Lawrence Klein: the story on HearLore

Cowles Commission Forecasting Success

Klein joined the Cowles Commission for Research in Economics located at the University of Chicago after World War II. He built a model of the United States economy to forecast business fluctuations. His predictions defied prevailing expectations about post-war economic conditions. Returning servicemen created increasing consumer demand that drove an upturn instead of depression. He correctly predicted a mild recession at the end of the Korean War years later. These successes established his reputation among economists who doubted such models could work effectively.

McCarthy Era Denial And Oxford Work

In 1954 Klein's brief membership in the Communist Party became public knowledge. This revelation led to him being denied tenure at the University of Michigan during the McCarthy era. He subsequently moved to the University of Oxford to continue his research career. At Oxford he developed an economic model of the United Kingdom known as the Oxford model with Sir James Ball. Additionally at the Institute of Statistics he assisted with creation of British Savings Surveys based upon earlier Michigan Surveys. The political climate forced him away from American academia temporarily but did not stop his modeling efforts.

When and where was Lawrence Klein born?

Lawrence Robert Klein entered the world on the 14th of September 1920 in Omaha, Nebraska.

What major economic model did Lawrence Klein create at the University of Pennsylvania?

Lawrence Klein constructed the Wharton Econometric Forecasting Model during the late 1960s to analyze business conditions including national product exports investments and consumption. He also founded Wharton Econometric Forecasting Associates or WEFA now Global Insight in 1969 which launched the econometric forecasting industry in the United States.

Why was Lawrence Klein denied tenure at the University of Michigan?

Lawrence Klein was denied tenure at the University of Michigan because his brief membership in the Communist Party became public knowledge during the McCarthy era. This political climate forced him away from American academia temporarily but he continued his modeling efforts elsewhere.

How did Lawrence Klein contribute to global economics through the LINK project?

Lawrence Klein initiated and led the LINK project as a consortium of model builders from many countries to produce the world's first global economic model linking models of many countries together. Changes in the economy of one country were reflected in others through this system until Project LINK ended operations in 2020.

Lawrence Klein.

Cowles Commission Forecasting Success

McCarthy Era Denial And Oxford Work

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Common questions

When and where was Lawrence Klein born?

What major economic model did Lawrence Klein create at the University of Pennsylvania?

Why was Lawrence Klein denied tenure at the University of Michigan?

How did Lawrence Klein contribute to global economics through the LINK project?

Pennsylvania Return And Industry Launch

Global Link Project Leadership