We produce & fund research

that challenges economic orthodoxy

We inform & educate

to change the conversation about major economic problems and policy

We engage students

and support a global network of new economic thinkers

We host events

that bring together scholars, students, and policymakers from around the world

Economics of Innovation

How Government Drives Innovation

Video Featuring William Janeway and Rob Johnson

Bill Janeway explains why “efficiency is the enemy of innovation,” and how venture capitalists and the state advance technological change

How Government Helps, and Wall Street Hurts, the Innovative Enterprise

Video Featuring William Lazonick and Perry G. Mehrling

Innovation drives economic growth and welfare, and the industrial corporation drives innovation, says William Lazonick. But just how do corporations innovate?

How “Shareholder Value” is Killing Innovation

Article By William Lazonick

The prevailing stock market ideology enriches value extractors, not value creators

How MBA Programs Drive Inequality

Article By Lynn Parramore

Business school students are taught to extract resources instead of creating value.

To Boost Investment, End SEC Rule Encouraging Buybacks

Article By William Lazonick

The New York Times is having a “Room For Debate” discussion on its Opinion Page about how corporations should handle profits based on the Harvard Business Review article “Profits Without Prosperity” by William Lazonick of the University of Massachusetts Lowell, who is a grantee of the Institute for New Economic Thinking. The discussion features contributions by Bruce Greenwald, Peter Thiel, and Lazonick, among others. Lazonick argues that the capital being used for stock buybacks would be better spent on investment. Lazonick’s “Room For Debate” piece is below. To read the full discussion on The New York Times, click here.

Unemployment and Innovation

Paper By Joe Stiglitz

This paper analyzes equilibrium, dynamics, and optimal decisions on the factor bias of innovation in a model of induced innovation.

Invention vs Innovation

Video Featuring Andrew Wyckoff and Marshall Auerback

Innovation is not a magic pill to solve the current afflictions that ail our 21st century economy.

Questions to Consider on Robots and Jobs

Article By Jack Gao

Despite dismissive comments by the U.S. Treasury Secretary, facing the challenge posed by robotics replacing human labor raises key public policy questions 

Innovation & Financial Reform

Video Featuring Adair Turner

Adair Turner at the Institute’s #HumanAfterAll conference in Toronto, CA (2014).

How About that Looming Robotic Job Apocalypse?

Video Featuring David Autor

Why we should worry about job quality, not quantity—or robot overlords

More

Working Paper Series

American Gothic: How Chicago Economics Distorts “Consumer Welfare” in Antitrust

Paper By Mark Glick

The Chicago School has long used bankrupt assumptions to strangle antitrust policy.

Firm-Level Political Risk: Measurement and Effects

Paper By Tarek Alexander Hassan, Stephan Hollander, Laurence van Lent, and Ahmed Tahoun

We adapt simple tools from computational linguistics to construct a new measure of political risk faced by individual US firms: the share of their quarterly earnings conference calls that they devote to political risks.

Expansionary Austerity and Reverse Causality: A Critique of the Conventional Approach

Paper By Christian Breuer

It was too good to be true: Another effort to vindicate austerity falls victim to flawed methodology.

State Capacity and Demand for Identity: Evidence from Political Instability in Mali

Paper By Maxim Ananyev and Michael Poyker

Frequent civil conflicts in African countries may erode national identity, thus highlighting a reason why civil conflict is costly for growth and development

Demand-determined potential output: a revision and update of Okun’s original method

Paper By Claudia Fontanari, Antonella Palumbo, and Chiara Salvatori

Everyone is waking up to the fact that estimates of what is possible in the economy are way off: this paper explains why

Antitrust and Economic History: The Historic Failure of the Chicago School of Antitrust

Paper By Mark Glick

This paper presents an historical analysis of the antitrust laws.

Lost in Deflation

Paper By Servaas Storm

Why Italy’s woes are a warning to the whole Eurozone

More papers