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Thinking Like an Economist

Previous research indicates that the more years of education a person has, the more he thinks like an economist. A new paper (summarized by the BPS Research Digest) by Bryan Caplan and Stephen C. Miller, however, attempts to separate the role of intelligence and education in “thinking like an economist.” Caplan and Miller found that “the estimated effect of education sharply falls after controlling for intelligence. In fact, education is driven down to second place, and intelligence replaces it at the top of the list of variables that make people ‘think like economists.’ Thus, to a fair degree education is proxy for intelligence, though there are some areas – international economics in particular -where education still dominates.” [%comments]