOURCES:

• The Contribution of High-Skilled Immigrants to Innovation in the United States

Steven Davis interviews Professor Jorge Guzman about the effects of coffee shops on business startups. Starbucks and other sit-down coffee shops offer social spaces where people can converse, exchange ideas, and build trust. In his recent research, Guzman investigates whether and when this networking aspect of coffee shops leads to more business formation in the local neighborhood. Tune in for an assessment of his evidence and discussion of its implications for urban planning and how to strengthen local communities.

ABOUT THE SPEAKERS:

Dr. Jorge Guzman is an associate professor in the Management Division at Columbia University Business School. He received his PhD from the Sloan School of Management at MIT, and was previously a postdoc at the National Bureau of Economic Research (NBER) and a lecturer at MIT Sloan.  His research focuses on entrepreneurship policy, regional entrepreneurship, and entrepreneurial strategy.  He was previously involved in the Boston startup ecosystem. He’s also served as an advisor to numerous startups and to government agencies on how to foster entrepreneurship.

Steven Davis is the Thomas W. and Susan B. Ford Senior Fellow and Director of Research at the Hoover Institution, and Senior Fellow at the Stanford Institute for Economic Policy Research (SIEPR). He is ann economic adviser to the U.S. Congressional Budget Office, elected fellow of the Society of Labor Economists, and consultant to the Federal Reserve Bank of Atlanta. He co-founded the Economic Policy Uncertainty project, the U.S. Survey of Working Arrangements and Attitudes, the Global Survey of Working Arrangements, the Survey of Business Uncertainty, and the Stock Market Jumps project. He co-organizes the Asian Monetary Policy Forum, held annually in Singapore. Before joining Hoover, Davis was on the faculty at the University of Chicago Booth School of Business., serving as both distinguished service professor and deputy dean of the faculty.

RELATED RESOURCES:

• Third Places and Neighborhood Entrepreneurship: Evidence from Starbucks Cafés

Sandra Sequeira joins host Steven Davis for a discussion of zero-sum thinking, the idea that one group’s gain is another group’s loss. They draw on Sandra’s research to delve into several questions: How prevalent is zero-sum thinking? What are its roots? How does it shape policy preferences? How does zero-sum thinking relate to the partisan divide?

Steven Davis speaks to Jens Ludwig about his recent work on "Predicting Police Misconduct.” They delve into whether we can predict which police officers are most at risk of serious misconduct. The potential benefits of accurate prediction are large, but it also challenging to develop and implement robust prediction models.

ABOUT THE SPEAKERS:

Jens Ludwig is the Edwin A. and Betty L. Bergman Distinguished Service Professor at the University of Chicago, Pritzker Director of the University of Chicago’s Crime Lab, codirector of the Education Lab, and codirector of the National Bureau of Economic Research’s working group on the economics of crime. His research is published in top scientific journals across various disciplines, including the American Economic Review and New England Journal of Medicine.

Jens co-founded the Crime Lab and the Education Lab, which help government agencies use insights from behavioral science and data science to address real-world problems. Examples include working with the Chicago Police Department to implement data-driven management changes to reduce gun violence, and partnership with the Mayor’s Office in New York City to help build and implement a new pretrial risk tool as part of the city’s goal to close Riker’s Island.

Ludwig holds a BA in economics from Rutgers and an MA and PhD from Duke University. He was a public policy professor at Georgetown University and is on the editorial board of the American Economic Review. In 2012, he was elected vice president of APPAM and received the David N. Kershaw Prize in 2006. He was elected to the Institute of Medicine of the National Academies of Science in 2012.

Steven J. Davis is the Thomas W. and Susan B. Ford Senior Fellow at the Hoover Institution and senior fellow at the Stanford Institute for Economic Policy Research. He is a research associate with the National Bureau of Economic Research, consultant to the Federal Reserve Bank of Atlanta, advisor to the Monetary Authority of Singapore, past editor of the American Economic Journal: Macroeconomics, and an elected fellow of the Society of Labor Economists. He co-founded the Economic Policy Uncertainty project, the US Survey of Working Arrangements and Attitudes, the Global Survey of Working Arrangements, the Survey of Business Uncertainty, and the Stock Market Jumps project. He co-organizes the Asian Monetary Policy Forum, held annually in Singapore. Previously, Davis was on the faculty at the University of Chicago Booth School of Business, serving as both distinguished service professor and deputy dean of the faculty.

