Isaac EhrlichChairman of the Department
415B Fronczak Hall
School of Management238/234b JacobsPhone: (716) 645-8694Main ProfileBiographicalShort VitaeSelected Publications
Research contributions by Professor Ehrlich are based on innovative applications of general economic theory to study diverse human behavior and social institutions, with particular emphasis on the role of Human Capital, time, information, and uncertainty. The most provocative illustration concerns participation in illegitimate activities and the development of a ‘market model’ of crime. Use of optimization and equilibrium analysis along with econometric methodology to explain variations in the incidence of crime and corruption and optimal crime control and criminal justice policies across place and time has challenged received theories in criminology, and opened up a new research frontier in economics.
Work on behavior under uncertainty has provided a new framework for studying the joint demand for market insurance, self-Insurance, and self- and life-protection. Work on advertising links advertising and other selling efforts by firms to the demand for information by consumers, and to the division of labor between buyers and sellers in the production of desired information about the characteristics of market goods.
Work on health and longevity deals with length, or quantity of life as a distinct choice, which competes with aspects of the quality of life over the allocation of lifetime resources. It analyses investment in health and longevity as an integral part of both human capital theory and the general theory of self-protection against detrimental risks to life. The model offers insights concerning both the time trend and significant diversities in life expectancies and assessments of ‘value-of-life-saving’ measures across population groups and over time.
Work on endogenous economic growth applies human capital theory and time allocation within families and firms to explain income growth and income inequality in both developing and developed countries. This work focuses on the role of the family in human capital formation, and the contribution of specific motivating and institutional forces in influencing the diversity and pace of productivity growth at the micro (family and firm) and macro levels. These forces include altruism, the need for old-age security, private vs. public ownership of economic resources, and government control of private economic activity. The work also links economic growth with the aging of the population in developed countries, and assesses the incentive effects of conventional social insurance plans on the economy’s growth path.
Recent work on the role of human capital in asset management and the market for risky assets seeks to augment received theories in financial economics, which treat the prices of risky assets as (fully-) information revealing, by modeling the process under which market prices become informative. This work focuses on the role of human capital endowments and private information collection and their implications for portfolio choices, market-price volatility, equity premiums, and the distribution of both earnings and financial income.
Ehrlich’s work on human capital and endogenous growth has recently been recognized through a major Faculty Development Award from the New York Office of Science, Technology and Academic Research, which he has used to establish the Center of Excellence on Human Capital, Technology Transfer, and Economic Growth And Development in 2006. This development was bolstered in 2007 by his appointment as Founding Editor-in-Chief of the Journal of Human Capital (JHC), published by the University of Chicago Press, which is also housed at the Center. See: http://www.journals.uchicago.edu/loi/jhc/.
Apart from publishing his work in major refereed journals and books, Professor Ehrlich has also contributed numerous articles in the US and international media on the subject of human capital and its role in sustained economic development, as well as on social security reform and the economics of crime.
- Member of New York State Governor David A. Paterson’s Council of Economic Advisors
- SUNY and UB Distinguished Professor of Economics
- Chair, Department of Economics
- Melvin H. Baker Professor of American Enterprise
- Research Associate, National Bureau of Economic Research (NBER)
- Director, Center of Human Capital, Technology Transfer, and Economic Growth and Development
- Editor-in-Chief Journal of Human Capital
- National Academy of Sciences member of the Panel on the Economic and Fiscal Consequences of Immigration
- Ph.D. Columbia University
- B.A. Hebrew University
- Honorary Doctorate, University of Orleans, France (2002)
Research Interests and Contributions
- Human Capital and Income Distribution
- Economic Growth and Development
- Economics of Health and Value of Life Savings
- Social Security and population aging
- Economics of information and uncertainty
- Economics of crime and justice
- Law and Economics
Mentioned in the Media
- A column in The New York Times by David Brooks on the need for Republicans to find a presidential candidate who can transcend current political categories and lay out a human-capital agenda cites research conducted by Isaac Ehrlich, SUNY and UB Distinguished Professor and chair of the Department of Economics, who showed that the United States became the richest country because in the 19th and 20th centuries it had the most schooling and the best circumstances to help people develop their own capacities. The NY Times article, and the NBER paper on which it is based, may be read online.
