1999: How the Economy Came to Resemble the Model

  • Alan S. Blinder


George Stigler (1976, p. 351) wrote that “economists exert a minor and scarcely detectable influence on the societies in which they live.” I don’t believe that is true any longer. In fact, I want to make—and then defend—an audacious claim that directly contradicts Stigler. Since he wrote those words, real-world economies, including ours, have changed in a number of ways that bring them into closer alignment with the pristine model envisioned by economic theory. In this curious sense, life has come to imitate art.


American Economic Review Mutual Fund Agency Cost Stock Option Executive Compensation 
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© Alan S. Blinder 2016

Authors and Affiliations

  • Alan S. Blinder
    • 1
  1. 1.Princeton University the G7 GroupUSA

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