UC Riverside agreement with economics firm ends after concerns raised

UC Riverside's economics proving ground is inactive after the university's contract with a consulting company ended and professors and students across the UC system raised concerns about the collaboration.

The Center for Economic Forecasting and Development, which operates within the university's School of Business, was run by Beacon Economics, a Los Angeles research study and seeking advice from company, considering that its development in 2015. The agreement expired in December.

Earlier this year, the UCR-Beacon collaboration dealt with criticism after professors and graduate students signed a letter prompting university authorities to "investigate using the UC name and trademarks on research reports produced by a private business."

" The reality here is, this petition is among the most hypocritical things I've seen in my entire life," Christopher Thornberg, who founded Beacon Economics and ran the economics proving ground, stated Friday, April 7.

By "hypocritical," he referred to the letter's statement that its authors "unequivocally support scholastic flexibility and liberty of speech."

Part of the letter focused on a Beacon Economics report concerning state AB 257, which ended up being law in California in September 2022 and developed a council to work out minimum earnings and working conditions for fast-food workers.

" They were really clear that they didn't like the results of our analysis on AB 257," Thornberg said. "They do not like our results, thus, obviously they're assaulting our intentions."

A declaration issued by UC Riverside spokesperson John Warren stated that there are "no claims of misconduct associated to the center's or Beacon's research study."

" The concerns raised issues about the usage the Center for Economic Forecasting's name-- and by extension the UC Riverside brand name-- on particular reports," the statement continued.

The AB 257 report was released with UC Riverside branding.

Thornberg stated that, throughout the collaboration, Beacon Economics produced "hundreds and hundreds" of reports that the university was "delighted" about.

" And then all hell broke out," he stated.

The future of the economic proving ground is now unsure.

" The center is not ‘‘ closed down' or closed, though it has been non-active given that the expiration in December 2022 of the School of Business contract with Beacon," Warren said in an email Friday.

The earlier declaration from UC Riverside stated the School of Business is thinking about alternatives for the center's continuation, "independent of Beacon."

It was not immediately clear when the decision to end the business relationship was made.

Thornberg said that, in the lack of a new contract, the partnership advanced a month-to-month basis for the very first couple months of 2023. He said that he learnt about completion of the partnership from a news post on Thursday, April 6, rather than from UCR authorities.

Warren stated UCR and Beacon Economics had "informal discussions" about continuing the collaboration prior to the contract expired but the talks "did not result in a new agreement."

As for the Inland Empire Economic Conference, which has been affiliated with the School of Business and had its 13th yearly meeting in 2022, the UCR declaration said it "plans to work out with Beacon" to host the symposium.

" It's our occasion, and we will continue to run it," Thornberg said in reaction.

" We're not going anywhere," Thornberg stated, including that the Inland Empire "is an economy I think in."