The Nobel Prize for Mokyr, Aghion and Howitt is VERY well deserved. In this thread, I’ll try to explain the contributions of Aghion-Howitt’s economic growth model🧵 Here we go!

The Nobel lecture in Economics is being extremely interesting! If you want a detailed explanation of the baseline Aghion-Howitt model, I wrote a thread about it here👇 #NobelPrize #NobelPrizeInEconomics

The Nobel lecture in Economics is being extremely interesting! If you want a detailed explanation of the baseline Aghion-Howitt model, I wrote a thread about it here👇 #NobelPrize #NobelPrizeInEconomics

Watch the prize in economic sciences lectures. See the 2025 economic sciences laureates Joel Mokyr, Philippe Aghion and Peter Howitt deliver their lectures. Where are you watching from? #NobelPrize https://t.co/VHIgoSqz6U

By Rabin’s Calibration Theorem: If an agent rejects a gamble with 50-50 chance of gaining 11 or losing 10, Expected Utility Theory predicts the agent will also reject a 50-50 gamble "Gain $100,000 or lose $10". 🧵1/n

Innovateam ☺️

I have posted the slides for my undergrad intermediate macroeconomics class on my webpage: https://t.co/mXaqbN7RaJ Hopefully some will find these useful. 1/n

This result is a reminder of how crucial assumptions are and how sensitive some conclusions can be to them.

Important: Rabin’s theorem conclusions hold if the agent rejects the small gamble at all levels of initial wealth.

Rabin, M. (2000). Risk Aversion and Expected-Utility Theory: A Calibration Theorem. Econometrica, 68(5), 1281–1292.

Of course, this extreme risk aversion is a very unlikely to see in real life. That’s one of the reasons why we’re interested in alternative Behavioural Economics explanations. I personally find this result extremely interesting.

More formally: If an agent rejects a gamble with 50-50 with outcomes (+g, -l) with g>l, Expected Utility Theory predicts the agent will reject any 50-50 gamble of the form "Gain Ng or lose MI" with N, M arbitrary positive numbers, no matter how large.

By Rabin’s Calibration Theorem: If an agent rejects a gamble with 50-50 chance of gaining 11 or losing 10, Expected Utility Theory predicts the agent will also reject a 50-50 gamble "Gain $100,000 or lose $10". 🧵1/n

My Spotify wrapped

“There is so much we still have to learn, and the world changes faster than our understanding can keep up with.” These words from Jean Tirole’s 2014 Nobel Prize banquet speech feel more relevant than ever today. At this year’s Nobel Week Dialogue: Health For All, we’ll explore

Si se sigue con este discurso (el del “Sindicato”), no habrá vivienda asequible en España ni en 2030 ni en 2300.

I’d love to know the opinion of @littmath @wtgowers @Anthony_Bonato @ben_golub @Bellmanequation @davidbessis. This debate has always seemed interesting to me because it’s really not only about Math itself but also about the structure of reality, in some way

Do you think Mathematics is discovered or invented? I think Pure Math is discovered and Applied Math is “invented” (models based on reality and tested empirically).

Evidence of banning cellphones📱in Florida schools: ⬆️Increase in student suspensions in the short-term ⬇️Improvements in student test scores in the second year of the ban ⬇️Reduction in student unexcused absences https://t.co/xLkhY4tJXt #EconX

1️⃣The image you use is an example of the wrong definition of “equilibrium” that @JesusFerna7026 talks about. 2️⃣“It’s not what it means in other fields” is not a critique of the use of “equilibrium” in Economics. Words have different meanings depending on the field.

Do you think Economics bachelors should include more proof-based Math courses like Real Analysis? They learn Calculus, of course, but Calculus ≠ Real Analysis.