What Is the National Bureau of Economic Research?

The National Bureau of Economic Research (NBER) is a private, non-profit, non-partisan research organization based in the United States. It was founded in 1920 with the primary goal of conducting and disseminating unbiased economic research to improve the understanding of how the economy functions. Although the NBER is not a government entity, it plays a significant role in shaping public policy discussions, guiding economic scholarship, and providing data widely used by academics, journalists, and policymakers.

One of the NBER’s most well-known roles is serving as the official arbiter of U.S. business cycles. It determines the dates of recessions and expansions based on comprehensive economic data, a function that has elevated the organization's visibility in both academic and public circles.

Mission and Scope of Work

The mission of the NBER is to promote a greater understanding of how the economy works. It does this by supporting economic research projects and publishing working papers that cover a wide range of economic topics. The NBER’s work is grounded in empirical research, meaning that it relies heavily on data analysis to explore how real-world economic behaviors and events unfold.

Researchers affiliated with the NBER investigate subjects across multiple areas of economic concern, including labor markets, health economics, international trade, productivity, taxation, innovation, income distribution, and monetary policy. The organization’s broad approach to economic inquiry allows it to produce research that is both timely and historically grounded.

Although the NBER itself does not take positions on policy issues, its research frequently informs government decision-making and influences academic thought.

Structure and Research Affiliates

The NBER operates through a network of over 1,700 affiliated economists, many of whom are also professors at leading universities, including Harvard, MIT, Stanford, and the University of Chicago. These researchers contribute working papers, collaborate on large-scale projects, and participate in specialized research programs hosted by the NBER.

The organization is structured around more than 20 research programs, each focused on a specific area of economic inquiry such as aging, education, public economics, or asset pricing. These programs are coordinated by program directors who are leading experts in their respective fields.

While the NBER's central offices are located in Cambridge, Massachusetts, its reach is national and international due to the geographic diversity of its affiliates.

Role in Business Cycle Dating

The NBER is best known to the general public for its Business Cycle Dating Committee. This committee is tasked with determining the official dates for the beginning and end of U.S. recessions and expansions. Rather than relying on a strict formula, the committee uses a broad set of economic indicators to assess the health of the economy. These indicators include real gross domestic product (GDP), real income, employment, industrial production, and wholesale-retail sales.

Unlike some government agencies that release preliminary economic data on a regular schedule, the NBER typically waits until a sufficient body of evidence is available before announcing that a recession has begun or ended. This cautious approach is intended to avoid the need for revisions and misclassification of economic turning points.

Although the U.S. government and the Federal Reserve closely follow NBER pronouncements, the organization itself does not issue forecasts or policy recommendations.

Influence and Publications

The NBER publishes thousands of working papers each year. These papers often represent preliminary findings of economic studies and are widely read within the economics community. Many of them are later revised and published in academic journals.

Its working paper series is among the most downloaded and cited in economics. Topics cover nearly every aspect of the economy, ranging from the microeconomic behavior of individuals and firms to macroeconomic trends and global economic dynamics.

In addition to working papers, the NBER also produces books, economic data series, and newsletters. These resources serve different audiences, from academic researchers to the general public seeking better understanding of economic issues.

Funding and Independence

The NBER receives funding from a variety of sources, including government agencies, private foundations, academic institutions, and corporate sponsors. Despite this broad base of financial support, the organization maintains a strict policy of non-partisanship and does not engage in advocacy. Its research is expected to meet high standards of academic rigor and is subject to peer review.

This independence is a key factor behind the credibility and trust the NBER enjoys across political and institutional boundaries.

The Bottom Line

The National Bureau of Economic Research plays a central role in the study and interpretation of the U.S. economy. Known especially for determining the official dates of recessions, the NBER contributes to a wide range of economic understanding through its research, data publications, and academic network. Its work influences policymakers, informs academic inquiry, and helps shape how economic trends are understood both within and beyond the United States.