Employment & Economy
Stantcheva receives Clark Medal
Lawrence Katz, Elisabeth Allison Professor of Economics (left), during a celebration honoring Stefanie Stantcheva, recipient of the John Bates Clark Medal.
Photos by Niles Singer/Harvard Staff Photographer
Acknowledged as a top economist under 40 for groundbreaking insights on tax policies, innovation, and behavior
Harvard’s Stefanie Stantcheva has been conferred the American Economic Association’s 2025 John Bates Clark Medal, a yearly award celebrating an economist under 40 who has made pivotal contributions to the discipline.
“I’m extremely honored, genuinely humbled, and incredibly thankful for this recognition,” remarked Stantcheva, the Nathaniel Ropes Professor of Political Economy, during a departmental celebration with her colleagues and students on Tuesday.
Upon announcing the accolade, the association commended Stantcheva for her inquiries into public finance and her provision of fresh perspectives on tax policies and their effects on economic behavior.
“The tax system wields such immense power that it can fundamentally shape an economy,” Stantcheva explained. “It can promote endeavors like innovation—if designed correctly—or severely hinder economic activity.”
In their 2022 publication, “Taxation and Innovation in the 20th Century,” Stantcheva and her co-authors discovered that innovation reacts to modifications in tax policies with considerable elasticity. The research furthermore indicated that elevated taxes adversely affect the number of innovations, although the quality of inventions remains unaffected.
“Stefanie’s significant contributions to the discipline truly make her worthy of this award,” said Hopi Hoekstra, Edgerley Family Dean of the Faculty of Arts and Sciences. “It’s a joy to celebrate her alongside her peers, including several former winners, underscoring the ongoing strength of this department.”
“We’ve been extraordinarily fortunate this year but are not surprised at all that Stefanie received it,” noted Elie Tamer, Louis Berkman Professor of Economics and chair of the Economics Department. “She has produced exceptional work, and we’re immensely proud. It’s a joyful day for Harvard, especially for Harvard economics.”
Stantcheva established the Social Economics Lab in 2018. Her current endeavors have addressed issues in trade, immigration, climate change, and social mobility.
“I am eager to advance the work at the Social Economics Lab to enhance understanding of how individuals perceive economic matters and policies,” Stantcheva expressed. “We are presently investigating new subjects—such as the relationship between emotions and policy—and essential mindsets, including zero-sum thinking.”