On immigration, for example, the authors show that contrary to the law of supply and demand, the influx of low-skilled workers hasn’t really affected local wages in most countries. Whilst this would probably not surprise those acquainted with the study of economics, the implied nullification of key economic concepts and theories calls for a marked shift in the way economics is taught, studied and interpreted. The findings of these studies are then compared to what is predicted by economic theory, often revealing stark differences. The aim is to measure and compare the outcomes of those that did receive the intervention and those that didn’t. These are studies in which people are allocated at random to either receive an intervention (usually a product or service) or be part of a control group that receives no intervention at all. Their approach is to synthesise the results of empirical work on these topics primarily through randomised controlled trials (RCTs) and natural experiments. Questions like: should people vote for politicians that favour immigration? How might we avert climate Armageddon? Does welfare or cash handouts make people lazy? And what impact will automation have on jobs and welfare? Despite the contentious and divisive nature of these topics, the authors manage to orchestrate a balanced debate, engaging with the entire spectrum of research, evidence and public opinion. And it’s this quality of humility and courage, espoused throughout their writing, that inspires confidence and curiosity in what they have to say about other, potentially more important, issues.Įach chapter of the book tackles a big question of global relevance – many of which the reader has likely pondered or even debated over the dinner table. But in their latest book, Good Economics for Hard Times, Nobel Prize-winning economists Esther Duflo and Abhijit V. It’s rare for economists to highlight how little is known about which policies and institutions fuel economic growth and prosperity. Good Economics for Hard Times: Better Answers to Our Biggest Problems. Please scroll down to read this translation or click here. This book review has been translated into Mandarin by Darren Cheong (LN814, teacher Dr Lijing Shi ) as part of the LSE Reviews in Translation project, a collaboration between LSE Language Centre and LSE Review of Books. If you are interested in this book, you may like to watch a video of the authors speaking at an LSE event recorded on 17 June 2020. With a focus on alleviating inequality and poverty, Banerjee and Duflo’s book clears a path for more interdisciplinary work centred on improving citizens’ wellbeing and protecting human dignity, writes Shruti Patel. Banerjee and Esther Duflo carefully lay out evidence to provide a grounded approach to tackling today’s most pressing global problems. In Good Economics for Hard Times: Better Answers to Our Biggest Problems, Nobel-Prize winning economists Abhijit V.