Wins for work using experiments that draw on real-life situations to revolutionize empirical research
Three U.S.-based academics won the 2021 Nobel Prize for economics for work using experiments that draw on real-life situations to revolutionize empirical research.
David Card at the University of California Berkeley, Joshua D. Angrist of the Massachusetts Institute of Technology and Guido W. Imbens at Stanford University will share the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, officials of the Royal Swedish Academy of Sciences announced in Stockholm on Monday.
David Card was born in Guelph, Ont., went to school at Queen’s University in Kingston, Ont., and remains a Canadian citizen.
“This year’s economic sciences laureates have demonstrated that many of society’s big questions can be answered,” the academy said on Twitter. “Their solution is to use natural experiments — situations arising in real life that resemble randomized experiments.”
Angrist and Imbens specialized in developing such methodology, while Card used this approach to address key questions in labor economics.
Research examples cited by the academy include his analysis of the Cuban influx into Miami’s labour market during the 1980s after the country’s then-leader, Fidel Castro, permitted citizens who wanted to leave the island to do so.
Another study mentioned was Card’s paper together with Alan Krueger, the late economist and onetime adviser to President Barack Obama, that compared the effects of minimum-wage policies in fast-food restaurants in Pennsylvania and New Jersey.
Card recognized the contributions of Krueger, who died in 2019.
“I’m sure that if Alan was still with us, he would have been sharing this prize with me,” he said at a press conference hosted by the University of California, Berkeley.
Source: Financial Post