Harvard has been a leader in the economics profession for better or worse. In recent years the economics department has been viewed as relatively free market oriented where human action is seen as rational, research is guided by economic theory, and where markets work most of the time. Symbolically, the introductory undergraduate course was taught for many years by conservative economist Martin Feldstein and since 2005 by Gregory Mankiw, who could be described as a middle of the road Republican. Mankiw is also the author of the leading textbook for principles of economics, a sign of Harvard’s broader influence. The faculty has several noteworthy free-market-leaning members, including libertarian Jeffrey Miron.
However, there have been big signs that things are changing for Harvard economics and not for the better. In March, Markiw wrote that he would be stepping down from teaching the principles of economics course. There has been no official replacement announced, but Raj Chetty teaches a popular alternative course called Economics 1152: Using Big Data to Solve Economic and Social Problems.
This course provides an introduction to modern applied economics in a manner that does not require any prior background in economics or statistics. It is intended to complement traditional Principles of Economics (Econ 101) courses. Topics include equality of opportunity, education, health, the environment, and criminal justice. In the context of these topics, the course provides an introduction to basic statistical methods and data analysis techniques, including regression analysis, causal inference, quasi-experimental methods, and machine learning.
This data driven approach should rightly scare traditional economists because “data driven” often results in “personal viewpoint driven” conclusions, even by professional economists. In the hands of undergraduate students there is no telling how many more crackpot progressives might graduate from Harvard or how many economics departments might be influenced in this direction.
