The Institute for New Economic Thinking
at the Oxford Martin School
Fresh thinking in economics is urgently required to address the most critical challenges of our time, ranging from managing systemic financial crises, to reinvigorating economic growth, addressing rising inequality, encouraging economic development, and developing new models of long-term sustainability.
We, the Institute for New Economic Thinking at the Oxford Martin School (INET Oxford), are dedicated to applying leading-edge thinking from the social and physical sciences to global economic challenges.
Our aim is to stimulate innovation and debate in economics, support visionary interdisciplinary research, and radically redefine the education of the next generation of economists, and business and government leaders.
INET Oxford includes over 60 affiliated scholars from disciplines that range from economics, to sociology, anthropology, philosophy, business, and law and from across the University of Oxford, including the Saïd Business School, Department of Mathematics, Department of Economics, and Department of International Development.
This gives us a unique ability to bring multiple perspectives to bear on problems such as how to make the global financial system more robust and resilient; re-invigorating economic growth and innovation; addressing rising economic inequality; how to create a model of environmentally sustainable economic growth; and how economics should be taught to the next generation of leaders.
INET Oxford researchers work closely with policy-makers and leaders in business and civil society to bring new economic ideas and thinking into debates and practice in the public, private and non-profit sectors.
This aims to develop new methods of economic analysis and forecasting that are robust after crises. Researchers in EMoD are investigating the changes needed to economic analyses, policy, empirical modelling and forecasting when there are sudden, or very rapid, unanticipated changes in economies. EMoD researchers are also analysing the causes of economic inequality, the role of inequality in financial crises, and have also played a key role in developing the World Top Incomes Database.
We examine the important questions raised by the global financial crisis about the role that ethics plays in economic thinking and the responsibilities that a market capitalist system has in relation to wider social and political concerns. The programme is examining the duty of care in financial institutions, how the culture and value systems of financial institutions changed in the years leading up to the crisis, and what practically might be done to encourage stronger and more ethically based standards of behaviour in financial and economic activity.
This applies ideas and tools from the theory of complex adaptive systems to economic issues, including preventing and managing financial crises, understanding processes of economic growth and innovation, labour markets and employment, and the management of systemic risk.
We are attempting to understand the economy and environment as a deeply interlinked complex system and to gain insights into how the human economic part of this integrated system might be transformed to become more sustainable. The programme is looking at new ways to take into account natural capital, measure wealth creation, stimulate green technology innovation, and assess climate and economic risk. It is also looking at new methods of modelling economy-ecosystem interactions to better understand the impact of climate policies on economic growth, employment, and political economy. The programme is also examining the institutional innovations needed to transition to a sustainable economy.
EEG works on economic theories, policies and institutional changes required for fairer, more inclusive growth, with a focus on creating sustainable jobs and reducing unemployment in a period of intensifying globalization and technology change.
This was created in response to widespread discontent among students, employers and university teachers about the traditional economics curriculum. The Curriculum in Open-access Resources in Economics (CORE) programme is a new approach to economics teaching for undergraduates that is closing the gaps between:
- What economists now know and what we teach undergraduates;
- The questions we are being pressed to answer by the public (including the questions that brought students into our classrooms) and the often-unrelated content of our curriculum; and,
- Conventional text-and-lecture methods and available low-cost, individualised and interactive learning technologies.
Study suggests a key assumption of economic theory may be wrong
The concept of equilibrium, one of the core assumptions in the vast majority of economic models, may have serious problems, concludes a study from INET Oxford. Professor Doyne Farmer explains, “This study shows that even in the fairly simple behavioural models of normal form games, complexity and competition change whether players will use a rational strategy and reach equilibrium. We find that if player incentives aren’t aligned they are unlikely to find equilibrium when the game gets complicated."
"How complexity can resolve the crisis in economics" with Prof Doyne Farmer
"The economics of 1.5°C climate change" with Prof Simon Dietz
"The value of everything: rediscovering purpose in the economy" with Prof Mariana Mazzucato
"How useful and reliable is a simplified perspective on Technological Change?" Prof Chris Magee
Director of Complexity Economics
Co-Director, Economic Modelling Programme
Director, Economics of Sustainability Programme
Co-Director, Economic Modelling Programme
Director, Employment, Equity and Growth Programme
Director, Ethics & Economics
Best reply structure and equilibrium convergence in generic games
Making carbon pricing work for citizens
Inequality and Ordinary Living Standards in Rich Countries: Shared Challenges and Contrasting Fortunes
Women Leading UK Employment Boom
National Wealth: What is Missing, Why it Matters
The wealth of nature: Increasing national wealth and reducing risk by measuring and managing natural capital