Lessons of the 2012 Nobel Prize in Economics
Richard Cornes and José A. Rodrigues-Neto have penned down an article on "Is Policy Too Important to be Left to Empiricists? Lessons of the 2012 Nobel Prize in Economics" . The article surveys the contribution of Roth and Shapley. I reproduce the conclusions verbatim from the article. The last point mentions domains where matching markets can be useful in Australia. First, it could be dangerous to dismiss basic research as necessarily less important because of its lack of obvious immediate impact on pressing problems of the day. Second, some of the most applicable and useful ideas often come along first in the most abstract forms. They require time to mature and to prove their true value; in this case a few decades. This does not fit with the politics of the democratic electoral cycle. Third, the power of abstract mathematical ideas should never be underestimated. Looking to social sciences or policy studies through the lens of what seems to be of im...