LSE CEP LSE
Centre for Economic Performance (CEP)

CEP in the News 2010


Managing IP
Panel announced for UK IP review

Boyle is a professor at Duke Law School. And [Mark] Schankerman is professor of economics at the London School of Economics. The review's scope will be limited to four issues: barriers to new internet-based models, cost and complexity of enforcement; IP and competition interaction; and cost and complexity for SMEs.

The panel was announced on 6 December 2010 link to article

Related links
Independent Review of IP and Growth link
Intellectual Property Office Press Release link
Mark Schankerman webpage
Productivity and Innovation Programme webpage

Moneycontrol.com
Themed funds may miss the point on China and India

Tim Leunig at the London School of Economics said in the past people have reacted to rising raw materials costs by tapping new sources, using the commodity more efficiently or finding a substitute, ultimately limiting the price rise.

This article appeared in Moneycontrol.com on 8 December 2010 link to article

Related links
Tim Leunig webpage
Globalisation Programme webpage

Globe and Mail (Canada)
Canada's talent challenge

We did a survey of manufacturing management, drawing on a measurement technique developed by Professor Nick Bloom at Stanford and McKinsey and Co., the consulting firm. How good is our management? We were up there in the top tier, we were as good as Sweden, Germany and Japan. We were all behind the Americans [in terms of management].

This article appeared in Globe and Mail (Canada) link to article

Related publications
‘Management Practice and Productivity’ Nick Bloom, Stephen Dorgan, John Dowdy, Christos Genakos, Raffaella Sadun and John Van Reenen, July 2007
‘Management Practices Across Firms and Nations’ Nick Bloom, Stephen Dorgan, John Dowdy, Tom Rippin and John Van Reenen, June 2005

Related links
Nick Bloom webpage
Christos Genakos webpage
Raffaella Sadun webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

NewsKF
How much my house worth?

[first published in The Wall Street Journal on 25 November 2010]
2007 real estate boom has raised housing prices by more than 100%, according to a study by Luis Garicano professor at the London School of Economics. According to the same report, the Spanish market accounted for two thirds of the units built in Europe between 1999 and 2007.

This article appeared in News FK on 6 December 2010 link to article

Related links
Luis Garicano webpage
Productivity and Innovation Programme webpage

The Observer
Can a Christmas pudding ever be worth £250?

Third, many of us have read the works of the wonderful Richard Layard and digested the notion that stuff, per se, does not make you happy. Friends do, communities do, interests do, doing good does: but stuff?

This article appeared in the Observer on the 5th December 2010 link to article

Related publications
‘The Depression Report: A New Deal for Depression and Anxiety Disorders’ the Centre for Economic Performance’s Mental Health Policy Group, June 2006 Happiness: Lessons from a New Science (2005), Richard Layard details

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

Financial Times
Spain seeks to impress with austerity measures

LSE professor of economics and strategy Luis Garicano has welcomed the Spanish government's announcement of austerity measures, including pension changes.

This article appeared in the Financial Times on 4 December 2010 (no link avaliable)

Related links
Luis Garicano webpage
Productivity and Innovation Programme webpage

Pensions World
Conference report SPC riveting stuff

Dr Tim Leunig of the London School of Economics and Policy Exchange mesmerised delegates in the next session entitled “What is required to turn the tide?” First he debunked the myth that the pensions system was better in the olden days.

This article appeared in Pensions World on December 3, 2010
Link to article

Related Links
Tim Leunig webpage
Globalisation Programme webpage

Financial Times
Assange bats on sticky Wikiwicket

John Van Reenen, president of the Centre for Economic Performance, has become the latest expert to argue that many firms owned and run by families are badly managed. How then, do family businesses succeed in commanding large chunks of competitive markets, as so many do? It is funny how successful incompetents can sometimes be.

This article appeared in the Financial Times on December 3, 2010
Link to article (subscription required)

Related Publications
Are Family Friendly Workplace Practices a Valuable Firm Resource?, Nick Bloom, Toby Kretschmer and John Van Reenen, Strategic Management Journal 10 (2010).

Related Links
John Van Reenen webpage
Productivity and Innovation Programme webpage

International Herald Tribune
Spain has new plan to avert crisis

The Spanish prime minister brought in measures yesterday aimed at distancing the country from other troubled countries within the eurozone. Luis Garciano a Spanish professor at the LSE is quoted as saying that the markets are doubting due to not seeing how the debt can be financed and paid down.

This article appeared in the International Herald Tribune on December 2, 2010
Link to article

Related Links
Luis Garicano webpage
Productivity and Innovation Programme webpage

Edmonton Journal (Canada)
Can government mandate happy?

In 2006, Richard Layard, an economist at the London School of Economics, argued that unhappiness was a bigger social problem in Britain than unemployment.

This article appeared in the Edmonton Journal (Canada) on December 1, 2010
Link to article

Related Publications
The Depression Report: A New Deal for Depression and Anxiety Disorders, the Centre for Economic Performance’s Mental Health Policy Group, June 2006.
Happiness: Lessons from a New Science by Richard Layard, published 2005
Details

Related Links
Richard Layard webpage
Wellbeing Programme webpage

Wall Street Journal
Why the spending stimulus failed

In a new cross-national time series study, Ethan Ilzetzki of the London School of Economics and Enrique Mendoza and Carlos Vegh of the University of Maryland conclude that in open economies with flexible exchange rates, "a fiscal expansion leads to no significant output gains."

This article appeared in The Wall Street Journal on December 1, 2010
Link to article.

Related Publications
‘How Big (Small?) are Fiscal Multipliers?’, Ethan Ilzetzki, Enrique G. Mendoza and Carolos A. Végh, Centre for Economic Performance Discussion Paper No.1016, October 2010.

Related Links
Ethan Ilzetzki webpage
Macro Programme webpage

CNN Politics
President meets fellow Nobel Laureates

President Obama will meet with two American Nobel laureates at the White House Tuesday afternoon before they leave for Europe to receive their awards. Diamond, Mortensen, and Christopher Pissarides of Cyprus will share the 2010 prize in economics for their research on how government policy affects unemployment. Diamond is on the faculty of M.I.T., Mortensen at Northwestern University, and Pissarides at the London School of Economics. They will be honored in a ceremony in Stockholm, Sweden on December 10.

This article appeared on CNN Politics on December 1, 2010
Link to article.

Related Links
Christopher Pissarides webpage
Macro Programme webpage

The Wall Street Journal
The good life with David Cameron

They will no doubt turn to "the new science" of happiness, as Lord Richard Layard of Highgate called it in his 2005 book on the topic.

This article appeared in The Wall Street Journal on November 30, 2010
Link to article

Related publications
Happiness: Lessons from a New Science by Richard Layard, published 2005
Details

Related Links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

Labour Party
Speech to demos - Douglas Alexander MP

The figures I just quoted about jobs in the UK during the recession, aren’t actually to flag up the virtues of government or central bank intervention, important though that was. Economists Paul Gregg and Jonathan Wadsworth, writing for the LSE’s Centre for Economic Performance, have noted how, in this recession “firms did the right thing in, wherever possible, holding onto valuable labour in the face of the pressure on profits”.

This article appeared on the Labour Party website on November 30, 2010
Link to article

Related Publications
CentrePiece Magazine Article: Jobs in the recession, Paul Gregg and Jonathan Wadsworth, Vol.15(1), Summer 2010
'The UK Labour Market and the 2008-2009 Recession’, Paul Gregg and Jonathan Wadsworth, Centre for Economic Performance Occasional Paper No.25, June 2010

Related Links
Paul Gregg webpage
Jonathan Wadsworth webpage
Labour Markets Programme webpage

The New Statesman
David Cameron, happiness and delusion

Most would accept that the quality of our lives is not determined simply by how much money we have, although the efforts of the Labour government's "Happiness Czar", Richard Layard, appear to have been swiftly forgotten.

This article appeared in The New Statesman on November 28, 2010
Link to article

Related publications
Happiness: Lessons from a New Science by Richard Layard, published 2005
Details

Related Links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

Handelsblatt
Deutschands Ökonomen erhalten Millionenbetrag

Article cites the work of Daniel Sturm and of the four German economists that were awarded an ERC Starting Grant this year.

This article appeared in Handelsblatt (Germany)on November 27, 2010
Link to article

Related Links
Daniel Sturm webpage
Globalisation Programme webpage

Winnipeg Free Press (Canada)
One's present age is always one's best age

And according to British economist Richard Layard, we're right -- money does buy happiness, at least to a point. People feel better about themselves when they are financially secure.

This article appeared in the Winnipeg Free Press (Canada) on November 27, 2010
Link to article

Related publications
Happiness: Lessons from a New Science by Richard Layard, published 2005
Details

Related Links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

The Economist
The joyless or the jobless

In 2006 Richard Layard, an economist at the London School of Economics, argued that unhappiness was a bigger social problem in Britain than unemployment. In the “Depression Report”, which he co-wrote, Lord Layard pointed out that more people were claiming incapacity benefits because of depression and other mental disorders than were on the dole. The subsequent recession fixed that. The jobless now outnumber the joyless—there is nothing like a drop in GDP to remind everyone how much this much-maligned metric matters.

This article appeared in the Economist on November 25, 2010
Link to article

Related Publications
The Depression Report: A New Deal for Depression and Anxiety Disorders, the Centre for Economic Performance’s Mental Health Policy Group, June 2006.
Happiness: Lessons from a New Science by Richard Layard, published 2005
Details

Related Links
Richard Layard webpage
Wellbeing Programme webpage

BBC Radio 4
Today

Richard Layard comments on the Government’s plans to measure happiness.

This interview was broadcast on the 25 November 2010 on the Today Programme on Radio 4.

Also on
News briefing BBC Radio 4 (25 Nov)
5 Live Breakfast BBC Radio 5 Live (25 Nov)

Related publications
Happiness: Lessons from a New Science, Richard Layard details

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

Policy Review Magazine
In need of critical care

Better management can increase hospital quality and efficiency – where staff combine clinical and managerial skills
Article by Rebecca Homkes
Recent work from the Centre for Economic Performance (CEP) at the London School of Economics and McKinsey & Company shows that improving hospital management practices is key. The research points to a strong link between management on the one hand and better quality of patient care and productivity on the other.

This article appeared in the Policy Review Magazine on November 24, 2010
Link to article

Related Publications
‘Management in Healthcare: why good practice really matters’. Report by McKinsey & Co and the Centre for Economic Performance. October 2010
Download

Related Links
Rebecca Homkes webpage
Productivity and Innovation Programme webpage

MSN – UK
Angela Merkel's bailout battle

It is the German government's loose talk that has brought Europe to the brink of another debt crisis." These were the words of Simon Johnson, a former chief economist of the IMF, and Peter Boone chairman of effective intervention at the London School of Economics' Centre for Economic Performance

This article appeared in MSN money on 24 November 2010 link to article

Related links
Peter Boone webpage
Effective Intervention Programme webpage

The Wall Street Journal (Europe)
Spain officials speak out to soothe contagion fears

Spanish officials have attempted to dismiss fears that the near-collapse of the Greek and Irish economies will soon spread to Portugal and Spain. Luis Garicano a professor of Economics and Strategy at the London School of Economics, is referred to as having said that "The government needs to swiftly pass legislation to overhaul the country's generous pension system".

This article appeared in The Wall Street Journal on 24 November 2010 Link to article

Related links
Luis Garicano webpage
Productivity and Innovation Programme webpage

Personnel Today
Business well-being network annual conference addresses employee engagement

Pay restraint is needed to stop people losing their jobs, a leading economist told delegates at the Business Well-Being Network annual conference this month. Lord Richard Layard, emeritus professor of economics at the London School of Economics, said that employers and employees should work together to prevent rising unemployment.

This article appeared in Personnel Today on November 22, 2010
Link to article

Related Links
Richard Layard webpage
Wellbeing Programme webpage
Richard Layard CEP Publications webpage

Handelsblatt
Glück stattGeld

Der britische Premier David Cameron setzt so stark wie kein anderer Politiker auf die Erkenntnisse der Verhaltensökonomen.
In Großbritannien soll es eher losgehen: Die Statistikbehörde des Landes soll voraussichtlich schon ab 2011 regelmäßig messen, wie zufrieden die Bewohner des Inselreichs sind. Bislang sei die Wirtschaftspolitik zu sehr auf materiellen Wohlstand und das Bruttoinlandsprodukt fixiert. „Wir messen die falsche Größe und tun das Falsche“, kritisiert Richard Layard, Professor an der London School of Economics. „Wenn wir die Lebenszufriedenheit messen, werden sich unsere politischen Prioritäten verschieben.“

This article appeared in Handelsblatt on November 22, 2010
Link to article

Related Publications
Happiness: Lessons from a New Science, Richard Layard.

Related Links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

The New Yorker
What good is Wall Street?

In a recent article titled “What Do Banks Do?,” which appeared in a collection of essays devoted to the future of finance, Turner pointed out that although certain financial activities were genuinely valuable, others generated revenues and profits without delivering anything of real worth—payments that economists refer to as rents. “It is possible for financial activity to extract rents from the real economy rather than to deliver economic value,” Turner wrote. “Financial innovation . . . may in some ways and under some circumstances foster economic value creation, but that needs to be illustrated at the level of specific effects: it cannot be asserted a priori.”

This article appeared in the The New Yorker on November 22, 2010
Link to article

Related Publications
The Future of Finance: and the theory that underpins it
Contributors: Adair Turner, Andrew Haldane, Paul Woolley, Sushil Wadhwani, Charles Goodhart, Andrew Smithers, Andrew Large, John Kay, Martin Wolf, Peter Boone, Simon Johnson and Richard Layard

Related Links
The ‘Future of Finance’ Conference was held on Wednesday 14 July 2010.
Conference details
Richard Layard webpage
Wellbeing Programme webpage
Peter Boone webpage
Effective Intervention Programme webpage

CEP Special Event
Working with World Bank Data - Dr Eric Swanson, World Bank

Monday 22nd November

Dr. Eric Swanson, senior advisor to the director of the Development Data Group at the World Bank, will discuss the sources and methods used to compile the World Development Indicators and other databases maintained by the World Bank.

The World Bank's recently announced policy of providing free and unrestricted access to its databases has opened up a large amount of new information for students and researchers. Dr. Swanson is an economist who has spent his career collecting, analyzing, and publishing data on developing countries.

There will be a talk and presentation Monday 22nd November 10.30-11.45, in LRB 405 (CEP Conference Room) 4th Floor, Research Laboratory followed by one-on-one meetings with Dr Swanson between 1.00 pm and 5.00 pm.

If you would like to meet with Dr Swanson and discuss World Bank data, or attend the event please go to the event webpage for further details:

For further information
Please visit the Working with World Bank Data webpage

Photo copyright © Simone D. McCOurtie / World Bank

Improvement and Development Agency
The local wellbeing project

It was run by Local Government Improvement and Development (previously the IDeA), the Young Foundation and the London School of Economics Centre for Economic Performance, in collaboration with Hertfordshire, Manchester and South Tyneside Councils.

This article generated by the Improvement and Development Agency
Link to article

Related Links
Richard Layard webpage
Wellbeing Programme webpage

The Sunday Times
If you're happy, they want to know it

Lord [Richard] Layard, a founder director for the Centre for Economic Performance at the LSE, is one of those behind Action for Happiness, a charity that is to launch next year.

This article appeared in the Sunday Times on November 21, 2010
[No link available to the article.]

Related Publications
Happiness: Lessons from a New Science, Richard Layard.

Related Links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

Financial Times
Entrepreneur key to 1980s reforms

Profile of Lord Young, who has recently resigned from a government post. The LSE's Tim Leunig is quoted as saying that Lord Young is at the end of his career.

This article appeared in the Financial Times Online on November 20, 2010
[No link available to article.]

Related Links
Tim Leunig webpage
Globalisation Programme webpage
Tim Leunig publications webpage

See also
November 19, 2010
BBC Radio Wales
Good evening Wales
Dr Tim Leunig comments on Lord Young's resignation.

Daily Mail
Proof firms will be able to cope

Comment. A report by the LSE's Professor Metcalf suggests that the effect on the economy of the immigration cap will be negligible if his proposals are implemented.
The proposed limit on non-EU workers, if accepted by the Coalition, would be slightly stricter than the interim cap on economic migrants already in place. Business leaders immediately warned their ‘competitiveness’ would be harmed if they face tough restrictions on who they are allowed to employ. But the chairman of the MAC, Professor David Metcalf, said businesses would be able to ‘cope’. He said the cost to the economy of slashing the number of foreign workers would be minimal - reducing GDP by as little as £6 per head.

This article appeared in the Daily Mail on November 19, 2010
Link to article

Related Links
David Metcalf webpage
Labour Markets Programme webpage
David Metcalf CEP Publications webpage

Economic Voice
Europe's monetary cordon sanitaire

Article by Peter Boone and Simon Johnson
Peter Boone, chairman of effective intervention at the London School of Economics' Center for Economic Performance, is a principal in Salute Capital.
Germany is moving weaker eurozone countries towards default.

This article appeared in European Voice on November 19, 2010
Link to article

Related Links
Peter Boone webpage
Effective Intervention Programme webpage

Philadelphia Inquirer
Matching jobs with jobless

So will "jobless recoveries" become the norm? And how can policymakers reverse this disturbing trend? Some of the answers may be found in the research of Northwestern University professor Dale T. Mortensen, who was awarded the Nobel Prize in economics this month. (Mortensen was my adviser at Northwestern, and I worked for him as a research assistant.) With his fellow Nobel laureates, Peter Diamond of the Massachusetts Institute of Technology and Christopher Pissarides of the London School of Economics, Mortensen revolutionized economics by moving market analysis beyond the basic concepts of supply and demand. In many markets, they emphasized, the matching of buyers and sellers takes time because the two groups have incomplete information about each other.

This article appeared in the Philadelphia Inquirer on November 19, 2010
Link to article

Related Links
Christopher Pissarides webpage
Christopher Pissarides CEP publications webpage
Macro Programme webpage

The Times Educational Supplement
Research reveals academy disparity

Plans to allow every school to become an academy will reinforce inequalities in England's education system, new research has claimed. A study published in the Centre for Economic Performance's Centrepiece magazine concludes that schools approved for academy status are "significantly" more advantaged than those approved under Labour.

This article appeared in The Times Educational Supplement on November 19, 2010
Link to article

Related Publications
Note on Academy School Policy Stephen Machin and James Vernoit, Centre for Economic Policy Analysis, July 2010
Academy schools: who benefits? by Stephen Machin and James Vernoit. In CentrePiece 15 (2) Autumn 2010

Related Links
Stephen Machin webpage
James Vernoit webpage
Centre for the Economics of Education (CEE) webpage
Education and Skills Programme webpage

Prospect Magazine
Cavalier cuts

‘Coalition plans to cap benefits will not work as intended, and are unnecessarily draconian’ – Article by Dr Tim Leunig, a reader in economics at LSE.

This article appeared in Prospect Magazine on November 18, 2010
Link to article

Related Links
Tim Leunig webpage
Globalisation Programme webpage
Tim Leunig publications webpage

New Statesman
Plastic bags, BST and Tina Brown

Here is a little tale that casts light on these supposedly austere times. It comes from Tim Leunig, reader in economic history at the London School of Economics.

This article appeared in the New Statesman on November 18, 2010
Link to article

Related Links
Tim Leunig webpage
Globalisation Programme webpage
Tim Leunig publications webpage

New Statesman
Ireland's storm is blowing our way

Our new Nobel laureate in economics, Chris Pissarides of the London School of Economics, was also there, trying to avoid a scrum of journalists hoping to interview him. They mostly wanted his views on the Chancellor George Osborne's austerity package, which, as Pissarides has already made clear, he thinks is a mistake.

This article appeared in the New Statesman on November 18, 2010
Link to article

Related Links
Christopher Pissarides webpage
Christopher Pissarides CEP publications webpage
Macro Programme webpage

BBC Radio 4
The World at One

Dr Tim Leunig, LSE, discussed whether there will be an economic boost from the Royal wedding.

This interview was broadcast on BBC Radio 4 'The World at One' on November 17, 2010
Link to article

Related Links
Tim Leunig webpage
Globalisation Programme webpage

Britain News.Net
'Austerity Britain' gears up for a royal wedding

But times may have changed the appetite for pomp and circumstance, said Tim Leunig, a professor at the London School of Economics. "We're not as concerned with these big events nowadays," he said. "With Charles and Diana's marriage not working out, we're a little less interested in that sort of thing."

This article appeared in Britain News.Net on November 17, 2010
Link to article

Related Links
Tim Leunig webpage
Globalisation Programme webpage

Also in
KOSU News (Oklahoma)
'Austerity Britain' gears up for a royal wedding


Truthout
The debt problems of the European periphery

Article co-authored by Peter Boone, associate at the Centre for Economic Performance, London School of Economics.
Last week's renewed anxiety over bond market collapse in Europe's periphery should come as no surprise. Greece's EU/IMF program heaps more public debt onto a nation that is already insolvent, and Ireland is now on the same track. Despite massive fiscal cuts and several years of deep recession Greece and Ireland will accumulate 150% of GNP in debt by 2014. A new road is necessary: The burden of financial failure should be shared with the culprits and not only born by the victims.

This article appeared in Truthout on November 17, 2010
Link to article

Related Links
Peter Boone webpage
Effective Intervention Programme webpage

Politics.co.uk
ESRC: Britain in 2011, the state of the Nation

This year's magazine features articles on: 'Getting Finance to Support Investment' - John Van Reenen argues that the risk of another financial crisis has increased.

This article appeared in Politics.co.uk on November 17, 2010
Link to article

Related Publications
'Britain in 2011, The State of the Nation'. Published by the ESRC.
Details

Related Links
John Van Reenen webpage
Productivity and Innovation Programme webpage
John Van Reenen CEP publications webpage

International Herald Tribune
The two cultures

It is mentioned that Ethan Ilzetzki of the LSE and two others from the University of Maryland have looked at stimulus efforts in 44 countries.

This article appeared in the International Herald Tribune on November 17, 2010
Link to article

Related Publications
'How Big (Small?) are Fiscal Multipliers?', Ethan Ilzetzki, Enrique G. Mendoza and Carolos A. Végh, Centre for Economic Performance Discussion Paper No.1016, October 2010

Related Links
Ethan Ilzetzki webpage
Macro Programme webpage

New York Times
The two cultures

Ethan Ilzetzki of the London School of Economics and Enrique G. Mendoza and Carlos A. Vegh of the University of Maryland examined stimulus efforts in 44 countries. In a recent National Bureau of Economic Research paper, they argued that fiscal stimulus can be quite effective in low-debt countries with fixed exchange rates and closed economies.

