Work
Tinbergen became known for his 'Tinbergen Norm', which is the principle that, if the difference between the least and greatest income in a company exceeds a rate of 1:5, that will not help the company and may be counterproductive.
Tinbergen developed the first national comprehensive macroeconomic model, which he first developed in 1936 for the Netherlands, and later applied to the United States and the United Kingdom.
In his work on macroeconomic modelling and economic policy making, Tinbergen classified some economic quantities as targets and others as instruments. Targets are those macroeconomic variables the policy maker wishes to influence, whereas instruments are the variables that the policy maker can control directly. Tinbergen emphasized that achieving the desired values of a certain number of targets requires the policy maker to control an equal number of instruments.
Tinbergen's classification remains influential today, underlying the theory of monetary policy used by central banks. Many central banks today regard the inflation rate as their target; the policy instrument they use to control inflation is the short-term interest rate.
Tinbergen's work on macroeconomic models was later continued by Lawrence Klein, contributing to another Nobel Memorial Prize in Economic Sciences. For his cultural contributions, he was given the Gouden Ganzenveer in 1985.
Tinbergen’s econometric modelling lead to a lively debate with well several known participants including J.M. Keynes, Ragnar Frisch and Milton Friedman. The debate is sometime referred to as the Tinbergen debate.
Read more about this topic: Jan Tinbergen
Famous quotes containing the word work:
“Do not put off your work until tomorrow and the day after. For the sluggish worker does not fill his barn, nor the one who puts off his work; industry aids work, but the man who puts off work always wrestles with disaster.”
—Hesiod (c. 8th century B.C.)
“Children, then, acquire social skills not so much from adults as from their interactions with one another. They are likely to discover through trial and error which strategies work and which do not, and later to reflect consciously on what they have learned.”
—Zick Rubin (20th century)
“The fact is that all writers create their precursors. Their work modifies our conception of the past, just as it is bound to modify the future.”
—Jorge Luis Borges (1899–1986)