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    The power of economics to explain and shape the world

    Nobel Prize-winning economist Esther Duflo sympathizes with students who have no interest in her field. She was such a student herself — until an undergraduate research post gave her the chance to learn first-hand that economists address many of the major issues facing human and planetary well-being.“Most people have a wrong view of what economics is. They just see economists on television discussing what’s going to happen to the stock market,” says Duflo, the Abdul Latif Jameel Professor of Poverty Alleviation and Development Economics. “But what people do in the field is very broad. Economists grapple with the real world and with the complexity that goes with it.”

    That’s why this year Duflo has teamed up with Professor Abhijit Banerjee to offer 14.009 (Economics and Society’s Greatest Problems), a first-year discovery subject — a class type designed to give undergraduates a low-pressure, high-impact way to explore a field. In this case, they are exploring the range of issues that economists engage with every day: the economic dimensions of climate change, international trade, racism, justice, education, poverty, health care, social preferences, and economic growth are just a few of the topics the class covers.“We think it’s pretty important that the first exposure to economics is via issues,” Duflo says. “If you first get exposed to economics via models, these models necessarily have to be very simplified, and then students get the idea that economics is a simplistic view of the world that can’t explain much.”Arguably, Duflo and Banerjee have been disproving that view throughout their careers. In 2003, the pair founded MIT’s Abdul Latif Jameel Poverty Action Lab, a leading antipoverty research network that provides scientific evidence on what methods actually work to alleviate poverty — which enables governments and nongovernmental organizations to implement truly effective programs and social policies. And, in 2019 they won the Nobel Prize in economics (together with Michael Kremer of the University of Chicago) for their innovative work applying laboratory-style randomized, controlled trials to research a wide range of topics implicated in global poverty.“Super cool”

    First-year Jean Billa, one of the students in 14.009, says, “Economics isn’t just about how money flows, but about how people react to certain events. That was an interesting discovery for me.”

    It’s also precisely the lesson Banerjee and Duflo hoped students would take away from 14.009, a class that centers on weekly in-person discussions of the professors’ recorded lectures — many of which align with chapters in Banerjee and Duflo’s book “Good Economics for Hard Times” (Public Affairs, 2019).Classes typically start with a poll in which the roughly 100 enrolled students can register their views on that week’s topic. Then, students get to discuss the issue, says senior Dina Atia, teaching assistant for the class. Noting that she finds it “super cool” that Nobelists are teaching MIT’s first-year students, Atia points out that both Duflo and Banerjee have also made themselves available to chat with students after class. “They’re definitely extending themselves,” she says.“We want the students to get excited about economics so they want to know more,” says Banerjee, the Ford Foundation International Professor of Economics, “because this is a field that can help us address some of the biggest problems society faces.” Using natural experiments to test theories

    Early in the term, for example, the topic was migration. In the lecture, Duflo points out that migration policies are often impacted by the fear that unskilled migrants will overwhelm a region, taking jobs from residents and demanding social services. Yet, migrant flows in normal years represent just 3 percent of the world population. “There is no flood. There is no vast movement of migrants,” she says.Duflo then explains that economists were able to learn a lot about migration thanks to a “natural experiment,” the Mariel boat lift. This 1980 event brought roughly 125,000 unskilled Cubans to Florida over a matter a months, enabling economists to study the impacts of a sudden wave of migration. Duflo says a look at real wages before and after the migration showed no significant impacts.“It was interesting to see that most theories about immigrants were not justified,” Billa says. “That was a real-life situation, and the results showed that even a massive wave of immigration didn’t change work in the city [Miami].”

    Question assumptions, find the facts in dataSince this is a broad survey course, there is always more to unpack. The goal, faculty say, is simply to help students understand the power of economics to explain and shape the world. “We are going so fast from topic to topic, I don’t expect them to retain all the information,” Duflo says. Instead, students are expected to gain an appreciation for a way of thinking. “Economics is about questioning everything — questioning assumptions you don’t even know are assumptions and being sophisticated about looking at data to uncover the facts.”To add impact, Duflo says she and Banerjee tie lessons to current events and dive more deeply into a few economic studies. One class, for example, focused on the unequal burden the Covid-19 pandemic has placed on different demographic groups and referenced research by Harvard University professor Marcella Alsan, who won a MacArthur Fellowship this fall for her work studying the impact of racism on health disparities.

    Duflo also revealed that at the beginning of the pandemic, she suspected that mistrust of the health-care system could prevent Black Americans from taking certain measures to protect themselves from the virus. What she discovered when she researched the topic, however, was that political considerations outweighed racial influences as a predictor of behavior. “The lesson for you is, it’s good to question your assumptions,” she told the class.“Students should ideally understand, by the end of class, why it’s important to ask questions and what they can teach us about the effectiveness of policy and economic theory,” Banerjee says. “We want people to discover the range of economics and to understand how economists look at problems.”

    Story by MIT SHASS CommunicationsEditorial and design director: Emily HiestandSenior writer: Kathryn O’Neill More

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    Climate and sustainability classes expand at MIT

    In fall 2019, a new class, 6.S898/12.S992 (Climate Change Seminar), arrived at MIT. It was, at the time, the only course in the Department of Electrical Engineering and Computer Science (EECS) to tackle the science of climate change. The class covered climate models and simulations alongside atmospheric science, policy, and economics.

    Ron Rivest, MIT Institute Professor of Computer Science, was one of the class’s three instructors, with Alan Edelman of the Computer Science and Artificial Intelligence Laboratory (CSAIL) and John Fernández of the Department of Urban Studies and Planning. “Computer scientists have much to contribute to climate science,” Rivest says. “In particular, the modeling and simulation of climate can benefit from advances in computer science.”