This article appeared in the New York Times on November 16, 2010
Link to article

Related Publications
'How Big (Small?) are Fiscal Multipliers?', Ethan Ilzetzki, Enrique G. Mendoza and Carolos A. Végh, Centre for Economic Performance Discussion Paper No.1016, October 2010

Related Links
Ethan Ilzetzki webpage
Macro Programme webpage

The Guardian
An unhappiness index is more David Cameron's style

David Cameron did not invent happiness. In any felicific calculus, he is unlikely to go down in history as the man who created the greatest happiness for the greatest number. On the contrary, he heads a government in the process of inflicting more pain than for many a long year. So why, next week, would he launch a great new plan to measure the wellbeing of the nation? "It's very brave," says Professor Richard Layard of the LSE, who has campaigned for these indicators for years.

This article appeared in the The Guardian on November 16, 2010
Link to article

Related Publications
Happiness: Lessons from a New Science, Richard Layard.
Details

Related Links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

The Daily Telegraph
How can we measure happiness

Economists believe that the pursuit of public happiness as a policy goal has merit even when the economy is booming. This is because, as their data have become more comprehensive and sophisticated, they have noticed one apparent paradox: that despite a substantial increase in GDP in the industrialised West, the levels of human contentment have remained static. This realisation encouraged Lord Layard, professor of economics at the LSE and adviser to Gordon Brown, to urge the last Labour government to recognise that economic growth need not be an overriding priority. He believed governments should embrace the Benthamite principle that, “the best society is that where the people are happiest, and the best policy is the one that produces the greatest happiness”.

This article appeared in the Daily Telegraph on November 16, 2010
Link to article

Related Publications
Happiness: Lessons from a New Science, Richard Layard.
Details

Related Links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

The Independent
The Coalition doesn't need to reinvent the Blairite wheel

Comment. It is likely that some of the coalitions’ reforms will succeed, and some will fail. It is mentioned that a study by Zack Cooper and others at the LSE came to the conclusion that patients were more likely to expire where the provider of NHS services is a monopoly provider.

This article appeared in The Independent on November 16, 2010
Link to article

Related Links
Zack Cooper webpage
Zack Cooper CEP publications webpage
Productivity and Innovation Programme webpage

BBC News Magazine online
Why it's hard to measure happiness

Lord Layard said it best when he said that in the same way that government policy should provide the correct circumstances under which people can thrive economically, they also can and should stimulate the circumstances under which people can have high levels of wellbeing. Not many complain that the government has been too intrusive in regards to the economy (most feel the opposite), so why would steps to measure and stimulate wellbeing necessarily be intrusive?

This article appeared on the BBC News Magazine online on November 16, 2010
Link to article

Related Links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

Slate Magazine
David Brooks: The trouble with liberals is that they only care about cold economics

How does Brooks know? He cites "a recent National Bureau of Economic Research paper" by "Ethan Ilzetzki of the London School of Economics and Enrique G. Mendoza and Carlos A. Vegh of the University of Maryland."

This article appeared in Slate Magazine on November 16, 2010
Link to article

Related Publications
'How Big (Small?) are Fiscal Multipliers?', Ethan Ilzetzki, Enrique G. Mendoza and Carolos A. Végh, Centre for Economic Performance Discussion Paper No.1016, October 2010

Related Links
Ethan Ilzetzki webpage
Macro Programme webpage

Spiked online
Cameron's happiness index: counting smiley faces

The promoters of global happiness as government policy see their cause as something of a moral crusade. Professor Richard Layard of the London School of Economics is the principal ideologue of the ‘science’ of happiness, a role that led to his appointment as a Labour member of the House of Lords, Baron Layard of Highgate.

This article appeared in Spiked online on November 16, 2010
Link to article

Related Publications
Happiness: Lessons from a New Science by Richard Layard
Details

Related Links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

Britain News.Net
Tuesday newspaper review; Irish business news and international stories

Just look at the countries that have weathered the recession the best; Ethan Ilzetzki of the London School of Economics and Enrique G. Mendoza and Carlos A. Vegh of the University of Maryland examined stimulus efforts in 44 countries.

This article appeared in Britain News.Net on November 16, 2010
Link to article

Related Publications
'How Big (Small?) are Fiscal Multipliers?', Ethan Ilzetzki, Enrique G. Mendoza and Carolos A. Végh, Centre for Economic Performance Discussion Paper No.1016, October 2010

Related Links
Ethan Ilzetzki webpage
Macro Programme webpage

Improvement and Development Agency
The local wellbeing project

The Local Wellbeing Project brings together all the developments and learning of a unique four-year initiative, which ran until March 2010, to test practical ways of improving public wellbeing through local authorities and their partners in three very different areas of the UK. It was run by Local Government Improvement and Development (previously the IDeA), the Young Foundation and the London School of Economics Centre for Economic Performance, in collaboration with Hertfordshire, Manchester and South Tyneside Councils.

This article appeared on the Improvement and Development Agency website on November 15, 2010
Link to article

Related Links
Richard Layard webpage
Wellbeing Programme webpage

EurActiv
Europe's monetary cordon sanitaire

The German government's proposed debt-restructuring mechanism immediately shifts weaker eurozone countries towards default, write Simon Johnson, former chief economist of the IMF and Peter Boone, chairman of Effective Intervention at the London School of Economics' Centre for Economic Performance.

This article appeared online on EurActiv on November 15, 2010
Link to article

Related Links
Peter Boone webpage
Effective Intervention Programme webpage

The Associated Press
Get happy! UK government to measure well-being

Richard Layard, an emeritus professor at the London School of Economics who has contributed to British government studies on how best to measure happiness, praises the trend. "I think it's wonderful," he said. "It's something I and others have been advocating for some time. It's based on the idea that unless you measure the right things, you won't do the right things."

This article appeared in the Associated Press on November 15, 2010
Link to article

Related Publications
Happiness: Lessons from a New Science, Richard Layard.
Details

Related Links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

Also in
SignOn San Diego
Get happy! UK government to measure well-being
British officials said Monday they will start measuring national happiness in addition to gauging more traditional data like income levels and fear of violent crime. Richard Layard, an emeritus professor at the London School of Economics who has contributed to government studies on the best ways to measure subjective well-being, praises the trend.


CentrePiece
Autumn 2010 Issue Now Out: THE NHS WHITE PAPER: Evolution or Revolution?

Articles for this issue will be available for download on Wednesday 10 November 2010. Please visit CentrePiece website at http://cep.lse.ac.uk/CentrePiece - OR -

To keep up to date with the very latest articles from the magazine subscribe to the new CentrePiece webfeed feed/rss
After the worst recession since the Second World War, the problem of unemployment is perhaps the biggest challenge facing policy-makers. So far the extent of UK job losses has not been as bad as expected based on the experience of the previous three recessions. But many fear that unemployment will rise further, especially as the public spending cuts take effect. For those without a job for extended periods, there is a risk of permanent 'scarring', especially for young people without prior work experience.

So it is particularly timely that the 2010 Nobel prize in economics has been awarded for research that explains the process of search: how people look for work; how they are matched with job vacancies; and how various 'frictions' impede that outcome.

One of the three new laureates is the first economist based in Britain to receive the accolade in over a decade: Chris Pissarides, who has been a cornerstone of life at the Centre for Economic Performance (CEP) since its foundation in 1990 and for many years led the research programme on macroeconomics, particularly unemployment.

Professor Pissarides explains his work thus: 'Our research looks at what happens to someone who loses his or her job because of changes in the economic environment. We have created a model that allows us to analyse the processes and decisions, such as policy, which affect how long it is before someone finds productive employment again.'

This research has immediate implications for policy-makers at a time of economic weakness: 'One of the key things we find is that it is important to make sure that people do not stay unemployed too long so they don't lose their feel for the labour force. The ways of dealing with this need not be expensive training - it could be as simple as providing work experience.'

There'll be more on what the Nobel citation describes as 'analysis of markets with search frictions' in the next CentrePiece. Meanwhile, this issue examines many other current policy debates. A piece on the recent LSE report on The Future of Finance summarises its radical proposals for regulatory reform. And articles on the NHS White Paper and 'coalition academies' launch a series that will draw on CEP research to evaluate policy innovations by the new government.

Elsewhere, we report studies of the impact of China's rise on Western innovation; of the impact of new technology on demand for skills; and of the impact of the euro on trade within the European Union. Perhaps the most topical for the UK is a cross-country analysis of the effectiveness of fiscal policy. As the cuts to public spending start to be implemented, the key question is what will be the ultimate effects on growth and jobs.

Key Articles include:

'Does fiscal policy work?' - Ethan Ilzetzki; 'The NHS White Paper: evolution or revolution?' - Zack Cooper; 'Chinese ghosts in the Western machine' - John Van Reenen; 'Foreign takeovers of British companies' - Geoffrey Owen; 'Has the euro increased trade?' João Santos Silva and Silvana Tenreyro; '"Revolving door" lobbyists' - Jordi Blanes i Vidal, Mirko Draca and Christian Fons-Rosen

To read ALL the articles please go the CentrePiece website at http://cep.lse.ac.uk/CentrePiece - OR -

To keep up to date with the very latest articles from the magazine subscribe to the new CentrePiece webfeed feed/rss

Romesh Vaitilingam, Editor. Email: romesh@vaitilingam.com


Harvard Business School - 'Working Knowledge'
How IT shapes top-down and bottom-up decision making

Information-based systems, such as Enterprise Resource Planning (ERP) software, will push decision-making toward the bottom of the corporate ladder. Communication systems, such as e-mail and instant messaging applications, will push the decision-making process toward the top. And that means developing an IT strategy isn't all about deploying the best technology, says Raffaella Sadun, an assistant professor of strategy at Harvard Business School. Sadun discusses the issue in "The Distinct Effects of Information Technology and Communication Technology on Firm Organization," a paper she cowrote with Nicholas Bloom of Stanford University and Luis Garicano and John Van Reenen of the Centre for Economic Performance, London School of Economics.

This article appeared in Harvard Business School - 'Working Knowledge' on November 1, 2010
Link to article

Related Publications
'The Distinct Effects of Information Technology and Communication Technology on Firm Organization', Nicholas Bloom, Luis Garicano, Raffaella Sadun and John Van Reenen, Centre for Economic Performance Discussion Paper No.927, May 2009.

Related Links
Nick Bloom webpage
Luis Garicano webpage
Raffaella Sadun webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

ActiveQuote
Private medical cover customers have access to better-managed hospitals, says report

Professor John Van Reenen, director of CEP, said: “An overriding message is that management quality varies greatly within countries, even within a publicly dominated healthcare sector like the NHS. Many of the same factors that matter in other sectors - such as competition and skills - also matter for healthcare.

This article appeared in ActiveQuote on November 1, 2010
Link to article

Related Publications
Management in Healthcare: Why Good Practice Really Matters. Report from McKinsey & Company and the Centre for Economic Performance, October 2010
Management practices in the NHS, CentrePiece 14 (3), Winter 2010 pages 16-19, by Nick Bloom, Carol Propper, Stephan Seiler and John Van Reenen

Related Links
Nick Bloom webpage
Rebecca Homkes webpage
Raffaella Sadun webpage
John Van Reenen webpage
Management and Organisational Structures research webpage
Productivity and Innovation Programme webpage

Pulse
McKinsey: NHS managers 'least clinically-qualified' in developed world

Fewer than 60% of managers in UK hospitals were found to have a clinical degree, compared to more than 90% in Sweden, and the UK had the lowest proportion of managers with a clinical degree in all the countries surveyed. The research, by McKinsey and the Centre for Economic Performance at the London School of Economics, assessed management practices at nearly 1,200 hospitals in total.

This article appeared in Pulse on October 28, 2010
Link to article

Related Publications
Management in Healthcare: Why Good Practice Really Matters. Report from McKinsey & Company and the Centre for Economic Performance, October 2010
Management practices in the NHS, CentrePiece 14 (3), Winter 2010 pages 16-19, by Nick Bloom, Carol Propper, Stephan Seiler and John Van Reenen

Related Links
Nick Bloom webpage
Rebecca Homkes webpage
Raffaella Sadun webpage
John Van Reenen webpage
Management and Organisational Structures research webpage
Productivity and Innovation Programme webpage

Healthcare Europa
Private sector hospitals outperform public sector in Europe and North America

Private sector hospitals perform better than public sector, according to a new report co-written by McKinsey and the Centre for Economic Performance at the LSE. Management in Healthcare: Why good practice really matters is a seven country survey based on data from 1,196 hospitals in Germany, France, the UK, Italy, Sweden, Canada and the USA. It found that across all countries the private and not for profit sectors outperformed the public. But did they really? Maddeningly, report author Prof John Van Reenen at CEP said that patients differed between the two sectors: “private patients are likely to be wealthier and have fewer complications,” he pointed out. He said the study had tried to reflect this but that there was no way to accurately compare the two groups.

This article appeared in Healthcare Europa on October 27, 2010
Link to article

Related Publications
Management in Healthcare: Why Good Practice Really Matters. Report from McKinsey & Company and the Centre for Economic Performance, October 2010
Management practices in the NHS, CentrePiece 14 (3), Winter 2010 pages 16-19, by Nick Bloom, Carol Propper, Stephan Seiler and John Van Reenen

Related Links
Nick Bloom webpage
Rebecca Homkes webpage
Raffaella Sadun webpage
John Van Reenen webpage
Management and Organisational Structures research webpage
Productivity and Innovation Programme webpage

British Medical Journal
UK hospitals are better managed than counterparts in Canada, France, Germany and Italy but not the US, report says

Hospitals in the United Kingdom are “better managed” than their counterparts in several European countries and Canada, new research concludes. It also says that private sector organisations perform best overall across the countries. John Van Reenan, director of the LSE’s Centre for Economic Performance, said, “For the UK, having more clinically trained managers should be a priority.” Rebecca Homkes, project director for the Centre for Economic Performance, said that the study found better management scores in the private sector generally, not just in the UK.

This article appeared in the British Medical Journal on October 27, 2010
Link to article

Related Publications
Management in Healthcare: Why Good Practice Really Matters. Report from McKinsey & Company and the Centre for Economic Performance, October 2010
Management practices in the NHS, CentrePiece 14 (3), Winter 2010 pages 16-19, by Nick Bloom, Carol Propper, Stephan Seiler and John Van Reenen

Related Links
Nick Bloom webpage
Rebecca Homkes webpage
Raffaella Sadun webpage
John Van Reenen webpage
Management and Organisational Structures research webpage
Productivity and Innovation Programme webpage

Indian Express.com
How to save lives

From America to Sweden, the best hospitals in a rich country outperform the rest. But how? Stephen Dorgan of McKinsey, a consultancy, and John Van Reenen of the London School of Economics have tried to answer this. They studied almost 1,200 hospitals in America, Britain, Canada, France, Germany, Italy and Sweden, using techniques more commonly applied to identify excellence in manufacturing industry.

This article appeared in Indian Express on October 27, 2010
Link to article

Related publications
‘Management in Healthcare: Why Good Practice Really Matters’. Report from McKinsey & Company and the Centre for Economic Performance, October 2010. Authors: Nicholas Bloom, Rebecca Homkes, Raffaella Sadun and John Van Reenen.
Management practices in the NHS, CentrePiece 14 (3), Winter 2010 pages 16-19, by Nick Bloom, Carol Propper, Stephan Seiler and John Van Reenen

Related links
Nicholas Bloom webpage
Rebecca Homkes webpage
Raffaella Sadun webpage
John Van Reenen webpage
Management Practices and Organisational Structures Research webpage
Productivity and Innovation Programme webpage

Health Service Journal
Research supports better management for better outcomes

There is a strong association between high quality management and patient outcomes in UK hospitals, the management consultancy McKinsey and Co have claimed. The consultancy, with the London School of Economics' Centre for Economic Performance, has compared the quality of management at 1,194 hospitals internationally, including 180 in the UK, through detailed interviews with middle-level managers.

This article appeared in the Health Service Journal on October 26, 2010
Link to article

Related publications
‘Management in Healthcare: Why Good Practice Really Matters’. Report from McKinsey & Company and the Centre for Economic Performance, October 2010. Authors: Nicholas Bloom, Rebecca Homkes, Raffaella Sadun and John Van Reenen.
Management practices in the NHS, CentrePiece 14 (3), Winter 2010 pages 16-19, by Nick Bloom, Carol Propper, Stephan Seiler and John Van Reenen

Related links
Nicholas Bloom webpage
Rebecca Homkes webpage
Raffaella Sadun webpage
John Van Reenen webpage
Management Practices and Organisational Structures Research webpage
Productivity and Innovation Programme webpage

Daily Finance
NHS hospitals beat foreign rivals

UK Hospitals are better managed and have more satisfied patients than hospitals in Sweden, Germany, Canada, Italy and France, management consultants McKinsey and academics from the London School of Economics report. Only US hospitals show better management but the UK really shines when taking account of the amount spent on healthcare per head. The UK has the second lowest spend – above only Italy and spending less than half as much per head as the US. The report, Management in Healthcare: Why good practice really matters, produced two tables that show this. The first shows the management scores and the second the spend per head of population. Professor John Van Reenen, director of the Centre for Economic Performance, said: "An overriding message is that management quality varies greatly within countries, even within a publicly dominated healthcare sector like the NHS.”

This article appeared in Daily Finance on October 26, 2010
Link to article

Related publications
‘Management in Healthcare: Why Good Practice Really Matters’. Report from McKinsey & Company and the Centre for Economic Performance, October 2010. Authors: Nicholas Bloom, Rebecca Homkes, Raffaella Sadun and John Van Reenen.
Management practices in the NHS, CentrePiece 14 (3), Winter 2010 pages 16-19, by Nick Bloom, Carol Propper, Stephan Seiler and John Van Reenen

Related links
Nicholas Bloom webpage
Rebecca Homkes webpage
Raffaella Sadun webpage
John Van Reenen webpage
Management Practices and Organisational Structures Research webpage
Productivity and Innovation Programme webpage

Public Finance Magazine
Better managed hospitals 'are most efficient'

Researchers at the London School of Economics' Centre for Economic Performance and consultancy McKinsey & Company assessed the management practices of almost 1,200 hospitals in seven countries: the UK, US, Canada, France, Germany, Italy and Sweden.

This article appeared in Public Finance on October 25, 2010
Link to article

Related publications
‘Management in Healthcare: Why Good Practice Really Matters’. Report from McKinsey & Company and the Centre for Economic Performance, October 2010. Authors: Nicholas Bloom, Rebecca Homkes, Raffaella Sadun and John Van Reenen.
Management practices in the NHS, CentrePiece 14 (3), Winter 2010 pages 16-19, by Nick Bloom, Carol Propper, Stephan Seiler and John Van Reenen

Related links
Nicholas Bloom webpage
Rebecca Homkes webpage
Raffaella Sadun webpage
John Van Reenen webpage
Management Practices and Organisational Structures Research webpage
Productivity and Innovation Programme webpage

Huffington Post
Could we 'have' less and 'be' more?

The LSE's Professor Richard Layard has found that people in the West over the last 50 years have become richer, have longer holidays, travel more, live longer and are healthier. But they are no happier. He has an incredible amount of data to back up the claim too. It's a shocking fact that should drive our public policy debates but does not.

This article appeared in the Huffington Post on October 25, 2010
Link to article

Related publications
Happiness: Lessons from a New Science, by Richard Layard.
Details

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

Press Release - New Report
Management in Healthcare: Good management really makes a difference

25th October 2010 - for immediate release

Better managed hospitals have significantly lower mortality rates, significantly more satisfied patients - and all at a lower cost. This is one of the principal findings of new research from McKinsey & Company and the Centre for Economic Performance (CEP) at the London School of Economics, which assesses the management practices of nearly 1,200 hospitals in seven countries: the UK, the United States, Canada, France, Germany, Italy and Sweden.

The report covers healthcare management practices across three broad areas: operational processes; performance management; and talent (people) management.

The report launch, Management in Healthcare: Why Good Practices Really Matter, will take place 6:00pm 26th October at The Institution of Mechanical Engineers, One Birdcage Walk, London SW1H 9JJ.
Main findings
  • Hospital-specific management practices are strongly related to a hospital's quality of patient care and productivity outcomes. The research shows that improved management practices in hospitals are associated with significantly lower mortality rates and better financial performance.

  • Across countries, there is a wide variation in management scores. The UK delivers particularly strong hospital management practices relative to its health expenditure. The United States has the highest management scores, while Italy and France are towards the bottom of the league.

  • There is a greater variation in management practices within countries than between them. This suggests a clear opportunity for improving management practices by moving the poorly performing hospitals up to the level of the best.

  • There is a consistent set of five factors that have a real impact on better management practice and outcomes. These are:

    • Competition helps improve managerial standards. Hospitals that feel they face more competition are much better managed than those facing little or no competition.

    • Skills. Hospitals with clinically qualified managers are associated with much better management scores. The UK has the lowest proportion of managers with a clinical degree of the countries surveyed.

    • Autonomy. Higher scoring hospitals give managers higher levels of autonomy than lower performing hospitals. This finding is consistent with McKinsey's own experience in hospitals and with the Service Line Management approach co-developed with Monitor, which aims to devolve decision-making and accountability to the front line.

    • Scale. Size matters - larger hospitals are better managed. The differences are particularly stark between hospitals with fewer than 100 direct employees, and those with more than 100.

    • Ownership. When it comes to ownership, private hospitals (including not-for profits) achieve higher management scores than public hospitals across all countries.


Explaining the research findings, Dr. Stephen Dorgan, Partner at McKinsey and an author of the report, says:

"We believe the results from this research provide an optimistic message: improving management practices really does make a difference.

"Looking at the UK for example, a one point improvement in the management practice score - which is perfectly achievable - is related to a 6 per cent fall in the rate of deaths from heart attacks."

Professor John Van Reenen, director of the Centre for Economic Performance, comments:

"An overriding message is that management quality varies greatly within countries, even within a publicly dominated healthcare sector like the NHS. Many of the same factors that matter in other sectors - such as competition and skills - also matter for healthcare.

"For the UK, having more clinically trained managers should be a priority."

Implications of the research

The findings of this and previous research by the same team point to significant opportunities for UK policy-makers, Academic Health Science Centres, commissioners, acute hospitals, investors and most importantly patients. Specifically:

  • Policy-makers should examine the benefits of fostering competition between providers as a powerful mechanism for improvement. This can be achieved by increasing patient choice; encouraging new entrants; and relaxing restrictions on hospital growth. In terms of skills, people who combine clinical and managerial skills are the key to better performance, so boosting the proportion of UK managers with clinical skills via more attractive career paths for clinicians into management could be one way of addressing the UK's comparatively poor showing in this area.

  • Academic Health Science Centres (AHSCs), especially those connected to leading business schools, should consider the role they could play in developing the cadre of clinically competent managers this research suggests are needed.

  • Commissioners should consider how they gain access to top performing hospitals for their patients. In an era of GP commissioning and patient choice, this may become particularly important in attracting and retaining patients and the funding that comes with them.

  • Hospitals not affiliated with AHSCs should consider their viability in a world of increased patient choice, and their strategy to attract and retain talent, best practice and patients.

  • The need for hospitals to improve management practices could create new opportunities for suppliers and new entrants, thus creating investment opportunities.

