Fads and trends in OECD economic thinking on Denmark: a word frequency approach

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Resumé

As the post-2008 macroeconomic debate has reminded us, economics is not a cumulative science moving ever closer to truth. The fundamental ideas that shape economic arguments are prone to sporadic fads and more persistent trends. I use the frequency of certain words in the OECD Economic Surveys of Denmark to gain quantitative perspective on how policy relevant ideas in economics change. In the 1960s and 1970s, for example, “demand management” and “incomes policy” enjoyed high frequency in the Surveys, but they had all but vanished by 1990. In the 1990s the natural rate hypothesis had replaced the Keynesian framework, and “structural unemployment” suddenly became much more frequent. Special focus was placed on the incentive effects on labor supply of generous unemployment benefits and high marginal income taxes. Prior to 1990 “incentives” was little used, but its usage rose greatly thereafter. In the late 1990s “structural reform” became very fashionable. After the 2008 financial crisis the Surveys began to talk of “macroprudential” policies. Like incomes policy, macroprudential policy is premised on the belief that policymakers should be ready to intervene to curb what is perceived as unsustainable price developments. In this respect the Surveys have come full circle.

OriginalsprogEngelsk
TidsskriftEcon Journal Watch
Vol/bind16
Udgave nummer2
Sider (fra-til)218-238
ISSN1933-527X
StatusUdgivet - 30. sep. 2019

Fingeraftryk

Economics
Denmark
Fads
Incomes policy
Demand management
Incentive effect
Financial crisis
Politicians
Income tax
Unemployment benefits
Natural rate hypothesis
Structural reforms
Incentives
Macroeconomics
Labor supply
Structural unemployment
Economic change

Citer dette

@article{172758dc61324176a23baede1b27a3bb,
title = "Fads and trends in OECD economic thinking on Denmark:: a word frequency approach",
abstract = "As the post-2008 macroeconomic debate has reminded us, economics is not a cumulative science moving ever closer to truth. The fundamental ideas that shape economic arguments are prone to sporadic fads and more persistent trends. I use the frequency of certain words in the OECD Economic Surveys of Denmark to gain quantitative perspective on how policy relevant ideas in economics change. In the 1960s and 1970s, for example, “demand management” and “incomes policy” enjoyed high frequency in the Surveys, but they had all but vanished by 1990. In the 1990s the natural rate hypothesis had replaced the Keynesian framework, and “structural unemployment” suddenly became much more frequent. Special focus was placed on the incentive effects on labor supply of generous unemployment benefits and high marginal income taxes. Prior to 1990 “incentives” was little used, but its usage rose greatly thereafter. In the late 1990s “structural reform” became very fashionable. After the 2008 financial crisis the Surveys began to talk of “macroprudential” policies. Like incomes policy, macroprudential policy is premised on the belief that policymakers should be ready to intervene to curb what is perceived as unsustainable price developments. In this respect the Surveys have come full circle.",
keywords = "Economic ideas, Economic policy, OECD, Text mining",
author = "Andersen, {Thomas Barnebeck}",
year = "2019",
month = "9",
day = "30",
language = "English",
volume = "16",
pages = "218--238",
journal = "Econ Journal Watch",
issn = "1933-527X",
publisher = "Institute of Spontaneous Order Economics",
number = "2",

}

Fads and trends in OECD economic thinking on Denmark: a word frequency approach. / Andersen, Thomas Barnebeck.

I: Econ Journal Watch, Bind 16, Nr. 2, 30.09.2019, s. 218-238.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

TY - JOUR

T1 - Fads and trends in OECD economic thinking on Denmark:

T2 - a word frequency approach

AU - Andersen, Thomas Barnebeck

PY - 2019/9/30

Y1 - 2019/9/30

N2 - As the post-2008 macroeconomic debate has reminded us, economics is not a cumulative science moving ever closer to truth. The fundamental ideas that shape economic arguments are prone to sporadic fads and more persistent trends. I use the frequency of certain words in the OECD Economic Surveys of Denmark to gain quantitative perspective on how policy relevant ideas in economics change. In the 1960s and 1970s, for example, “demand management” and “incomes policy” enjoyed high frequency in the Surveys, but they had all but vanished by 1990. In the 1990s the natural rate hypothesis had replaced the Keynesian framework, and “structural unemployment” suddenly became much more frequent. Special focus was placed on the incentive effects on labor supply of generous unemployment benefits and high marginal income taxes. Prior to 1990 “incentives” was little used, but its usage rose greatly thereafter. In the late 1990s “structural reform” became very fashionable. After the 2008 financial crisis the Surveys began to talk of “macroprudential” policies. Like incomes policy, macroprudential policy is premised on the belief that policymakers should be ready to intervene to curb what is perceived as unsustainable price developments. In this respect the Surveys have come full circle.

AB - As the post-2008 macroeconomic debate has reminded us, economics is not a cumulative science moving ever closer to truth. The fundamental ideas that shape economic arguments are prone to sporadic fads and more persistent trends. I use the frequency of certain words in the OECD Economic Surveys of Denmark to gain quantitative perspective on how policy relevant ideas in economics change. In the 1960s and 1970s, for example, “demand management” and “incomes policy” enjoyed high frequency in the Surveys, but they had all but vanished by 1990. In the 1990s the natural rate hypothesis had replaced the Keynesian framework, and “structural unemployment” suddenly became much more frequent. Special focus was placed on the incentive effects on labor supply of generous unemployment benefits and high marginal income taxes. Prior to 1990 “incentives” was little used, but its usage rose greatly thereafter. In the late 1990s “structural reform” became very fashionable. After the 2008 financial crisis the Surveys began to talk of “macroprudential” policies. Like incomes policy, macroprudential policy is premised on the belief that policymakers should be ready to intervene to curb what is perceived as unsustainable price developments. In this respect the Surveys have come full circle.

KW - Economic ideas

KW - Economic policy

KW - OECD

KW - Text mining

M3 - Journal article

VL - 16

SP - 218

EP - 238

JO - Econ Journal Watch

JF - Econ Journal Watch

SN - 1933-527X

IS - 2

ER -