The Invisible Hand

Question A:

Adam Smith’s metaphor of the invisible hand has been foundational to the development of modern economic theory.

Responses weighted by each expert's confidence

Question B:

Adam Smith’s metaphor of the invisible hand has been commonly misinterpreted as advocacy for pure laissez-faire capitalism.

Responses weighted by each expert's confidence

Question A Participant Responses

Participant University Vote Confidence Bio/Vote History
Allen
Franklin Allen
Imperial College London
Agree
7
Bio/Vote History
Adam Smith's idea of the invisible hand of the market is arguably the most important in economic theory.
Antras
Pol Antras
Harvard
Strongly Agree
7
Bio/Vote History
Blanchard
Olivier Blanchard
Peterson Institute
Agree
10
Bio/Vote History
Bloom
Nicholas Bloom
Stanford
Strongly Agree
10
Bio/Vote History
Yes, but there is much more to Adam Smith that just the invisible hand, like all good Scots. Indeed there is much more to haggis than just a nasty appearance and a horrible taste :-)
Blundell
Richard William Blundell
University College London Did Not Answer Bio/Vote History
Botticini
Maristella Botticini
Bocconi
Agree
9
Bio/Vote History
Bénassy-Quéré
Agnès Bénassy-Quéré
Paris School of Economics
Agree
10
Bio/Vote History
Carletti
Elena Carletti
Bocconi
Uncertain
6
Bio/Vote History
Danthine
Jean-Pierre Danthine
Paris School of Economics
Strongly Agree
9
Bio/Vote History
De Grauwe
Paul De Grauwe
LSE
Agree
8
Bio/Vote History
Eeckhout
Jan Eeckhout
UPF Barcelona
Agree
7
Bio/Vote History
Fehr
Ernst Fehr
Universität Zurich
Agree
9
Bio/Vote History
Freixas
Xavier Freixas
Barcelona GSE Did Not Answer Bio/Vote History
Fuchs-Schündeln
Nicola Fuchs-Schündeln
Goethe-Universität Frankfurt
Agree
4
Bio/Vote History
Galí
Jordi Galí
Barcelona GSE Did Not Answer Bio/Vote History
Gorodnichenko
Yuriy Gorodnichenko
Berkeley
Agree
4
Bio/Vote History
Griffith
Rachel Griffith
University of Manchester Did Not Answer Bio/Vote History
Guerrieri
Veronica Guerrieri
Chicago Booth Did Not Answer Bio/Vote History
Guiso
Luigi Guiso
Einaudi Institute for Economics and Finance
Strongly Agree
10
Bio/Vote History
Guriev
Sergei Guriev
Sciences Po
Strongly Agree
10
Bio/Vote History
Honohan
Patrick Honohan
Trinity College Dublin
Agree
5
Bio/Vote History
Although Smith knew that the hand is sometimes visible.
Javorcik
Beata Javorcik
University of Oxford
Strongly Agree
10
Bio/Vote History
Krahnen
Jan Pieter Krahnen
Goethe University Frankfurt
Uncertain
6
Bio/Vote History
The metaphor has been enormously helpful to spark interest, curiosity and also: fierce opposition to the idea that, under certain conditions, markets aggregate information and allow decentralized action to be coordinated. While important and effective, it is not foundational,
Kőszegi
Botond Kőszegi
Central European University
Strongly Agree
10
Bio/Vote History
La Ferrara
Eliana La Ferrara
Harvard Kennedy Did Not Answer Bio/Vote History
Leuz
Christian Leuz
Chicago Booth
Agree
3
Bio/Vote History
Mayer
Thierry Mayer
Sciences-Po
Strongly Agree
8
Bio/Vote History
Meghir
Costas Meghir
Yale Did Not Answer Bio/Vote History
Pagano
Marco Pagano
Università di Napoli Federico II
Strongly Agree
8
Bio/Vote History
Pastor
Lubos Pastor
Chicago Booth
Strongly Agree
7
Bio/Vote History
Persson
Torsten Persson
Stockholm University Did Not Answer Bio/Vote History
Pissarides
Christopher Pissarides
London School of Economics and Political Science Did Not Answer Bio/Vote History
Portes
Richard Portes
London Business School Did Not Answer Bio/Vote History
Prendergast
Canice Prendergast
Chicago Booth
Strongly Agree
10
Bio/Vote History
Propper
Carol Propper
Imperial College London
Agree
8
Bio/Vote History
Rasul
Imran Rasul
University College London
Strongly Agree
9
Bio/Vote History
Reichlin
Lucrezia Reichlin
London Business School
Agree
8
Bio/Vote History
Reis
Ricardo Reis
London School of Economics
Strongly Agree
8
Bio/Vote History
Repullo
Rafael Repullo
CEMFI
Strongly Agree
8
Bio/Vote History
Rey
Hélène Rey
London Business School Did Not Answer Bio/Vote History
Schoar
Antoinette Schoar
MIT Did Not Answer Bio/Vote History
Storesletten
Kjetil Storesletten
University of Minnesota
Strongly Agree
8
Bio/Vote History
Sturm
Daniel Sturm
London School of Economics
Agree
7
Bio/Vote History
Van Reenen
John Van Reenen
LSE
Strongly Agree
9
Bio/Vote History
Van der Ploeg
Rick Van der Ploeg
Oxford
Strongly Agree
8
Bio/Vote History
Smith and later Hayek have shown us the importance of using markets rather than Stalinist planning. And of course the Arrow-Debreu-Hahn theory of general equilibrium is taught to all students.
Vickers
John Vickers
Oxford
Agree
7
Bio/Vote History
Voth
Hans-Joachim Voth
University of Zurich
Agree
8
Bio/Vote History
Whelan
Karl Whelan
University College Dublin Did Not Answer Bio/Vote History
Wyplosz
Charles Wyplosz
The Graduate Institute Geneva
Strongly Agree
8
Bio/Vote History

