Economics

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    Information inequality makes voters vulnerable to manipulation

Information inequality makes voters vulnerable to manipulation

The media industry is unique in its ability to spread information that may influence the democratic process. There is ample evidence that news coverage influences voting and policy-making, and this issue has become even more prominent after the controversy over the role of ‘fake news’ in the 2016 US presidential election.

A powerful defence against fake news is real news. […]

May 2nd, 2018|Economics|0 Comments|

Galileo satellites illuminate EU-UK divorce tensions

One of the first tangible effects of leaving the European Union is that Britain will need a new, bi-lateral treaty on satellite navigation systems as well as a security treaty with the European Union,  in order to retain its place in the prestigious Galileo satellite programme after March 2019. Even then, Britain may end up with only observer status, […]

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    Disruptive trade technologies will usher in the ‘internet of rules’

Disruptive trade technologies will usher in the ‘internet of rules’

Businesses, especially micro, small and medium-sized enterprises (MSMEs), face many challenges in understanding and complying with international commercial rules and regulations. Research also indicates low utilisation of eligible tariff preferences, or favourable tax rules, by traders. In other words, many businesses do not always effectively benefit from their negotiated market advantages. Unfortunately, the current “version history” (or stage in the […]

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    Gaza’s endemic economic misery lies behind the confrontation

Gaza’s endemic economic misery lies behind the confrontation

On Feb. 4, the Israeli Defense Forces’ chief of staff, Lt. Gen. Gadi Eisenkot, issued a stark warning to his country’s government: Israel could soon face another conflict in Gaza with the Islamic fundamentalist group Hamas because of deteriorating economic and humanitarian conditions in the territory. Eisenkot said Gaza’s Palestinian residents suffered from chronic shortages of the most basic […]

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    Economists, unlike scientists, do a poor job of communicating via Twitter

Economists, unlike scientists, do a poor job of communicating via Twitter

It has become increasingly common for academics to use social media to communicate with wider audiences. Twitter, like many other social platforms, typically measures success in terms of numbers of followers, likes and re-tweets, but this only tells us something about the spreading of messages but not necessarily whether the content of the messages is understood or embraced. One […]

Populism and the broken engine of the Italian economy

Italy is an anomalous case. It posted the lowest growth rates among the developed countries for about a quarter of a century. This anomaly can help to understand why the anti-establishment forces, which have also reaped successes almost everywhere in the Western world, gained a majority in the latest Italian elections. It also helps to understand the economic policy […]

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    The labour share of the national income: the role of capital in its many forms

The labour share of the national income: the role of capital in its many forms

The labour share, the proportion of the national income paid to workers, has been falling globally since the 1980s, as illustrated in figure 1. This implies that the benefits of growth are not shared equally between workers and capital owners. This is a particularly worrying phenomenon in the presence of increasing wage inequalities, as it implies that the average […]

Why Russia is economically weak and politically strong

A few days ago I saw a surprising statistic: the GDP of Russia is of the same order of magnitude as the combined GDP of Belgium and the Netherlands. In 2017 Russian GDP was 1 469 billion dollars (according to the International Monetary Fund). Belgium had a GDP of 491 billion dollars and the Netherlands 824 billion dollars; together $ […]

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    The Airbus case sits at the heart of the Brexit industrial equation

The Airbus case sits at the heart of the Brexit industrial equation

While an agreement on Brexit negotiations is far from being reached between the United Kingdom and the European Union, Brussels seems to be taking an even more aggressive stance. It recently announced its will to kick Britain out of the Galileo project after it leaves the EU. This programme is aimed at creating a global navigation satellite system for […]

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    Public education benefited from oil booms in the postbellum South

Public education benefited from oil booms in the postbellum South

Natural resources are often thought as a curse, rather than a blessing. They have, for example, been found to help entrench autocratic regimes, impede female labor market involvement, and fuel both intra-state wars and internal conflicts.