  • Patients should understand that some hospitals are simply better managed, provide better care and are safer than others. They should ensure they are informed about their hospital's and doctor's outcomes and their options for care.


Download the full press release

For further information please contact

John Cheetham, McKinsey & Company
Email: john_cheetham@mckinsey.com
Tel: +44 (0)20 7961 5294

Romesh Vaitilingam, Centre for Economic Performance, LSE
Email: romesh@vaitilingam.com
Tel: + 44 (0) 7768 661095


The Observer
Wayne Rooney symbolises the greed that laid us low

Last week, as [Wayne] Rooney demanded a salary of £10.4m, the City prepared to gorge itself on a bonus pot of £7bn. "If you had just come back from a couple of years on a desert island you could be forgiven for thinking that the crash had not happened," Brian Bell, an authority on Britain's extreme wealth inequality from the London School of Economics, told me. He added, somewhat unnecessarily, that the failure to learn the lessons of the past makes a future crash more likely.

This article appeared in The Observer on October 24, 2010
Link to article

Related Links
Brian Bell webpage
Productivity and Innovation Programme webpage

The Economist
How to save lives

Steven Morgan of McKinsey and John Van Reenen of LSE have studied 1,200 hospitals to see which are the best managed and the practices that common to the best. They found five characteristics shared by well-run hospitals, including competition.

This article appeared in The Economist on October 22, 2010
Link to article

Related publications
‘Management in Healthcare: Why Good Practice Really Matters’. Report from McKinsey & Company and the Centre for Economic Performance, October 2010. Authors: Nicholas Bloom, Rebecca Homkes, Raffaella Sadun and John Van Reenen.
Management practices in the NHS, CentrePiece 14 (3), Winter 2010 pages 16-19, by Nick Bloom, Carol Propper, Stephan Seiler and John Van Reenen

Related links
Nicholas Bloom webpage
Rebecca Homkes webpage
Raffaella Sadun webpage
John Van Reenen webpage
Management Practices and Organisational Structures Research webpage
Productivity and Innovation Programme webpage

Computing.co.uk
Council tackles youth unemployment using data from IT systems

Research undertaken by the London School of Economics showed that each person classed as NEET costs the taxpayer £97,000 over the course of their lifetime.

This article appeared on Computing.co.uk on October 12, 2010
Link to article

Related Publications
The Cost of Exclusion: Counting the cost of youth disadvantage in the UK, Sandra McNally and Shqiponja Telhaj. Joint CEP and Princes Trust Report, April 2007.

Related Links
Sandra McNally webpage
Shqiponja Telhaj webpage
Education and Skills Programme webpage

Government News Network (Web)
David Willetts congratulates winner of Nobel Prize for Economics

Commenting on the news that Christopher Pissarides, a professor at the London School of Economics has won the Nobel Prize for Economics 2010, the Minister for Universities and Science David Willets said "I’m delighted to congratulate Prof. Pissarides on receiving this highest of awards. This is a remarkable achievement which recognises his extremely important contribution to advancing our knowledge of how unemployment, job vacancies and wages are affected by regulation and policy. The UK’s Economic and Social Research Council has also played a significant part in supporting Prof. Pissarides’ research which is of keen interest to all governments addressing the challenge of stimulating sustainable economic growth."

This article appeared on the Government News Network website on October 12, 2010
Link to article

Also in
7thspace.com
David Willetts congratulates winner of Nobel Prize for Economics

Related Links
Christopher Pissarides webpage
Christopher Pissarides publications webpage
Macro Programme webpage

The Guardian
Budget cuts force NHS hospitals to stop non-emergency surgery

Unions claim that the mismanagement of NHS trusts is behind the temporary closure of hospital services. Experts said they were "shocked" by the scale of the trust's proposals, and pointed out that suggested they presented a political challenge to the health secretary, Andrew Lansley, as he pushed health service reforms. "I have never heard anything like it," said Zack Cooper, a health economist at the London School of Economics. "Patients in Basildon cannot access IVF, but in London they can. I think this is going to be a real sore for the government. The other problem is that hospitals will face having to pay staff while not getting any income because they have been forced to close their doors to patients. It's a little crazy."

This article appeared in the Guardian on October 12, 2010
Link to article

Related Links
Zack Cooper webpage
Zack Cooper publications webpage
Productivity and Innovation Programme webpage

BBC News
Nobel prize for economics awarded

View Video

Americans Peter Diamond and Dale Mortensen, and British-Cypriot Christopher Pissarides, have won the 2010 Nobel economics prize. They were honoured for work on how unemployment, job vacancies and wages are affected by regulation and policy. The Royal Swedish Academy of Sciences said the prize of 10m Swedish kronor ($1.5m) recognised "their analysis of markets with search frictions".

This news item appeared on BBC News on October 11, 2010
Link to broadcast

Related Links
Christopher Pissarides webpage
Christopher Pissarides publications webpage
Macro Programme webpage

The Wall Street Journal
Update: Diamond, Mortensen and Pissarides win Economics Nobel

STOCKHOLM (Dow Jones)--Peter Diamond and Dale Mortensen of the U.S. and British-Cypriot Christopher Pissarides won the 2010 Nobel Prize in Economics on Monday "for their analysis of markets with search frictions," the Royal Swedish Academy of Sciences said.
The three laureates have developed a theoretical framework to examine how buyers and sellers look for each other in a marketplace and how the time and resources needed for this search can create friction resulting in some buyers or sellers failing to achieve their goals.

This article appeared in The Wall Street Journal on October 11, 2010
Link to article

Related Links
Christopher Pissarides webpage
Christopher Pissarides publications webpage
Macro Programme webpage

Nobelprize.org
The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2010

The Nobel Prize for Economics has been awarded to Christopher Pissarides, Associate of the Centre for Economic Performance.
LSE professor Christopher Pissarides was awarded the Nobel Prize for Economic Sciences today. Professor Pissarides is professor of Economics at LSE and holder of the Norman Sosnow Chair in Economics. He is also a fellow of the Centre for Economic Performance at LSE and of the Centre for Economic Policy Research. He shares the prize with Peter Diamond from Massachusetts Institute of Technology and Dale Mortensen from Northwestern University.

This announcement from the Nobel Prize organisation was made on October 11, 2010
Link to announcement.

Related Links
Christopher Pissarides webpage
Christopher Pissarides publications webpage
Macro Programme webpage

The Guardian
Nobel prize for economics: three share prize for labour market study

The Royal Swedish Academy of Sciences has awarded the 10 million Swedish kronor prize (£947,000) to three economists for their analysis of 'markets with search frictions'

This year's Nobel prize for economics has been awarded to American economists Peter Diamond of MIT and Dale Mortensen of Northwestern University, as well as British-Cypriot Christopher Pissarides of the London School of Economics for their work on unemployment and the labour market.

The trio's models help us understand the ways in which unemployment, job vacancies, and wages are affected by regulation and economic policy, such as benefits and rules over hiring and firing. One conclusion is that more generous jobless benefits give rise to higher unemployment and longer search times.

The research is particularly relevant at the current time when looming drastic government spending cuts in Britain are set to lead to thousands of job losses in the public sector.

"According to a classical view of the market, buyers and sellers find one another immediately, without cost, and have perfect information about the prices of all goods and services ... But this is not what happens in the real world," the prize committee said in a statement.

It said the trio's work enhanced understanding of "search markets" where frictions exist as the demands of some buyers are not met and some sellers cannot sell as much as they want.

This article appeared in The Guardian Online, 11 October 2010: Nobel prize for economics: three share prize for labour market study

Related links:
BBC News: Nobel prize for economics awarded to trio of academics
Chris Pissarides Staff Biography Page
Christopher Pissarides publications webpage
Macro Programme webpage



BBC Today
What is the social value of sport?

How will the government measure the value of the different areas in which it plans implement its cuts? Correspondent Tim Franks considers the value of sport in the time of austerity, and interviews Richard Layard on the disadvantage of using the normal model of GNP to calculate effect of spending cuts.

This interview was broadcast on the BBC Today programme (7.20am) on October 8, 2010
Link to interview

Related Links
Richard Layard webpage
Wellbeing Programme webpage

Business Standard (India)
An epic economic disaster

…dangerous to societies” is a major argument of a chapter by Johnson and Peter Boone in this recently released book from the London School of Economics.

This article appeared in the Business Standard (India) on October 7, 2010
No link available.

Related Links
Peter Boone webpage
Effective Intervention Programme webpage
Peter Boone publication webpage

SecEd
Warning over tuition fees

Researchers Richard Murphy and Steve Machin, from the Centre for Economic Performance at the London School of Economics, looked at what has happened to unregulated fees for overseas and post-graduate students in 20 universities.

This article appeared in SecEd on October 7, 2010
Link to article

Related Publications
‘Increasing university income from home and overseas students: what impact for social mobility?’, Report for the Sutton Trust by Stephen Machin and Richard Murphy, Centre for Economic Performance, London School of Economics, September 1010.
Download

Related links
Stephen Machin webpage
Richard Murphy webpage
Education and Skills Programme webpage
Centre for the Economics of Education webpage

The Economist
A special report on the world economy: Pass and move - Spain offers a test-case for labour-market reform in Europe

How effective these new rules will be depends on how they are interpreted. “It could take years to clarify under what circumstances firms can fire workers and pay only 20 days’ compensation,” says Luis Garicano, of the London School of Economics.

This article appeared in the Economist on October 7, 2010
Link to article

Related Links
Luis Garicano webpage
Productivity and Innovation Programme webpage

Financial Times
Recovery elusive but darkest days have passed

A suggestion that Spain's banking system still has a way to go before institutions can once again begin raising money on the wholesale finance markets to shore up their short-term liquidity. LSE professor Luis Garicano says: "An immediate, default-type crisis is probably no longer on the cards."

This article appeared in the Financial Times Online on October 6, 2010
Link to article

Related Links
Luis Garicano webpage
Productivity and Innovation Programme webpage

Financial Times
UK likely to sink again in steel rankings

According to steel consultancy Meps, the UK is set this year to slip even further behind in the world league table of steel producers, another reminder of the country's diminishing status in global manufacturing. Tim Leunig, an economic historian at the London School of Economics, said the steel output figures were "irrelevant" to the UK's overall level of economic activity.

This article appeared in the Financial Times on October 6, 2010
Link to article

Related Links
Tim Leunig webpage
Globalisation Programme webpage

The Guardian - crib sheet 05.10.10
What's Browne and sticky?

But all Porter will say is that tuition fees shouldn't be spent on staff salaries, and: "I dont see why students should have to pay more. I think universities need to concentrate on providing high quality education."
Isn't that a bit vague? asks Humphrys. A bit?
Meantime we wait. The Sutton Trust tells us Browne could price poorer students right out of the most high-status universities while Will Hutton makes a plea for fairness.

This article appeared in the Guardian - Crib sheet 05.10.10 - Education on October 5, 2010
Link to article

Related Publications
'Increasing University Income from Home and Overseas Students: What Impact for Social Mobility'. Report for the Sutton Trust by Stephen Machin and Richard Murphy, Centre for Economic Performance, London School of Economics, September 2010.

Related Links
Stephen Machin webpage
Richard Murphywebpage
Education and Skills Programme webpage
Centre for the Economics of Education webpage

The Independent
Letters: Perspectives on teaching methods - Faith schools no better

Alan Sykes (letter, 4 October) suggests that church schools are "popular", and this is because they provide "an excellent all-round education". In 2007, researchers at the London School of Economics studied the performance of children who lived in the same area and had similar family backgrounds: they reported that religious affiliation had little impact on primary schools' effectiveness in teaching core subjects.

This article appeared in The Independent on October 5, 2010
Link to article

Related publications
The educational impact of parental choice and school competition by Stephen Gibbons, Stephen Machin and Olmo Silva. Published in CentrePiece 11/3 Winter 2006-07
Competition, Choice and Pupil Achievement by Stephen Gibbons, Stephen Machin and Olmo Silva, Centre for the Economics of Education Discussion Paper No.056, CEP, January 2006.
'Faith Primary Schools: Better Schools or Better Pupils?', Stephen Gibbons and Olmo Silva, Centre for the Economics of Education Discussion Paper No 72, November 2006
'In brief: Faith Primary Schools: Better Schools or Better Pupils?', Stephen Gibbons and Olmo Silva, in CentrePiece Vol 12, Issue 1, Summer 2007, pp.24-25.

Related Links
Stephen Gibbons webpage
Stephen Machin webpage
Olmo Silva webpage
Education and Skills Programme webpage

The Guardian
Poor students will be priced out by high tuition fees, warns charity

Top universities could raise their fees five-fold if ministers give them free rein, says Sutton Trust

Top universities will price out poor students with a five-fold hike to tuition fees if ministers give them free rein over what they charge, an influential education charity warns today. The Sutton Trust study analysed how much 20 universities charge undergraduates from outside the European Union, and how much they charge postgraduates from all countries. Universities are allowed to charge whatever they like to these two groups, so a free market already exists.

The researchers, from the Centre for Economic Performance at the London School of Economics, found that the most prestigious institutions charge twice as much as lower-ranked universities.

This article appeared in The Guardian, on October 4, 2010
Link to article

Related Publications
Increasing University Income from Home and Overseas Students: What impact for social mobility? a report by The Sutton Trust, September 2010.


Related Links
Stephen Machin webpage
Richard Murphy webpage
Education & Skills Programme webpage
CEE website


ABC online - ''The World Today''
Personal choices influence happiness

BRUCE HEADEY: The previous Labour government in Britain had a sort of happiness advisor - Lord Richard Layard - who was, is a famous economist and a member of the British House of Lords. And he very strongly advocated that governments should seek to maximise gross national happiness, and not just gross national product, you know?

This ABC "The World Today" (Australia) current affairs programme was broadcast on October 5, 2010
Link to article

Related Publications
Happiness: Lessons from a New Science by Richard Layard
Details

Related Links
Richard Layard webpage
Wellbeing Programme webpage
Happiness research webpage

New York Times
Congratulations Fran Blau!

Fran Blau announced as winner of this year’s IZA prize in Labor Economics. Fran now joins a virtual Who’s who of the great and the good in labor which includes: Jacob Mincer, Orley Ashenfelter, Eddie Lazear, Daale Mortensen and Chris Pissarides, David Card and Alan Krueger, Richard Freeman, Richard Layard and Dick Easterlin.

This article appeared in the New York Times 'Freakonomics' blog page on October 4, 2010
Link to article

Related Links
Christopher Pissarides webpage
Macro Programme webpage
Christopher Pissarides publications webpage

Richard Freeman webpage
Labour Markets Programme webpage
Richard Freeman publications webpage

Richard Layard webpage
Wellbeing Programme webpage
Richard Layard publications webpage

The Huffington Post
Huffpost Hill - September 23rd, 2010

"A new study from the London School of Economics finds that when a U.S. senator leaves the Hill, the lobbyists who used to work for him make 24 percent less money for their firms. That amounts to $177,000 less per lobbyist per year. Other fun facts: Lobbyists who worked in the House make 10 percent less when their former bosses hang it up, and lobbyist ex-staffers are more likely to quit lobbying when their former boss quits. 'Consistent with the notion that lobbyists sell access to powerful elected officials, the drop in revenue increases with the seniority of and committee assignments power held by the Senator immediately prior to leaving office,' write Jordi Blanes i Vidal, Mirko Draca and Christian Fons-Rosen in their report.

This article appeared in The Huffington Post on September 24, 2010
Link to article

Related Publications
'Revolving Door Lobbyists' (2010) Jordi Blanes i Vidal, Mirko Draca and Christian Fons-Rosen, Centre for Economic Performance Discussion Paper No.993, August.

Related Links
Jordi Blanes I Vidal webpage
Mirko Draca webpage
Christian Fons Rosen webpage
Productivity and Innovation Programme webpage

CNBC Europe
Strictly money

Linda Yueh was guest host, discussing a range of economic issues including UK inflation expectations.

This programme was broadcast on September 23, 2010
Link to article

Related Links
Linda Yueh webpage
Globalisation Programme webpage

BBC1 - World News
World business report

Linda Yueh was on the programme to do the newspaper review covering European strikes, China-Japan economic tensions, Turkey and EU enlargement, and the saga over PotashCorp.

This interview was broadcast on September 23, 2010
[No link available.]

Related Links
Linda Yueh webpage
Globalisation Programme webpage

OpenSecrets.org - Center for Responsive Politics
Academic study confirms passing through 'revolving door' pays off

A recent study from the Center for Economic Performance at the London School of Economics has found "a significant relationship" between lobbyists' salaries and their previous work experiences on Capitol Hill.

This article appeared in OpenSecrets.org - Center for Responsive Politics on September 23, 2010
Link to article.

Related Publications
'Revolving Door Lobbyists' (2010) Jordi Blanes i Vidal, Mirko Draca and Christian Fons-Rosen, Centre for Economic Performance Discussion Paper No.993, August.

Related Links
Jordi Blanes I Vidal webpage
Mirko Draca webpage
Christian Fons Rosen webpage
Productivity and Innovation Programme webpage

CNN
''Quest Means Business''

Linda Yueh interviewed, to analyse China-Japan trade tensions.

This interview was broadcast on CNN "Quest Means Business" on September 20, 2010
No link available.

Related Links
Linda Yueh webpage
Globalisation Programme webpage

Bloomberg TV
''Countdown'' and ''The Pulse''

Linda Yueh interviewed to discuss the global economic outlook.

This interview was shown on Bloomberg TV programmes "Countdown" and "The Pulse" on September 20, 2010
No link available.

Related Links
Linda Yueh webpage
Globalisation Programme webpage

Radio 4
You and Yours

Richard Layard on the programme with Julian Warwicker in discussion about the balance between mental wellbeing and earning more money.

This interview was broadcast by Radio 4 - "You and Yours" programme on September 20, 2010
No link available.

Related Publications
Happiness: Lessons from a New Science by Richard Layard
Details

Related Links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

insightLMU Research (Issue 3 - 2010)
How to achieve sustainable productivity growth

The study of Europe’s prospects actually consisted of four related research programs designed to explore interdependencies between economic growth and environmental and social developments. One of these, entitled “Productivity Growth in Europe, America and Asia”, set out to identify and compare the factors that determine the pace of growth in different regions of the world, and was directed by Professor Tobias Kretschmer of the Institute for Communication Economics at LMU Munich. Among the participants were researchers from the Center for Economic Performance at the London School of Economics (LSE), the Center for European Economic Research (ZEW) in Mannheim and the LMU. “Our research was targeted at defi ning the conditions that make economic growth possible and delineating their consequences for other areas of society”, explains Professor Kretschmer.

This article appeared in insightLMU Research (Issue 3 - 2010) on September 20, 2010
Link to article

Related Links
Tobias Kretschmer webpage
Tobias Kretschmer publications webpage
Productivity and Innovation Programme webpage

Gulf Times
The eurozone facing new sovereign default risk

Article by Simon Johnson and Peter Boone
Today’s conventional view of the eurozone is that the crisis is over – the intense, often existential concern earlier this year about the common currency’s future has been assuaged, and everything now is back under control. This is completely at odds with the facts. European bond markets are again delivering a chilling message to global policymakers. With bonds of “peripheral” eurozone nations continuing to fall in value, the risk of Irish, Greek, and Portuguese sovereign defaults is higher than ever.

This article appeared in the Gulf Times on September 20, 2010
Link to article

Related Links
Peter Boone webpage
Peter Boone publications webpage
Effective Intervention Programme webpage

Hurriyet Daily News (Turkey)
Top economist voices concern about second global dip

There is a high possibility that a second economic dip in the U.S. economy could occur, triggering a “snowball effect” throughout the rest of the world, according to a prominent London-based economist. “If someone had asked me about the direction of the economy eight months ago, I would have said the risk had receded,” John Van Reenen, the director of the London-based Centre for Economic Performance, an applied economics research center, recently told the Hürriyet Daily News & Economic Review. “But now, looking at recent data, I am much concerned that we may have a second dip and go back to a recession again.”

This article appeared in Hurriyet Daily News (Turkey) on September 20, 2010
Link to article

Related Links
John Van Reenen webpage
John Van Reenen publications webpage
Productivity and Innovation Programme webpage

El Pais
El servicio de empleo busca inspiracion

John Van Reenen commented on the UK’s employment services compared to the Spanish public employment service (‘SPEE’).

This article appeared in El Pais on September 19, 2010
Link to article

Related Links
John Van Reenen webpage
John Van Reenen publications webpage
Productivity and Innovation Programme webpage

The National (Abu Dhabi)
White-collar workers unhappy about pay and bosses, survey says

White-collar professionals in the Emirates want more pay and better bosses, or many may quite, according to a recent study. Alex Bryson commenting on the report said the figures were striking. “Most of the time, when you ask workers about their job satisfaction it is surprising how satisfied workers seem to be with their lot,” he said.

This article appeared in The National on September 19, 2010
Link to article

Related Links
Alex Bryson webpage
Labour Markets Programme webpage
Alex Bryson publications webpage

Inside Housing
Give us your ideas

Inside Housing’s What’s the Benefit? Campaign asks: how to reduce the housing benefit bill without driving people from their homes. Tim Leunig suggests his proposal for an alternative plan to the coalition government’s plans to reform housing benefit: The housing benefit bill does need to be brought under control - and there are abuses here and there. But the only humane and cost-efficient way to reduce spending on housing benefit is to allow more houses to be built, so that housing becomes cheaper.’

This article appeared in Inside Housing on September 17, 2010
Link to article

Related Links
Tim Leunig webpage
Tim Leunig publications webpage
Globalisation Programme webpage

Mmegi online
Bardy bonds for the eurozone

Article by Simon Johnson and Peter Boone
Today’s conventional view of the eurozone is that the crisis is over… This is completely at odds with the facts.

This article appeared Mmegi online on September 17, 2010
Link to article

Related Links
Peter Boone webpage
Peter Boone publications webpage
Effective Intervention Programme webpage

Also in:
Wirtschafts Blatt on September 16, 2010
Link to Article

CEP Research
Recent Academic Study Confirms Passing Through the Revolving Door Pays Off

A recent study from the Center for Economic Performance at the London School of Economics finds a significant relationship between lobbyists' salaries and their political connections on Capitol Hill.

Using data from the Center for Responsive Politics, LegiStorm.com and Lobbyists.info, researchers Jordi Blanes i Vidal, Mirko Draca and Christian Fons-Rosen analyzed the employment histories and salaries of 1,100 ex-Congressional staffers turned federal lobbyists.

Their study concluded that these lobbyists experienced a sizable drop in earnings when their old bosses left Congress.

Overall, the researchers found that lobbyists' earnings dropped by 24 percent upon the departure of one of their former employers in either the Senate or a senior position within the House.

This decline represents about $177,000 per year for the lobbyist's overall "practice" at a firm -- and the decrease in revenue persists for at least three years after the politician's exit, they observed.

"When a politician leaves, a lobbyist's connection to that politician becomes obsolete," said study co-author Draca. "The politician is no longer a potential target for lobbying."