- “Market Insurance, Self-Insurance, and Self-Protection,” Journal of Political Economy (1972)
- “Participation in Illegitimate Activities: An Economic Analysis,” Journal of Political Economy (1973)
- “The Deterrent Effect of Capital Punishment: A Question of Life and Death,” American Economic Review(1975)
- “Intergenerational Trade, Longevity, and Economic Growth” (with F. Lui), Journal of Political Economy(1991)
- “Productivity Growth and Firm Ownership” (with G. Gallais-Hamonno, Z. Liu and R. Lutter), Journal of Political Economy (1994)
- “Crime, Punishment, and the Market for Offenses,” Journal of Economic Perspectives (1996)
- “The Problem of Population and Growth: A Survey of the Literature from Malthus to Models of Endogenous Population and Endogenous Growth,” Journal of Economic Dynamics and Control(1997)
- “Social Security and the Real Economy: An Inquiry into Some Neglected Issues” (with J. Zhong),American Economic Review (1998)
- “Sensitivity Analyses of the Deterrence Hypothesis: Let’s Keep the Econ in Econometrics” (with Z. Liu), the Journal of Law and Economics, (1999)
- “Bureaucratic Corruption and Endogenous Economic Growth” (with F.T Lui), Journal of Political Economy(1999)
- “Uncertain Lifetime, Life Protection, and the Value of Life Saving”, Journal of Health Economics (2000)
- “Explaining Diversities in Age-Specific Life Expectancies and Values of Life Saving: A Numerical Analysis”, with Yong Yin, Journal of Risk and Uncertainty, Springer, vol. 31(2) 2005, 129-162;
- “Endogenous Fertility, Longevity, and Economic Dynamics: Using a Malthusian Framework to Account for the Historical Evidence on Population and Economic Growth”, with Jinyoung Kim, Journal of Asian Economics, issue 15 (6) 2005, 789-806;
- The Economics of Crime (co-edited with Z. Liu), Edward Elgar Publishing, (2006)“
- “Social Security and Demographic trends: Theory and Evidence From the International Experience”, with J. Kim. Review of Economic Dynamics, Elsevier, vol. 10(1), pages 55-77, January 2007.
- “The Evolution of Income and Fertility Inequalities over the Course of Economic Development: A Human Capital Perspective,” with J. Kim, Journal of Human Capital, University of Chicago Press, vol. 1, 2007, 137-174.” (2007)
- “Human Capital, Endogenous Information Acquisition and Home Bias in Financial Markets,” Hong Kong Institute for Monetary Research. (2010)
- “Taxing guns vs. taxing crime: An application of the “market for offenses model”,” Journal of Policy Modeling, Elsevier, vol. 32(5), pages 670-689, September. (2010)
- “The Role of Human Capital in Imperfectly Informed International Financial Markets,” Working Papers 092010, Hong Kong Institute for Monetary Research. (2010)
- “Private Information, Human Capital, and Optimal “Home Bias” in Financial Markets,” Journal of Human Capital, University of Chicago Press, vol. 5(3), pages 255 – 301. (2011)
Other Contributions and Distinctions
- The Economics of Crime (editor, with Z. Liu). A three- volume book of readings; selected as part of the collection: “International Library of Critical Writings in Economics” (Mark Blaug, general editor), Edward Elgar Publishing Ltd., London, England. June 2006;
- Named SUNY Distinguished Professor, March 2006, and UB Distinguished Professor (2002);
- Named NYSTAR Distinguished Professor of 2005, by NYSTAR’s Faculty Development program, in an award ceremony held March 6, 2006 at UB;
- Awarded faculty development grant from the New York Office of Science, Technology, and Academic Research, $750,000 with matching funds from UB, 2006;
- Awarded Honorary Doctorate from the University of Orleans (2002);
- Selected to Who’s Who in Economics first edition and all subsequent editions;
- Among the 100 most cited economists in recent rankings;
- Editor of National Health Policy: What Role for Government (1983) and The Problem of Development, a 1990 supplement to the Journal of Political Economy;
- Member of the U.S. Presidential Health Advisory Group (1980) and the Hong Kong Government Health Services Committee (1993-94);
- Recipient of over $1.5 million in NSF and USAID grants;
- Selected for membership in the prestigious Mont Pelerin Society by its Board of Trustees, Fall 1998.
Appointed honorary professor at the City University of Hong Kong, September 1999.