Jerry A. Hausman

Jerry Allen Hausman is a renowned American economist specializing in econometrics, a branch of economics that uses mathematical methods and statistical techniques to test hypotheses and forecast future trends. Born on May 5, 1946, Hausman has made significant contributions to the field of econometrics, particularly in the areas of microeconometrics and applied econometrics. One of his most notable works is the development of the Hausman test, a statistical test used to evaluate econometric models, which has had a lasting influence on econometric research and application.

Early Life and Education

Jerry Hausman was born in Weirton, West Virginia. He completed his undergraduate studies at Brown University in 1968. Afterward, he pursued graduate studies at the University of Oxford, where he earned a DPhil in Economics in 1973. His dissertation was focused on econometric models of durable goods.

Professional Career

Jerry Hausman’s professional career is marked by his longtime association with the Massachusetts Institute of Technology (MIT). He joined the faculty in 1973 shortly after receiving his doctoral degree and has remained at MIT for the majority of his career. His work has been published in numerous authoritative economic journals, and he has been an influential voice in the field of econometrics.

In addition to his academic roles, Hausman has worked as a consultant for various government agencies, international organizations, and private sector companies. His contributions have helped shape policy decisions in areas such as telecommunications, healthcare, and antitrust law.

Hausman Test

One of Hausman’s most significant contributions to econometrics is the Hausman specification test, more commonly known simply as the Hausman test. Introduced in his 1978 paper “Specification Tests in Econometrics,” the test is used to assess the validity of econometric models. Specifically, it helps determine whether a certain econometric model assumption is appropriate or if another model should be used. The Hausman test has become a standard tool in econometric analysis and is widely taught in econometrics courses around the world.

The test is typically used to compare two statistical models: a model with fixed effects and a model with random effects. The null hypothesis of the test states that the preferred model is the one with random effects. If the test rejects the null hypothesis, it suggests that the fixed effects model is more appropriate. The Hausman test is particularly useful in panel data analysis, where decisions about model specification can significantly impact the results of the analysis.

Contributions to Telecommunications Economics

Jerry Hausman has made significant contributions to the economics of telecommunications. His research in this area includes studies on the regulatory and competitive effects of telecommunications reforms, the economic impact of e-commerce, and the valuation of broadband spectrum. His insights have influenced both policy decisions and the business strategies of telecommunications firms.

For example, Hausman has studied the pricing of telecommunications services and the welfare implications of different regulatory frameworks. His work has shown how regulatory interventions can impact investment in telecommunications infrastructure and consumer welfare. He has also analyzed the effects of spectrum allocation on competition and innovation in the telecommunications industry.

Healthcare Economics

In addition to his work in telecommunications, Hausman has contributed to the field of healthcare economics. His research has explored various aspects of healthcare markets, including pricing, regulation, and innovation. One area of particular interest has been the impact of pharmaceutical regulation on drug prices and the availability of new treatments.

Hausman’s work in healthcare economics has provided valuable insights into the trade-offs between regulatory oversight and market competition. His findings have implications for policy decisions related to drug pricing, insurance coverage, and healthcare innovation. By examining the economic forces at play in healthcare markets, Hausman has helped to inform debates on how to improve the efficiency and effectiveness of healthcare delivery.

Honors and Awards

Throughout his career, Jerry Hausman has received numerous honors and awards in recognition of his contributions to economics. Some of the most notable include:

These accolades reflect the high regard in which Hausman is held by his peers and highlight the impact of his work on the field of economics.

Conclusion

Jerry A. Hausman is a distinguished economist whose contributions to econometrics, telecommunications economics, and healthcare economics have had a lasting impact on these fields. His development of the Hausman test has become a fundamental tool in econometric analysis, and his research has influenced policy decisions and business strategies in telecommunications and healthcare. Throughout his career, Hausman has demonstrated a commitment to advancing economic knowledge and applying it to real-world challenges, earning him a prominent place in the field of economics.

For more information on Jerry A. Hausman, you can visit his MIT faculty page.