Good Economics for Hard Times – Abhijit V. Banerjee & Esther Duflo
1. Full Citation
Banerjee, A.V. and Duflo, E. (2019) Good Economics for Hard Times. New York: PublicAffairs.
2. Introduction
Good Economics for Hard Times addresses pressing global economic challenges such as inequality, immigration, climate change, and economic insecurity. Nobel laureates Banerjee and Duflo combine rigorous empirical research with compassionate policy analysis to propose evidence-based solutions to complex social problems. The book challenges ideological dogmas by focusing on nuanced economic realities and pragmatic interventions, representing a modern, data-driven approach to economic policy.
3. Author Background and Credentials
Abhijit V. Banerjee and Esther Duflo are economists at the Massachusetts Institute of Technology and co-founders of the Abdul Latif Jameel Poverty Action Lab (J-PAL). Their pioneering work in development economics and experimental approaches to policy evaluation earned them the 2019 Nobel Prize in Economic Sciences.
4. Summary of Contents
Core themes include:
- Inequality and Redistribution
- Analyzes causes and consequences of inequality and evaluates policy tools.
- Globalization and Migration
- Examines impacts of migration and trade on economies and societies.
- Climate Change and Environment
- Discusses economic challenges of environmental sustainability.
- Social Safety Nets and Growth
- Evaluates the role of social programs in supporting economic stability.
- Evidence-Based Policy Making
- Advocates for experimental methods to identify effective interventions.
5. Critical Evaluation
a. Coherence and Argumentation
The book presents well-structured arguments grounded in empirical evidence and balanced analysis.
b. Originality and Intellectual Contribution
It bridges academic research and public discourse, advancing a new paradigm of economics focused on experimentation and pragmatism.
c. Evidence, Sources, and Method
Relies heavily on randomized controlled trials, field experiments, and data analysis.
d. Style and Accessibility
Written in accessible language, blending academic rigor with engaging narrative.
e. Limitations and Critiques
Some critics argue that RCT-based policy may oversimplify complex societal issues.
6. Comparative Context
Compared with:
- Thomas Piketty’s Capital in the Twenty-First Century – Both address inequality but with different methods
- Joseph Stiglitz’s The Price of Inequality – Shared concern with social justice and economic disparities
- Dani Rodrik’s The Globalization Paradox – Focus on globalization’s tensions and policy responses
7. Thematic or Disciplinary Relevance
Relevant to:
- Development economics and poverty alleviation
- Public policy and social welfare
- Experimental economics and impact evaluation
- Environmental economics
8. Reflection or Practical Application
The book provides policymakers and practitioners with tools and evidence to design more effective, humane economic policies.
9. Conclusion
Good Economics for Hard Times is a vital contribution to contemporary economic thought, emphasizing empirical rigor and compassionate policymaking in addressing today’s challenges.
Recommended for: Economists, policymakers, development practitioners, and informed general readers.
10. Other Works by the Same Authors
- Poor Economics (2011)
- Numerous research articles on development economics and randomized evaluations
11. Similar Books by Other Authors
- Esther Duflo and Abhijit Banerjee – Poor Economics
- Joseph Stiglitz – The Price of Inequality
- Angus Deaton – The Great Escape
- Amartya Sen – Development as Freedom
12. References (only if external works are cited)
- Banerjee, A.V. and Duflo, E. (2019) Good Economics for Hard Times
- Piketty, T. (2013) Capital in the Twenty-First Century
- Stiglitz, J.E. (2012) The Price of Inequality
Next up: The Undercover Economist – Tim Harford.