Measuring the significance of the revolving door between K Street and Capitol Hill is a difficult task. The study's attempt to measure it by examining earnings is the first of its kind.

"There is plenty of discussion of the idea that former staffers are able to 'cash in' on the connections that they gained from working in Congress," Draca said. "But formal evidence on what these connections are worth in dollar terms is thin on the ground."

"Lobbyists argue that their earnings reflect expertise on policy issues generally", co-author Blanes i Vidal continued, "Our study tests whether former congressional staffers would be high-earners regardless of their privileged access to a powerful politician."

With their analysis showing a correlation between salaries and political connections, the authors beg to differ with the assessment that lobbyists bring only skills to the table when earning hundreds of thousands of dollars.

"Our estimates can be interpreted as the price of accessing or influencing politicians," Blanes i Vidal said. "Access or influence can be systematically bought and sold. This means that if you have the money, you can hire a lobbyist with political connections and improve your chances of affecting policy."

For more information, please email Jordi Blanes i Vidal at j.blanes-i-vidal@lse.ac.uk or Mirko Draca at m.draca@lse.ac.uk

Watch Washington's Revolving Door on You Tube.

Related publications:
CEP Discussion Paper 993: Revolving Door Lobbyists by Jordi Blanes i Vidal, Mirko Draca, Christian Fons-Rosen, August 2010.

CNBC
''European Closing Bell''

Linda Yueh was interviewed to discuss US-China tensions over the RMB.

This interview was shown by CNBC on the "European Closing Bell" programme on September 16, 2010
Link to interview

Also on
BBC World News - "Impact Asia"


Related Links
Linda Yueh webpage
Globalisation Programme webpage

The Wall Street Journal
Zombie buildings shadow Spain's Economic future

One risk, says Luis Garicano, an economist at the London School of Economics, is that Spanish lenders could follow in the footsteps of Japan's so-called zombie banks, "holding on to capital in order to cover their losses."

This article appeared in The Wall Street Journal on September 16, 2010
Link to article

Related Links
Luis Garicano webpage
Productivity and Innovation Programme webpage

BBC News - Business
Are executives worth their huge pay packets?

Over the last decade or so, the biggest source of the growth of high pay and wider inequality has been bonuses, according to some recent research. And those who have benefited have been "the people [already] within the top 10%, and then even within that group the top 5% and the top 1%" of the income scale, according to Brian Bell, a Research Fellow at the London School of Economics' Centre for Economic Performance. Most of them are based in London where they work in the financial sector, have… essentially run away from the rest of the workers."

This article appeared on the BBC online on September 15, 2010
Link to article

Related Publications
‘Bankers' Pay and Extreme Wage Inequality in the UK’, Brian Bell and John Van Reenen, Centre for Economic Performance Special Paper No.21, April 2010
‘Bankers’ Bonuses’, Brian Bell, Centre for Economic Performance Election Analysis, April 2010

Related Links
Brian Bell webpage
Productivity and Innovation Programme webpage

Manchester Wired
Are executives worth their huge pay packets?

Over the last decade or so, the biggest source of the growth of high pay and wider inequality has been bonuses, according to some recent research. And those who have benefited have been "the people [already] within the top 10%, and then even within that group the top 5% and the top 1%" of the income scale, according to Brian Bell, a Research Fellow at the London School of Economics' Centre for Economic Performance. Most of them are based in London where they work in the financial sector, have… essentially run away from the rest of the workers."

This article appeared in Manchester Wired on September 15, 2010
Link to article

Related Publications
‘Bankers' Pay and Extreme Wage Inequality in the UK’, Brian Bell and John Van Reenen, Centre for Economic Performance Special Paper No.21, April 2010
‘Bankers’ Bonuses’, Brian Bell, Centre for Economic Performance Election Analysis, April 2010

Related Links
Brian Bell webpage
Productivity and Innovation Programme webpage

Bloomberg TV
Countdown, On the Move and The Pulse

Linda Yueh interview shown on the programmes where she discussed a range of economic issues including the latest unemployment figures for the UK.

This interview was broadcast on 15 September 2010 on Bloomberg link

Related links
Linda Yueh webpage
Globalisation Programme webpage

The Daily Telegraph
White British pupils ‘make less progress' than ethnic minorities

A report published in the Economic Journal suggested that differences may be down to children’s relatively poor grasp of English at a young age. It said ethnic minority pupils progressed faster throughout compulsory schooling as their grasp of the language gradually improved. Academics also blamed the pressure of league tables – particularly in poor secondary schools.

This article appeared in the Daily Telegraph on 15 September 2010 Link to article

Related publications
‘Ethnicity and Educational Achievement in Compulsory Schooling’, Christian Dustmann, Stephen Machin and Uta Schönberg, The Economic Journal, 120 (August), pp.F272–F297 link to article

Related links
Stephen Machin webpage
Stephen Machin publications webpage
Centre for the Economics of Education webpage

The Daily Mail
Ethnic pupils go to top of the class at 16 as they overtake white Britons for the first time

For the study, published today in the Economic Journal, researchers analysed exam results for nearly 500,000 pupils. They found that, at the ages of three and five, white British children outperformed their ethnic minority counterparts in tests of vocabulary and making patterns. At seven, in English and maths tests, all ethnic minority groups with the exception of Chinese pupils were behind white British youngsters. But by the end of compulsory schooling, when youngsters take GCSEs, Bangladeshi, Pakistani and black pupils from outside the Caribbean had caught up with their white British classmates, while Indian and Chinese pupils had overtaken them.

This article appeared in the Daily Mail on 15 September 2010 link to article

Related publications
‘Ethnicity and Educational Achievement in Compulsory Schooling’, Christian Dustmann, Stephen Machin and Uta Schönberg, The Economic Journal, 120 (August), pp.F272–F297 link to article

Related links
Stephen Machin webpage
Stephen Machin publications webpage
Centre for the Economics of Education webpage

The Adam Smith Institute blog
How much money buys happiness?

It's not surprising that some say that ever more money, ever more shiny things bought with it, starts to wear off after a bit. We don't get happier and happier as the income piles up: diminishing marginal utility of anything really is a truism about humans and the world. However, having said that we then need to try and work out how much will maximise happiness. There are always those who tell us that it is less than we already have and even serious people like Richard Layard think it's around $15,000 a year (as well as non-serious people like the authors of The Spirit Level).

This article appeared in The Adam Smith Institute blog on 13 September 2010 link to article

Related publications
Happiness: Lessons from a New Science, Richard Layard. Details

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

Herald Scotland
The cuts: is there an alternative?

Critical economic voices which previously looked isolated in the rush towards austerity are suddenly back in vogue as new economic data from the IMF and the Paris-based think-tank the Organisation for Economic and Co-operation and Development (OECD) suggest that fast-track belt-tightening could be the wrong medicine at the wrong time. Professor John Van Reenen director of the Centre for Economic Performance at the London School of Economics, has consistently questioned the coalitions determination to paint draconian cuts as unavoidable. He said: Although there is consensus that budget deficits need to be reduced, there is sharp disagreement over its pace.”

This article appeared in the Herald on 12 September link to article

Related links
John Van Reenen webpage
John Van Reenen publications webpage
Productivity and Innovation Programme webpage

GlobalResearch.ca
Economic fault lines deepen

In a recent New York Times article entitled, “In Ireland, Dangers Still Loom”, authors Simon Johnson and Peter Boone warn of the consequences of the type of austerity programs being introduced across Europe—especially for those countries forced to pay off a growing burden of debt. They note that the finance markets remain unimpressed by the measures taken by the Irish government, which have sharply cut public sector wages and driven up unemployment to record levels.

This article appeared in GlobalResearch.ca on September 11. 2010
Link to article

Related Links
Peter Boone webpage
Peter Boone publications webpage
Effective Intervention Programme webpage

The Economist
Economics focus automatic reaction

Middle-income workers have suffered as labour markets shrink due to advances in IT. A study of industry-level data from 11 countries for the years between 1980 and 2004 by Guy Michaels, Ashwini Natraj and John Van Reenen of the London School of Economics found that industries that adopted IT at faster rates also saw the fastest growth in demand for the most educated workers, and the sharpest declines in demand for people with intermediate levels of education....
In a paper written with Nicholas Bloom of Stanford University and Mirko Draca of the LSE, Mr Van Reenen looks at rates of IT adoption within Europe. They conclude that industries that faced more direct competition from Chinese imports after China entered the World Trade Organisation responded by innovating more in order to move up the value chain.

This article appeared in the Economist on 11 September 2010 Link to article

Related links
John Van Reenen webpage
John Van Reenen publications webpage
Productivity and Innovation Programme webpage

BBC News - ''Business Daily''
Hard times and sacrifices

Does Ireland or Spain have the right approach to making public sector cuts?
To discuss this, Lesley Curwen spoke to Luis Garicano, Professor of Economics at the London School of Economics, and to Antoyn Murphy.

This interview was broadcast on BBC News - "Business Daily" on September 8, 2010
Link to interview.

Related Links
Luis Garicano webpage
Productivity and Innovation Programme webpage

Bloomberg TV
''Oxford's Yueh says Obama must boost 'new industry' jobs''

Linda Yueh was interviewed, to analyse the economic impact of the proposed U.S. fiscal stimulus.

This interview was broadcast on Bloomberg TV on September 8, 2010
Link to interview

Related Links
Linda Yueh webpage
Globalisation Programme webpage

BBC World Service
Business daily

Luis Garicano discussed different countries’ approaches to public debt.

This programme was broadcast on the BBC World Service - "Business Daily" on September 7, 2010
Link to article

Related Links
Luis Garicano webpage
Productivity and Innovation Programme webpage

New York Times
London series turns sermons inside-out

This month The School of Life, an inquisitive, London-based organization founded in 2008, kicks off its monthly series of Sunday sermons, offering “hellfire preaching, an alternative parish newsletter, hymns, sticky buns, conversations with fellow ‘parishioners’ and the possible appearance of the Devil himself.” In other words, not your typical church talk. Speakers in the upcoming series include the economist Richard Layard on happiness (23 January 2011).

This article appeared in the New York Times on September 7, 2010
Link to article

Related Publications
Happiness: Lessons from a New Science, Richard Layard.
Details

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

Seeking Alpha
Canadian taxpayers on the hook as housing cools

“With such ready access to taxpayer bailouts, Canadian banks need little capital. They naturally make large profit margins, and they can raise money even if they act badly,” write Peter Boone and Simon Johnson in an article titled ‘The Canadian Banking Fallacy.’

This article appeared in Seeking Alpha on September 4, 2010
Link to article

Related Links
Peter Boone webpage
Peter Boone publications webpage
Effective Intervention Programme webpage

The State of Apprenticeship in 2010
International Comparisons - Australia, Austria, England, France, Germany, Ireland, Sweden, Switzerland. A Report for the Apprenticeship Ambassadors Network.

Forward by Sir Roy Gardner (Chairman, Compass Group plc; Chairman, Apprenticeship Ambassadors Network) August 2010:

I am pleased to commend this report, commissioned by the Apprenticeship Ambassadors Network, of which I am Chairman. The Network is a group of senior business leaders committed to the expansion and development of Apprenticeships.

In an earlier report 'The Net Benefit to Employer Investment in Apprenticeship Training' (University of Warwick Institute for Employment Research, 2008) we set out the business case for Apprenticeships. That proved to be an effective medium for communicating the real and tangible benefits to employers. This time we wanted to draw comparisons on the planning and delivery of Apprenticeships in a number of other countries, with a particular focus on employer participation and involvement. Apprenticeships in this country are amongst the world’s best, but we cannot be complacent and we need to know what is happening in competitor countries and what lessons can be learnt

I was re-assured in the recent general election that all the main political parties signalled their support for the expansion of Apprenticeships. I am grateful to Hilary Steedman for producing this report which I am sure will be of interest to employers and employer organisations, Government and policy makers, training organisations, trade unions, awarding bodies, academics in the vocational training field and others. We will continue to argue the case with employers for greater involvement in Apprenticeships - they are good for young people, companies and the economy in general.

Download The State of Apprenticeship in 2010: International Comparisons Australia, Austria, England, France, Germany, Ireland, Sweden, Switzerland. A Report for the Apprenticeship Ambassadors Network by Hilary Steedman - CEP Special Report 22


CNBC-e Television (Turkey)
PrnetVideo

John Van Reenen in filmed interview for Turkish television during his visit to the EARIE Conference at the University of Sabanci, Istanbul, discussing a range of topics including: the possibility of a double dip in the economic crisis; how the US should be readying a second stimulation plan; that Turkey should consider using the growth strategy of the US but the social security structure of the EU; that Greece risks another economic crisis unless serious measures are taken and mentions cost of food.

This interview was broadcast by CNBC-e (Turkey) on September 3, 2010
Link to broadcast

Related Links
John Van Reenen webpage
John Van Reenen publications webpage
Productivity and Innovation Programme webpage

Hurriyet Daily News and Economic Review (Turkey)
Sabancandl University hosts top economists

John Van Reenen mentioned as amongst top economists attending the 37th Annual Conference of European Association for Research in Industrial Economics (EARIE) organised by Sabanci University, Istanbul.

This article appeared in the Hurriyet Daily News on September 3, 2010
Link to article

Related Links
John Van Reenen webpage
John Van Reenen publications webpage
Productivity and Innovation Programme webpage

Also in:
Dunya online on September 14, 2010
Link to Article
Prnet: Hurriyet Daily News [ Ulusal Gazeteler] on September 4, 2010
Link to Article
Ekonomi hukuku on September 2, 2010
Link to Article

WeblineIndia.com
iPhone app to measure ‘happiness level' in UK

Speaking on the iPhone app that measures ‘happiness level’, Prof Lord Richard Layard from LSE said, “It is a revolutionary research idea. It is the best method so far developed for understanding how people’s emotions are affected by conception and natural environment in which they move.”

This article appeared on WeblineIndia.com on 19 August 2010 Link to article

Related publications
Happiness: Lessons from a New Science, Richard Layard. Details

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

BBC 1/World News
World Business Report

Linda Yueh did the newspaper review, covering issues such as GM's future, U.S. and China's partnership in Latin America, grain exports/imports in Russia, and media coverage of fad diets.

This interview was broadcast on 19 August 2010 Link

Related links
Linda Yueh webpage
Globalisation Programme webpage

The Daily Telegraph
Good parents, not poverty, shape a child's destiny, claims Clegg

Deputy Prime Minister Nick Clegg yesterday said that good parenting and not poverty was the key component in determining the qualifications and career of their children. It is noted that a A London School of Economics report in 2007 concluded that Britain's social mobility had not improved in 30 years.

This article appeared in the Daily Telegraph on 19 August 2010 Link to article

Related publications
‘Recent trends in intergenerational mobility: will the downward trend continue?’ Jo Blanden and Stephen Machin, CentrePiece vol 13(2), Autumn 2008.
Project Summary Report Recent Changes in Intergenerational Mobility in the UK: A Summary of Findings
Main Report Recent Changes in Intergenerational Mobility in Britain by Jo Blanden and Stephen Machin December 2007
Report for the Sutton Trust Intergenerational Mobility in Europe and North America by Jo Blanden, Paul Gregg and Stephen Machin
Social Mobility in Britain: Low and Falling by Jo Blanden, Paul Gregg and Stephen Machin. Article appeared in CentrePiece, Vol.10, Issue 1 Spring 2005

See also publications on LSE Research Online link

Related links
Jo Blanden webpage
Stephen Machin webpage
Paul Gregg webpage
Education and Skills Programme webpage

TopNews: United Kingdom
iPhone app to track user happiness level launched in the UK

Speaking on the app, Prof Lord Richard Layard from LSE said, "Mappiness is a revolutionary research idea. It is the best method so far devised for understanding how people's emotions are affected by the buildings and natural environment in which they move.”

This article appeared in Top News on 18 August 2010 Link to article

Also in: Evening Standard - Tracking Britain's happiness via mobile phones link to article

Related publications
Happiness: Lessons from a New Science, Richard Layard details

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

CEP on TV/Radio
5 live

Jo Blanden interviewed, to comment on the speech by Nick Clegg and on issue of social mobility.

This interview appeared on Radio 5 Live on 18 August 2010 (no link avaliable)

Related Links
Jo Blanden webpage
Education and Skills webpage

The Daily Telegraph
Sorry, Nick Clegg. Governments can no more effect social mobility than they can the weather

One of the main ways in which the last two governments tried to boost inter-generational mobility was by expanding higher education, but this has had no effect because the new university places have been taken up by the better off. According to some influential research carried out by Jo Blanden, Stephen Machin and Paul Gregg – three economists at the LSE – children born in the bottom income quartile in 1958 had a higher chance of making it out than those born in 1970. (Nick Clegg cited this study in his speech.)

This article appeared in the Daily Telegraph on 18 August 2010 Link to article

Related publications
‘Recent trends in intergenerational mobility: will the downward trend continue?’ Jo Blanden and Stephen Machin, CentrePiece vol 13(2), Autumn 2008.
Project Summary Report Recent Changes in Intergenerational Mobility in the UK: A Summary of Findings
Main Report Recent Changes in Intergenerational Mobility in Britain by Jo Blanden and Stephen Machin December 2007
Report for the Sutton Trust Intergenerational Mobility in Europe and North America by Jo Blanden, Paul Gregg and Stephen Machin
Social Mobility in Britain: Low and Falling by Jo Blanden, Paul Gregg and Stephen Machin. Article appeared in CentrePiece, Vol.10, Issue 1 Spring 2005

See also publications on LSE Research Online link

Related links
Jo Blanden webpage
Stephen Machin webpage
Paul Gregg webpage
Education and Skills Programme webpage

PS Public Service co.uk
We should be proud of our first 100 days

Deputy Prime Minister Nick Clegg gave a speech on social mobility in which he said the coalition was committed to making decisions today that will promote a better future, with a more prosperous economy and a fairer society. In his speech he cited research on intergenerational mobility from the Centre for Economic Performance with the Sutton Trust.

This article appeared in PublicService.com
link to article Related publications
‘Recent trends in intergenerational mobility: will the downward trend continue?’ Jo Blanden and Stephen Machin, CentrePiece vol 13(2), Autumn 2008.
Project Summary Report Recent Changes in Intergenerational Mobility in the UK: A Summary of Findings
Main Report Recent Changes in Intergenerational Mobility in Britain by Jo Blanden and Stephen Machin December 2007
Report for the Sutton Trust Intergenerational Mobility in Europe and North America by Jo Blanden, Paul Gregg and Stephen Machin
Social Mobility in Britain: Low and Falling by Jo Blanden, Paul Gregg and Stephen Machin. Article appeared in CentrePiece, Vol.10, Issue 1 Spring 2005

See also publications on LSE Research Online link

Related links
Jo Blanden webpage
Stephen Machin webpage
Paul Gregg webpage
Education and Skills Programme webpage

Channel 4 News
Nick Clegg's social mobility claim

Although social mobility improved after the second world war, we know that things went downhill for children born in 1970. These kids were more likely to be affected by how well-off their parents were, than children born in 1958 (these are the two years for which comprehensive data was collected). But did that downward trend continue? Researchers at the Centre for Economic Performance (CEP) also looked at the children of parents born in 1958 and in 1970 – so the next generation on from the previous research. These kids were born, on average, in 1985 and 1999. In 2007, the academics looked at the children’s test scores and behaviour – things that are known to give a reasonable indication of later achievements – and compared these with how their parents had done. Their analysis found no evidence of a continued fall in social mobility – but no evidence that things were getting better, either.

This article appeared on Channel 4.com on 18 August 2010. Link to article

Related publications
‘Recent trends in intergenerational mobility: will the downward trend continue?’ Jo Blanden and Stephen Machin, CentrePiece vol 13(2), Autumn 2008.
Project Summary Report Recent Changes in Intergenerational Mobility in the UK: A Summary of Findings
Main Report Recent Changes in Intergenerational Mobility in Britain by Jo Blanden and Stephen Machin December 2007
Report for the Sutton Trust Intergenerational Mobility in Europe and North America by Jo Blanden, Paul Gregg and Stephen Machin
Social Mobility in Britain: Low and Falling by Jo Blanden, Paul Gregg and Stephen Machin. Article appeared in CentrePiece, Vol.10, Issue 1 Spring 2005

See also publications on LSE Research Online link

Related links
Jo Blanden webpage
Stephen Machin webpage
Paul Gregg webpage
Education and Skills Programme webpage

The Daily Telegraph
Nick Clegg challenges middle-class domination of universities

Some studies show British children are more likely than those in other developed countries to end up in the same socio-economic class as their parents. A London School of Economics report in 2007 concluded that the UK’s social mobility has not improved in 30 years. Mr Clegg said that the recent expansion of the university sector has not helped that situation because richer children still dominate higher education.

This article appeared in The Daily Telegraph on 18 August 2010 Link to article

Related publications
‘Recent trends in intergenerational mobility: will the downward trend continue?’ Jo Blanden and Stephen Machin, CentrePiece vol 13(2), Autumn 2008.
Project Summary Report Recent Changes in Intergenerational Mobility in the UK: A Summary of Findings
Main Report Recent Changes in Intergenerational Mobility in Britain by Jo Blanden and Stephen Machin December 2007
Report for the Sutton Trust Intergenerational Mobility in Europe and North America by Jo Blanden, Paul Gregg and Stephen Machin
Social Mobility in Britain: Low and Falling by Jo Blanden, Paul Gregg and Stephen Machin. Article appeared in CentrePiece, Vol.10, Issue 1 Spring 2005

See also publications on LSE Research Online link

Related links
Jo Blanden webpage
Stephen Machin webpage
Paul Gregg webpage
Education and Skills Programme webpage

BBC Radio Scotland
Newsdrive

Linda Yueh was interviewed, to comment on China overtaking Japan as second largest economy.

This interview was broadcast on BBC Radio Scotland on 17 August 2010 link to article

Also on:
Bloomberg TV "Start Up" & "Countdown" programmes
Linda Yueh was interviewed, covering a range of economic issues including China's holdings of U.S. Treasuries link to article

BBC News Channel "BBC News"
Linda Yueh on the latest inflation figures for the UK and also quoted in BBC News online story link to article

Related Links
Linda Yueh webpage
Globalisation Programme webpage

BBC
Are executives worth their huge pay packets?

Over the last decade or so, the biggest source of the growth of high pay and wider inequality has been bonuses, according to some recent research. And those who have benefited have been "the people [already] within the top 10%, and then even within that group the top 5% and the top 1%" of the income scale, according to Brian Bell, a Research Fellow at the London School of Economics' Centre for Economic Performance. Most of them are based in London where they work in the financial sector, have… essentially run away from the rest of the workers."

This interview was broadcast on BBC News on 16 September 2010 Link to article

Related links
Brian Bell webpage
Productivity and Innovation Programme webpage

Channel 4 news
Linda Yueh interview

Linda Yueh interview on China overtaking Japan on Channel 4 News.