RELATED RESOURCES:

• The Jason Van Dyke Case

Host Steven Davis is joined by Marco Tabellini from Harvard Business School to explore the political reactions to immigration. They discuss whether economic or cultural concerns drive backlash, and how these reactions influence policy outcomes. The conversation delves into historical and contemporary issues, providing insights into the complex economic, social, and political effects of immigration. The episode closes with a tribute to the late Alberto Alesina, highlighting his contributions to the field of political economy and his lasting influence on students and colleagues.

ABOUT THE SPEAKERS:

Marco Tabellini is assistant professor in the Business, Government, and the International Economy unit at the Harvard Business School, and is affiliated with the National Bureau of Economic Research (NBER), the Center for Economic Policy Research (CEPR), the Centre for Research and Analysis of Migration (CReAM), and at the IZA Institute for Labor Economics.

Professor Tabellini studies the political and economic effects of immigration. His research seeks to understand what factors facilitate or hinder immigrant assimilation and how ethnic groups interact and affect society. Some of his research considers the early twentieth century US experience, characterized by the massive inflow of Europeans and the first major migration of African Americans from the rural South to the urban North. He has studied the effects of the second great migration of African Americans between 1940 and 1970, investigating how this episode contributed to the development of the Civil Rights movement. Professor Tabellini earned his Ph.D. in Economics from the Massachusetts Institute of Technology in 2018, and spent the academic year 2018-2019 as a postdoctoral fellow at Harvard Business School before joining the faculty. He also holds a B.S. and M.S. in Economics and Social Sciences from Bocconi University.

Steven J. Davis is the Thomas W. and Susan B. Ford Senior Fellow at the Hoover Institution and senior fellow at the Stanford Institute for Economic Policy Research. He is a research associate with the National Bureau of Economic Research, consultant to the Federal Reserve Bank of Atlanta, advisor to the Monetary Authority of Singapore, past editor of the American Economic Journal: Macroeconomics, and an elected fellow of the Society of Labor Economists. He co-founded the Economic Policy Uncertainty project, the US Survey of Working Arrangements and Attitudes, the Global Survey of Working Arrangements, the Survey of Business Uncertainty, and the Stock Market Jumps project. He co-organizes the Asian Monetary Policy Forum, held annually in Singapore. Previously, Davis was on the faculty at the University of Chicago Booth School of Business, serving as both distinguished service professor and deputy dean of the faculty.

ABOUT THE SERIES:

Each episode of the video podcast series Economics, Applied features senior fellow Steven Davis in conversation with leaders and researchers about economic developments and their ramifications. The goal is to bring evidence and economic reasoning to the table, drawing lessons for individuals, organizations, and society. The podcast also aims to showcase the value of individual initiative, markets, the rule of law, and sound policy in fostering prosperity and security.

For more information, visit https://www.hoover.org/podcasts/economics-applied.

RELATED RESOURCES:

• The Political Effects of Immigration: Culture or Economics: https://www.aeaweb.org/articles?id=10.1257/jel.20221643

• Immigration in American History: https://www.aeaweb.org/articles?id=10.1257/jel.20151189

• The Long-term Effects of Immigration on Attitudes and Political Preferences: https://www.nber.org/system/files/working_papers/w28448/w28448.pdf

The opinions expressed are those of the authors and do not necessarily reflect the opinions of the Hoover Institution or Stanford University. © 2024 by the Board of Trustees of Leland Stanford Junior University.

Central banks responded to the COVID-19 pandemic with large-scale purchases of bonds, commercial paper, and other financial assets. In some cases, central banks announced “open-ended” programs, with no explicit limits on the scale or duration of asset purchases. Did these open-ended interventions have larger effects on interest rates? On exchange rates? Is this type of purposeful policy vagueness useful in the conduct of monetary policy? If so, why? And when? Join Steven Davis and guest Kathryn Dominguez as they discuss these issues and consider the wisdom of “open-endedness” in central bank policy pronouncements.

It’s easier for two parents to provide the time, attention, love, and financial resources that help children thrive and lead successful lives than it is for a single parent. Yet the share of American children who live with two parents has plummeted in recent decades. The decline is especially steep outside of the college-educated class. Why are so many parents now raising children outside of marriage? What are the consequences for children and society? How do the benefits of two parents play out across racial and ethnic groups? Do the effects differ between boys and girls? What, if anything, can we do so that more children reap the benefits of two-parent households? Tune in, as Melissa Kearney joins Steven Davis to discuss The Two-Parent Privilege, her highly insightful book on these issues.

