• Nobel-winning economist Michael Kremer to join department faculty as University Professor


    Photo by Jon Chase/Harvard University

    Photo by Jon Chase/Harvard University

    Nobel Prize-winning economist Michael Kremer has been appointed University Professor at the University of Chicago and will join our department faculty.

    A pioneer in development economics who has shaped the discipline through the use of field experiments to inform economic models, policy and program development, Kremer shared the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel in 2019. He has been most recently at Harvard University, where he serves as the Gates Professor of Developing Societies in the Department of Economics.

    Kremer’s appointment at UChicago will be effective on Sept. 1. He also will hold a secondary appointment at the Harris School of Public Policy.

    “Michael is a scholar of extraordinary vision and accomplishment. His research has had an enormous influence on his field, and has been impactful in informing public policy in developing countries,” said Ka Yee C. Lee, provost and the David Lee Shillinglaw Distinguished Service Professor of Chemistry. “We are delighted to welcome Michael to the University of Chicago. The range of his research will undoubtedly lead to collaborations across divisions and schools.”

    University Professors are among those recruited at a senior level from outside the University, and are selected for internationally recognized eminence in their fields as well as for their potential for high impact across the University. Kremer will become the 23rd person to hold a University Professorship, and the 10th active faculty member holding that title.

    “The University of Chicago’s commitment to expanding research on development economics is an exceptional opportunity,” Kremer said. “The work ahead will develop new knowledge on ways to address global poverty and ultimately to do good for the world.

    Kremer was among the first economists to evaluate interventions in developing countries through randomized control trials. In 1998, he evaluated a project on deworming in Kenya. By comparing schools that had already been phased into treatment for intestinal worms with those that had not yet been phased into the program, he and his collaborators found that the program reduced student absenteeism by a quarter—and even reduced transmission of the disease to neighboring schools. Subsequent work also found that deworming had long-run impacts, leading to higher living standards 20 years later.

    “Michael’s research and its resulting policy impacts in economic development, health, education and technological innovation has been transformative at a global scale,” said Amanda Woodward, dean of the Division of the Social Sciences and the William S. Gray Distinguished Service Professor of Psychology. “We look forward to the next revolutionary phases of Michael’s work. He will be a foundational force for the future of Griffin Economics as well as for the broad community of economists at the University of Chicago.”

    Through the nonprofit organization Evidence Action and its private sector and government partners, Kremer’s work has now helped provide free deworming treatments to 280 million children. The World Health Organization recommends large-scale deworming as the most cost-effective way to improve children’s health and nutrition.

    “All of Michael’s work is grounded in theory and built around a coherent set of ideas interrogating what we can learn from economics,” said Rob Shimer, chair of the Kenneth C. Griffin Department of Economics and the Alvin H. Baum Professor in Economics. “His extraordinary contributions to the field of economics and to improving human welfare are testament to the power of his methodological innovations.”

    In addition to that research, Kremer helped develop the advance market commitment, proposing the idea of a contract that would guarantee that if firms developed vaccines for diseases affecting the developing world meeting certain technological specifications, donors would help cover the cost of purchasing the product. Such commitments have stimulated private investment in vaccine research and the distribution of vaccines for diseases in the developing world. A $1.5 billion commitment by a consortium of donors led to the development and distribution of vaccines covering the strains of pneumococcal diseases common in the developing world, saving an estimated 700,000 lives.

    “Michael’s landmark work has not only advanced the field but has had enormous real-world impact,” said Katherine Baicker, dean and the Emmett Dedmon Professor at the Harris School of Public Policy. “His work has resulted in billions of dollars being devoted towards malaria and pneumococcal vaccines focused on the strains prevalent in developing countries. Few economists have saved so many lives around the world.”

    While changes in broad-scale government programs have long provided economists with natural experiments to inform their models, Kremer and his colleagues developed an iterative strategy that engages—and in some instances, founds—NGOs to deliver social programs that implement and test economic ideas. This approach can reveal the causal forces at play in economic systems, shedding light where observational data cannot. It also offers a proving ground for developing and perfecting effective policies and programs.

    At UChicago, Kremer will lead a new Development Innovation Lab, an initiative that will sit within the Becker Friedman Institute for Economics.

    “I am excited to join the University of Chicago, with its storied tradition of pioneering economics research,” Kremer said. “The new lab will use the tools of economics to develop innovations of practical use for developing countries. By bringing together experts in different fields and working closely with nonprofit organizations, firms and governments in the developing world, we can simultaneously advance knowledge and generate solutions to development challenges which can reach hundreds of millions of people.”

    “Michael’s work simultaneously pushes out the frontier of understanding and has had enormous and lasting impacts on people’s well-being,” said Michael Greenstone, director of the Becker Friedman Institute and the Milton Friedman Distinguished Service Professor in Economics. “He is the perfect person to lead the Development Innovation Lab at BFI, and I know he will catalyze the terrific development economics here into even greater heights, with the ultimate beneficiaries being the field of economics and the world.”

