BBC Technology - The mysterious powers of Microsoft Excel

BBC Technology - The mysterious powers of Microsoft Excel - Colm O'Regan - http://www.bbc.co.uk/news/magazine-22213219

"After two Harvard economists admitted a faulty spreadsheet calculation caused errors in a study used by numerous politicians to support their austerity policies, writer Colm O'Regan pays tribute to the power of Microsoft Excel.

The Reinhart-Rogoff study

• Harvard economists Carmen Reinhart and Kenneth Rogoff wrote in 2010 that a country's output fell substantially as soon as total public debt passed 90% of gross domestic product
• Their paper said that - in 20 advanced economies since 1945 - growth of 3% to 4% collapsed to an average -0.1% at this point. Governments used the findings to support austerity measures
• But University of Massachusetts researchers found coding errors in spreadsheets used in the study. Reinhart and Rogoff admit mistakes but say the research's central point remains valid
• New research says growth only falls to an average of 2.2% and that in some cases it can be higher than in countries with lower debt levels"

BBC News - Reinhart, Rogoff... and Herndon: The student who caught out the profs - By Ruth Alexander

"This week, economists have been astonished to find that a famous academic paper often used to make the case for austerity cuts contains major errors. Another surprise is that the mistakes, by two eminent Harvard professors, were spotted by a student doing his homework."

http://www.bbc.co.uk/news/magazine-22223190

The Open Knowledge Foundation

Reinhart-Rogoff revisited: why we need open data in economics http://blog.okfn.org/2013/04/22/reinhart-rogoff-revisited-why-we-need-open-data-in-economics/ … #opendata #openeconomics

"Another economics scandal made the news last week. Harvard Kennedy School professor Carmen Reinhart and Harvard University professor Kenneth Rogoff argued in their 2010 NBER paper that economic growth slows down when the debt/GDP ratio exceeds the threshold of 90 percent of GDP. These results were also published in one of the most prestigious economics journals – the American Economic Review (AER) – and had a powerful resonance in a period of serious economic and public policy turmoil when governments around the world slashed spending in order to decrease the public deficit and stimulate economic growth."

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