Jan Tinbergen was a Dutch economist who won the main Nobel Memorial Prize in Economics in 1969, which he shared with Ragnar Frisch for their work in the development and application of dynamic models for examining economic processes. Tinbergen was quite possibly the earliest economist to apply math to economics and is viewed as a trailblazer in the economics field, as well as in econometrics.
Early Life and Education
Brought into the world in The Hague in the Netherlands in 1903, Tinbergen went to the University of Leyden and protected his Ph.D. thesis in 1929 on "Least Problems in Physics and Economics," a thesis that permitted him to draw in a cross-disciplinary approach to his further research in mathematics, material science, economics, and politics.
He joined the Netherlands Central Bureau of Statistics, carrying out groundwork on new business cycles; a position in government that he held until 1945. During that period, he likewise turned into a teacher of mathematics and statistics at the University of Amsterdam and at the Netherlands School of Economics. During that time, from 1936 to 1938, Tinbergen was likewise a consultant to the League of Nations, filling positions in government and education all the while.
In 1945, he turned into the principal director of The Netherlands Central Planning Bureau. He left this position in 1955 to zero in on education and spent a year at Harvard University. He likewise filled in as an economic consultant to a large group of non-industrial countries, including the United Arab Republic, Turkey, and Venezuela.
Jan Tinbergen kicked the bucket where he was conceived, The Hague, in 1994.
Tinbergen is generally noted for his contributions to econometrics and macroeconomic modeling.
Large scale Econometrics
Tinbergen fostered the theory of underlying econometrics and the utilization of statistics to test economic speculations. A trend-setter in large scale econometric modeling, Tinbergen developed multi-condition models of national economies that were a forerunner to the present PC driven economic forecasts.
A portion of Tinbergen's most important works incorporate Statistical Testing of Business Cycles (1938), Econometrics (1942), and Income Distribution (1975).
He created the primary exhaustive large scale econometric models, initially for the Netherlands and afterward for the United Kingdom and the United States. His large scale econometric models zeroed in on business cycles and economic development.
Tinbergen saw the goal of macroeconomic policy as boosting social welfare subject to the imperatives of technology, resources, and political feasibility. From his models, he additionally developed rules and proposals for applying econometrics to policymaking. Understanding these types of models can assist policymakers with aiming for economic targets that are connected with the policy instruments they control.
This incorporates the identification of targets and instruments, known as the Tinbergen rule. This is the possibility that governments must utilize different policy instruments to impact numerous policy targets. Assuming policymakers have certain targets they wish to reach, they must have an equivalent number of instruments that they control to direct policy towards the targets really.
All through his career, Tinbergen was likewise keen on the issues of income distribution in an economy, and the phrase "Tinbergen Norm" emerged from a theory he sought after, in which a bigger than five to one gap between the least income and the highest income will lead to serious social conflict.
The Bottom Line
Jan Tinbergen won the Nobel Prize in economics sciences due to his development of dynamic models that assistance with the economic cycle. He had a changed career, working for the government, as a teacher, and economic consultant around the globe. His work on economic policy has assisted economists with aiming for targets with the utilization of specific economic apparatuses.
- Tinbergen was perhaps the earliest economist to apply math to economics and is viewed as a trailblazer in the economics field, as well as in econometrics.
- "Tinbergen Norm" is a theory of his that states that a bigger than five to one gap between the most minimal income and the highest income will lead to serious social conflict.
- Jan Tinbergen was a Dutch economist, granted the Nobel Prize in 1969 for his work in economic modeling.
- "Tinbergen Rule" is the possibility that governments must utilize different policy instruments to impact various policy targets.
What Is the Tinbergen Model?
The Tinbergen model is an education plan that burdens the significance of the value of policy factors in the specific plan. The Tinbergen model stands rather than the labor requirements model, which stresses forecasting certain values for the plan year.
Who Coined the Term "Econometrics"?
The Norwegian economist, Ragnar Frisch, is considered to have authored the term econometrics. His work zeroed in on creating mathematical equations to use in economics. His utilization of the term "econometrics" alludes to utilizing statistics to depict economic systems.
How Did Jan Tinbergen Respond?
Jan Tinbergen was a Dutch economist who won the Nobel Prize in economic sciences. His contributions of dynamic models to economic processes extraordinarily expanded the comprehension of economic policy as an instrument.