    Kremer is the author of more than 120 academic articles and book chapters. He is a fellow of the American Academy of Arts and Sciences and a 1997 recipient of a MacArthur Fellowship. He has won awards for his work on health economics, agricultural economics and on Latin America.

    Kremer earned his Ph.D. in economics from Harvard University in 1992. He was a visiting assistant professor at the University of Chicago in Spring Quarter 1993. Prior to his appointment at Harvard, he was a member of the faculty at the Massachusetts Institute of Technology from 1993 to 1999.

    For more information, please see https://news.uchicago.edu/story/nobel-winning-economist-michael-kremer-join-uchicago-faculty-university-professor.


  • UChicago Grad Student, Francesco Ruggieri, honored for exemplary teaching

    Francesco Ruggieri Honored for Exemplary Teaching

    Portrait of man in glasses, wearing blue sweater, standing in front of modern buildingsPrior to coming to UChicago, econometrics was among Francesco Ruggieri’s least favorite courses. Econometrics is at a unique intersection between economic and statistical theory, he said, but for a long time, he thought of them as disjoint fields.

    He now teaches it to undergraduates despite its lack of popularity among students. Managing the subject’s synergies between data and theory is one of the key lessons Ruggieri aims to teach.

    'Letting the data speak for themselves is an illusion,' Ruggieri said. 'The data alone can certainly provide interesting descriptive insights, but theoretical models – even simple frameworks with mild assumptions – are necessary to guide our understanding of real-world phenomena and have an impact on policy.'

    Ruggieri employs a unique teaching approach to help students with this difficult course: short recaps of the previous lecture at the beginning of each class. During this portion of the class, Ruggieri encourages students to 'fill intentional gaps' in his summaries in order to foster engagement in a course in which the material is cumulative.

    Ruggieri said he deeply values the chance to teach UChicago students, who he said have a natural inquisitiveness and desire to achieve a deep understanding of class material. He particularly appreciates the ways in which students draw connections across their courses.

    He also said he values the chance to discuss careers in academia with students hoping to enroll in doctoral programs in economics.

    'Navigating these steps can be intimidating at first because admission to doctoral programs is competitive and information on how best to proceed is not widely available,' Ruggieri said. 'Having experienced the same career uncertainty only a few years ago, I particularly enjoy devoting time to mentoring undergraduate students who are interested in economics research.'"

    Read the full, original article here. 


  • Ken Griffin, ex-Google CEO back UChicago accelerator with lofty goals

    By John Pletz

    May 15, 2023 01:29 PM

    "Former Google CEO Eric Schmidt and Citadel founder Ken Griffin are backing a new University of Chicago-led effort to jumpstart private-sector solutions to some very big public problems such as pandemics and climate change.

    The Market Shaping Accelerator is led by Michael Kremer, who won a Nobel Prize in economics in 2019 for work on poverty before coming to U of C. He's joined by fellow U of C economist Rachel Glennerster, as well as Christopher Snyder, an economics professor at Dartmouth College. 

    One piece of the program involves using cash to crowdsource ideas that could be used to tackle problems for which the market so far hasn't created solutions. The accelerator will give away $2 million in prizes over the next year to people to turn existing ideas into reality, ideally in the form of signed contracts or purchase commitments.

    Leah Rosenzweig, director of the Market Shaping Accelerator, says it's focusing on 'pull mechanisms,' or commitments from the market, to subsidize the purchase of a specific innovation if it is brought to market. They differ from government grants, or 'pushing' funding toward scientists to work on particular fields of research. 

    The accelerator will start accepting applications for the prizes this week, selecting the first group of winners by the end of the summer.

    'The goal is to help government, philanthropy, innovators and private companies accelerate innovation to solve these global challenges,' says Rosenzweig, who leads a staff of five.

    She points to how five countries and the Gates Foundation pledged $1.5 billion in 2007 to subsidize and incentivize development and production of a vaccine for pneumococcal disease, which was killing children in developing countries. The commitment helped bridge the gap between the cost of the vaccines and the price developing nations could pay, leading to vaccinations of 50 million children.

    'We don't know when the next pandemic will hit but we know it's coming and we know, on average, we will lose $800 billion every single year (in expectation) to pandemics,' Glennerster, an associate professor of economics at U of C, said in a statement. 'There are lots of great ideas about how to protect against the next pandemic, including vaccines that could protect against any future coronavirus or any future flu. But how do we make sure these are produced at sufficient scale that everyone can benefit from them when the next pandemic hits?'

    The U of C accelerator launched last week with a reception at the International Monetary Fund in Washington, D.C. 

    Griffin and Schmidt's financial contributions to the program were not specified. Although they come from different industries and opposite ends of the political spectrum, two have a shared interest in U of C. Griffin donated $125 million to the school in 2017. The school's department of economics is named for him. Griffin, who moved to Miami last year, also has donated to the university's Chicago Crime Lab. 

    U of C is among nine universities with postdoctoral fellowships in artificial intelligence funded by Schmidt Futures, a philanthropy founded by Schmidt and his wife, Wendy. Nearly a decade ago, the Schmidts funded a summer fellowship program with a focus on using data science for social good."

    This article appeared in Crain's Chicago Business. Read the original article here

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