A Unique PROMISE to Measure and Incentivize Widespread Prosperity As anyone who’s seen him speak can
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A BETTER WORLD IN THE MAKING
EMPOWERMENT THROUGH
economists would stop and dust off
MEASUREMENT
of Management Roberto Rigobon loves
their hands, Rigobon is just getting
In outlining the ambitious PROMISE
a good joke. But in macroeconomic
started. Not content with having
model, Rigobon explains that no one dimension of the model can be taken
circles the world over, Rigobon’s person
created what has been recognized as
and work command serious influence.
the world’s inflation gauge, he’s now
in isolation—or over-prioritized—
As the co-founder (with MIT Sloan
committed to isolating and defining
on the path to creating lasting health,
colleague Alberto Cavallo, Douglas
the metrics that will enable a better
wealth, and stability. “If we ask China,
Drane Career Development Professor
future—not only in economic terms,
for instance, to lower its pollution
of Information Technology and
but also for companies, workers,
levels, we’re actually asking them to
Management) of the “Billion Prices
and even societies worldwide.
Project” (BPP) and its commercial
20
Where many conventional
attest, Society of Sloan Fellows Professor
To that end (and with the support
lower their standard of living, which could in turn have unforeseen political
arm PriceStats, Rigobon is among the
of funds from the MIT Sloan
and social consequences. The
foremost researchers leveraging
community), he is in the process of
relationship between these elements
big data and newly available analysis
advancing what he calls the PROMISE
is always dynamic. One influences
tools to make economic measurement
framework—standing for Personal,
the others.” But back to Rigobon’s fundamental
timelier and more precise than
Relational, Organizational,
ever before. In point: BPP monitors
Markets, Institutional, Sociopolitical,
obsession: measurement. As he
prices from hundreds of online retailers
and Environmental well-being—
explains, economic incentives respond
in over 70 countries to measure
to encompass “all the dimensions
to measurement—and if we can
inflation on a daily—not monthly, nor
that matter for true sustainability
better measure some aspects of
yearly—basis.
and prosperity.”
behavior, we can better work to