This interview was broadcast on 16 August 2010 on Channel 4 link

Also on:
ABC (Australia) Radio National "Late Night Live"
Linda Yueh on 'The China Syndrome' to discuss China's banking sector and sustainability link

Related links
Linda Yueh webpage
Globalisation Programme webpage

Al Jazeera English
News Doha

Linda Yueh was interviewed, to speak on China overtaking Japan as the second largest economy.

This interview was broadcast on Al Jazeera English on 16 August 2010 (no link avaliable).

Related links
Linda Yueh webpage
Globalisation Programme webpage

BBC News
Zack Cooper Interview

Zack Cooper interviewed on BBC News on 14 August 2010, commenting on the story:

Fears over £65bn 'NHS mortgage': The NHS in England faces a total bill of £65bn for new hospitals built under the private finance initiative (PFI), figures obtained by the BBC indicate link

Related Links
Zack Cooper webpage
Productivity and Innovation Programme webpage

Al Jazeera English
Newshour

Linda Yueh was interviewed to discuss the Euro Zone and Germany's 2nd quarter GDP growth figures

Linda Yueh was interviewed on Al Jazeera English on 13 August 2010.

Also on:
BBC Radio 4 "The World Tonight" link

Related links
Linda Yueh webpage
Globalisation Programme webpage

CNBC Europe
Strictly Money

Linda Yueh was guest host on the programme, covering a range of issues, including the economic outlook.

This was broadcast on CNBC Europe on 12 August 2010 Link to article

Related links
Linda Yueh webpage
Globalisation Programme webpage

Racing Post
Bookmakers' margins fall as economy bites

It is noted that Professor David Metcalf of the LSE is on the Starting Price Regulatory Commission. (no link available)

This article appeared in the Racing Post on 12 August 2010 (no link avaliable)

Related links
Labour Markets Programme webpage
David Metcalf webpage

Public Finance
Recession risk heightened by spending cuts, says economists

John Van Reenen, director of Centre for Economic Performance at the London School of Economics, told Public Finance the government should reconsider its fiscal policy in the light of the new figures. ‘The planned spending cuts are draconian, so would play a part in the revision,’ he said. ‘When you think about the fragility of the economy, there’s a serious risk of going into a double-dip recession, and those risks seem to have increased.’

This article appeared in Public Finance magazine on August 12, 2010
Link to article

Related Links
John Van Reenen webpage
Productivity and Innovation Programme webpage
John Van Reenen publications webpage

American Public Media
Marketplace(Radio)

Linda Yueh interviewed, commenting on the U.S. Federal Reserve interest rate/QE decision and US/European comparisons of a possible "double dip" recession.

This interview was broadcst on American Public Review on 11 August 2010.

Related links
Linda Yueh webpage
Globalisation Programme webpage

Management Issues
Too much or too little – work matters

Richard Layard, in his book Happiness – Lessons From A New Science, writes of the very concrete and highly measurable seven factors that influence happiness worldwide.

This article appeared in Management Issues on 10 August 2010 link to article

Related publications
Happiness: Lessons from a New Science, Richard Layard. Details

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

CEP Policy Analysis
Reducing Crime: More Police, More Prisons or More Pay?

Crime is usually high on the list of voter concerns. This might seem surprising since total crime has fallen significantly since the mid 1990s. Yet two thirds of the population still (wrongly) think that crime is rising nationally.Politicians must take account of the public's false perception of increasing levels of crime, which seems to be sustained even in years when both recorded crime and victimisation surveys point to reductions in overall crime.

This CEP Policy Analysis describes crime trends and research evidence relevant to the post election policies. The publication is summarised below and can be found in full on the CEP Policy Analysis Site

For further information, contact Romesh Vaitilingam on 07768 661095 (Email: romesh@vaitilingam.com)

Reducing Crime: More Police, More Prisons or More Pay?
  • Just over 4.3 million crimes were recorded by the police forces of England and Wales in 2009/10, of which 71 per cent were property crimes and 23 per cent were violent crimes.

  • The British Crime Survey, which asks consistent questions over time shows that overall crimes committed have fallen by almost half since 1997.

  • Overall recorded crime has also fallen since the early 1990s. The introduction of better recording practices in 1997 and 2002, however, make it difficult to fully assess recent trends in violent crime, although it has clearly been decreasing in the past five years.

  • Despite this fall in crime rates, three quarters of the public still think the national picture is worsening.

  • Several crime-busting strategies work. First, increases in police numbers, combined with new policing strategies such as the Street Crime Initiative have reduced robberies. Second, targeting prolific offenders is an effective tool to reduce crime. Third, recent evidence suggests that early release on electronic monitoring helps reduce recidivism rates of ex-prisoners.

  • There is no clear evidence that the large increase in locking people up has reduced cut crime, especially in terms of its long-term impact on offending behaviours.

  • Poor education and bad labour market opportunities are associated with higher levels of crime. Government policies aimed at improving education and ‘making work pay’ can have indirect effects on crime reduction.
Download CEP Policy Analysis - Reducing Crime: More Police, More Prisons or More Pay? (in Adobe PDF)

Two CEP Programme Directors
Elected as Fellows of British Academy

Professor John Van Reenen and Professor Francesco Caselli have been elected as Fellows of the prestigious British Academy, the UK's national body for the humanities and social sciences.

Commenting on the announcement Professor Van Reenen, Director of the Centre for Economic Performance said:
"I am honoured to be made a fellow in the British Academy. At a time of financial pressure, it is important to maintain the tradition of rigorous economic science and policy engagement that has been the hallmark of the Academy."

Professor of Economics, Francesco Caselli added: "Becoming a Fellow of the Academy is one of the greatest honours that can befall an academic, and I am immensely grateful to the Fellowship for this election."

Read more on the LSE News and Media webpage link to article

Related Links
John Van Reenen webpage
Francesco Caselli webpage

BBC Radio Wales
Good Morning Wales

Linda Yueh interviewed, to analyse the UK's 2nd quarter GDP growth figure.

This interview was broacast on BBC Radio Wales on 23 July 2010 link

Related links
Linda Yueh webpage
Globalisation Programme webpage

BBC
Breakfast

Linda Yueh was interviewed, to analyse the implications of the European bank stress tests.

This interview was broadcast on BBC Breakfast on 23 July 2010 (no link avaliable).

Also on
Bloomberg TV – ‘Start Up’

Related Links
Linda Yueh webpage
Globalisation Programme webpage

Bloomberg Businessweek
The uncertainty principle: Not sure? Don't spend

Nicholas Bloom an associate professor of economics at Stanford University and a former adviser to Britain's Treasury, specializes in the study of historical freakouts. He has examined 17 major events—from the Cuban missile crisis to Black Monday in 1987 to September 11 and the fall of Lehman Brothers—and tracked their impact on companies' spending in the months that followed. Each event Bloom looked at created major doubts in the minds of executives about what to do next. Says Bloom: "The optimal response to uncertainty if you're a firm is to do nothing, but if everyone does nothing, the economy tanks."

This article appeared in Bloomberg Businessweek on 22 July 2010 Link to article

Related publications
Uncertainty and the Dynamics of R&D’, Nick Bloom, Centre for Economic Performance Discussion Paper No.792, May 2007 Download discussion paper
The Economic Impact of 9/11’ Nick Bloom, article in CentrePiece Volume 11, Issue 2, Autumn 2006
The Impact of Uncertainty Shocks: Firm Level Estimation and a 9/11 Simulation’, Nick Bloom, Centre for Economic Performance Discussion Paper No. 718, March 2006 download discussion paper

Related links
Nick Bloom webpage
Productivity and Innovation Programme webpage

Economist
Reforming the NHS - Once more into the ring

Recent research from the London School of Economics shows that competition among hospitals can improve care, efficiency and management. Work by the King’s Fund found that giving people choice helps to keep hospitals focused on what matters to patients.

This article appeared in the Economist on 16 July 2010 Link to article

Related Publications
Does Hospital Competition Improve Efficiency? by Zack Cooper (LSE Health), Stephen Gibbons (Department of Geography and Environment and the Centre for Economic Performance (LSE), Simon Jones (LSE Health), and Alistair McGuire (LSE Health and the Department of Social Policy, is available as Centre for Economic Performance Discussion Paper No.988, June 2010 download

Related links
Zack Cooper webpage
Stephen Gibbons webpage
Productivity and Innovation Programme webpage

Financial Times
Tim Leunig

Tim Leunig of the London School of Economics is mentioned in a discussion of the regional divide in wages and growth.

This article appeared in the Financial Times on 16 July 2010 Link to article

Related links
Tim Leunig webpage
Globalisation Programme webpage

The Economist
Once more into the ring

Recent research from the London School of Economics shows that competition among hospitals can improve care, efficiency and management. Work by the King’s Fund found that giving people choice helps to keep hospitals focused on what matters to patients.

This article appeared in the Economist on 15 July 2010 link to article

Related publications
'Does Hospital Competition Save Lives?' Zack Cooper, Stephen Gibbons, Simon Jones and Alistair McGuire, Working Paper No16, LSE Health, January 2010
'Does Hospital Competition Improve Efficiency' Zack Cooper, Stephen Gibbons, Simon Jones and Alistair McGuire, Centre for Economic Performance Discussion Paper No.988, June 2010.
'The Impact of Competition On Management Quality: Evidence from Public Hospitals' Nick Bloom, Carol Propper, Stephan Seiler and John Van Reenen, Centre for Economic Performance Discussion Paper No.983, May 2010.

Related links Nick Bloom webpage
Zack Cooper webpage
Stephen Gibbons webpage
Stephan Seiler webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

Ticker
UK Indexes Slump; Jobless Claims Fall

Financial services productivity pre-crisis gains may have been a mirage than a miracle, Andrew Haldane, executive director for financial stability at the Bank of England said today. ""The recent history of banking appears to be as much mirage as miracle,"" he said, according to the text of a speech to be given at the Future of Finance Conference in London. The remarks were based on a chapter from a book, ''The Future of Finance: The LSE Report'' published today by the London School of Economics. The chapter was co-authored by Haldane and BoE analysts Simon Brennan and Vasileios Madouros.

This article appeared on Ticker on 15 July 2010 Link to article

Related publication
‘The Future of Finance: and the theory that underpins it’
Contributors: Adair Turner, Andrew Haldane, Paul Woolley, Sushil Wadhwani, Charles Goodhart, Andrew Smithers, Andrew Large, John Kay, Martin Wolf, Peter Boone, Simon Johnson and Richard Layard download

Related links
The ‘Future of Finance’ Conference was held on Wednesday 14 July 2010. Details of the conference can be found at: www.future.of.finance.org.uk
Richard Layard webpage

Investment International
Lord Turner calls for wide ranging debate over the future of the banking and lending industries in the UK

In a speech to the London School of Economics’ Future of Finance Conference in London Lord Turner said that the debate about reforming global finance has to go beyond addressing the symptoms of the financial crisis and address the need for radical structural reform.

This article appeared in Investment International on 15 July 2010 link to article

Related publication
‘The Future of Finance: and the theory that underpins it’
Contributors: Adair Turner, Andrew Haldane, Paul Woolley, Sushil Wadhwani, Charles Goodhart, Andrew Smithers, Andrew Large, John Kay, Martin Wolf, Peter Boone, Simon Johnson and Richard Layard download

Related links
The ‘Future of Finance’ Conference was held on Wednesday 14 July 2010. Details of the conference can be found at www.futureoffinance.org.uk
Richard Layard webpage

Evening Standard
Are loans scare tactic by the bankers?

Vince Cable said yesterday at a conference on the Future of Finance organised by the London School of Economics, that a shortage of credit for small businesses was one of the major risks facing the economy.

Related publication
‘The Future of Finance: and the theory that underpins it’.
Contributors: Adair Turner, Andrew Haldane, Paul Woolley, Sushil Wadhwani, Charles Goodhart, Andrew Smithers, Andrew Large, John Kay, Martin Wolf, Peter Boone, Simon Johnson and Richard Layard download

Related links
The ‘Future of Finance’ Conference was held on Wednesday 14 July 2010. Details of the conference can be found at www.futureoffinance.org.uk

Livemint.com
The superpowers of Gandhian austerity

The distinguished economist Richard Layard writes of the citizens of the Western countries he’s studied, “In the last 50 years...They have become much richer, they work much less, they have longer holidays, they travel more, they live longer, and they are healthier. But they are no happier.”

This article appeared in Livemint.com on July 15, 2010
Link to article

Related publications
Happiness: Lessons from a New Science, Richard Layard.
Details

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

eFinancialCareers
Lunchtime links: big hiring and collapsing EMEA revenues at JPMorgan; and revisiting some scary bonus suggestions

Totally separately, Martin Wolf has resurrected some scary suggestions for resolving bonus issues in a paper on the Future of Finance for the Centre for Economic Performance. Briefly, Wolf approves of the notion that bankers should be personally liable for repaying all bonuses over £50k for the ten years after they’ve received them if their employer gets into trouble.

This article appeared in eFinancialCareers on 15 July 2010 Link to artilce

Related publication
‘The Future of Finance: and the theory that underpins it’ Contributors: Adair Turner, Andrew Haldane, Paul Woolley, Sushil Wadhwani, Charles Goodhart, Andrew Smithers, Andrew Large, John Kay, Martin Wolf, Peter Boone, Simon Johnson and Richard Layard download

Related links
The ‘Future of Finance’ Conference was held on Wednesday 14 July 2010.
Details on the conference can be found at www.futureoffinance.org.uk
Richard Layard webpage

Times
More jobs ... but only for army of underemployed in part-time Britain

Professor Paul Gregg of the Centre for Economic Performance at the London School of Economic, contributes to an article about part-time work in the UK.

This article appeared in the Times on 15 July 2010 Link to article

Related links
Paul Gregg webpage
Paul Gregg Publications webpage
Labour Markets webpage

UTV Internet
Banking's risky business

Clearly, there's something not quite right about a state of affairs where banks are both contributing massively to the economy while at the same time being rescued from collapse. Fortunately, an answer to this conundrum was provided given today in a paper by Andrew Haldane the Bank of England's director of financial stability. It also has much wider ramifications, which we'll get to later. Haldane's paper, given at a London School of Economics' conference on the future of finance argues that the answer to the puzzle lies in the way the ONS measures the value of financial services.

This article appeared on UTV Internet on 15th July 2010 Link to article

Related publication
‘The Future of Finance: and the theory that underpins it’
Contributors: Adair Turner, Andrew Haldane, Paul Woolley, Sushil Wadhwani, Charles Goodhart, Andrew Smithers, Andrew Large, John Kay, Martin Wolf, Peter Boone, Simon Johnson and Richard Layard download

Related links
The ‘Future of Finance’ Conference was held on Wednesday 14 July 2010. Details on the conference can be found at: www.futureoffinance.org.uk
Richard Layard webpage

New York Times
The Future of Finance: International edition

A book out this week from the London School of Economics, “The Future of Finance and the Theory That Underpins It,” suggests that a profound shift in the consensus is well under way. The book represents the views of leading Britain-based thinkers and policy makers, including Adair Turner the departing chairman of the Financial Services Authority; Martin Wolf the Financial Times columnist and a member of the new Independent Banking Commission, charged with determining if banks’ size and scope should be limited going forward; and Andrew Haldane a senior Bank of England official and high-profile critic of the financial sector.

This article appeared in the New York Times on 15 July 2010 Link to article

Related publication
‘The Future of Finance: and the theory that underpins it’
Contributors: Adair Turner, Andrew Haldane, Paul Woolley, Sushil Wadhwani, Charles Goodhart, Andrew Smithers, Andrew Large, John Kay, Martin Wolf, Peter Boone, Simon Johnson and Richard Layard
download

Related links
The ‘Future of Finance’ Conference was held on Wednesday 14 July 2010. Details on the conference can be found at: www.futureoffinance.org.uk
Richard Layard webpage

The Daily Telegraph
The financial crisis blame-game: have we got it right in just blaming the bankers?

At the Feast of the Immaculate Economy - well before the crisis of 2007 and 2008 - there were many guests.
In an essay for a new book called The Future of Finance the former member of the Bank of England's monetary policy committee, Sushil Wadhwani argues, in that wonderful way economists have, that is is "surprising" that the BoE doesn't appear to have apologised for its role. And by that he really means apologise and therefore understand what went wrong and what should be done to put it right.

Related publication
‘The Future of Finance: and the theory that underpins it’
Contributors: Adair Turner, Andrew Haldane, Paul Woolley, Sushil Wadhwani, Charles Goodhart, Andrew Smithers, Andrew Large, John Kay, Martin Wolf, Peter Boone, Simon Johnson and Richard Layard download

Related links
The ‘Future of Finance’ Conference was held on Wednesday 14 July 2010.
Details on the conference can be found at www.futureoffinance.org.uk
Richard Layard webpage

Bloomberg TV News
''Start Up''

Linda Yueh interviewed, commenting on the proposed Basel III banking reforms.

This interview was broadcast on Bloomberg on 14 July 2010 link

Related links
Linda Yueh webpage
Globalisation Programme webpage

Also on
ABC (Australia) Radio National "Late Night Live"
Linda Yueh interviewed on the age of austerity in Britain, analysing the scale of the fiscal consolidation and implications for the economy link

Bloomberg TV
Stanford's Bloom sees ‘strong recovery' in US stocks

Nicholas Bloom, a professor of economics at Stanford University, talks with Bloomberg's Julie Hyman about the outlook for US stocks.

This interview was broadcast on 14 July 2010 link

Bloomberg
Stock bears outnumber bulls for first time since April link

BBC Radio 4
The World Tonight

Linda Yueh interviewed, to comment on the strategic realignment of Britain's interests towards China coinciding with William Hague's visit to Beijing and the potential economic relations between the two countries.

This programme was broadcast on BBC Radio 4 on 14 July Link to article

Related links
Linda Yueh webpage
Globalisation Programme webpage

The Daily Telegraph
Break up the banks, says Treasury Select Committee Chairman Andrew Tyrie

Meanwhile, Lord [Adair] Turner, the chairman of the Financial Services Authority (FSA), will today warn of increased scrutiny of mortgage lending in the face of free markets that do not do enough to protect consumers. The FSA head will tell the Future of Finance conference that banks must ensure consumers can afford mortgages before taking them out, signalling a potential ban on self-certified products.

This artilce appeared in the Daily Telegraph on 14 July 2010 Link to article

Related publication
‘The Future of Finance: and the theory that underpins it’.
Contributors: Adair Turner, Andrew Haldane, Paul Woolley, Sushil Wadhwani, Charles Goodhart, Andrew Smithers, Andrew Large, John Kay, Martin Wolf, Peter Boone, Simon Johnson and Richard Layard download

Related links
The ‘Future of Finance’ Conference was held on Wednesday 14 July 2010. Details of the conference can be found at www.futureoffinance.org.uk
Richard Layard webpage

BusinessWeek
BOE's Haldane says Basel regulators targeting ‘miracle' returns

Bank regulators want to stop lenders from making “miracle” returns that were an “illusion” created by taking on too much risk, said Andrew Haldane, a member of the Basel Committee on Banking Supervision. Haldane, executive director for financial stability at the Bank of England, spoke yesterday at a conference organized by the London School of Economics before traveling to Basel, Switzerland, for a two-day meeting of regulators from 27 nations and territories.

This article appeared on BusinessWeek on 14 July 2010 link to article

Also in
Washington Post BOE’s Haldane says Basel regulators targeting ‘miracle’ returns link to article

Related publication
‘The Future of Finance: and the theory that underpins it’. Contributors: Adair Turner, Andrew Haldane, Paul Woolley, Sushil Wadhwani, Charles Goodhart, Andrew Smithers, Andrew Large, John Kay, Martin Wolf, Peter Boone, Simon Johnson and Richard Layard download

Guardian
Banking's risky business Larry Elliott

Clearly, there's something not quite right about a state of affairs where banks are both contributing massively to the economy while at the same time being rescued from collapse. Fortunately, an answer to this conundrum was provided given today in a paper by Andrew Haldane, the Bank of England's director of financial stability. It also has much wider ramifications, which we'll get to later. Haldane's paper, given at a London School of Economics' conference on the future of finance argues that the answer to the puzzle lies in the way the ONS measures the value of financial services.

This article appeared in the Guardian on 14th July 2010 link to article

Related publication
‘The Future of Finance: and the theory that underpins it’. Contributors: Adair Turner, Andrew Haldane, Paul Woolley, Sushil Wadhwani, Charles Goodhart, Andrew Smithers, Andrew Large, John Kay, Martin Wolf, Peter Boone, Simon Johnson and Richard Layard download

Related links
The ‘Future of Finance’ Conference was held on Wednesday 14 July 2010.
Details on the conference can be found at www.futureoffinance.org.uk
Richard Layard webpage

Money Marketing online
‘Punchbowl of excessive credit' must by taken away

Speaking today at the London School of Economics, [Adair] Turner will say that higher bank capital and liquidity requirements will create a more resilient banking system, less likely to be hit by a future crisis or banking failure.

This article appeared in Money Marketing online Link to article

Related publication
‘The Future of Finance: and the theory that underpins it’. Contributors: Adair Turner, Andrew Haldane, Paul Woolley, Sushil Wadhwani, Charles Goodhart, Andrew Smithers, Andrew Large, John Kay, Martin Wolf, Peter Boone, Simon Johnson and Richard Layard Link to article

Related links
The ‘Future of Finance’ Conference was held on Wednesday 14 July 2010. Details on the conference can be found at www.futureoffinance.org.uk
Richard Layard webpage

City AM
Lord Turner: Cut credit to save banks

In a speech to the LSE, Financial Services Authority chairman Lord Turner will today warn bankers today that tougher regulations constraining credit supply are needed, even if they dent growth.

This article appeared in City AM on 14th July 2010 Link to article

Related publication
‘The Future of Finance: and the theory that underpins it’
Contributors: Adair Turner, Andrew Haldane, Paul Woolley, Sushil Wadhwani, Charles Goodhart, Andrew Smithers, Andrew Large, John Kay, Martin Wolf, Peter Boone, Simon Johnson and Richard Layard download

Related links
The ‘Future of Finance’ Conference was held on Wednesday 14 July 2010.
Details on the conference can be found at www.futureoffinance.org.uk
Richard Layard webpage

Bloomberg Businessweek
Economy buoys stocks in Bernanke uncertainty view via Stanford

Stanford University economics associate professor Nicholas Bloom knows just what to do when executives and investors don’t: Buy shares.
“All my money is in the stock market,” said the former adviser to the U.K. Treasury Department, who has published three papers studying the impact of uncertainty on the economy.

