National Bureau Of Economic Research (Nber)

Published Oct 25, 2023

Definition of National Bureau of Economic Research (NBER)

The National Bureau of Economic Research (NBER) is a non-profit organization that conducts economic research and serves as a leading authority on business cycles and other economic phenomena. It was founded in 1920 and is based in Cambridge, Massachusetts. The NBER is known for its extensive research programs and publications, as well as its role in determining the official start and end dates of recessions in the United States.

Example

To illustrate the work of the NBER, let’s consider the Great Recession of 2008. As the financial crisis unfolded, the NBER played a pivotal role in officially dating the recession. In December 2008, the NBER determined that the recession began in December 2007, marking the official start of what would be the longest economic downturn since the Great Depression.

The NBER bases its determinations on a variety of factors, including employment, production, income, and sales. It relies on comprehensive data and sophisticated economic models to analyze these factors and identify turning points in the business cycle.

Why the National Bureau of Economic Research Matters

The NBER’s research and analysis are highly regarded in the field of economics. Its findings and publications influence policy-makers, academics, and business leaders around the world. By determining the official dates of recessions and providing in-depth analysis of economic trends, the NBER contributes to a better understanding of the economy and informs decision-making at various levels.

Moreover, the NBER’s research extends beyond business cycles. It covers a wide range of topics, including labor markets, fiscal policy, international trade, and economic development. The organization’s research and publications help shape economic theory, guide policy recommendations, and provide invaluable insights into complex economic phenomena.

In summary, the NBER serves as an important resource for economists, policy-makers, and researchers, playing a vital role in advancing knowledge and understanding in the field of economics.