2 ms·
There's a big difference between the economic topics that get the most media attention, and areas in which the majority of economists work. I studied economics
by oli5679 10y ago
There's a big difference between the economic topics that get the most media attention, and areas in which the majority of economists work.
I studied economics for 4 years and now work as an economist. I've never met a colleague/teacher who claimed to be able to forecast inflation/GDP growth over the next four quarters or correctly identify miss-priced assets.
Some examples of the questions I have seen economists address:
- How much might labour supply change following a change in tax policy?
- What is the impact of online advertising through different channels on a company's incremental sales?
- How would a merger between two companies affect the price and quality of their output?
- How can you detect collusion between bidders in tender markets?
A lot of the work seemed convincing to me, and lead to insights beyond the common sense intuition of politicians/businessmen who were familiar with the domain.
Even if you think economists aren't helpful for predicting inflation/GDP growth or identifying miss-priced assets (I'm inclined to agree), there are lots of important questions about market dynamics and policy evaluation where economics does give us genuine insight. I also find it really fun!
- tomrod 10y agoThere are a few professional forecasters out there. Everyone wants to read the tea leaves.