This article appeared in Bloomsberg Bussiness Week on 14 July 2010 Link to article

Also in
Stanford Daily Link to article
Forsal.pl (Poland) Nicholas Bloom radzi inwestorom: Kupujcie akcje. Niepewnosc na rynkach jest przejsciowa
Link to article
Børsen Professor: Køb aktier nu! Link to article

Related links
Nick Bloom webpage
Productivity and Innovation Programme webpage
Nick Bloom publications webpage

Leading Economists Storm The Bastille Of High Finance
The Future of Finance: and the theory that underpins it

On July 14th, Bastille Day, twelve leading economists present their opinions of what is wrong with the world's financial system - and how it should be radically reformed. They have been meeting at the London School of Economics (LSE) each month for a year, and a new book published today - The Future of Finance: The LSE Report - draws together the various strands of their debate.

The Future of Finance: The LSE Report
Published on August 16th at £14.99 in paperback
Order a printed copy of the book
Go to CEP Books web page

A key theme is that the scale of financial asset creation has been grossly excessive and far beyond the needs of the real economy - which is the ultimate touchstone of a healthy financial system.

The book includes new analyses of how finance affects the real economy, as well as, in some cases, radical reform proposals aimed not only at governments, but also at the giant funds that invest our wealth. The authors are all major figures in national policy or national debate:
  • Adair Turner, Chairman, Financial Services Authority
  • Andy Haldane, Executive Director of Financial Stability, Bank of England
  • Paul Woolley, Senior Fellow, Paul Woolley Centre for the Study of Capital Market Dysfunctionality, LSE
  • Sushil Wadhwani, CEO Wadhwani Asset Management
  • Charles Goodhart, Emeritus Professor of Banking & Finance, LSE
  • Andrew Smithers, Founder of Smithers & Co.
  • Andrew Large, former Deputy Director, Bank of England
  • John Kay, Visiting Professor, LSE
  • Martin Wolf, Financial Times
  • Peter Boone, Executive Chair, Effective Intervention
  • Simon Johnson, Professor of Entrepreneurship at MIT's Sloan School of Management, and Senior Fellow, Peterson Institute for International Economics
The first chapter is by Adair Turner, Chairman of the Financial Services Authority and a member of the G20's Financial Stability Board charged with developing a global regulatory regime.

Adair Turner's contribution argues that 'There is no clear evidence that the growth in the scale and complexity of the financial system in the rich developed world over the last 20 to 30 years has driven increased growth or stability', and identifies the most crucial problem as volatile credit supply and pricing arising from the interaction of banks, financial markets and real estate finance. His analysis defines the issues to which he and the other authors propose solutions.

The full list of authors and titles is attached. The titles demonstrate the breadth and depth of the study. The group was convened at LSE by the Paul Woolley Centre for the Study of Capital Market Dysfunctionality and by the Centre for Economic Performance (CEP).

At the Conference, the keynote address will be by Vince Cable, Secretary of State for Business, Innovation and Skills.

The Conference will be held at on Wednesday 14 July 2010 (9.00 - 17.45) at Institute of Engineering and Technology, 2 Savoy Place, London WC2R 0BL [See Map]

The book launched at the Conference is ‘The Future of Finance: And the theory that underpins it' by Adair Turner and others. Available online from July 14th at http://www.futureoffinance.org.uk and available to press on request from now on.

Contact: H.Ogborn@lse.ac.uk for an electronic version. Tel: 020 7955 7048

For further information, contact Romesh Vaitilingam, Email: romesh@vaitilingam.com Tel: 07768 661095


Press Release
Top Health Economists Comment On The NHS White Paper

In a series of recent studies, health economists at the Centre for Economic Performance (CEP) have demonstrated that the introduction of patient choice and hospital competition into the NHS from 2006 onwards has improved quality, improved efficiency and saved lives (see Cooper et al. 2010a; Cooper et al. 2010b and Bloom et al. 2010).

They draw on this body of work to comment on the White Paper. CEP researcher Zack Cooper says:

'We know that hospital competition has improved the performance of the health service. The new White Paper encourages competition, encourages transparency and claims to reduce bureaucracy. That's all reasonable, but are most GPs up to the task of purchasing care for their patients? Will GPs really be onboard with the idea of encouraging competition? Those are the real questions we need to focus on.

'In the abstract, these reforms sound sensible. Every White Paper is heralded as "the biggest structural change to the NHS since 1948". In practice, these reforms seem to promote the Blair legacy of choice and competition, which have thus far proved effective. The challenge is translating these abstract proposals into workable policies.'

The researchers note that the challenge for the new government in healthcare is to continue to introduce smart financial incentives across the NHS and to encourage transparency and competition on clinical performance. They find some encouraging elements in the White Paper.

The push to publish more information on hospital quality is vital to improving the health service. The health service needs clear measures of quality that benchmark how providers perform and allow individuals to make informed choices.

In addition, giving patients a choice over their GP should have a positive impact on care. GPs serve a central role in the health service and expanding choice of GPs will allow individuals to find a provider they can be comfortable with and encourage GPs to continue to improve their performance.

It is also encouraging that the government plans to allow more flexible wages. Recent CEP research shows that this could be an effective strategy to reduce chronically high death rates in London and the South East (Propper et al, 2010).

There is a risk, however, that the reforms will introduce turbulence into the health service. Ultimately, will pushing decision-making away from Primary Care Trusts and towards GPs really increase competition and flexibility of the NHS?

This has the potential to be disruptive organisational change of the kind that the Conservatives promised to avoid when they were in opposition. Such shake-ups typically cost substantial medical time and money - something that will be in short supply over the next few years.

Professor John Van Reenen, director of CEP concludes:

'Moves towards competition are a way of driving up performance and improving patient outcomes in the NHS - just as they are in other parts of our economy. The real question is whether these proposed NHS reforms will really increase effective competition and improve standards or, in fact, accomplish quite the opposite.'

There are also legitimate concerns about whether or not GPs are up to the task of negotiating with hospitals. "One of the reasons for moving away from GP Fundholding in the 1990s was the capacity individual GPs had in bargaining with hospitals. Will it really be any different this time around?" said Van Reenen.

Further Reading

BBC 1
'Breakfast'

Linda Yueh interviewed by the BBC, to discuss the reliability of UK economic statistics and questions over the independence of the new Office for Budget Responsibility.

This interview was broadcast on 12 July 2010 (no link avaliable).

BBC Radio 5 "Wake up to Money" link

Evening Standard
New academies 'will disadvantage the poor'

Research by Professor Stephen Machin and James Vernoit of the Centre for Economic Performance at the LSE has warned that the government's plan to turn states schools in semi-independent academies threatens to widen the gap between rich and poor in education.

This article appeared in the Evening Standard on 12 July 2010 (no link avaliable)

Related publications
‘Note on Academy School Policy’, Stephen Machin and James Vernoit, Centre for Economic Policy Analysis, July 2010 Link to article

Related links
Stephen Machin webpage
James Vernoit webpage
Centre for the Economics of Education (CEE) webpage
Education and Skills Programme webpage

Schools Interested In Academy Status Very Different From Existing Academies
New findings from CEP Policy Analysis.

A new policy briefing by Professor Stephen Machin and James Vernoit of the Centre for Economic Performance (CEP) describes the contrasting characteristics of existing Academy schools and schools that have recently expressed an interest in Academy status. The report, A Note on Academy School Policy, published today, finds that:
  • The Academies programme set up under the Labour government, beginning in 2002, has so far given Academy status to 203 English secondary schools. These schools were more significantly disadvantaged in terms of pre-Academy GCSE attainment, free school meal, special educational needs and ethnic minority status.

  • The new coalition government has written to all headteachers asking if they are interested in Academy status, to which 1,560 schools have responded positively. Schools that have expressed an interest, contrary to the current Academies, are characterised by having a more advantaged pupil population (lower free school meal, special educational needs and ethnic minority status) and superior GCSE attainment.

  • If it follows the expression of interest route to awarding Academy status to schools, the new coalition government's policy on Academy Schools is not, like the previous government's policy, targeted on schools with more disadvantaged pupils. The serious worry that follows is that this will exacerbate already existing educational inequalities.
The report is available at http://cep.lse.ac.uk/pubs/download/pa011.pdf or you may like to browse our other briefings from the CEP Policy Analyses site.

For further information, contact co-author James Vernoit on 07877 221014 (J.Vernoit@lse.ac.uk); Romesh Vaitilingam on 07768 661095 Romesh@vaitilingam.com; or Helen Durrant on 020 7955 7395 h.durrant@lse.ac.uk.


The Observer
Michael Gove urged to help most run-down schools

There was more bad news for Gove as research suggested plans to raise the number of schools with academy status will hit disadvantaged pupils. The Centre for Economic Performance (CEP) will tomorrow publish a report likely to trigger concerns about the government's intentions. The CEP looked at the 1,560 schools that have voiced interest in academy status and found less than 10% of their intake was drawn from the poorest pupils, compared with almost 30% in schools that became academies under Labour. The Department for Education said schools that became academies would be expected to form partnerships with schools in more difficult circumstances.

This article appeared in the Observer on 11 July 2010. Link to article

Related publications
‘Note on Academy School Policy’, Stephen Machin and James Vernoit, Centre for Economic Policy Analysis, July 2010 download

Related links
Stephen Machin webpage
James Vernoit webpage
Centre for the Economics of Education (CEE) webpage
Education and Skills Programme webpage

The Independent
Hamish McRae: Let's pay attention to our service sector: you know it makes sense

Some new research from the Centre for Economic Performance at the London School of Economics (and published in CentrePiece) concludes that if the UK's aid budget were spent well, current funding levels would be more than adequate and lower levels not inconceivable. The research is by Dr Peter Boone who makes the sensible point that the attention of the Department for International Development (DFID) should be on making aid work better, not on the amount spent.

This article appeared in the Independent on 11 July 2010 Link to article

Related publications
‘Making the UK’s aid budget work better’ Peter Boone CentrePiece Vol 15, Issue 1 July 2010

Related links
Peter Boone webpage
Effective Intervention Programme webpage

City A.M.
We won't run out of oil any time soon

Freakonomics, eat your heart out. The latest issue of the London School of Economics’ CentrePiece contains some fascinating insights on the World Cup and football, from an economic perspective.

This article appeared in City A.M. on July 9, 2010
Link to article

Related Publications
In brief: Men in black: the impact of new contracts on football referees' performance, Alex Bryson in CentrePiece Vol 15, Issue 1, Summer 2010,
In brief: The wage premium of two-footed footballers, Alex Bryson in CentrePiece Vol 15, Issue 1, Summer 2010
'The Returns to Scarce Talent: Footedness and Player Remuneration in European Soccer', Alex Bryson, Bernd Frick, Rob Simmons, Centre for Economic Performance Discussion Paper No.948, September 2009

Related Links
Alex Bryson webpage
Labour Markets Programme webpage

Daily Telegraph
Two-footed players earn more money but don't help their teams

Alex Bryson, of the National Institute of Economic and Social Research, wrote in the economics magazine CentrePiece: “We can treat footedness as a pre-determined specialist ability that is capable of generating a return. “It seems that two-footed players are able to appropriate the rents from their scarce talent.”

This article appeared in The Daily Telegraph on July 9, 2010
Link to article

Related Publications
In brief: The wage premium of two-footed footballers, Alex Bryson in CentrePiece Vol 15, Issue 1.
'The Returns to Scarce Talent: Footedness and Player Remuneration in European Soccer', Alex Bryson, Bernd Frick, Rob Simmons, Centre for Economic Performance Discussion Paper No.948, September 2009

Related Links
Alex Bryson webpage
Labour Markets Programme webpage

Wall Street Journal
A tale of one downturn and two labor markets

Two economies. Two very different unemployment stories. Spain sinks into recession: the economy contracts by more than 4% from peak to trough. Unemployment more than doubles to 20%. Britain's downturn is even deeper. The explanation of the differences lies in part, argues Luis Garicano of the London School of Economics, in what has happened to wages. In Spain, says Mr. Garicano, the U.S. is regarded as "the ogre" because of the way workers are casually laid off. But Spain is worse, destroying far more jobs for every 1% fall of output than does the U.S. Figures from a new paper by Paul Gregg and Jonathan Wadsworth of the Centre for Economic Performance at the LSE show that in the last recession U.K. unemployment increased by 0.45 percentage points for every 1% fall in gross domestic product.

This article appeared in the Wall Street Journal on July 8, 2010
Link to article

Related Publications
‘The UK Labour Market and the 2008-2009 Recession’, Paul Gregg and Jonathan Wadsworth, Centre for Economic Performance Occasional Paper No.25, June 2010
Luis Garicano publications webpage

Related Links
Luis Garicano webpage
Productivity and Innovation Programme webpage
Paul Gregg webpage
Jonathan Wadsworth webpage
Labour Markets Programme webpage

Independent
Business Diary: When you're in a hole - 'LSE enters the big league'

Research by the London School of Economics has found that players who are equally adept at using their right and left foot earn more money than those who don't, though there appears to be no impact on team performance.

This article appeared in the Independent on July 8, 2010
Link to article

Related Publications
In brief: The wage premium of two-footed footballers, Alex Bryson in CentrePiece Vol 15, Issue 1.
'The Returns to Scarce Talent: Footedness and Player Remuneration in European Soccer', Alex Bryson, Bernd Frick, Rob Simmons, Centre for Economic Performance Discussion Paper No.948, September 2009

Related Links
Alex Bryson webpage
Labour Markets Programme webpage

Times Higher Education
Choice cuts: Campus round-up: Research from LSE shows that competition in the NHS improves hospital efficiency and can save significant amounts of money

Competition in the NHS improves hospital efficiency and can save significant amounts of money. A study by researchers at the London School of Economics found that hospitals located in areas where patients have more choice improve their efficiency more quickly than hospitals sited in less competitive markets.

This article appeared in the Times Higher Education on July 8, 2010
Link to article

Related Publications
'Does Hospital Competition Improve Efficiency?' by Zack Cooper (LSE Health), Stephen Gibbons (Department of Geography and Environment and the Centre for Economic Performance, LSE), Simon Jones (LSE Health), and Alistair McGuire (LSE Health and the Department of Social Policy, is available as Centre for Economic Performance Discussion Paper No.988, June 2010.

Related Links
Zack Cooper webpage
Stephen Gibbons webpage
Productivity and Innovation Programme webpage

Financial Times
Why South Africa is a good prospect

Tim Leunig Department of Economic History, London School of Economics, writes to the Financial Times about a discussion over whether genetics or child poverty are to blame for the South African black football team's short stature.

This article appeared in the Financial Times on 5 July 2010 Link to article

Related links
Tim Leunig webpage
Globalisation Programme webpage

The Telegraph
Church schools

SIR – Dr Giles Fraser’s article about the problem of “fake worshippers” attempting to get access to church schools regards these families as the problem.
Research by Stephen Gibbons and Olmo Silva at the London School of Economics shows that the relative success of church schools is due, for the most part, to the parents, rather than the schools' ethos.

This article appeared in The Telegraph on 4 July 2010 Link to article

Related publications
'Faith Primary Schools: Better Schools or Better Pupils?', Steve Gibbons, Olmo Silva, Centre for the Economics of Education Discussion Paper No.72, November 2006. Link to article

Related links
Stephen Gibbons webpage
Olmo Silva webpage
Education and Skills Programme webpage

Sunday Times (Appointments)
Highest flyers can sink so low

A study conducted by Lord Layard professor emeritus at the London School of Economics found that the cost of providing psychological care for all adults who needed it would be recovered within two years from a reduction in incapacity benefits and increases in taxes from more people being able to work.

This article appeared in Sunday Times (Appointments)(no link available)

Related publications
Happiness: Lessons from a New Science, Richard Layard. Details of book available at http://cep.lse.ac.uk/pubs/books/happiness/

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

The Tennessean
Can happiness be found without religion?

"There is a paradox at the heart of our lives," writes economist Richard Layard in Happiness: Lessons from a New Science, "Most people want more income and strive for it. Yet as Western Societies have gotten richer, their people have become no happier."

This article appeared in The Tennessean Link to article

Related publications
Happiness: Lessons from a New Science, Richard Layard. Details of book available at http://cep.lse.ac.uk/pubs/books/happiness/

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

Financial Times
A healthy dose of competition will help the NHS pull through

A fascinating new study by Nick Bloom Stephan Seiler and John Van Reenen of the London School of Economic's Centre for Economic Performance (CEP) and Carol Propper of the University of Bristol's Centre for Market and Public Organisation, attempts to measure the quality of that management. The researchers recruited a team of interviewers who quizzed doctors and managers at 100 hospitals, accounting for 60 per cent of the acute hospitals in England.

This article appeared in The Finanical Times on 3 July 2010 Link to article

Related publications
'Management practices in the NHS', Nick Bloom, Carol Propper, Stephan Seiler and John Van Reenen, CentrePiece 14(3), Winter 2010 pp.16-19 Link to article
'The Impact of Competition on Management Quality: Evidence from Public Holidays', Nick Bloom, Carol Propper, Stephan Seiler and John Van Reenen, Centre for Economic Performance Discussion Paper No.983, May 2010. Link to article

Related links
Nick Bloom webpage
John Van Reenen webpage
Stephan Seiler webpage
Productivity and Innovation Programme webpage
Public Sector Productivity Research webpage

InsideHousing
Call this social justice?

A squeeze on housing benefit and too few jobs present bleak prospects for the less privileged, says Tim Leunig

This article appeared in Inside Housing Link to aritcle

Related publications
'Where to build Britain's new houses', Tim Leunig in CentrePiece 13(1), Spring 2008 Link to article

Related links
Tim Leunig webpage
Globalisation Programme webpage

Centre for Economic Performance Press Release
Competition makes NHS hospitals more efficient

Competition in the English NHS improves hospital efficiency and can save the health service significant amounts of money, according to a new study by researchers at the London School of Economics (LSE).

The study finds that hospitals located in areas where patients have a great deal of choice improve their efficiency more quickly than hospitals located in less competitive markets. What’s more, the hospitals in competitive markets are able to improve efficiency and save money without any negative impact on patient outcomes. These findings suggest that as the NHS faces significant pressure to slow spending, patient choice and hospital competition can be a powerful tool to save money. One of the study’s authors, Zack Cooper, says:

‘Competition creates very clear incentives for hospitals to become more efficient.

‘As George Osborne prepares the country for a period of financial austerity, this research helps illustrate how policy-makers get more value for money from the health service instead of having to ration care for cancer, increase waiting times or cut hospital staff.’

The study, which is published today by the Centre for Economic Performance at LSE, was carried out by Zack Cooper, Stephen Gibbons, Simon Jones and Alistair McGuire. Analysing NHS data for the period from 2001 to 2008, the research team measured efficiency as a patient's length of stay in the hospital, breaking that down into its two key components – the time from the patient's admission until their surgery and then the time from surgery until discharge.

They find that hospitals facing heavier competition cut down on the length of stay prior to elective surgery without shortening post-surgery length of stay or having higher readmission rates or higher mortality. Improving efficiency in this way without compromising patient care saved hospitals significant resources.

These findings confirm previous work by Cooper and his colleagues, which found that competition prompted hospitals to improve their quality. It also echoes a recent OECD report, which suggests that the best way for the NHS to become more efficient is for the health service to embrace more fully patient choice and hospital competition.

Zack Cooper comments:

‘Going forward, the NHS is going to face significant pressure to slow health care spending. Unfortunately, there are only two ways to slow how much we spend on health care: we can either cut services or become more efficient.

‘Clearly, we’d rather see hospitals becoming more efficient instead of cutting services that patients value. Our research suggests that this can happen through greater patient choice and hospital competition’



Press release on June 30, 2010


Related Publications
Does Hospital Competition Improve Efficiency? by Zack Cooper (LSE Health), Stephen Gibbons (Department of Geography and Environment and the Centre for Economic Performance, LSE), Simon Jones (LSE Health), and Alistair McGuire (LSE Health and the Department of Social Policy, is available as Centre for Economic Performance Discussion Paper No.988, June 2010.

Related Links
Zack Cooper webpage
Productivity and Innovation Programme webpage

Radio Humberside
Tim Leunig interview

Tim Leunig gave a live interview on migration and employment.

This interview was broadcast on 29 June 2010 (no link avaliable)

Related links
Tim Leunig webpage
Globalisation Programme webpage

PR-USA.Net
Low Pay Commission's 2010 Report

The Low Pay Commission was pleased that the coalition Government today accepted the recommendations made in its 2010 report. As well as increases to the three minimum wage rates from October 2010, a new apprentice rate will be introduced at £2.50 an hour. This will be the first time apprentice pay will be covered by the minimum wage framework. Professor Stephen Machin, Research Director, Centre for Economic Performance, is a member of the Low Pay Commission.

This article appeared in PR-USA.Net on June 28, 2010
Link to article

Related Links
Stephen Machin webpage
Centre for the Economics of Education webpage

British Politics and Policy at the LSE- Blog
Extreme Austerity is the wrong medicine

Increasing numbers of liberal economists are gravely worried that the UK has made a wrong turn in choosing an austerity budget. Professor John Van Reenen, Director of the LSE's Centre for Economic Performance, explains why the budget measures fulfil only a political logic, and risk creating a double-dip recession.

Read the full article about austerity and budget stabilization, direct from the LSE Blog on British Politics and Policy


Financial Times
Regions warned of tough job prospects

Tim Leunig, a regional economy expert at the London School of Economics, believes that yesterday's budget will impact heavily on the UK's poorer regions and remains "unconvinced" by George Osborne's claims that Britain's entrepreneurial side will help cover job losses from the public sector.

This article appeared in the Financial Times on June 24, 2010
Link to article

Also in
Interactive investor

Related Links
Tim Leunig webpage
Globalisation Programme webpage
Tim Leunig publications webpage

Daily Markets
Paul Krugman and P. Diddy? Together in a movie??

Since a moderator during a discussion at the London School of Economics once introduced him as “rock star”, perhaps this is just one attempt of Krugman to cement that image. Or he probably thought it was a documentary about the Greek debt crisis.

This article appeared in Daily Markets on 6 June 2010 Link to article

Related links
Paul Krugman webpage
Globalisation Programme webpage

Management Today
New economics: making forecasts after the recession

Last year, Queen Elizabeth went to the London School of Economics to try and understand what had taken so much wealth out of her Commonwealth. 'Why did nobody predict it?' the monarch asked the hapless host, professor Luis Garicano.

This article appeared in Management Today on June 1, 2010
Link to article

Related Links
Luis Garicano webpage
Productivity and Innovation Programme webpage

Poten and Partners
Can wage regulation be deadly?

On average, a 10 percent increase in the private sector wages is associated with a 7 percent increase in heart attack death say Carol Propper of the University of Bristol and John Van Reenen of the Centre for Economic Performance at the London School of Economics.

This article appeared in Poten & Partners on May 30, 2010
Link to article

Related Publications
Can Pay Regulation Kill? Panel Data Evidence on the Effect of Labor Markets on Hospital Performance, Carol Propper and John Van Reenen, Journal of Political Economy, Vol.118, No.2, April 2010.

Related Links
John Van Reenen webpage
Productivity and Innovation Programme webpage

Bloomberg Business Week News
Zapatero bets future on austerity as support wavers

“He’s convinced he has no political future if he doesn’t go with the reforms, but it’s not obvious that he has a political future with the reforms,” Luis Garicano, an economics professor at the London School of Economics who has edited a book on the Spanish economy, said in a telephone interview.

