Date/Time
Date(s) - 24/10/2025
11:00 am - 12:30 pm

Charles Noussair, Professor from the University of Arizona will present to our graduate students and faculty this Friday, October 24 in KTH 334.

Charles Noussair received his B.A. in Economics and Psychology from the University of Pennsylvania (1987) and his M.S. (1990) and Ph.D. from the California Institute of Technology (1993). He has been on the faculties of Erasmus, Purdue, Emory, and Tilburg Universities. He is currently Eller Professor of Economics and the Director of the Economic Science Laboratory at the University of Arizona (since 2015). He was co-editor in chief of the journal Experimental Economics (2014 – 2019). He was President of the Economic Science Association (2023 – Present) and was President of the Society of Experimental Finance (2013 – 2014). He is currently the Pas – President of the Economic Science Association.

He will present, “Which institutions matter for economic growth? An experiment”.

Abstract

In this study, we investigate the effect that different political and economic institutions have on economic growth using a laboratory experiment. We study both inclusive and extractive institutions. Inclusive institutions allow a broad range of society to participate in the economy or the political process and access their benefits, while extractive institutions concentrate wealth and power in the hands of a small group of individuals at the expense of the broader population. Experimental methods allow us to observe and precisely track consumption, investment, and welfare in the economy. They allow us to randomize groups into different institutions, which permits us to isolate the causal relationship between institutions and economic growth. Our findings show that a combination of inclusive political and economic institutions increases consumption, welfare, and capital stock relative to a number of alternatives, while also reducing income inequality.