Attention Economy


Saturday, May 11, 2024

Decline of Theoretical Economics

The Curious Case of Economic Theory
Once central to the field, it has slipped in prestige.
 
Related:
Staff of the Congressional Budget Office. 2024. "How Economists Could Help Inform Economic and Budget Analysis Used by the US Congress." Journal of Economic Perspectives, 38 (2): 3-24.
Abstract
The US Congress uses economic and budgetary projections, cost estimates for proposed legislation, and other analyses provided by the Congressional Budget Office (CBO) as part of its legislative process. CBO makes assessments based on an understanding of federal programs and revenue sources, reading the relevant research literature, analysis of data, and consultation with outside experts—and often relies on economic research. This article begins with a discussion of the role of the Congressional Budget Office and then discusses how economists could conduct research that would help inform the Congress by improving the quality of the analysis and parameter estimates that CBO uses. It gives overall context and specific examples in seven areas: credit and insurance, energy and the environment, health, labor, macroeconomics, national security, and taxes and transfers.