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The World Bank’s global poverty count uses a single global poverty line that is adjusted for different price levels in different countries, but that takes no account of differences in needs across countries, for example between cold places and warm places.Allen shows that a linear programming procedure, long thought not to work, does much better than previously thought.
Pallais and her collaborators study the dynamics that underlie discrimination and show that there is somewhat of a self-fulfilling prophecy: Certain managers have negative expectations about how minority employees will perform and in response those workers have worse performance when randomly paired with those managers.
While many authors have noted the potential importance of discrimination, it has been difficult to uncover the mechanisms underlying discriminatory practices, which is a key step in figuring out how to reduce them.”Main finding: Living standards may be growing faster than GDP growth.
Nominating economist: David Autor, Massachusetts Institute of Technology Specialization: Globalization and labor markets Why?
No explanation given Main finding: Managers are biased negatively against minority workers, and this, in turn, makes the minority workers perform worse.
And while this paper is certainly not the final word, and can be challenged in many respects, it opens up a new set of possibilities in an area that has seen little progress for a long time.”Main finding: Decriminalizing sex work makes it safer and more common.
Nominating economist: Jennifer Doleac, University of Virgina Specialization: Criminal justice and public policy Why?Human capital Does being athletic improve success in business?The paper overall should go above and beyond what is expected.We asked these economists which study they thought was the most important or intriguing of 2017, along with their thoughts on the research.The chosen studies capture the concerns of 2017, with subjects ranging from opioids to gender discrimination to globalization.Nominating economist: Raj Chetty, Stanford University Specialization: Public economics and equality of opportunity Why?“The recent work of Harvard’s Amanda Pallais is very interesting, as it addresses various issues underlying racial discrimination and gender gaps that are important from a social perspective but not well understood.It’s a young man’s game When do players reach their peak performance in different physical activities? It’s a rich man’s game How much does funding affect the performance of individual sportsmen relative to teams? Does allowing betting have any impact on fans’ enjoyment?The price of gold What is the average cost to win a gold medal at the Olympic Games?At the end of every year, culture critics get to compile best of the year lists. Just like films and albums, economics research deserves a little reflection.To identify the research that mattered most in 2017, Quartz decided to call in some help, enlisting some of the greatest minds in economics today, including two Nobel prize winners.