This article appeared in Keep Media on 29 May, 2010
Link to article.

Related Links
Luis Garicano webpage
Productivity and Innovation Programme webpage

CBC (Canadian Broadcasting Corporation) Radio
The House

Linda Yueh interviewed by CBC’s national political programme - "The House" - commenting on the issues surrounding the proposed global bank levy.

This interview was broadcast on CBC (Canadian Broadcasting Corporation) Radio on May 29, 2010
Link to interview.

Related Links
Linda Yueh webpage
Globalisation Programme webpage

Drogheda Independent (Ireland)
Spain squeezes cuts through by one vote

“Zapatero is convinced he has no political future if he doesn’t go with the reforms, but it’s not obvious that he has a political future with the reforms” said Luis Garicano, an economics professor at the London School of Economics who has edited a book on the Spanish economy.

This article appeared in the Drogheda Independent on 28 May 2010 Link to article

Also in
Business Week
Zapatero bets future on austerity plan as vote nears Link to article

Related links
Luis Garicano webpage
Productivity and Innovation Programme webpage

CIO
Familienunternehmen sind Flops

Familienunternehmen sind die besten Firmen überhaupt? Und wenn die Rahmenbedingungen eines Landes nicht stimmen, scheitert selbst der erfolgreichste Manager? Diese beiden Glaubenssätze haven Wirtschaftsprofessor Nicholas Bloom (Stanford University, Kalifornien) und Forscher John Van Reenen (Centre for Economic Policy [sic], London) widerlegt. Im Journal of Economic Perspectives documentieren sie eine weltweite Studie, die den Einfluss von Management Practices auf den Unternehmenserfolg thematisiert.

This article appeared in the CIO on 27 May, 2010
Link to article.

Related Publications
Why Do Management Practices Differ Across Firms and Countries?, Nicholas Bloom and John Van Reenen, Journal of Economic Perspectives, Vol. 24, No. 1, Winter 2010
'Measuring and Explaining Management Practices Across Firms and Countries', Nick Bloom and John Van Reenen, Centre for Economic Performance Discussion Paper No. 716, March 2006

Related Links
Nicholas Bloom webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Management Practices and Organisational Structures Research webpage

ABC News (Australia)
Breakfast

Linda Yueh was interviewed, to comment on the outlook for the Chinese economy and the implications of the Australian windfall tax on resource companies.

This interview was broadcast on ABC News on 27 May 2010.

Related links
Linda Yueh webpage
Globalisation Programme webpage

San Francisco Chronicle
Zapatero bets future on austerity as political support wavers

He's convinced he has no political future if he doesn't go with the reforms, but it's not obvious that he has a political future with the reforms," Luis Garicano an economics professor at the London School of Economics .

This article appeared in the San Francisco Chronicle on 27 May 2010 Link to article

Also on:
Gulf News
Zapatero plans more cuts despite protest
Article appeared on 27 May 2010 Link

Related links
Luis Garicano webpage
Productivity and Innovation Programme webpage

New Zealand Herald
Money isn't everything

I wish everyone could see the graph drawn by Richard Layard a British economist working with data from the World Bank. It shows that if income starts from a low level of physical comfort, more money brings more happiness.

This article appeared in the New Zealand Herald on 27 May 2010 Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage
Richard Layard publications webpage

ITV
GMTV

Linda Yueh appeared, commenting on the causes of the worldwide fall in stock markets.

This interview was broadcast on GMTV on 26 May 2010 (no link avaliable).

Related links
Linda Yueh webpage
Globalisation Programme webpage

The National (Abu Dhabi)
Attention all staff: I am the boss so you must like me

There is a paradox at the heart of modern management: managers state that employees are their most important asset but employees don’t feel that way. That’s a view confirmed by the London School of Economics professor Richard Layard the author of Happiness: Lessons from a New Society. His research indicates that most people are least happy when interacting with their boss. They would rather spend time with friends, family, even be alone – anyone but the boss.

This article appeared in The National on 26 May 2010 Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage
Richard Layard publications webpage

Guardian
Horse trading by both parties – and still many hurdles to clear

In an article identifying possible flashpoints following the Queen’s speech yesterday, Zack Cooper, health economist at the London School of Economics, said the underlying tension is how much health budgets will have to be cut as costs rise in the NHS.

This article appeared in the Guardian on 26 May 2010 Link to article

Related publications
CEP Election Analysis ‘Health: higher spending has improved quality, but productivity must increase’ by Zack Cooper and Alistair McGuire
Full Election Analyses Download

CNN International
Quest Means Business

Linda Yueh interviewed, commenting on the China-US summit’s outcomes on economic matters.

This interview was broadcast on 25 May 2010 (no link avaliable).

Also on:
CNBC "Squawk Box Europe" Linda Yueh was Guest Host covering a range of issues including the ongoing euro crisis.
Link to programme

Manawatu Standard (New Zealand)
NZ management practices 'middling'

The research used a methodology developed by the London School of Economics, and McKinsey & Co, which had already been implemented in 16 other countries.

This article appeared in Manawatu Standard on 25 May 2010 Link to article

Related links
Nick Bloom webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Management Practices and Organisational Structures Research webpage

Also in
Otago Daily Times Link to article
Scoop Link to article
Voxy.co Link to article

BBC World News
World Business Report

Linda Yueh interviewed on the UK public spending cuts.

This interview was broadcast on BBC World News on 24 May 2010(No link avaliable).

Also on:
BBC 2 “Working Lunch”
Linda Yueh speaking on the UK public spending cuts. Link

Bloomberg TV News “The Pulse with Andrea Catherwood”
Linda Yueh interviewed, commenting on China-U.S. relations and UK public spending cuts (9.00 & 10.00 BST shows). Link

Voice of America News (radio)
Volcanic Ash Could Threaten Europe's Peak Tourist Season Linda Yueh interviewed. Link

Politics.ie
Ireland worse than Greece, faces financial ruini, say two leading economists

There was an analysis of a similarly gloomy nature by Dr Peter Boone from the London School of Economics and Simon Johnson, a former chief economist at the International Monetary Fund, in the New York Times last week. According to the two economists, Ireland’s problems are “sadly, far deeper than the need for simple fiscal austerity”.

This article appeared on Business and Leadership.com Link to article

Related links
Peter Boone webpage
Effective Intervention Programme webpage

Platts
EU could lose Eur7 bil/year from free carbon allowances: UK group

European Union taxpayers could lose out on up to Eur7 billion ($8.8 billion) a year under current European Commission plans to give free carbon allowances to polluting companies after 2012, the UK's Centre for Economic Performance said Monday.

This article appeared on Platts.com on 24 May 2010 Link to article

Related publications
CEP Policy Analysis, ‘Still time to reclaim the European Union Emissions Trading System for the European tax payer’ by Ralf Martin, Mirabelle Muûls and Ulrich J. Wagner, May 2010 Download

Sky News
Weekend Lunchtime

Linda Yueh was interviewed, speaking on the European economies: UK and the euro crisis.

This interview was broadcast on Sky News on 23 May 2010 (no link avaliable)

Related links
Linda Yueh webpage
Globalisation Programme webpage

LesEchos.fr
Les deux secrets de la productivité américaine: management et formation

Alors que la différence entre la productivité du travail aux Etats-Unis et en Europe avait décru entre 1985 et 1995, elle s'est accrue entre 1995 et 2005. Dans un article récent, Nick Bloom de Stanford, et Raffaella Sadun et John Van Reenen de la London School of Economics, étudient les causes de cette divergence. Leur première observation est que les entreprises américaines utilisent les technologies de l'information de manière beaucoup plus intensive, et que l'écart s'est substantiellement creusé depuis 1995. Comment l'expliquer?

This article appeared in LesEchos on 19 May 2010 Link to article

Related publications
‘The Distinct Effects of Information Technology and Communication Technology on Firm Organization’ Nick Bloom, Luis Garicano, Raffaella Sadun and John Van Reenen, Centre for Economic Performance Discussion Paper No.927, May 2009.

Related links
Nick Bloom webpage
Luis Garicano webpage
Raffaella Sadun webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

Forbes.com
Modern Management: Good For The Environment Or Just Hot Air?

Policies to improve management practices--such as competitive markets, business training and professional, rather than hereditary family, management--improve productivity and economic growth. Could this be at the cost of higher energy usage? This column by Nicholas Bloom Assistant Professor of Economics at Stanford University, and Ralf Martin Research Economist, Centre for Economic Performance LSE, and first published on VoxEU.org, using extensive survey and experimental data, suggests that, quite to the contrary, well-managed firms are substantially more energy-efficient.

This article appeared in Forbes.com on 19 May 2010 Link to article

Related publications
‘Modern Management: Good for the Environment or Just Hot Air?’ Nick Bloom, Christos Genakos, Ralf Martin and Raffaella Sadun, Centre for Economic Performance Discussion Paper No.891, October 2008
CentrePiece article Winter 2009/2010 Link

Related links
Nick bloom webpage
Ralf Martin webpage
Christos Genakos webpage
Raffaella Sadun webpage
Productivity and Innovation Programme webpage

Pulse
GPs set to split risk of commissioning with private firms

Zack Cooper health economist at the London School of Economics and author of a pre-election paper on the parties’ NHS plans, predicted GPs would now increasingly enter into partnerships with the commercial sector, since many did not have the capacity or inclination to manage real budgets on their own.

This article appeared in Pulse on 18 May 2010 Link to article

Related publications
CEP Election Analysis 2010 ‘Health: Higher Spending has Improved Quality, But Productivity Must Increase’
Zack Cooper and Alistair McGuire Link

Related links
Zack Cooper webpage
CEP Election Analyses 2010 series Link
LSE Health Link

Pulse
More GPs to hold budgets with commercial sector under Tory-led Governmment, health economist forecasts

Zack Cooper researcher for LSE Health at the London School of Economics and Political Science, and author of a pre-election paper on NHS spending, predicted GPs will increasingly enter into partnerships with the independent sector when the new Tory-led coalition hands them commissioning responsibility.

This article appeared in Pulse on 13 May 2010 link to article

Related publications
CEP Election Analysis 2010 ‘Health: Higher Spending has Improved Quality, But Productivity Must Increase’ Zack Cooper and Alistair McGuire link to article

Related links
Zack Cooper webpage
CEP Election Analyses 2010 series webpage
LSE Health webpage

BBC Radio 5
Election Special

Linda Yueh on General Election expert panel in the "Economic reality check" segment.

This interview was broadcast on 6 May 2010 on BBC Radio 5. (no link avaliable)

Related links
Linda Yueh webpage
Globalisation Programme webpage

BBC Radio Oxford
Linda Yueh

Linda Yueh interviewed, to comment on the economic implications of the General Election

This interview was broadcast on 6 May 2010 on BBC Radio Oxford (no link avaliable).

Related links
Linda Yueh webpage
Globalisation Programme webpage

New York Times
It's not about Greece anymore

The Greek “rescue” package announced last weekend is dramatic, unprecedented and far from enough to stabilize the euro zone. Article by Peter Boone, chairman of the charity Effective Intervention and a research associate at the Center for Economic Performance at the London School of Economics and Simon Johnson.

This article appeared in the New York Times on 6 May 2010 Link to article

Related links
Peter Boone webpage
Effective Intervention Programme webpage

Pulse
Hospital admissions ‘reduced by access to psychological therapies'

Lord Richard Layard the influential researcher whose work underpins the programme, told the debate that although IAPT was having an impact, access needs to be accelerated by whoever forms the next government, particularly for children.

This article appeared in Pulse Today on 5 May Link to article

Related publications
Richard Layard publications webpage

Related Links
Richard Layard webpage
Wellbeing Programme webpage

Public Finance Magazine
UK efforts to cut carbon emissions are ineffective

A study from the Centre for Economic Performance based at the London School of Economics, also concluded that carbon taxes hit the poor hardest, as low-income groups spend proportionally more on fuel and energy-intensive goods such as food.

This article appeared in Public Finance Magazine on 5 May 2010 Link to article

Related publications
CEP Election Analysis ‘Climate Change: Consensus on the long-run targets – but will we get policies that deliver?’ by Ralf Martin download
CEP Policy Analysis ‘Still time to reclaim the European Union Emissions Trading System for the European tax payer’ Ralf Martin, Mirabelle Muûls and Ulrich J. Wagner, May 2010 download

New Statesman
Taking the nation's pulse

The three politicians had a moment of unity when Zack Cooper a health economist at the London School of Economics, raised the issue of the NHS as a free service. Cooper asked why the health service had to be free at the point of access, when that only encourages people to use it more. Unless you start charging people for medical care, he asked, how will you give them the incentive to take greater responsibility for their health?

This article appeared in the new Statesmen on 5 May 2010 Link to article

Related links
Zack Cooper webpage
LSE Health webpage

Guardian
Society daily

That conclusion is backed up by a recent election analysis paper from the centre for economic performance at the London School of Economics. It finds it difficult to get "compelling evidence" of the impact of Labour's various schemes to regenerate deprived neighbourhoods: "Expenditures have provided important public goods, for example, improved social housing. But there appears to have been little progress in narrowing the gap between the outcomes for the most seriously disadvantaged individuals and the rest."

This article appeared in the Guardian on 4 May 2010 Link to article

Related publications
CEP Election Analysis, ‘Inequality: Still higher, but Labour’s policies kept it down’, Stephen Machin and John Van Reenen Link to article

Related links
Stephen Machin webpage
Stephen Machin publications webpage
CEE website
John Van Reenen webpage
John Van Reenen publications webpage
Productivity and Innovation Programme webpage

New Statesman
Leader: All change please, the old order terminates here

Wage and income inequalities have risen slightly under Labour since 1997. However, as research by the Centre for Economic Performance at the London School of Economics has shown, inequality would have been much worse without Labour's efforts to redistribute income. Indeed, the party's record in government is too easily taken for granted: increased investment in public services, the revival of Britain's cities and the introduction of the minimum wage are just three of a number of notable achievements.

This article appeared in the New Statesmen on 4 May 2010 Link to article

Related publications
CEP Election Analysis, ‘Inequality: Still higher, but Labour’s policies kept it down’, Stephen Machin and John Van Reenen download

Related links
Stephen Machin webpage
Stephen Machin publications webpage
CEE website link
John Van Reenen webpage
John Van Reenen publications webpage
Productivity and Innovation Programme webpage

Réforme (France)
Brian Bell interviewed

Brian Bell interviewed for article in French news magazine, commenting on the general macroeconomic outlook, particularly the fiscal situation.

This article appeared in Reforme.net on 4 May 2010 Link to article

Related links
Brian Bell webpage
Productivity and Innovation Programme webpage

Vox
Financial regulation: can we avoid another great recession?

Article by John Van Reenen arguing that “the “heads, I win; tails, society loses” moral hazard in the financial sector has to stop. To do this, policymakers must make bankruptcy credible. If a company has too much debt and becomes insolvent, it should suspend payments and its shareholders and creditors should lose their money.”

This article appeared in Vox on 4 May 2010 Link to article

Related links
John Van Reenen webpage
Productivity and Innovation Programme webpage

Daily Telegraph
Fear drives over-time for no pay - and a creative solution

Dr Nick Bloom is a fellow at the Advanced Institute for Management Research (AIM) and the Centre for Economic Performance both of which are funded by the ESRC. He said: “Better management seems to be the key. American-run companies, even those based in the UK, are much more productive. “Their managers use information technology more productively, and they tend to be more flexible with things like allowing people to work from home, or giving them time off if their child is sick.

This article appeared in the Daily Telegraph on 4 May 2010 Link to article

Related Publication
‘Work-Life Balance, Management Practices and Productivity’ Nick Bloom, Tobias Kretschmer, and John Van Reenen, Joint AGF and Centre for Economic Performance Report, CEP, London School of Economics, January 2006. Management Practices, Work-Life Balance and Productivity: A Review of Some Recent Evidence Nick Bloom and John Van Reenen, Oxford Review of Economic Policy, Vol22, No4, 2006
‘Why Do Management Practices Differ across Firms and Countries?’ Nick Bloom and John Van Reenen, Journal of Economic Perspectives 24, no. 1: 203–224, 2010.

Related links
Nick Bloom webpage
Management and Productivity Research webpage
Productivity and Innovation Programme webpage

CEP Election Analysis
The complete Series, discussing research on some of the key policy battlegrounds of the 2010 General Election

The 2010 General Election is shaping up to be the closest in living memory with a three-horse race between the main parties. It is also an extremely important election as there are tremendous economic problems facing the UK, and the victors of the election will face a series of major challenges as the economy tries to climb out of the deepest recession since the war.

At this critical juncture, it is important to give UK voters the hard information based on rigorous economic analysis that they need to make a reasoned decision on whom to vote for. There is a surfeit of spin from the parties, lobbyists, newspapers and pressure groups with axes to grind and agendas to push. At the Centre for Economic Performance (CEP), we want to give, to the best of our ability an informed and balanced view of the evidence on the major issues facing the electorate. The CEP has no 'corporate view' and each of the 11 election analyses expresses the independent views of the authors.

The mission of the CEP since it was established two decades ago has been to conduct world-class and policy-relevant research. We have drawn on our work and on the best of other research to identify and carefully interpret the facts.

We do not ask you to vote for any particular party, but we would urge you to vote; and to vote wisely considering some of the research evidence we present here.

CEP Election Analyses
Each analysis begins with a single page of bullet points summarising key findings followed by 5-10 pages of more in-depth briefing.

Dedicated readers are encouraged to follow the references at the end with even more information regularly updated from the CEP Election Analysis Site

You may also download CEP Election Analysis 2010 - The complete Series, discussing research on some of the key policy battlegrounds of the 2010 General Election (in Adobe PDF)

For further information, contact Romesh Vaitilingam on 07768 661095 (Email: romesh@vaitilingam.com).

The following summary draws out some key facts across all the election analyses.

Summary of Election Analyses

  • Debt and deficits: The greatest challenge facing the next government is how to reduce the budget deficit and stabilise net public debt, which currently stands at £890 billion (£14,500 per person). No party has outlined more than £10 billion of spending cuts when cuts of £37 billion will be needed by 2014 to halve the deficit. Read more...

  • Getting and spending: Before the recession, Labour increased taxes (by 2.3 per cent of GDP between 1997 and 2007) and spending (by 1.2 per cent of GDP). The higher spending on police, education and hospitals has reduced crime and improved schools and healthcare - but public sector productivity has fallen. Read more...

  • Financial regulation: The roots of the global crisis lie in the financial sector where governments were forced to bail out banks deemed 'too big to fail'. Bankruptcy risk must be made credible by reducing the systemic risk of large banks, for example, through steeply progressive taxes on bank size. Read more...

  • Inequality: Global forces such as technological change have pushed up inequality pressures. Labour's policies have constrained the growth of inequality, but not reduced its level. The richest 10 per cent have increased their share of income by £20 billion since 1998 - largely because of bankers' bonuses. Read more...

  • Jobs: Since the recession began, unemployment has risen from 5 per cent to 8 per cent - far less than expected given the huge fall in GDP (over 6 per cent). Unemployment rose faster for youths than adults, but this always happens in recessions. Although the New Deal has helped to contain unemployment, youth joblessness started rising from 2004 - four years before the recession began. Read more...

  • Education: A pupil premium for disadvantaged pupils would help raise standards. City academies and Swedish-style 'free schools' are unlikely to raise overall school performance. Read more...

  • Health: Since 1997, huge increases in NHS spending have helped reduce the inequality of health outcomes by social class. Reforms that increased competition improved hospital quality. Read more...

  • Crime: Crime has fallen since 1997, although 75 per cent of people think it is rising. More police and targeting prolific offenders have helped reduce crime, as have improved opportunities at the lower end of the labour market. Read more...

  • Immigration: The proportion of immigrants of working age rose from 8 per cent in 1995 to 14 per cent by 2009. Immigrants are less likely to be in social housing than the UK-born and are, on average, younger and better educated. Read more...

  • Urban renewal: There is no convincing evidence that area-based initiatives, such as the New Deal for Communities, have reduced differences between rich and poor areas. Read more...

  • Environment. In line with the Kyoto protocol, compared with 1990, UK emissions have been reduced by more than 12.5 per cent since 1990. But the UK has failed to meet its own target of a 20 per cent cut by 2010. To meet the targets efficiently, carbon prices must rise. Read more...
Download CEP Election Analysis 2010 - The complete Series, discussing research on some of the key policy battlegrounds of the 2010 General Election (in Adobe PDF)

Yahoo! UK and Ireland
Europe seeks new ‘dawn' after Greek crisis

Canadian Peter Boone a renowned research associate at the London School of Economics, went further, expressing the view that Europe is 'still searching for a solution.'

This article appeared on Yahoo on 3 May 2010 Link to article

Related links
Peter Boone webpage
Effective Intervention Programme webpage

The Wall Street Journal – Business
ECB watch: ECB capitulates, suspending rules for Greece

Canadian Peter Boone, a renowned research associate at the London School of Economics, went further, expressing the view that Europe is 'still searching for a solution.'

This article appeared in the Wall Street Journal on 3 May 2010 Link to article

Related links
Peter Boone webpage
Effective Intervention Programme webpage

Dr Dobbs
Understanding regression analysis

Regression analysis is a method of measuring the link between two or more phenomena. Imagine you want to know the connection between the square footage of houses and their sale prices. A regression charts such a link, in so doing pinpointing "an average causal effect," as MIT economist Josh Angrist and his co-author Jorn-Steffen Pischke of the London School of Economics put it in their 2009 book, Mostly Harmless Econometrics.

This article appeared on Dr Dobbs on 1 May 2010 Link to article

Related publication
Mostly Harmless Econometrics: An Empiricist’s Companion, Josh Angrist and Jorn-Steffen Pischke, Princeton University Press, 2009. Details

Related links
Jorn-Steffen Pischke webpage
Labour Markets Programme webpage

Daily Telegraph
General Election 2010: public sector pain – it's tougher than it looks

In the last leader’s debate, Conservative plans to abolish Regional Development Agencies were heatedly discussed, and throughout the campaign both the Tories and Labour have attacked Liberal Democrat plans for a regionally-sensitive immigration policy. It has been policy-wonk heaven. Except that as so often, the clashes between the three leaders have succeeded in generating more heat than light. The reliance of certain regions on government money is the result of a range of complex economic and political factors – and is not easy to fix. 'There are, of course, places that are doing badly,’ says Henry Overman Director of the Spatial Economics Research Centre at the London School of Economics. “But the gaps we see between regions are largely the result of other factors, such as general wage inequality, rather than geographical ones.’

This article appeared in the Daily Telegraph on 1 May 2010 Link to article

Related publication
CEP Election Analysis ‘Urban Renewal and Regional Growth: Muddled Objectives and Mixed Progress’ Henry Overman
CEP Election Analysis site link

Related links
Henry Overman webpage
SERC website

New Statesman
Why did the PM not defend Labour's record?