Granted, natural resources typically increase local government revenue: counties or regions with oil, gas, or precious metal deposits typically can expect royalties or increased […]

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    The multiplier effect of the German government move to Berlin

The multiplier effect of the German government move to Berlin

Spatial inequality is central when analysing economic performance across regions and countries. Governments worry about wealth and prosperity concentrated in a few ‘lucky’ areas. In the UK, the dominant position of London and the absence of a sizeable contender fuels the debate on geographical rebalancing. In Denmark, the government is currently expanding a relocation policy (started two years ago) […]

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    High prices, not waste or over-use, drive high health care costs in the US

High prices, not waste or over-use, drive high health care costs in the US

According to the World Health Organisation, nearly 4 in every 10 dollars spent on health care in the world is spent in the US, a country with only 5 per cent of the world’s population. Even among high-income countries, we know that the US is an outlier, spending almost 18 per cent of its GDP on health, well ahead of the next highest spender, Switzerland, which spends about […]

Regulators can’t keep up with offshore tax havens

Apple CEO Tim Cook took great umbrage when a U.S. senator chided him in 2013 for seeking “the holy grail of tax avoidance” by shifting profits to Irish shell subsidiaries. “We pay all the taxes we owe – every single dollar,” Cook retorted. “We don’t stash money on some Caribbean island.”

True enough. The island where the tech giant parked […]

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    Brexit and the new localism: how to leverage the competitive advantages of UK cities

Brexit and the new localism: how to leverage the competitive advantages of UK cities

As Brexit negotiations enter a delicate phase, it is urgent to think about innovative ways in which Britain can strengthen its economic position while staying true to the political imperative to “take back control” from the European Union. The answer lies in more radical and far-reaching efforts to realise the market and civic potential and leverage the distinctive competitive […]

How The Economist has portrayed austerity since 1945

“The unpalatable truth is that austerity lies ahead, whoever wins at the polls and whatever the parties say before then.” This is how the The Economist addressed the state of British public finance ahead of the 2010 General Election. There simply was no alternative to austerity, and the UK public sector had to be put “on a prolonged harsh diet”.

As journalism scholars have […]

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    Is it labour or capital owners who bear the burden of corporate taxation?

Is it labour or capital owners who bear the burden of corporate taxation?

The incidence of corporate taxation is a key issue in tax policy debates. According to surveys, most people think that capital owners bear the burden of corporate taxation. Since capital owners usually have high incomes, this suggests that the corporate tax is highly progressive. Business lobbyists challenge this view and argue that the tax reduces investment so that labour […]

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    Should schools bother with modern human resources management?

Should schools bother with modern human resources management?

For decades, private sector firms have been aware of the benefits they can derive by investing in the management of their employees. Incentivising employees through individual and group performance pay allows firms to attract the best talent and increases worker effort. Fostering employee ‘ownership’ of the production process through team-working, initially pushed by Japanese manufacturing firms like Toyota, are […]

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    Britain could be excluded from EU decision-making bodies during the Brexit transition

Britain could be excluded from EU decision-making bodies during the Brexit transition

There is one aspect of Britain’s proposed transition out of the European Union that risks being overlooked. Britain – its government, businesses and individuals such as academics, NGOs and researchers – could be excluded from EU decision-making bodies, agencies and expert groups from 29 March 2019 during the transition period. As others have already said, Britain risks becoming a rule-taker, […]

The trade impact of the transatlantic telegraph

How do exporters gather information about overseas markets and forecast consumer demand for their products? What do they do if technology suddenly makes it possible to get access to better and more timely information? And what is the overall impact on prices, market integration and trade flows? These are challenging questions in the modern world of the internet and […]

Do apprenticeships increase earnings?

Is there an earnings differential for starting an apprenticeship over and above the pay of young people who have already had a full-time school or college-based education? Our research looks at people who finished their GCSE exams in 2003 and who were therefore 28 years of age in 2015. We use administrative data to follow them from 2003 through […]