CandleFocus

Jan Tinbergen

Jan Tinbergen was a Dutch economist who was awarded the Nobel Prize inEconomics in 1969 for pioneering work in economic and econometrics (a field which uniquely combines mathematics and economics) modeling. Tinbergen is credited with being one of the first economists to apply mathematics to economics and is widely respected in the economics community. His work continues to shape economic theory and policies to this day.

Tinbergen's most famous contributions to the field of economics are twofold. First, the so-called "Tinbergen Rule" which states that when governments want to target multiple outcomes, multiple policy instruments must be used. This rule has been utilized in economics since its formulation, as it provides a framework for rational economic decision making.

Second, Tinbergen is credited with developing the so-called “Tinbergen Norm”, which suggests that a gap of higher than five-fold between the lowest and highest incomes in a population can produce significant social conflict, as it reinforces the notion of inequality. This theory has been used over the years to inform policy makers in the attempt to promote social equity within communities.

Jan Tinbergen’s work continues to have a pervasive influence on the modern economics profession. His contributions have been so significant that he is remembered as one of the pioneers of the true field of economics. The long-lasting effect of his theories and research will continue to provide foundations for the economics profession for years to come.

Glossary Index