At a meeting of the Faculty of Arts and Sciences on Nov. 5, 2024, the following tribute to the life and service of the late Dale Weldeau Jorgenson was spread upon the permanent records of the Faculty.
Dale W. Jorgenson was an economist of prodigious energy and creativity, remarkable discipline, and extraordinary productivity and impact. He pioneered combining rigorous theoretical modeling with careful empirical work to develop economic models that both enhance our understanding of the economy and provide directly applicable quantitative guidance to economic policy. He led the way in developing rich, theory-informed data sets that can be used to answer important empirical questions in economics, inspiring a movement to improve national economic measurement. He was also a bulwark of the Harvard Department of Economics and helped to transform it — and the field itself — into one in which empirical research is careful, relevant, and grounded in economic theory.
Jorgenson, an only child, was born in Bozeman, Montana, on May 7, 1933. A former Ph.D. student John Fernald recalls Jorgenson saying that “Montana was a pleasant place, especially if you like winters,” to which he added, “I don’t.” Jorgenson was nominated for a scholarship to the Naval Academy but was refused admission because of his poor eyesight; instead, he attended Reed College, where he became fascinated by economics. At the advice of his undergraduate thesis advisor, Jorgenson entered the Ph.D. program at Harvard, where, after three and a half years, he received his Ph.D. in 1959 under the supervision of Wassily Leontief.
Jorgenson’s first academic appointment was at the University of California, Berkeley, where, after four years, he was promoted to full professor at age 30. In 1969, Jorgenson was recruited back to Harvard as a key part of Henry Rosovsky’s plan to modernize the Department, which included recruiting Zvi Griliches and Kenneth Arrow and promoting Martin Feldstein. In 1971, Jorgenson received the John Bates Clark Medal, awarded (then biennially) to the most intellectually significant American economist under age 40, for marrying economic theory and econometric analysis. One of us had the honor of promoting Jorgenson to University Professor in 2002 to recognize his lifelong research program that changed the discipline.
A scholar of prodigious energy and generosity, Jorgenson held multiple important service positions in the economics profession, including President of the Econometric Society in 1987, President of the American Economic Association in 2000, and Chair of the Advisory Committee to the U.S. Bureau of Economic Analysis from 2004 to 2011.
Of Jorgenson’s many intellectual contributions, he will be remembered particularly for three. First, in a 1963 article, he developed the modern framework for analyzing firms’ investment decisions. This paper transformed the then-murky topic into one guided by a precise, implementable formula for a key determinant of investment, the user cost of capital.
Second, Jorgenson is a founder of modern growth accounting. He provided a framework — the so-called KLEMS system of capital, labor, energy, materials, and services — for measuring the determinants of economic growth. Jorgenson’s vision, combined with his passion for getting the details right, created a global society dedicated to measuring, comparing, and using these determinants of growth.
Third, Jorgenson was a pioneer in econometric modeling, especially of producer and consumer behavior. Starting with the oil crisis of the 1970s, he developed economy-wide models that linked energy prices and production to overall economic growth. He and coauthors used a descendant of this model in a pioneering 2013 book, which analyzed how the revenue from a carbon tax might best be used to foster economic growth, and the lessons from that research remain relevant today.
Altogether, Jorgenson authored 300 articles in economics and authored or edited 37 books, undertaken with more than 70 collaborators. His final edited volume appeared in 2016, when he was 83.
Connecting all this work was an abiding commitment to developing rich data sets, grounded in economic principles, that could be used to estimate econometric models. In so doing, Jorgenson moved economic measurement from the dull work of government statisticians to be a central part of modern economic research.
Jorgenson and his inseparable wife, Linda, were dedicated to the welfare and betterment of the Department of Economics. He chaired the Department from 1994 to 1997. Linda, in turn, was its social glue, as outgoing and ebullient as was Jorgenson reserved. Linda and Dale hosted countless events at their apartment for students and colleagues. Linda reached across the lingering barriers of seniority and status to ensure that all members of the Department knew they were valued personally as well as professionally. Jorgenson’s mentorship, combining high standards with personal support, and Linda’s warm embrace were deeply helpful to many junior colleagues.
Jorgenson’s work at Harvard extended beyond the Department. He directed the Program on Technology and Economic Policy at the Harvard Kennedy School from 1984 to 2007. He helped lead the Harvard-China Project on Energy, Economy, and Environment in the School of Engineering and Applied Sciences from its founding in 1993, advising a stream of economics students from China and working with economist colleague Mun Ho until spring 2022. Jorgenson was also a Faculty Fellow at the Kennedy School’s Harvard Environmental Economics Program, in which he was also active until shortly before his death.
One of Jorgenson’s greatest legacies is his legion of students, both undergraduate and graduate. Jorgenson had a formal and dispassionate public demeanor: graduate students regularly presented him as Mr. Spock of Star Trek at the Department’s annual holiday skit party. In reality, however, Jorgenson was warm and supportive of his students and junior colleagues, with a wry sense of humor. His former students include Robert Hall and Ben Bernanke, two of the leading economists in the profession, and two consecutive Harvard senior classes voted him to be one of their favorite professors.
Economics is a different and better discipline, and Harvard is a better place, because of Jorgenson Jorgenson. Economic measurement is now recognized as an important part of the work of the profession and as something that can be, and indeed must be, infused with theory. From the cost of capital, to the KLEMS approach to production, to his many other contributions, the Jorgenson approach to economics lives on.
Respectfully submitted,
Michael McElroy
Lawrence H. Summers
James Stock, Chair
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