ABOUT THE SPEAKERS:

Melissa Kearny is a chaired professor of economics at the University of Maryland, research associate at the National Bureau of Economic Research, director of the Aspen Economic Strategy Group, non-resident Senior Fellow at The Brookings Institution, and a highly accomplished researcher. She holds a BA in Economics from Princeton University and a PhD in Economics from the Massachusetts Institute of Technology. Among many other roles, she serves on the editorial boards of the American Economic Journal: Economic Policy and the Journal of Economic Literature, and she is on the board of the Notre Dame Wilson-Sheehan Lab for Economic Opportunities and a scholar affiliate with the MIT Abdul Jameel Poverty Action Lab.

Steven J. Davis is the Thomas W. and Susan B. Ford Senior Fellow at the Hoover Institution and senior fellow at the Stanford Institute for Economic Policy Research. He is a research associate with the National Bureau of Economic Research, consultant to the Federal Reserve Bank of Atlanta, advisor to the Monetary Authority of Singapore, past editor of the American Economic Journal: Macroeconomics, and an elected fellow of the Society of Labor Economists. He co-founded the Economic Policy Uncertainty project, the US Survey of Working Arrangements and Attitudes, the Global Survey of Working Arrangements, the Survey of Business Uncertainty, and the Stock Market Jumps project. He co-organizes the Asian Monetary Policy Forum, held annually in Singapore. Previously, Davis was on the faculty at the University of Chicago Booth School of Business, serving as both distinguished service professor and deputy dean of the faculty.

RELATED RESOURCES:

• The Two-Parent Privilege: How Americans Stopped Getting Married and Started Falling Behind

Wednesday, April 24, 2024 

“Russia is the home of not one, but two lost empires: The Russian Empire and the Soviet Union.” So writes our guest, Sergei Guriev, in a sweeping survey of recent research on Russian Economic History. Join Sergei and our host, Steven Davis, for a spirited conversation on Russian economic developments in the 19th and 20th centuries, the failures of central planning, and the ongoing reverberations.

Host Steven Davis and guest Elias Papaioannou discuss the resurgence of populism in Europe and the United States over the past fifteen years. They define populism, identify its economic drivers, and consider how democratic institutions moderate and respond to populist pressures. They also consider the implications for economic performance. They wrap up their conversation with some remarks on the outlook for populism and its impact on policies and democratic institutions in the years ahead.

ABOUT THE SPEAKERS

Elias Papaioannou is a professor of economics at the London Business School and academic director of the LBS Wheeler Institute for Business and Development. He is also the joint managing editor at the Review of Economic Studies, a top scholarly journal in economics. His research tackles big issues in political economy and economic development – including the rise of populism, the role of colonialism in Africa, ethnic differences in economic outcomes, and the relationship between democratization and growth.

Steven J. Davis is the Thomas W. and Susan B. Ford Senior Fellow at the Hoover Institution and senior fellow at the Stanford Institute for Economic Policy Research. He is a research associate with the National Bureau of Economic Research, consultant to the Federal Reserve Bank of Atlanta, advisor to the Monetary Authority of Singapore, past editor of the American Economic Journal: Macroeconomics, and an elected fellow of the Society of Labor Economists. He cofounded the Economic Policy Uncertainty project, the US Survey of Working Arrangements and Attitudes, the Global Survey of Working Arrangements, the Survey of Business Uncertainty, and the Stock Market Jumps project. He co-organizes the Asian Monetary Policy Forum, held annually in Singapore. Previously, Davis was on the faculty at the University of Chicago Booth School of Business, serving as both distinguished service professor and deputy dean of the faculty.

RELATED RESOURCES:

· Elias’s website

· “The Political Economy of Populism” by Sergei Guriev and Elias Papaioannou, Journal of Economic Literature, 2022.

· “The Enduring Populist Threat” by Sergei Guriev and Elias Papaioannou, Project Syndicate Long Read, March 19, 2021.

· “The European Trust Crisis and the Rise of Populism” by Algan Yann, Sergei Guriev, Elias Papaioannou and Evgenia Passari, Brookings Papers on Economic Activity, 2016.

· “Populist Leaders and the Economy” by Manuel Funke, Moritz Schularick, and Christoph Trebesch, American Economic Review, 2023. (ungated version)

“Macroeconomic Populism” by Rudiger Dornbusch and Sebastian Edwards, Journal of Development Economics, 1990.