Economics

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    Why economy watchers obsess over the U.S. monthly jobs report

Why economy watchers obsess over the U.S. monthly jobs report

It is an ingrained monthly ritual for U.S. economy mavens: staring intently at a computer screen or smartphone on the first Friday of the month as the clock ticks down to 8:30 a.m. Eastern time, the moment when the Labor Department releases its jobs report for the previous month.

The two numbers that draw the headlines are those that report […]

October 4th, 2018|Economics|0 Comments|

The quandary of labour market reforms

All well-conducted structural reforms are alike; each badly conducted structural reform is badly conducted in its own way. There is a huge variety of structural reforms. They differ in terms of the areas they cover (contrast, say, privatisation with trade reform), their main drivers, and regarding the intensity and time-profile of their effects.

Labour market reform is one of the […]

October 3rd, 2018|Economics|0 Comments|
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    China is investing in developing countries – what is it really up to?

China is investing in developing countries – what is it really up to?

What types of energy does China finance with its development aid?

China has been steadily intensifying its economic and strategic relations with developing countries in recent years. Through deepening trade ties, large-scale infrastructure financing and its ambitious vision to create ‘seamless connectivity’ through three main infrastructure sectors (energy, transport and information and communications technology) across continents through its Belt and […]

Italy under the spotlight of another financial crisis

Ten years since Lehman and the financial crisis, the main questions on the table are whether the world has learned the lessons and what could be the source of the next financial crisis. The risk of a new recession in Europe, the end of Quantitative Easing by the ECB, and the spread of populism and Euroscepticism has put Italy […]

September 29th, 2018|Economics, LSE Authors|Comments Off on Italy under the spotlight of another financial crisis|

Harnessing diaspora assets in developing countries

Are developing countries under-utilising a wealth of diaspora resources? At the recent World Economic Forum ASEAN summit, I approached this question from three perspectives. As a contributor to the Commonwealth Secretariat’s recent survey of expatriates in London, I drew on its insights. As a former investment banker with a remit across global emerging markets, I recalled the relative differences […]

September 27th, 2018|Economics, LSE Authors|0 Comments|
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    Germany is quietly rebalancing its economy – but this will not fix the Eurozone’s flaws

Germany is quietly rebalancing its economy – but this will not fix the Eurozone’s flaws

Ever since the financial and sovereign debt crisis, the political and economic implications of Germany’s unbalanced economy have lured the attention of academics, policy institutions, the public and politicians across Europe and beyond. Frequent are the pleas made to the German political establishment to rebalance its export-oriented economic model, increase fiscal expenditures and thus rein in the world’s largest current account surplus.

But what is […]

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    What explains the evolution of management models over the past two centuries?

What explains the evolution of management models over the past two centuries?

Scientific Management, Human Relations, and Strategy-and-Structure are well-known management models in the history of business, but we still understand little about why a given model succeeds in competition with other models. This lack of understanding is troublesome. Practitioners would benefit if they could assess more reliably the potential value of the various competing models they read about. Our analysis […]

The WTO’s unfinished business

The ongoing international trade tensions between the US and a host of countries serves as a reminder of the importance of strong international institutions in helping avoid the escalation of trade disagreements into trade wars. The WTO and its predecessor the GATT are often seen as not only a strong force behind multilateral trade liberalisation, but also a place […]

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    Ten years from the crash: time to row back on financial regulation and compliance?

Ten years from the crash: time to row back on financial regulation and compliance?

The collapse of Lehman Brothers on 15 September 2008 was the most significant single event of the ‘Great Financial Crisis’ (GFC). In his new book, Crashed, Adam Tooze writes that, “After September 15, 2008, avoiding another Lehman became an idee fixe of crisis managers around the world.” And since then one of the fastest-growing activities in the US and the […]

September 3rd, 2018|Economics, Finance|0 Comments|
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    A French dilemma: environmental leadership vs environment-damaging economic growth

A French dilemma: environmental leadership vs environment-damaging economic growth

In pursuit of an America First policy, the US withdrew from the Paris Agreement (COP21), with grave economic and ecological consequences and representing a serious backlash for US global leadership in tackling the environmental challenges and issues surrounding climate change. There was no obvious public appetite for the US withdrawal from the Paris Agreement, yet on the positive side, the European […]

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    Why does public investment contribute little to GDP growth in Italy?

Why does public investment contribute little to GDP growth in Italy?

“Give me a fulcrum and a lever long enough, and I shall move the world” – so the great Greek mathematician Archimedes used to say. In the Italian macroeconomic context, many are similarly convinced that if only we pushed more on the fiscal lever, we could set in motion an economy that has stagnated for almost 20 years, and […]

The moral dilemma around equality of opportunity

Mainstream economics typically emphasises efficiency over equity. One reason is because egalitarian notions can be subjective, and economists do not consider it their role to advocate how redistributive a society should be.

Notwithstanding, modern research does focus on what the effects of potential policies would be on quantitative measures of inequality (such as the Gini coefficient). By doing so, economists […]

August 22nd, 2018|Economics|1 Comment|

The economic consequences of family-oriented policies

All high-income countries, as well as several developing countries, have policies in place to make it easier for people to balance their working lives with their family commitments. These include parental leave, childcare support and flexible work arrangements, to name 
just a few. The impact of these policy provisions on the labour market outcomes of parents, and especially mothers, […]

The dangers of the global trade war for the UK

Since 2016, two of the world’s largest economies – those of the US and the UK – have made major shifts away from global economic integration. First, the British electorate voted to leave the EU. Since then, the Trump administration has sparked a global trade war which currently shows no signs of dissipating, with tariffs having already been imposed […]

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    Social resources matter — we shouldn’t assume that only money talks

Social resources matter — we shouldn’t assume that only money talks

Everyone knows that money matters and most people would accept that social resources (relationships and identities) matter too, though in what ways and how much is perhaps less obvious. In a couple of recent pieces of research (here and here) we report on evidence of surprisingly high valuations of social resources and that different personality types benefit differently from […]

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    For the first time in a century, there is no British party which is clearly pro-business

For the first time in a century, there is no British party which is clearly pro-business

Politics used to be easy for British business. There was really only one relevant policy dimension (left versus right) and really only one party worth supporting (the Conservatives). The role of the state in the economy and the management of inequality had structured British politics since the first mass-suffrage elections. Although the distance between the two parties was constantly […]

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    Melting ice caps will open the northern sea to commercial traffic and change world trade patterns

Melting ice caps will open the northern sea to commercial traffic and change world trade patterns

Arctic ice cover has been shrinking as a result of global warming. Besides the important and critical environmental and economic effects of melting ice caps, a side effect is to open the northern sea route for high volume commercial traffic. This shipping route will connect East Asia – Japan, South Korea, Taiwan and China – with North-western Europe through […]

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    The potential to automate low-wage jobs in the U.S. and its impact on workers

The potential to automate low-wage jobs in the U.S. and its impact on workers

The extent to which firms can substitute labour with technology is a longstanding question that has grown in policy importance as automation technology spreads to a larger range of jobs. In our forthcoming paper, we contribute to this important issue by quantifying the potential to automate low-wage jobs in the U.S. labour market and examining its impact on low-wage […]

Economics needs to consider freedom of choice

Should we restrict fake news and other political speech designed to create discord and undermine democratic institutions? Should we impose a soda tax to combat the obesity problem? Should we restrict the ability of parents to pass on their wealth to their children in order to level the playing field and insure equality of opportunity for all?

All of these […]

July 30th, 2018|Economics|0 Comments|