Dezsö J. Horváth

If you have a society that is well educated, healthy, has good housing conditions, safety, and a good quality of life, isn’t it obvious that there would be a more competitive, highly productive society?

Venkat Atluri, Miklos Dietz, Nicolaus Henke

More than 80 years ago, Nobel laureate Ronald Coase argued that companies establish their boundaries on the basis of transaction costs like these: when the cost of transacting for a product or service on the open market exceeds the cost of managing and coordinating the incremental activity needed to create that product or service internally, the company will perform the activity in-house. As digitization reduces … [ Read more ]

Dani Rodrik

Ultimately, it is the economy-wide productivity consequences of technological innovation, not innovation per se, that lifts living standards. Innovation can co-exist side-by-side with low productivity (conversely, productivity growth is sometimes possible in the absence of innovation, when resources move to the more productive sectors).

Larry Jones, Joseph Duerr

Although activist investors are successful at improving margins, they struggle to drive growth. We analyzed 55 companies over the past 10 years in which shareholder activists had a significant impact on company governance and strategy, and compared their performance to that of their industry peers. (The aims of activist actions included business focus, board composition, business restructuring, director election, focus on growth, board representation, general … [ Read more ]

Marc-David Seidel

What underlying assumptions about centralized trust do you make in your own work? How would instantaneous peer-to-peer trust with no need for a centralized third party change things? If you could meet a stranger and be able to enter into a trusted exchange without needing a third party, what changes in your theoretical perspective on the world? That model of interaction is what distributed trust … [ Read more ]

The Global Forces Inspiring a New Narrative of Progress

That broad narrative of intensifying competition, as well as the growing need for cooperation, contains challenges, but also great opportunity. We hear about the challenges every day in our conversations with global business leaders: How long can their traditional sources of competitive advantage survive in the face of technological shifts? How will changing consumer and societal expectations affect their business models? What does it mean … [ Read more ]

Bruce Scott

Shareholder capitalism has been an intellectual swindle, on a par with the trickle-down economics of the Reagan era.

Bruce Scott

Completely free markets are not a recipe for prosperity; they are a recipe for plutocracy and corruption, as we are increasingly aware of every day.

Bruce Scott

U.S. capitalism was and mostly still is understood as a natural system and not one that was and is socially constructed by government policy.


“Free markets” must be one of the most overused expressions in the English language. Stated bluntly, there are no free markets in organized capitalism. All of the so-called freedoms in capitalism are conditional freedoms, and that conditionality is established by, … [ Read more ]

Fred Wilson

Greed and fear are the two opposing elements of market forces.

Kate Raworth

We sometimes try and justify the most valuable things in life, like health and well-being, in terms of a lost ability to contribute to the economy. We’ve got a situation where human well-being is apparently in service to the economy, where we need to turn that around. The economy, and certainly the financial sector, should be in service to life. We need to reframe it. … [ Read more ]

Kate Raworth

We need to ask ourselves three questions. Growth from what? Is the economy growing because we’re making a huge investment in a transition to renewable energies, like China investing $360 billion by 2020 in solar energy capacity? That’s a great reason for GDP in China’s growth. Or is it growing because we’ve got massive consumer debt spending on mortgages we can’t afford and cars we … [ Read more ]

Kate Raworth, Simon Kuznets

In the 1930s he [Simon Kuznets] was asked by Congress to come up with a measure of national income. He did a fantastic job and came up with this measure, which we now know as GDP. But at the time when he created it, he gave us a caveat. He said, “This measure should in no way be mistaken for the measure of a nation’s … [ Read more ]

Kate Raworth

I think every student should learn there are four fundamental forms of provisioning: through market exchange, through the state providing public goods, through household unpaid care and households and communities, and the self-organizing without market or state in the commons. Almost any good that you care to think of can be provided in any one of those four ways. Then you’ve got a much more … [ Read more ]

Kate Raworth

There are winners and loser in the economy every day, and there are winners and losers from the massive technological shifts that are going on right now. All the time, the economy is evolving. We just need to ask ourselves, what is the purpose of the economy and what direction do we want it to evolve in?

I think there are two principles that we need … [ Read more ]

Eric Maskin

Humans are instinctively moral beings and I don’t see machines as ever entirely replacing those instincts. Computers are powerful complements to moral reasoning, not substitutes for it.

Best Business Books 2016: Economy

It’s been a tumultuous 10 years. And the period has produced a bumper crop of excellent economics books by academics, journalists, and practitioners who have attempted to grapple with the extraordinary macroeconomic disaster. They have examined why it happened, how to fix it, what it means, and how to avoid a recurrence of anything even remotely as hellish.

But we may have arrived at a crossroads. … [ Read more ]

The Huge Hole in the Standard Economic Model

Kate Raworth, a senior research associate at Oxford University and senior associate at the Cambridge Institute for Sustainability Leadership, wants to challenge the old ways of thinking about economics and develop sustainable new patterns for economic growth. In her book, Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist, Raworth encourages careful consideration of measurements beyond the standard gross domestic product metric. Thoughtful economic … [ Read more ]

Pankaj Ghemawat, Steven A. Altman

Global connectedness is measured along the lines of four pillars: trade (products and services), investment (capital), information (internet traffic, phone calls, print media) and people (migrants, tourists, students). These four pillars encompass most of the aspects of international connectedness that have maximum relevance for business people, policymakers, and ordinary citizens concerned with the impact of globalization on their life opportunities,