Economics

  • Permalink Gallery

    Overconfidence: separating the entrepreneur from the wantrepreneur

Overconfidence: separating the entrepreneur from the wantrepreneur

The staggering fortunes created by unicorn tech startups has led to a pursuit of the entrepreneurial dream. But while many people pursue the entrepreneurial dream, many more remain wantrepreneurs – dreaming the dream, but never taking the steps to make it a reality. One factor often cited (though by no means the only one) is the fear of failure […]

December 11th, 2018|Entrepreneurship|0 Comments|

Mitigating the geography of discontent

In a 2010 speech, then-Prime Minister David Cameron questioned whether the United Kingdom’s dependence on the success of just a few prosperous places was economically wise. “Today our economy is heavily reliant on just a few industries and a few regions,” he said, adding: “An economy with such a narrow foundation for growth is fundamentally unstable and wasteful – because we are […]

December 10th, 2018|Economics|0 Comments|
  • Permalink Gallery

    Resist, rebel and remain: why MPs should vote down this Brexit deal

Resist, rebel and remain: why MPs should vote down this Brexit deal

Members of Parliament’s vote on British Prime Minister’s Theresa May’s Brexit deal is due on 11 December. Without hesitation, they should vote it down.

More and more people have realised that Brexit was built on a fantasy that we could keep all the benefits of being in the European club without paying any of the membership fees – what leading […]

Specialised firms hold on to their employees

Why are specialised employers, more than generalist firms, interested in preserving good matches? My recent paper looks at adverse exogenous shocks and suggests that specific human capital investments can become a protection for employees. Building on Wasmer (2006) and Pissarides (2011), the hypothesis is that the specialised employer is keen to locate and preserve employees because it is costly […]

December 5th, 2018|Economics|0 Comments|
  • Permalink Gallery

    How cities can avoid the pitfalls of ‘beauty contests’ to attract multinational investment

How cities can avoid the pitfalls of ‘beauty contests’ to attract multinational investment

What drives foreign investment to some cities and regions of the world, but leaves others almost completely untouched? And what can cities and regions do in order to attract those investments?

Traditionally, scholars have tried to understand this by looking at things like market access, skills, the price of land, tax regimes, corruption levels and so on – on that […]

  • Permalink Gallery

    Capitalising on technological change and the low-carbon transition in the UK

Capitalising on technological change and the low-carbon transition in the UK

An overarching strategy for sustainable growth is required to address the dual challenges of restoring productivity growth and managing a transition to a low-carbon economy – priorities in both the UK and other G20 countries. Against the backdrop of an uncertain economic climate as the UK recasts its relationship with Europe and the rest of the world, and as […]

  • Permalink Gallery

    The economic consequences of the Brexit deal: the case of trade

The economic consequences of the Brexit deal: the case of trade

The UK and EU have reached a Brexit deal. But what will the withdrawal agreement mean for the UK economy? To address this question we have analysed how the withdrawal deal and a no-deal scenario would affect income per capita in the UK, relative to the baseline of staying in the EU, through changes in trade costs.

Scenario 1: The […]

  • Permalink Gallery

    The tale of two Davids (Cameron and Beckham) and our social mobility problem

The tale of two Davids (Cameron and Beckham) and our social mobility problem

One David was born in a terraced house in East London, his father a kitchen fitter, his mother a hairdresser. The other David grew up in an idyllic village in the English countryside, his father a stockbroker, his mother the daughter of a baronet. The first David left school at 16 without any qualifications; the second studied at Eton […]

  • Permalink Gallery

    Why new tariff codes are necessary to improve trade and combat climate change

Why new tariff codes are necessary to improve trade and combat climate change

A key issue in the fight against climate change and for environmental protection is how to facilitate market access to environmental products (agricultural and non-agricultural ones). The world trading system has an alternative mechanism that can be very useful in that respect: the Harmonysed System (HS), which establishes common classification for goods, facilitating the negotiation process. The creation of new tariff codes for environmental products under HS […]

