Tag Archives: norway

Income inequality linked to export “complexity”

The mix of products that countries export is a good predictor of income distribution, study finds.

By Larry Hardesty


CAMBRIDGE, Mass. – In a series of papers over the past 10 years, MIT Professor César Hidalgo and his collaborators have argued that the complexity of a country’s exports — not just their diversity but the expertise and technological infrastructure required to produce them — is a better predictor of future economic growth than factors economists have historically focused on, such as capital and education.

Now, a new paper by Hidalgo and his colleagues, appearing in the journal World Development, argues that everything else being equal, the complexity of a country’s exports also correlates with its degree of economic equality: The more complex a country’s products, the greater equality it enjoys relative to similar-sized countries with similar-sized economies.

“When people talk about the role of policy in inequality, there is an implicit assumption that you can always reduce inequality using only redistributive policies,” says Hidalgo, the Asahi Broadcasting Corporation Associate Professor of Media Arts and Sciences at the MIT Media Lab. “What these new results are telling us is that the effectiveness of policy is limited because inequality lives within a range of values that are determined by your underlying industrial structure.

“So if you’re a country like Venezuela, no matter how much money Chavez or Maduro gives out, you’re not going to be able to reduce inequality, because, well, all the money is coming in from one industry, and the 30,000 people involved in that industry of course are going to have an advantage in the economy. While if you’re in a country like Germany or Switzerland, where the economy is very diversified, and there are many people who are generating money in many different industries, firms are going to be under much more pressure to be more inclusive and redistributive.”

Joining Hidalgo on the paper are first author Dominik Hartmann, who was a postdoc in Hidalgo’s group when the work was done and is now a research fellow at the Fraunhofer Center for International Management and Knowledge Economy in Leipzig, Germany; Cristian Jara-Figueroa and Manuel Aristarán, MIT graduate students in media arts and sciences; and Miguel Guevara, a professor of computer science at Playa Ancha University in Valparaíso, Chile, who earned his PhD at the MIT Media Lab.

Quantifying complexity

For Hidalgo and his colleagues, the complexity of a product is related to the breadth of knowledge required to produce it. The PhDs who operate a billion-dollar chip-fabrication facility are repositories of knowledge, and the facility of itself is the embodiment of knowledge. But complexity also factors in the infrastructure and institutions that facilitate the aggregation of knowledge, such as reliable transportation and communication systems, and a culture of trust that enables productive collaboration.

In the new study, rather than try to itemize and quantify all such factors — probably an impossible task — the researchers made a simplifying assumption: Complex products are rare products exported by countries with diverse export portfolios. For instance, both chromium ore and nonoptical microscopes are rare exports, but the Czech Republic, which is the second-leading exporter of nonoptical microscopes, has a more diverse export portfolio than South Africa, the leading exporter of chromium ore.

The researchers compared each country’s complexity measure to its Gini coefficient, the most widely used measure of income inequality. They also compared Gini coefficients to countries’ per-capita gross domestic products (GDPs) and to standard measures of institutional development and education.

Predictive power

According to the researchers’ analysis of economic data from 1996 to 2008, per-capita GDP predicts only 36 percent of the variation in Gini coefficients, but product complexity predicts 58 percent. Combining per-capita GDP, export complexity, education levels, and population predicts 69 percent of variation. However, whereas leaving out any of the other three factors lowers that figure to about 68 percent, leaving out complexity lowers it to 61 percent, indicating that the complexity measure captures something crucial that the other factors leave out.

Using trade data from 1963 to 2008, the researchers also showed that countries whose economic complexity increased, such as South Korea, saw reductions in income inequality, while countries whose economic complexity decreased, such as Norway, saw income inequality increase.

Source: MIT News Office

Click on the image to know more about Prime Consulting

Credit: Nobelprize.org

Scientists from USA and Norway share 2014 Nobel Prize for Physiology or Medicine

The Nobel Assembly at Karolinska Institutet has today decided to award

The 2014 Nobel Prize in Physiology or Medicine

with one half to

John O´Keefe

and the other half jointly to

May-Britt Moser and Edvard I. Moser

for their discoveries of cells that constitute a positioning 
system in the brain

How do we know where we are? How can we find the way from one place to another? And how can we store this information in such a way that we can immediately find the way the next time we trace the same path? This year´s Nobel Laureates have discovered a positioning system, an “inner GPS” in the brain that makes it possible to orient ourselves in space, demonstrating a cellular basis for higher cognitive function.

In 1971, John O´Keefe discovered the first component of this positioning system. He found that a type of nerve cell in an area of the brain called the hippocampus that was always activated when a rat was at a certain place in a room. Other nerve cells were activated when the rat was at other places. O´Keefe concluded that these “place cells” formed a map of the room.

More than three decades later, in 2005, May-Britt and Edvard Moser discovered another key component of the brain’s positioning system. They identified another type of nerve cell, which they called “grid cells”, that generate a coordinate system and allow for precise positioning and pathfinding. Their subsequent research showed how place and grid cells make it possible to determine position and to navigate.

The discoveries of John O´Keefe, May-Britt Moser and Edvard Moser have solved a problem that has occupied philosophers and scientists for centuries – how does the brain create a map of the space surrounding us and how can we navigate our way through a complex environment?

How do we experience our environment?

