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    Christopher Pissarides: ‘I’d like to see a UK equivalent of Germany’s Work 4.0 white paper’

Christopher Pissarides: ‘I’d like to see a UK equivalent of Germany’s Work 4.0 white paper’

In late 2016, the German government published the white paper ‘Work 4.0’, the result of 18 months of discussion with academia, trade unions, employer organisations and the public. The paper was a blueprint for how society should face the technological disruption taking place in the world of work and business. This is what Sir Christopher Pissarides thinks the UK should do if it wants to […]

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    What Twitter reveals about a company’s reputation and productivity

What Twitter reveals about a company’s reputation and productivity

Reputation plays an important signalling role in an imperfect information world and companies endeavour to preserve it. In this study, I evaluate empirically the role of reputation for companies that engage in Twitter. The results confirm that getting negative tweets, many expressing grievances, strongly correlates with low firm performance, suggesting the importance of social media (SM) in times when […]

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    Cryptocurrencies: the future of money, speculative bubble or something else?

Cryptocurrencies: the future of money, speculative bubble or something else?

This month’s episode of the LSE IQ podcast investigates whether cryptocurrencies are the future of money, a speculative bubble that will burst, or something else.

In 2008 a person or group going under the pseudonym ‘Satoshi Nakamoto’ published a white paper setting out the fundamentals of a peer-to-peer electronic cash system called bitcoin. This would do away with the need […]

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    Two corporate governance mechanisms: activism and hostile takeovers

Two corporate governance mechanisms: activism and hostile takeovers

Hostile takeovers have long been considered the quintessential disciplinary governance mechanism. A similarly confrontational strategy has lately come to prominence by way of activist hedge funds that buy into poorly run firms and use the threat of hostile tactics to pressure management into accepting specific proposals to improve shareholder value.

Our paper compares these two governance mechanisms within a unified framework where any outside investor […]

Why the co-working industry must take creativity seriously

The rapid, ongoing growth of the co-working industry reflects a broader transformation: over the past decade or so, work has not merely become increasingly flexible and entrepreneurial – it has also been reinvented as a commodity. Sold to people desiring autonomy, comfort and a cure to entrepreneurial loneliness (among other things), co-working providers are refashioning work as a consumer experience requiring […]

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    2018 is a crucial year for the platform-publisher relationship

2018 is a crucial year for the platform-publisher relationship

Is 2018 the year when the publisher/platform relationship is turned on its head? Is this the moment when policy-makers change the balance of power between the tech giants and the content creators?

Recent years have been tough on publishers as the social networks and search companies have grown up from transformative teens to dominating adults. Once mighty media brands have […]

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    How businesses in sub-Saharan Africa are adapting to climate change

How businesses in sub-Saharan Africa are adapting to climate change

Climate change poses increasing risks to economic growth and development across the world and particularly in developing countries. A critical issue is the extent to which private actors, and especially businesses, are able to adapt to climate risks. In Africa, the private sector generates two-thirds of the continent’s investment, 75 per cent of its economic output and 90 per […]

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    Charting a course for investment management in the 4th industrial revolution

Charting a course for investment management in the 4th industrial revolution

The problem with the future is that it is not here yet. Virtually every aspect of our lives is in a state of flux. While change may have always been a constant, several factors come together to make this an industrial revolution of a fundamental kind. Every profession is having to grapple with existential questions as well as questions […]

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    How much attention do investors pay to rounding in earnings forecasts?

How much attention do investors pay to rounding in earnings forecasts?

Evidence exists that investors are subject to attentional constraints when making economic decisions and as a result focus on subsets of publicly available information that are more salient, i.e. that tend to stand out and are easier to process. Selective attention to salient stimuli can be economically justified if time and attention are costly.

A large literature to date examines […]

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    The quality of financial information explains why stocks and bonds co-move

The quality of financial information explains why stocks and bonds co-move

The sensitivity of corporate bond returns to changes in the value of equity is a fundamental input for portfolio asset allocation. Since imperfect correlation of asset returns is a key assumption in portfolio theory, stock-bond return co-movement is important to determine the diversification benefits of bonds, and to hedge common exposures across the two asset markets. Because bonds exhibit […]

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    What power does to you – the psychological consequences of power

What power does to you – the psychological consequences of power

We often blame the behaviours of those who have power and abuse it on the individual and his or her personality. That is, we make what psychologists call a dispositional attribution. But there is more to individual and personality differences when it comes to understanding the behaviour of those in power. In fact, what is often occulted are the […]

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    Why the Bank of England should stay put and not raise rates now: the view of leading economists

Why the Bank of England should stay put and not raise rates now: the view of leading economists

Ahead of the May 2018 interest rate decision of the Bank of England’s Monetary Policy Committee, more than two-thirds of leading economists surveyed by the Centre for Macroeconomics (CFM) agree that in a period of great uncertainty and after a prolonged period of weak real wage growth, monetary policy-makers can afford to wait for greater certainty about real wage […]

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    Skilled migrants have higher earning potential in countries with more inequality

Skilled migrants have higher earning potential in countries with more inequality

Attracting and retaining high-skill individuals is vital for the development of knowledge-based economies, in which ideas drive technological progress. Understanding whether and why high-skilled individuals stay in a country or leave it is therefore crucial – for sending and receiving countries alike.

A very influential theoretical model of migrant selection (Borjas 1987, building on Roy 1951) predicts that migrants to […]

Algorithms raise a number of critical issues for regulation

The regulation of and by algorithms has become of growing relevance to the delivery of public services, coinciding with the related interest in open and big data. Debates about the consequences of the rise of algorithms have been however limited. Early contributions considered whether the rise of algorithmic regulation and new information technologies represented a fundamental (mostly benevolent) change […]

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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    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 […]

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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, […]

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    Leslie Willcocks: the role automation plays in creating jobs has been largely ignored

Leslie Willcocks: the role automation plays in creating jobs has been largely ignored

Leslie Willcocks, professor of technology, work and globalisation at LSE’s Department of Management, finds incoherence and exaggeration surrounding the application of artificial intelligence and cognitive automation to work. In this video (3′ 26″), he discusses some of the findings in his new book. 


The video was recorded at Open House, a gathering of global teaching institutions offering the Economics, Management, Finance and […]