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:
“It was always the work that was the gyroscope in my life. I don’t know who could have lived with me. As an architect you’re absolutely devoured. A woman’s cast in a lot of roles and a man isn’t. I couldn’t be an architect and be a wife and mother.”
—Eleanore Kendall Pettersen (b. 1916)
“It’s true hard work never killed anybody, but I figure, why take the chance?”
—Ronald Reagan (b. 1911)
“We postpone our literary work until we have more ripeness and skill to write, and we one day discover that our literary talent was a youthful effervescence which we have now lost.”
—Ralph Waldo Emerson (1803–1882)