The Inside Job effect – Economists to disclose conflicts of interest..

AEA members received this message recently:

Submissions to the AEA journals should conform to the AEA disclosure policy which states:

(1) Every submitted article should state the sources of financial support for the particular research it describes. If none, that fact should be stated.
(2) Each author of a submitted article should identify each interested party from whom he or she has received significant financial support, summing to at least $10,000 in the past three years, in the form of consultant fees, retainers, grants and the like. The disclosure requirement also includes in-kind support, such as providing access to data.
(3) Each author should disclose any paid or unpaid positions as officer, director, or board member of relevant non-profit organizations or profit-making entities.
(4) The disclosures required above apply to any close relative or partner of any author.
(5) Each author must disclose if another party had the right to review the paper prior to its circulation.
(6) For published articles, information on relevant potential conflicts of interest will be made available to the public.

 There are FAQs there as well on when to disclose etc.

Bruegel Blog summaries some reactions from people. Someone calls this Inside Job effect:

The Inside Job effect

Jerry Petr writes that the financial crisis and “great recession” of 2008–09 provided impetus for development of the new guidelines. Journalists and documentary filmmakers, along with political leaders and some economists themselves, questioned the advisory roles played by well-connected and high profile economists who were also closely tied to and financially rewarded by private corporations or institutions who could be impacted by their analyses or policy recommendations. Some of the apparent conflicts of interest were striking. A number of the distinguished gurus offering guidance to policymakers turned out to be sitting on boards of directors of, or receiving substantial payments from, entities affected by those high-level policy decisions.

Interesting post and reactions…

One Response to “The Inside Job effect – Economists to disclose conflicts of interest..”

  1. Michael Nixon Says:

    There are those depicted in the film “Inside Job” who should be in jail. Larry Summers, John Paulson, Glenn Hubbard, maybe even Alan Greenspan. I now know where the 1% phrase came from…shame on americans for allowing this to happen with no consequences.

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