The sense of place and the ability to navigate are fundamental to our existence. The sense of place gives a perception of position in the environment. During navigation, it is interlinked with a sense of distance that is based on motion and knowledge of previous positions.

Questions about place and navigation have engaged philosophers and scientists for a long time. More than 200 years ago, the German philosopher Immanuel Kant argued that some mental abilities exist as a priori knowledge, independent of experience. He considered the concept of space as an inbuilt principle of the mind, one through which the world is and must be perceived. With the advent of behavioural psychology in the mid-20th century, these questions could be addressed experimentally. When Edward Tolman examined rats moving through labyrinths, he found that they could learn how to navigate, and proposed that a “cognitive map” formed in the brain allowed them to find their way. But questions still lingered – how would such a map be represented in the brain?

John O´Keefe and the place in space

John O´Keefe was fascinated by the problem of how the brain controls behaviour and decided, in the late 1960s, to attack this question with neurophysiological methods. When recording signals from individual nerve cells in a part of the brain called the hippocampus, in rats moving freely in a room, O’Keefe discovered that certain nerve cells were activated when the animal assumed a particular place in the environment (Figure 1). He could demonstrate that these “place cells” were not merely registering visual input, but were building up an inner map of the environment. O’Keefe concluded that the hippocampus generates numerous maps, represented by the collective activity of place cells that are activated in different environments. Therefore, the memory of an environment can be stored as a specific combination of place cell activities in the hippocampus.

May-Britt and Edvard Moser find the coordinates

May-Britt and Edvard Moser were mapping the connections to the hippocampus in rats moving in a room when they discovered an astonishing pattern of activity in a nearby part of the brain called the entorhinal cortex. Here, certain cells were activated when the rat passed multiple locations arranged in a hexagonal grid (Figure 2). Each of these cells was activated in a unique spatial pattern and collectively these “grid cells” constitute a coordinate system that allows for spatial navigation. Together with other cells of the entorhinal cortex that recognize the direction of the head and the border of the room, they form circuits with the place cells in the hippocampus. This circuitry constitutes a comprehensive positioning system, an inner GPS, in the brain (Figure 3).

A place for maps in the human brain

Recent investigations with brain imaging techniques, as well as studies of patients undergoing neurosurgery, have provided evidence that place and grid cells exist also in humans. In patients with Alzheimer´s disease, the hippocampus and entorhinal cortex are frequently affected at an early stage, and these individuals often lose their way and cannot recognize the environment. Knowledge about the brain´s positioning system may, therefore, help us understand the mechanism underpinning the devastating spatial memory loss that affects people with this disease.

The discovery of the brain’s positioning system represents a paradigm shift in our understanding of how ensembles of specialized cells work together to execute higher cognitive functions. It has opened new avenues for understanding other cognitive processes, such as memory, thinking and planning.

Credit: Nobelprize.org
Credit: Nobelprize.org

Key publications:

O’Keefe, J., and Dostrovsky, J. (1971). The hippocampus as a spatial map. Preliminary evidence from unit activity in the freely‐moving rat. Brain Research 34, 171-175.
O´Keefe, J. (1976). Place units in the hippocampus of the freely moving rat. Experimental Neurology 51, 78-109.
Fyhn, M., Molden, S., Witter, M.P., Moser, E.I., Moser, M.B. (2004) Spatial representation in the entorhinal cortex. Science 305, 1258-1264.
Hafting, T., Fyhn, M., Molden, S., Moser, M.B., and Moser, E.I. (2005). Microstructure of spatial map in the entorhinal cortex. Nature 436, 801-806.
Sargolini, F., Fyhn, M., Hafting, T., McNaughton, B.L., Witter, M.P., Moser, M.B., and Moser, E.I. (2006). Conjunctive representation of position, direction, and velocity in the entorhinal cortex. Science 312, 758-762.

John O’Keefe was born in 1939 in New York City, USA, and holds both American and British citizenships. He received his doctoral degree in physiological psychology from McGill University, Canada in 1967. After that, he moved to England for postdoctoral training at University College London. He has remained at University College and was appointed Professor of Cognitive Neuroscience in 1987. John O´Keefe is currently Director of the Sainsbury Wellcome Centre in Neural Circuits and Behaviour at University College London.

May-Britt Moser was born in Fosnavåg, Norway in 1963 and is a Norwegian citizen. She studied psychology at the University of Oslo together with her future husband and co-Laureate Edvard Moser. She received her Ph.D. in neurophysiology in 1995. She was a postdoctoral fellow at the University of Edinburgh and subsequently a visiting scientist at University College London before moving to the Norwegian University of Science and Technology in Trondheim in 1996. May-Britt Moser was appointed Professor of Neuroscience in 2000 and is currently Director of the Centre for Neural Computation in Trondheim.

Edvard I. Moser was born in born 1962 in Ålesund, Norway and has Norwegian citizenship. He obtained his Ph.D. in neurophysiology from the University of Oslo in 1995. He was a postdoctoral fellow together with his wife and co‐Laureate May‐Britt Moser, first at the University of Edinburgh and later a visiting scientist in John O´Keefe´s laboratory in London. In 1996 they moved to the Norwegian University of Science and Technology in Trondheim, where Edvard Moser became Professor in 1998. He is currently Director of the Kavli Institute for Systems Neuroscience in Trondheim.

Source : NobelPrize.Org