The National Bureau of Economic Research (NBER) is a private, non-profit, non-partisan organization that aims to foster a deeper understanding of how the economy functions. It plays a significant role in disseminating economic research to public policymakers, business professionals, and academia. Through its broad and detailed research endeavors, NBER offers invaluable insights that help shape economic policy and decision-making.
Key Takeaways
- Private and Non-Profit: The NBER operates as a private non-profit, focusing purely on research without partisan bias.
- Research Focus: It conducts research in developing new statistical measurements, estimating economic models, assessing the effects of public policies, and projecting outcomes of various policy proposals.
- Quick Dissemination: Research findings are rapidly produced and distributed as ‘working papers,’ serving as discussion points for economists.
Understanding the National Bureau of Economic Research (NBER)
Comprising hundreds of the nation’s leading economists and business scholars, NBER focuses on four primary types of empirical research. These include the development of new statistical methods, the estimation of quantitative economic models, the evaluation of public policy impacts on the U.S. economy, and projections concerning alternate policy scenarios. Noteworthy is that, as of 2021, thirty-eight current or past NBER board members and research affiliates have been Nobel laureates in Economics.
According to the organization, “The National Bureau of Economic Research (NBER) facilitates groundbreaking analysis on critical economic issues, disseminating research findings to academics, public and private decision-makers, and the public by releasing over 1,200 working papers and hosting more than 120 scholarly conferences annually.”
Notably, NBER officially declared the end of the economic expansion in February 2020, marking the onset of a recession amidst that year’s economic upheaval.
Role of NBER in Modern Economics
With over 1,600 economists serving as NBER researchers, the organization hosts a constellation of leading experts. Most researchers hold the titles of either Faculty Research Fellows (FRFs) or Research Associates (RAs). FRFs are generally junior scholars, while RAs are established professionals with tenured positions approved by the NBER Board of Directors.
The NBER receives funding through research grants from governmental agencies and private foundations, investment returns, and contributions from individuals and corporations. In the fiscal year ending June 30, 2020, the NBER reported revenues of $32 million.
Renowned economist Paul Krugman once remarked that NBER can be “best described as the professional network of economics personified. While there are some physical offices, the true essence of NBER lies in its associates and their work. In many sub-fields of economics, notable figures are often NBER research associates who publish their findings as NBER working papers, quickly enabling ongoing discussions and critiques in the economic community. To many economists, the NBER working papers series is the go-to source for the latest developments in their field.”
Let this be a glimpse into the invaluable scholarly and practical role of the National Bureau of Economic Research, continuously shaping the landscape of economic thought and policy.
Related Terms: economic behavior, public policy, quantitative models, Nobel Prize in Economics.
References
- National Bureau of Economic Research. “About the NBER”.
- The Statesman’s Yearbook. “National Bureau of Economic Research (NBER)”.
- National Bureau of Economic Research. “Nobel Laureates”.
- National Bureau of Economic Research. “Business Cycle Dating Committee Announcement June 8, 2020”.
- National Bureau of Economic Research. “Summary Statements for the Fiscal Year Ended June 30th, 2020”.
- The New York Times. “Understanding the NBER”.
