The National Bureau of Economic Research (NBER) is a private, non-profit, and non-partisan research organization founded in 1920. It aims to promote a greater understanding of how the economy works. The NBER is widely recognized for its research in economics and its influence on public policy and academia.
Mission and Objectives
The mission of the NBER is to:
- Conduct unbiased economic research.
- Provide insights on economic policy issues.
- Disseminate economic knowledge through publications and meetings.
- Train and support young economists.
Historical Context
The NBER was established during a period of significant economic transformation in the United States. It was founded by economists including Wesley C. Mitchell, who was its first director. The organization aimed to provide data-driven analysis during a time when economic theories and policies were in a formative phase.
Key Roles of the NBER
Research and Publications
The NBER conducts research on various aspects of the economy, including but not limited to:
- Business cycles and economic growth.
- Labor markets and employment.
- Health economics.
- International trade and finance.
- Public policy and taxation.
The organization publishes its findings in working papers and releases influential periodicals such as the “NBER Macroeconomics Annual.”
Policy Impact
The NBER’s research is regularly used by policymakers to craft economic policies. It provides empirical data and analysis that inform decisions on monetary policy, fiscal policy, and regulatory measures.
Academic Influence
Many academics affiliated with the NBER are also faculty members at leading universities. The organization serves as a bridge between pure academic research and practical economic policy.
Business Cycle Dating Committee
One of the most notable functions of the NBER is its Business Cycle Dating Committee, which officially declares the dates of recessions and expansions in the United States economy.
Examples of NBER’s Influence
Recession Dates
The NBER’s declarations of recession dates help manage expectations and guide policy responses during economic downturns. For instance, the NBER officially declared the start of the Great Recession in December 2007 and its end in June 2009.
Policy Reports
Numerous policy reports and working papers produced by the NBER have had significant influence on legislative and regulatory initiatives, including reforms in healthcare and financial regulation.
Applicability and Impact
The work of the NBER is not only confined to the U.S. economy but also has international relevance. Its research findings are often cited in global discussions on economic policy and strategy.
Training Programs
The NBER offers various programs and fellowships, aiming to cultivate the next generation of economists. These programs help in bridging the gap between academic rigors and practical economic applications.
Related Terms
- Econometrics: The application of statistical methods to economic data to give empirical content to economic relationships.
- Fiscal Policy: Government spending and tax policies used to influence economic conditions.
- Monetary Policy: Central bank actions that determine the size and rate of growth of the money supply.
FAQs
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References
Summary
The National Bureau of Economic Research (NBER) is a pivotal institution in the field of economic research, known for its rigorous and unbiased analysis. Its role in informing policy, guiding academic research, and training future economists cannot be understated. Through its extensive work and publications, the NBER continues to shape the understanding and direction of economic policies in the United States and beyond.
