What's Happening?
Assaf Razin, a prominent international economist, passed away in July 2026 at the age of 85. His career spanned over five decades, during which he made significant contributions to the fields of trade, capital mobility, taxation, migration, and fiscal
policy. Razin's work was characterized by a focus on how globalization influences and constrains national policy choices. He was born in Kibbutz Shamir, Israel, and despite the collectivist upbringing, he pursued higher education, earning a PhD in Economics from the University of Chicago. Razin held academic positions at the University of Minnesota and Tel Aviv University, and later at Cornell University. He advised governments and international institutions, including the IMF, and was known for his warnings about Israel's inflation crisis in the late 1970s. His research explored the interaction between international trade and capital flows, the determinants of the current account, and the effects of taxation in open economies.
Why It's Important?
Assaf Razin's work has had a profound impact on the understanding of globalization and its effects on national economies. His research on migration and redistribution as political choices has influenced how countries approach immigration policies and welfare state sustainability. Razin's insights into the intertemporal approach to balance-of-payments analysis have reshaped economic strategies regarding external deficits and fiscal policies. His contributions to international taxation have informed debates on tax competition and harmonization, crucial for addressing issues like profit shifting and fiscal sovereignty. Razin's legacy continues to shape economic policy discussions, particularly in the context of globalization's challenges and opportunities.
What's Next?
The principles and frameworks developed by Assaf Razin are likely to continue influencing economic policy and academic research. As globalization evolves, policymakers may increasingly rely on Razin's insights to navigate the complexities of international trade, migration, and taxation. His work on the political economy of globalization provides a foundation for addressing contemporary issues such as aging populations, mobile tax bases, and the sustainability of welfare states. Future research may build on Razin's theories to explore new dimensions of global economic interdependence and vulnerability.
Beyond the Headlines
Assaf Razin's contributions extend beyond economics, touching on ethical and cultural dimensions of globalization. His advocacy for markets and global integration, while acknowledging distributional conflicts and social insurance, highlights the balance between efficiency and equity. Razin's work underscores the importance of considering long-term shifts in political coalitions and tax-and-transfer policies due to immigration. His legacy prompts reflection on the role of economists in shaping public policy and the ethical implications of economic decisions in a globalized world.
