Dani Rodrik on the state of economics

Here are a few excerpts I have especially liked from the interview that Dani Rodrik has given to the World economic Association on the state of economics.


"PhD programs now train applied mathematicians and statisticians rather than real economists. To become a true economist, you need to do all sorts of reading – from history, sociology, and political science among other disciplines – that you are never required to do as a graduate student. The best economists today find a way of filling this gap in their education."

"There are powerful forces having to do with the sociology of the profession and the socialization process that tend to push economists to think alike. Most economists start graduate school not having spent much time thinking about social problems or having studied much else besides math and economics. The incentive and hierarchy systems tend to reward those with the technical skills rather than interesting questions or research agendas. An in-group versus out-group mentality develops rather early on that pits economists against other social scientists. All economists tend to imbue a set of values that tends to glorify the market and demonize public action."

"The two most exciting developments in Economics in the last two decades are the behavioural and experimental revolutions. The first of these has made a significant dent in the rationality postulate of neoclassical economics, while the latter has taken the profession in a profoundly empirical and policy-oriented direction. These are significant changes in how one does mainstream economics, and the fact that they have happened suggests there is room for methodological changes. Not plurality, perhaps, but some degree of evolution in methods. I am not necessarily a great fan of either of these methodological innovations, but they show the profession is able to adapt and change. Note also that both sets of new methods came from outside Economics -- psychology and medicine, respectively. Young economists made these methods their own, and changed the discipline from within."