    Rivest is one of many MIT faculty members who have been working in recent years to bring topics in climate, sustainability, and the environment to students in a growing variety of fields. And students have said they want this trend to continue.

    “Sustainability is something that touches all disciplines,” says Megan Xu, a rising senior in biological engineering and advisory chair of the Undergraduate Association Sustainability Committee. “As students who have grown up knowing that climate change is real and witnessed climate disaster after disaster, we know this is a huge problem that needs to be addressed by our generation.”

    Expanding the course catalog

    As education program manager at the MIT Environmental Solutions Initiative, Sarah Meyers has repeatedly had a hand in launching new sustainability classes. She has steered grant money to faculty, brought together instructors, and helped design syllabi — all in the service of giving MIT students the same world-class education in climate and sustainability that they get in science and engineering.

    Her work has given Meyers a bird’s-eye view of MIT’s course offerings in this area. By her count, there are now over 120 undergraduate classes, across 23 academic departments, that teach climate, environment, and sustainability principles.

    “Educating the next generation is the most important way that MIT can have an impact on the world’s environmental challenges,” she says. “MIT students are going to be leaders in their fields, whatever they may be. If they really understand sustainable design practices, if they can balance the needs of all stakeholders to make ethical decisions, then that actually changes the way our world operates and can move humanity towards a more sustainable future.”

    Some sustainability classes are established institutions at MIT. Success stories include 2.00A (Fundamentals of Engineering Design: Explore Space, Sea and Earth), a hands-on engineering class popular with first-year students; and 21W.775 (Writing About Nature and Environmental Issues), which has helped undergraduates fulfill their HASS-H (humanities distribution subject) and CI-H (Communication Intensive subject in the Humanities, Arts, and Social Sciences) graduation requirements for 15 years.

    Expanding this list of classes is an institutional priority. In the recently released Climate Action Plan for the Decade, MIT pledged to recruit at least 20 additional faculty members who will teach climate-related classes.

    “I think it’s easy to find classes if you’re looking for sustainability classes to take,” says Naomi Lutz, a senior in mechanical engineering who helped advise the MIT administration on education measures in the Climate Action Plan. “I usually scroll through the titles of the classes in courses 1, 2, 11, and 12 to see if any are of interest. I also have used the Environment & Sustainability Minor class list to look for sustainability-related classes to take.

    “The coming years are critical for the future of our planet, so it’s important that we all learn about sustainability and think about how to address it,” she adds.

    Working with students’ schedules

    Still, despite all this activity, climate and sustainability are not yet mainstream parts of an MIT education. Last year, a survey of over 800 MIT undergraduates, taken by the Undergraduate Association Sustainability Committee, found that only one in four had ever taken a class related to sustainability. But it doesn’t seem to be from lack of interest in the topic. More than half of those surveyed said that sustainability is a factor in their career planning, and almost 80 percent try to practice sustainability in their daily lives.

    “I’ve often had conversations with students who were surprised to learn there are so many classes available,” says Meyers. “We do need to do a better job communicating about them, and making it as easy as possible to enroll.”

    A recurring challenge is helping students fit sustainability into their plans for graduation, which are often tightly mapped-out.

    “We each only have four years — around 32 to 40 classes — to absorb all that we can from this amazing place,” says Xu. “Many of these classes are mandated to be GIRs [General Institute Requirements] and major requirements. Many students recognize that sustainability is important, but might not have the time to devote an entire class to the topic if it would not count toward their requirements.”

    This was a central focus for the students who were involved in forming education recommendations for the Climate Action Plan. “We propose that more sustainability-related courses or tracks are offered in the most common majors, especially in Course 6 [EECS],” says Lutz. “If students can fulfill major requirements while taking courses that address environmental problems, we believe more students will pursue research and careers related to sustainability.”

    She also recommends that students look into the dozens of climate and sustainability classes that fulfill GIRs. “It’s really easy to take sustainability-related courses that fulfill HASS [Humanities, Arts, and Social Sciences] requirements,” she says. For example, students can meet their HASS-S (social sciences sistribution subject) requirement by taking 21H.185 (Environment and History), or fulfill their HASS-A requirement with CMS.374 (Transmedia Art, Extraction and Environmental Justice).

    Classes with impact

    For those students who do seek out sustainability classes early in their MIT careers, the experience can shape their whole education.

    “My first semester at MIT, I took Environment and History, co-taught by professors Susan Solomon and Harriet Ritvo,” says Xu. “It taught me that there is so much more involved than just science and hard facts to solving problems in sustainability and climate. I learned to look at problems with more of a focus on people, which has informed much of the extracurricular work that I’ve gone on to do at MIT.”

    And the faculty, too, sometimes find that teaching in this area opens new doors for them. Rivest, who taught the climate change seminar in Course 6, is now working to build a simplified climate model with his co-instructor Alan Edelman, their teaching assistant Henri Drake, and Professor John Deutch of the Department of Chemistry, who joined the class as a guest lecturer. “I very much enjoyed meeting new colleagues from all around MIT,” Rivest says. “Teaching a class like this fosters connections between computer scientists and climate scientists.”

    Which is why Meyers will continue helping to get these classes off the ground. “We know students think climate is a huge issue for their futures. We know faculty agree with them,” she says. “Everybody wants this to be part of an MIT education. The next step is to really reach out to students and departments to fill the classrooms. That’s the start of a virtuous cycle where enrollment drives more sustainability instruction in every part of MIT.” More