What Is the National Bureau of Economic Research?
Let me explain what the National Bureau of Economic Research, or NBER, really is. It's a private, non-profit, and non-partisan research organization dedicated to helping everyone understand how the economy functions. The NBER spreads economic research to public policymakers, business professionals, and academics alike.
Key Takeaways on NBER
You need to know that the NBER operates as a private, non-profit research entity. Its research zeroes in on developing new statistical measurements, estimating quantitative models of economic behavior, evaluating how public policies impact the U.S. economy, and forecasting the outcomes of different policy options. NBER produces research papers rapidly, releasing them as working papers that serve as discussion starters for economists tracking the latest in their field.
Understanding the National Bureau of Economic Research
Hundreds of top scholars in economics and business work as NBER researchers, concentrating on those four empirical research types I mentioned: new stats, quantitative models, policy effects, and alternative projections. As of 2021, 38 current or former NBER board members and affiliates have won the Nobel Prize in Economics. The organization describes itself as a private, nonpartisan group that enables advanced investigation into major economic issues. It shares findings with academics, decision-makers in public and private sectors, and the general public through over 1,200 working papers and more than 120 conferences each year.
Important NBER Declarations
Here's something critical: The NBER officially marks the beginnings and ends of economic cycles. For instance, it declared the end of the economic expansion in February 2020, signaling the U.S. entry into recession amid that year's crisis.
Role of NBER in Modern Economics
Over 1,600 economists affiliated with NBER are leaders in their fields. Most are either Faculty Research Fellows, who are usually junior scholars, or Research Associates, who hold tenured positions and get approved by the NBER Board. The organization funds itself through government and foundation grants, investment income, and donations from individuals and corporations. For the year ending June 30, 2020, it reported $32 million in revenue per its financial statements. Economist Paul Krugman, in the New York Times, called NBER the 'old-boy network of economics made flesh.' It has small offices, but it's mainly about its associates and their work. In many economics subfields, prominent figures are NBER research associates, and they release new research as working papers. These papers get ideas out fast for discussion and critique among economists, making the NBER working paper series a go-to resource for staying current.
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