  • Permalink Gallery

    Brexit is a major and growing source of uncertainty for firms

Brexit is a major and growing source of uncertainty for firms

The majority of businesses in the UK report that Brexit is a source of uncertainty. This column uses survey responses from around 3,000 businesses to evaluate the level and impact of this uncertainty. It finds that Brexit uncertainty has already reduced growth in investment by 6 percentage points and employment by 1.5 percentage points, and is likely to reduce future UK […]

November 23rd, 2018|Economics|0 Comments|

Universities and industrial strategy in the UK

The UK has a world-leading university sector and this has a key role to play in moving the country onto an inclusive and sustainable growth path. Universities can make important contributions across the five foundations that underpin the government’s industrial strategy:

Universities support the productivity and prospects for ‘people’ through the education of students and the nurturing of researchers.
[…]

China’s challenge to international tax rules

States are currently struggling to reach global agreement on the taxation of digital firms such as Apple and Google, suggesting that an international regime characterised by impressive coherence over a century may be beginning to fragment. While work on the politics of the international tax regime is still largely preoccupied with the US, a ‘great power’, this fragmentation largely […]

  • Permalink Gallery

    The digitisation of recorded music: studying the ‘long tail’ effect

The digitisation of recorded music: studying the ‘long tail’ effect

Digitisation, in the form of online retailing, has long been understood to deliver welfare benefit to consumers. Greater consumer access to content has led to an important work on the “long-tail” phenomenon: while the choice set faced by consumer was limited to the shelf-space available in brick-and-mortar stores before the advent of the Internet, consumers can now access and […]

  • Permalink Gallery

    Post-Brexit transfers of personal data: the clock is ticking

Post-Brexit transfers of personal data: the clock is ticking

The UK economy is closely integrated with that of the rest of the EU. One need only consider the number of UK firms with branches in the EU27, and the number of EU27 firms with branches in the UK, to realise that data interchange is of vital economic importance.

Assuming that the UK indeed leaves the EU as a result […]

Can we really get a ‘better’ deal?

Publication of the 585-page Brexit-deal document was immediately followed by swift criticism of Mrs May’s negotiating ‘outcome’ and a series of cabinet resignations. When academics examine a PhD student, they are sent a thesis with 200+ pages and are then asked to examine the candidate no less than a week later. How on earth everybody read the Brexit document in […]

November 16th, 2018|Economics|1 Comment|
  • Permalink Gallery

    Developing an effective local industrial strategy for the UK

Developing an effective local industrial strategy for the UK

The UK’s poor productivity performance has been the source of much debate and policy focus over the last few years. Without an increase in productivity, we won’t see rising wages or higher standards of living. Against a backdrop of continued wage stagnation and huge variations in productivity across the country, the government has invited local leaders up and down […]

  • Permalink Gallery

    Growth, import dependence and war: the risks of Chinese vulnerability

Growth, import dependence and war: the risks of Chinese vulnerability

World trade has increased tremendously in recent decades, driven by the rise of China and other emerging economies. The reliance of world trade on choke points (such as the Strait of Hormuz, the Malacca Strait and the South China Sea) creates the need for someone to guarantee the freedom of navigation. Traditionally, this role has been upheld by the […]

When globalisation gets local: winners and losers

A complex flow of investment is spreading across the globe, connecting more and more places. These flows bundle together streams of capital, skills and knowledge, the key factors in determining the development and wealth of places. As a result, it is now impossible to understand economic opportunities, innovation and development without one central concept: CONNECTIVITY.

However, investment flows are highly […]

The paradox of communist entrepreneurs in China

The Chinese economy has grown phenomenally over the past 40 years since it was opened to the outside world. In recent decades, the private sector in particular has been the engine of this growth, contributing to more than 60 per cent of China’s GDP (US$12,237.7 billion), extensive fixed-asset and outbound investment, 80 per cent of jobs, and 70 per […]

  • Permalink Gallery

    We need to deal with household debt now before the next financial crisis hits

We need to deal with household debt now before the next financial crisis hits

What will happen to indebted households when the next recession hits Europe? Strongly pro-cyclical financial policy in the US is likely to trigger over-heating and recession in the US perhaps already at the end of next year. Many economists predict a recession to strike Europe a year later. One thing is sure. Sooner or later a recession will arrive […]

November 1st, 2018|Economics|0 Comments|