Honorary Lecture by Professor Lawrence Kotlikoff at HSE ICEF
On January 15, Professor Larry Kotlikoff gave a talk on measuring inequality in lifetime spending power within different age cohorts in the USA, net tax rates facing Americans, and current wealth indicators.
Lawrence Kotlikoff is a highly distinguished economist with over 200 published papers and numerous books on economics of intergenerational relations, consumption, saving, taxation, public finance and personal finance, in which areas he is a global specialist and consultant. He has served as Chief Economic Advisor to the US President, many national (including Russian) and international organizations, and has been a candidate for US president himself (2012).
Professor Kotlikoff is well-known for his work questioning the importance of saving for retirement in determining total U.S wealth accumulation (with Lawrence Summers). Together with Alan Auerbach, Prof Kotlikoff developed the first large-scale computable general equilibrium life-cycle model of economies comprising of a large number of overlapping generations. He is also known as a very substantive critique of the existing approaches to measurement of inequality using existing macroeconomic indicators many of which, he claims, are ill-defined. He eloquently elaborated on that view during his HSE lecture, which has been attended by more than 150 faculty and students. In particular, he advocated the use of spending rather than current income as the real measure of people's lifetime wealth, as the former tends to be a more reliable and time-invariant indicator of lifetime earning abilities. Proper measurements of income and inequality are important to qualify the issues of capital accumulation dynamics advanced recently by Thomas Piketty, as well as to fiscal imbalances, progressivity and regressivity of the tax scales, intergenerational transfers, ecological sustainability and other aspects of global economic development.
The audience will definitely remember his presentation of lifetime budgetary plan illustrated using special Fiscal Analyzer software developed by his company, as well as a live illustration of the virtual character of current wealth indicators (proven by the destruction of a $10-bill in real time by one of the attending students).
Claudia Goldin's award was predicted by five people. They are Olga Peresypkina (RSVPU), Anastasia Sirotina (first-year student of the Bachelor's in Applied Mathematics and Information Science at HSE University), Mikhail Shabanov (Global Vision Asset Management LLC), Tatul Hayrapetyan (PhD student at the Stanford Graduate School of Business), and Hemant Kumar (Ettumanoorappan College, Kerala, India).
According to HSE and MGIMO economists, increased financial sector risks in developed countries may be associated with a higher carbon footprint in banks' loan portfolios. This is likely due to the fact that in response to an unstable economic situation, banks tend to issue more loans to companies that have a detrimental impact on the environment. Although this might yield short-term profits for the banks, such trends hinder humanity's progress towards achieving a green economy. The paper has been published in Environmental Science and Pollution Research.
The Royal Swedish Academy of Sciences has awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2023 to Claudia Goldin (Harvard University, Cambridge, MA, USA), ‘for having advanced our understanding of women’s labour market outcomes.’ According to the Nobel committee, Professor Goldin has uncovered key factors that determine gender differences in the labour market.
Millennials Are Three Times Ahead of Zoomers in the Monetised Creator Economy. Even Boomers Outperform Them. Okay Then…
A group of specialists from the HSE Institute for Cultural Studies, Vitaly Kurennoy, Alexander Suvalko and Maria Figura, have determined two main trends that are actively shaping the image of the creative economy and culture in 2021-2023: the creator economy and the maker economy.
HSE researchers have analysed teaching load data at the HSE campus in St Petersburg to investigate the potential impact of teaching on faculty research output. They found that factors such as teaching primarily masters' courses, conducting 20% of lectures in English, and supervising only one doctoral student per year were associated with a greater likelihood of producing more high-quality academic papers. The study has been published in Higher Education Quarterly.
HSE University’s Online Campus is accepting applications for ‘Master of Finance’, an online programme taught in English at the HSE Banking Institute. The design of the online programme meets the needs not only of current students, but also of working professionals who want to expand their knowledge of financial strategies and learn how to increase their investments and diversify risks.
Nargiz Mammadova, from Azerbaijan, is a 2022 graduate of the Economics: Research Programme and a finalist of the Global Essay Competition in St. Gallen. As she prepares to start her Master of Public Administration in International Development programme at Harvard in August 2023, Nargiz reflects on her time studying at HSE University during the COVID-19 pandemic, talks about her work for the State Oil Fund of Azerbaijan, and shares an important message for future students.
Researchers at the HSE Faculty of Economic Sciences Laboratory for Wealth Measurement analysed income and cost of living data at the sub-regional level in Russia (municipalities) and in the US (counties). The study reveals that territorial differences in the cost of living are more pronounced in Russia compared to the United States. However, the distribution of overall income across settlements of varying sizes is quite comparable in both countries. The article has been published in the HSE Economic Journal.
Economists at HSE University and the Russian Presidential Academy of National Economy and Public Administration (RANEPA) have assessed the situation of women from the ‘sandwich generation’ — those who have to take care of both their children and elderly parents. The results were mixed: women in this situation often fail to eat regularly, neglect medical check-ups and are more likely to be overweight, but at the same time suffer less frequently from chronic diseases, smoke and drink less and generally show a higher level of life satisfaction. The preprint of the study is published in the Munich Personal RePEc Archive.
Researchers from VTB and HSE University-St Petersburg have come up with an algorithm for predicting stock price fluctuations in the Russian market by analysing financial news. By making financial projections for next week (or month), the novel STTM (Stock Tonal Topic Modelling) algorithm can help investors build more effective financial strategies. The paper has been published in PeerJ Computer Science.