Question B Participant Responses

Participant University Vote Confidence Bio/Vote History
Allen
Franklin Allen
Imperial College London
Disagree
6
Bio/Vote History
Market failures are by now fairly well understood.
Antras
Pol Antras
Harvard
Agree
8
Bio/Vote History
Much in the Wealth of Nations is inconsistent with the notion that laissez-faire is the optimal policy in all markets.
Blanchard
Olivier Blanchard
Peterson Institute
Agree
9
Bio/Vote History
There are few truly competitive markets in modern economies.
Bloom
Nicholas Bloom
Stanford
Agree
8
Bio/Vote History
Blundell
Richard William Blundell
University College London Did Not Answer Bio/Vote History
Botticini
Maristella Botticini
Bocconi
Agree
9
Bio/Vote History
Bénassy-Quéré
Agnès Bénassy-Quéré
Paris School of Economics
Agree
10
Bio/Vote History
Carletti
Elena Carletti
Bocconi
Disagree
5
Bio/Vote History
Danthine
Jean-Pierre Danthine
Paris School of Economics
Strongly Agree
10
Bio/Vote History
De Grauwe
Paul De Grauwe
LSE
Agree
8
Bio/Vote History
Eeckhout
Jan Eeckhout
UPF Barcelona
Agree
9
Bio/Vote History
Fehr
Ernst Fehr
Universität Zurich
Agree
9
Bio/Vote History
Freixas
Xavier Freixas
Barcelona GSE Did Not Answer Bio/Vote History
Fuchs-Schündeln
Nicola Fuchs-Schündeln
Goethe-Universität Frankfurt
Agree
8
Bio/Vote History
Galí
Jordi Galí
Barcelona GSE Did Not Answer Bio/Vote History
Gorodnichenko
Yuriy Gorodnichenko
Berkeley
Uncertain
1
Bio/Vote History
Griffith
Rachel Griffith
University of Manchester Did Not Answer Bio/Vote History
Guerrieri
Veronica Guerrieri
Chicago Booth Did Not Answer Bio/Vote History
Guiso
Luigi Guiso
Einaudi Institute for Economics and Finance
Agree
6
Bio/Vote History
Guriev
Sergei Guriev
Sciences Po
Agree
6
Bio/Vote History
Honohan
Patrick Honohan
Trinity College Dublin
Agree
5
Bio/Vote History
But not by thoughtful economists...
Javorcik
Beata Javorcik
University of Oxford
Agree
7
Bio/Vote History
Krahnen
Jan Pieter Krahnen
Goethe University Frankfurt
Agree
6
Bio/Vote History
At least this is the way how it is typically used in today's press: as evidently false...
Kőszegi
Botond Kőszegi
Central European University
Strongly Agree
7
Bio/Vote History
La Ferrara
Eliana La Ferrara
Harvard Kennedy Did Not Answer Bio/Vote History
Leuz
Christian Leuz
Chicago Booth
No Opinion
Bio/Vote History
Mayer
Thierry Mayer
Sciences-Po
Strongly Agree
7
Bio/Vote History
Meghir
Costas Meghir
Yale Did Not Answer Bio/Vote History
Pagano
Marco Pagano
Università di Napoli Federico II
Agree
8
Bio/Vote History
Pastor
Lubos Pastor
Chicago Booth
Strongly Agree
7
Bio/Vote History
Persson
Torsten Persson
Stockholm University Did Not Answer Bio/Vote History
Pissarides
Christopher Pissarides
London School of Economics and Political Science Did Not Answer Bio/Vote History
Portes
Richard Portes
London Business School Did Not Answer Bio/Vote History
Prendergast
Canice Prendergast
Chicago Booth
Agree
8
Bio/Vote History
Propper
Carol Propper
Imperial College London
Strongly Agree
8
Bio/Vote History
Rasul
Imran Rasul
University College London
Agree
7
Bio/Vote History
Reichlin
Lucrezia Reichlin
London Business School
Agree
8
Bio/Vote History
Reis
Ricardo Reis
London School of Economics
Agree
4
Bio/Vote History
Repullo
Rafael Repullo
CEMFI
Agree
8
Bio/Vote History
Rey
Hélène Rey
London Business School Did Not Answer Bio/Vote History
Schoar
Antoinette Schoar
MIT Did Not Answer Bio/Vote History
Storesletten
Kjetil Storesletten
University of Minnesota
Agree
7
Bio/Vote History
Sturm
Daniel Sturm
London School of Economics
Agree
5
Bio/Vote History
Van Reenen
John Van Reenen
LSE
Strongly Agree
9
Bio/Vote History
Van der Ploeg
Rick Van der Ploeg
Oxford
Strongly Agree
8
Bio/Vote History
Adam Smith both in the Wealth of Nations and in the Theory of Moral Sentiments has warned for market failures and inequalities which need to be corrected.
Vickers
John Vickers
Oxford
Agree
5
Bio/Vote History
Voth
Hans-Joachim Voth
University of Zurich
Agree
6
Bio/Vote History
Whelan
Karl Whelan
University College Dublin Did Not Answer Bio/Vote History
Wyplosz
Charles Wyplosz
The Graduate Institute Geneva
Strongly Agree
8
Bio/Vote History