Brown has spent this campaign attacking Cameron and Clegg and, to be fair, setting out his "forward agenda" and outlining Labour's policy priorities in a fourth term -- both in the debates and in the party's manifesto. But where was the defence of "the record"? I waited in vain during last night's final leaders' debate for Brown to come out and list some of Labour's proudest achievements in office: the minimum wage, paid holidays, international aid, lifting British children out of poverty, improving schools and hospitals, peace in Northern Ireland, etc, etc. (Check out the LSE's Centre for Economic Performance which has been doing a quiet audit of the Labour record on a host of policy areas and has some quite positive conclusions.)

This article appeared in the New Statesmen on 30 April 2010.

Related links
CEP Election Analyses download

New York Times
Can Europe save itself?

Peter Boone and Simon Johnson article
When Jean-Claude Trichet (head of the European Central Bank) and Dominique Strauss-Kahn (head of the International Monetary Fund) rushed to Berlin this week to meet Chancellor Angela Merkel and the German Parliament, the moment was eerily reminiscent of September 2008 — when then-Treasury Secretary Henry Paulson stormed up to the United States Congress, demanding $700 billion in relief for the largest American banks. Remember the aftermath of that debacle? Despite the Treasury argument that this would be enough, much more money was eventually needed, and Mr. Paulson left office a few months later under a cloud. The problem this time is bigger. It is not only about banks; it is about the essence of the euro zone, and the political survival of all the public figures responsible.

This article appeared in the New York Times on 29 April 2010. Link to article

Related links
Peter Boone webpage
Effective Intervention Programme webpage

Independent
Brown has got it right on deficit, say economists

Lord Layard emeritus professor of economics at the London School of Economics, is among more than 100 senior economists who have backed Gordon Brown's approach to tackling Britain's huge deficit and opposed David Cameron's plan to start cuts in public spending this year.

This article appeared in the Independent on 29th April 2010 Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage

Mail online – UK
Watch the final leaders' debate live here: Brown launches last-ditch bid for survival in final TV showdown

…economists including former ratesetter at the Bank of England David Blanchflower and Lord Layard emeritus professor at the London School of Economics.

This article appeared in the mail online on 29 April 2010 Link to article

Also in
Yorkshire Post Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage

CEP Election Analysis
Climate Change: Consensus on the long-run targets - but will we get policies that deliver?

There is a great deal of overlap between the parties' proposals on climate change policy. The 2008 Climate Change Bill, which was backed by the opposition parties, has created a sensible overarching framework for climate change policy-making. But according to the latest Election Analysis from the Centre for Economic Performance (CEP), this framework must now be filled with more detailed policy measures that can induce change.

The publication is summarised below and can be found in full on the CEP Election Analysis Site

For further information, contact Romesh Vaitilingam on 07768 661095 (Email: romesh@vaitilingam.com) or Ralf Martin (Email: r.martin@lse.ac.uk).

Climate Change: Consensus on the long-run targets - but will we get policies that deliver?
  • To favour action on climate change is part of the political consensus across all major parties. All have signed up to legally binding targets for greenhouse gas emissions of a 34 per cent reduction by 2022 and an 80 per cent reduction by 2050 relative to 1990 levels.

  • In line with the Kyoto protocol, compared with 1990, UK emissions have been reduced by more than 12.5 per cent. But the UK has failed to meet its own target of a 20 per cent cut by 2010. Things look even worse if the measure of carbon emissions includes consumption by UK residents, rather than simply emissions occurring in the UK.

  • To meet the targets efficiently, carbon prices must rise. While the UK has various policy initiatives to establish such a price signal, the price incurred by different types of emitters differs widely. Even the strongest price signals are relatively weak, and there is considerable uncertainty about the future path of carbon pricing.

  • The reform plans of the Climate Change Levy proposed by the Conservatives and the Liberal Democrats would address some of these concerns by creating a floor price for the European Union's Emissions Trading Scheme. The LibDems' plans are more radical - extending the levy to non-business users. Both parties stop short, however, of specifying how high this floor price should be.

  • All parties have proposals for 'clean' generation technologies with varying levels of support depending on the type of technology. Labour and the Conservatives support further nuclear power plants whereas the LibDems are opposed to nuclear.

  • Giving differential support to different technologies risks inefficiencies and unnecessary costs. Support for renewable technologies could be integrated with establishing a carbon price. The floor for the carbon price could be indexed to fossil fuel prices, both to hedge the risk and to avoid excessive profits in the event of future oil price hikes.

  • A carbon price will be fiscally regressive and the parties lack practical proposals to address this. The simplest measure could be to channel all revenue arising from carbon back to UK residents in form of a lump sum rebate - akin to a 'poll subsidy'.
Download CEP Election Analysis - Climate Change: Consensus on the long-run targets - but will we get policies that deliver? (in Adobe PDF)


New York Times
Cities do it better

An abundance of employers also enables young workers to find their life’s calling by experimenting at different jobs — waiting tables, acting on Broadway, trading long bonds, etc. Henry Overman and Diego Puga’s chapter in Agglomeration Economics, tests this idea, which is often called “labor pooling.”

This article appeared in the New York Times on 27 Aptil 2010 Link to article

Related links
Henry Overman webpage
Diego Puga webpage
SERC website webpage
Globalisation Programme webpage

CEP Election Analysis
Inequality: Still Higher, But Labour's Policies Kept it Down

Overall wage and income inequality rose slightly under the Labour government since 1997. This was driven by the top half (especially the top 10 per cent) of the income distribution.

There was no change in inequality (and even falls on some measures) for those in the bottom half of the distribution.

These are the key findings of the latest Election Analysis from the Centre for Economic Performance (CEP). Authors Professors Stephen Machin and John Van Reenen note that the increase in wage inequality is an international phenomenon driven by increases in the demand for more skilled workers. There is relatively little that any government can do about this in the long term: the best policy is to keep improving the skills of the workforce through education and training.

The tax and benefit policies of the Labour government have meant that inequality is considerably lower than it would have been under the previous Conservative administration, especially for those in the bottom 20 per cent. But since the inequality 'escalator' of pre-tax earnings has been moving upwards, the policies have at best kept inequality stable rather than significantly reducing it.

The publication is summarised below and can be found in full on the CEP Election Analysis Site

For further information, contact Romesh Vaitilingam on 07768 661095 (Email: romesh@vaitilingam.com) or Stephen Machin (Email: s.j.machin@lse.ac.uk) or John Van Reenen (Email: j.vanreenen@lse.ac.uk).

Inequality: Still Higher, But Labour's Policies Kept it Down
  • Overall income and wage inequality has risen dramatically in the UK over the last three decades. Although the fastest increase was during the 1980s, there was still some (small) increase after 1997.

  • In 1979, a man in full-time work at the 90th percentile (10 per cent from the top of the distribution) earned 2.5 times more per week than a man at the 10th percentile (10 per cent from the bottom of the distribution). In 2009, the equivalent figure was 3.7 times more per week.

  • The increase in wage inequality between 1980 and 1990 was much stronger in the UK and the United States than elsewhere. Since 2000, there have been increases in inequality across all richer countries (except France).

  • Inequality is a tale of two halves. The top half of the wage distribution has continued to become more unequal steadily throughout the last three decades. The bottom half of the wage distribution ceased to become more unequal after 1997.

  • The top 1 per cent of the population has become considerably richer and this has had a large effect on the 'Gini coefficient', a widely used measure of overall inequality. In the decade since 1998, most of this change has been driven by the financial sector, especially bankers' bonuses.

  • The changes in tax and spending policies that the Labour government has introduced since 1997 have significantly redistributed income to the less well off. Inequality would have been much higher otherwise.
Download CEP Election Analysis - Inequality: Still Higher, But Labour's Policies Kept it Down (in Adobe PDF)

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ABC (Australia)
Newsline

Linda Yueh interviewed for programme, to comment on the state of the global economy following the G20 finance ministers’ meeting focused on the Greece debt crisis and proposed banking regulatory reforms.

This interview was broadcast on ABC Australia on 26 April 2010. (No link avalible)

Related links
Linda Yueh webpage
Globalisation Programme webpage

CEP Election Analysis
Urban Renewal and Regional Growth: Muddled Objectives and Mixed Progress

Since 1997, the Labour government has spent considerable sums trying to narrow the gap between poor areas - neighbourhoods, cities and regions - and the rest. The latest CEP Election Analysis from the Centre for Economic Performance (CEP) considers the evidence on the effects of some of these policy initiatives, with a focus on the role of 'area-based initiatives', which try to improve outcomes in particular areas.

According to author Professor Henry Overman, the evidence suggests that progress against objectives has been mixed. This is unsurprising: the economic processes that drive differences across cities and regions of the UK are poorly understood and what evidence we do have has played little part in the formulation of policy. As a result, there is confusion about what urban and regional policy could and should try to achieve - and the parties' positions tend to be based on belief rather than evidence.

The publication is summarised below and can be found in full on the CEP Election Analysis Site

For further information, contact Romesh Vaitilingam on 07768 661095 (Email: romesh@vaitilingam.com) or Henry Overman (Email: h.g.overman@lse.ac.uk).

Urban Renewal and Regional Growth: Muddled Objectives and Mixed Progress
  • Since 1997, Labour has committed to improve the UK's 'underperforming' neighbourhoods, cities and regions.

  • The public service agreement on regional growth commits the government to 'improve the economic performance of all English regions and reduce the gap in economic growth rates between regions'. There is little evidence of significant progress against this objective.

  • The role played by the regional development agencies (RDAs) is hard to assess. There is no compelling evidence on whether RDAs are a good or bad thing.

  • The government has also committed considerable resources to trying to improve outcomes in deprived neighbourhoods. Expenditures have provided important public goods, for example, improved social housing. But there appears to have been little progress in narrowing the gap between the outcomes for the most seriously disadvantaged individuals and the rest.

  • As with RDA expenditure, it is difficult to get compelling evidence on the impact of these initiatives. Based on the best evidence that we have available (for the New Deal for Communities), a reasonably well-funded 'area-based initiative' has not, on average, improved individual outcomes in targeted areas.

  • Some argue that there can be no assumption that 'success' is best measured by what happens to individuals as opposed to what happens to areas. Most economists would disagree with this suggestion: they view improving places as a means to an end rather than as an end in itself.

  • Understandably, constituency-based politicians often care about area outcomes irrespective of the effect on individuals. Add to this the fact that voluntary 'sorting' in response to initiatives makes their impact very hard to evaluate and it is clear why the thinking of all political parties on the objectives for - and effectiveness of - spatial policy remains muddled.
Download CEP Election Analysis - Urban Renewal and Regional Growth: Muddled Objectives and Mixed Progress (in Adobe PDF)


Winnipeg Free Press (Canada)
Robert Allison, April 26

According to Richard Layard of the Centre for Economic Research [sic] and Daniel Nettle of Open University, "Happiness is an imaginary goal that gives us direction and progress.” But, it is not often attained because “we get accustomed to what we get and crave more,” and because we “constantly compare what we have with what others have.”

This article appeared in Winnipeg Free Press on 26 April 2010 Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage
Richard Layard publications webpage

Guardian
Poor must not shoulder the budget deficit, say charities

Income inequality is at its greatest since the second world war, with bankers the big winners in the pay stakes under Labour. According to figures from the London School of Economics, the top 10% of workers saw their share of wages rise from 27% to 30% between 1998 and 2008. However, tax rates for the those earning £100,000 or more remain a third lower than in the 1970s.

This article appeared in the Guardian on 26 April 2010. Link to article

Related links
‘Bankers’ Bonuses’ CEP Election Analysis by Brian Bell
‘Bankers’ Pay and Extreme Wage Inequality in the UK’ by Brian Bell and John Van Reenen, Centre for Economic Performance Special Paper No.21, April 2010 Brian Bell webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

Socialist Party
Left candidates excluded from media

Already suffering or fearing unemployment, low pay, debt, insecurity, stress, poor housing, or lack of services, workers will have been completely horrified to hear the Chartered Institute for Personnel and Development predict there will be over half a million public sector redundancies, ie 10% of the entire public sector workforce. In the same week as this prediction, the London School of Economics revealed that the top 10% of earners are now taking home nearly a third of the UK's total wage bill. With this unprecedented chasm between the classes in society, it is almost unbelievable that working class people are so disenfranchised at present.

This article appeared in the Socilaist Party on 25 April 2010. Link to article

Related links
‘Bankers’ Bonuses’ CEP Election Analysis by Brian Bell
‘Bankers’ Pay and Extreme Wage Inequality in the UK’ by Brian Bell and John Van Reenen, Centre for Economic Performance Special Paper No.21, April 2010
Link to article
Brian Bell webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

World Socialist Web Site
What is the situation facing immigrants and asylum seekers in Britain?

A report by the London School of Economics shows that the UK has a lower share of immigrants in its population (10.2 percent) than Australia (25 percent), the US (13.6 percent), Germany (12.9 percent) and the Netherlands (10.7 percent).

This article appeared on the World Socialist Web Site on 25 April 2010. Link to article

Related links
‘Immigration and the UK Labour Market: The Evidence from Economic Research’ Jonathan Wadsworth, Centre for Economic Performance Election Analysis, April 2010
CEP Election Analyses
Jonathan Wadsworth webpage
Labour Markets Programme webpage

Related publications
‘On the Relative Gains to Immigration: A Comparison of the Labour Market Position of Indians in the USA, the UK and India’, Jonathan Wadsworth and Augustin de Coulon, Centre for Economic Performance Discussion Paper No.851, February 2008 Link to article
‘The Labour Market Effects of Immigration’, Marco Manacorda, Alan Manning and Jonathan Wadsworth, CentrePiece article, Centre for Economic Performance, Winter 2007/2008 Link to article
‘The Impact of Immigration on the Structure of Male Wages: Theory and Evidence from Britain’, Marco Manacorda, Alan Manning and Jonathan Wadsworth, Centre for Economic Performance Discussion Paper No.754, October 2006 Link to article

Observer
Discuss this: how do we fix a broken economy?

Research by the London School of Economics showed that the highest paid workers - mainly finance professionals - took home almost a third of the UK's total wage bill in that year (2008).

This article appeared in the Observer on 25 April 2010. Link to article

Related links
‘Bankers’ Bonuses’ CEP Election Analysis by Brian Bell
‘Bankers’ Pay and Extreme Wage Inequality in the UK’ by Brian Bell and John Van Reenen, Centre for Economic Performance Special Paper No.21, April 2010
Brian Bell webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

BBC Radio 4
Today

Linda Yueh was interviewed on Radio 4 on 23 April 2010, commenting on the economic implications of a hung UK Parliament.

Also on:
BBC Radio 5 "Victoria Derbyshire"
Interviewed for the programme, commenting on the first quarter of 2010 GDP growth figure. Link

BBC 2 "Working Lunch"
Commenting on why a low interest rate and high inflation squeeze savings. Link

Bloomberg TV News - "The Pulse with Andrea Catherwood"
Interviewed on the pressures on the Chinese Yuan from G20 members including Brazil and India. Link

Al Jazeera English "Frost over the World"
Commenting on 3 major financial sector developments, that is, the Goldman Sachs fraud investigation by the U.S. SEC, the IMF proposed bank levies to be considered at the G20 finance ministers' summit and the prospect of a Greece bail-out.

Community Care
Dumbed-down psychotherapy will hinder high-quality care

A campaign sponsored by the government's happiness tsar, Lord Richard Layard , and backed by the entire medical, psychiatric and social policy establishment is recommending "evidence-based" psychological therapies for up to one-third of the population. According to Lord Layard the scale of Britain's mental health problem is "massive": one in three families are affected. He believes that one in 10 children and one in six adults have a "diagnosable problem requiring professional help".

This article appeared in Community Care on 23 April 2010. Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage
Richard Layard publications webpage

CEP Election Analysis
Macroeconomics and Public Finances: The worst is yet to come

The latest economic growth figures confirm that the UK economy is slowly recovering from the deep recession of 2008/09. But according to researchers at the Centre for Economic Performance (CEP), the recovery will probably continue to be slow, and there is still no sign of a significant reversal in the current account deficits that the UK has run for the past two decades. These problems are likely to be compounded by large fiscal deficits and the medium-term challenge of public debt reduction. The latest CEP Election Analysis describes where we are now in terms of macroeconomic performance and the impact on the public finances – and the policy options, focusing on debt reduction and economic recovery, and comparing the parties’ positions. All parties have been vociferous in their rhetoric on public debt reduction. Deficit and debt reduction will be painful, with the agony unequally distributed across the electorate. The parties have articulated specific targets and piecemeal measures to address the public debt challenge. But no party has put forward a comprehensive plan to address the structural deficit challenges that are likely to be central to the economic policy agenda of the elected government. The CEP Election Analysis is summarised below:

  • The Great Recession of 2008-2009 caused a big drop in UK national output, perhaps a permanent 5% drop in GDP. The average household’s wealth fell from £375,000 to £330,000 between 2007 and 2008 alone. But unemployment, currently 8%, has been low compared with previous recessions.

  • From 1997 to the eve of the recession, Labour boosted public spending by 1.2% of GDP and raised taxes by 2.3% of GDP, reducing the structural deficit. But since 2007, the recession blasted a hole in the public finances and, without action, the deficit would remain unsustainably high at around 7-9% of GDP.

  • Public sector net debt is currently £890 billion. Under Labour’s plans to cut spending and raise taxes, this will peak at 76% of GDP in 2014, then decline to around 70% by 2018, up from a recent average of around 40%.

  • The UK’s long-term structural fiscal challenges notwithstanding, market prices indicate neither an imminent Greek-type fiscal crisis in the short run nor extreme inflation. But market appetite for gilts may decline if current debt trends continue and when short-term interest rates begin to rise.

  • All the political parties are signed up to major cuts in spending and increases in taxes to reduce the deficit, but none have put forward a comprehensive plan to meet the challenge. The manifestos are broadly similar with the Conservatives planning to put a slightly greater emphasis on spending cuts.

  • How soon can we start credibly reducing the deficit without risking the recovery? The Conservatives propose to cut government spending by £6 billion more than Labour’s plans this year. Regardless of whether these are really ‘efficiency savings’, this still withdraws demand from the economy. This means spending cuts in real terms of 5.1% in all departments except health and overseas aid.

  • The Conservatives would have a lower increase in National Insurance after 2011 (costing £6 billion) and the Liberal Democrats would increase personal allowances (costing £16.8 billion). These policies would further raise the deficit unless there are offsetting cuts in spending or increases in taxation.

Download Macroeconomics and Public Finances: The worst is yet to come (in Adobe PDF format)

Related Links
All of CEP's Election Analyses webpage

Independent (Education and Careers)
Why the Swedes' idea may backfire

Sandra McNally of the London School of Economics comments on plans for parents to set up their own schools being greeted with scepticism.

This article appeared in the Independent on 22 April 2010. Link to article

Related links
Sandra McNally webpage
Education and Skills Programme webpage
'Evaluating Education Policies: the Evidence from Economic Research' CEP Election Analysis by Sandra McNally
Sandra McNally publications webpage
Full series of Election Analyses 2010

ITV
The economics of incentives

Luis Garicano a Professor of Economics at LSE, thinks that the effect of the global market on incentives can go some way to explaining the current financial crisis. Applying his model of incentives to the world of football, he demonstrates that it is only when we consider rewards that we can understand the way the economics of such diverse situations operate.

This interview was broadcast on ITV on 22 April 2010. Links

Related links
Luis Garicano webpage
Luis Garicano publications webpage
Productivity and Innovation Programme webpage

BBC Radio 5
Wake up to Money

Linda Yueh appeared on the General Election expert panel for the programme ‘Wake up to Money’ to dissect the latest Chancellors' debate over issues such as the implications of a hung Parliament, the timing of fiscal tightening and the latest economic data.

This interview was broadcast on BBC Radio 5 on 22 April 2010 Link to article

Related links
Linda Yueh webpage
Globalisation Programme webpage

Times
Unemployment hits 15-year high and casts shadow over recovery

The disappointing jobs data came as the IMF forecast that unemployment would climb by a further 100,000 this year, taking the rate to 8.3 per cent, from 8 per cent. The warning was echoed by two leading academics, who said that unemployment could continue to grow unless the economic recovery gathered pace. In an article in the National Institute Economic Review, Paul Gregg Professor of Economics at Bristol University, and Jonathan Wadsworth Economics Professor at Royal Holloway College University of London, said: “If demand continues to be weak, then job-shedding will continue on a slow but sustained basis.”

This article appeared in the Times on 22 April 2010 Link to article

Related links
Paul Gregg webpage
Jonathan Wadsworth webpage
Paul Gregg publications webpage
Jonathan Wadsworth publications webpage
Labour Markets Programme webpage

American Progress
ADVISORY: The future of American jobs

Press release announcing who will be attending ‘Advisory: the future of American jobs’ on Friday 30 April 2010 in Washington D.C. …Alan Krueger, Assistant Secretary for Economic Policy, Treasury Department, John van Reenen, Director, Centre for Economic Performance London School of Economics Cecilia Rouse, President's Council of Economic Advisers… WASHINGTON—The Great Recession has deepened a long-term trend (briefly reversed in the late 1990s) toward a hollowing out of America's middle class, with job growth predominantly at lower and higher incomes and growing wage inequality. Even after the job losses of the recession are erased, a deeper challenge remains: how to create good, well-paid jobs to sustain and grow America's middle class. The Hamilton Project and the Center for American Progress will address the implications of the competitive global economy and rapid technological change for the challenge of creating high-paying jobs in the United States.

This article appeared in American Progress on 22 April 2010. Link to article

Related links
John Van Reenen webpage
Productivity and Innovation Programme webpage

BBC Radio Wales
Good Morning Wales

Linda Yueh interviewed, to analyse the IMF’s proposed new global bank levies designed to create self-insurance and deter risk taking.

This interview was broadcast on BBC Radio Wales on 21 April 2010 Link

Related links
Linda Yueh webpage
Globalisation Programme webpage

Guardian
IMF gets tough on banks with ‘FAT' levy

Linda Yueh writes a commentary piece on the proposal by the IMF for two new global levies on banks.

This article appeared in the Guardian on 21 April 2010 Link to article

Related links
Linda Yueh webpage
Globalisation Programme webpage

Reuters
Identity crises and overpaid bankers

The scale of the mismatch between UK-based bankers' wages and the failure of their institutions was shown this week by data from the Center for Economic Performance. It said the increased share alone of total UK wages that bankers received in the decade to 2008 amounted to some 12 billion pounds a year.

This article appeared in Reuters on 21 April 2010 Link to article

Related links
‘Bankers’ Bonuses’ CEP Election Analysis by Brian Bell
‘Bankers’ Pay and Extreme Wage Inequality in the UK’ by Brian Bell and John Van Reenen, Centre for Economic Performance Special Paper No.21, April 2010
Brian Bell webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

Channel 4 News
Jonathan Wadsworth interview

Jonathan Wadsworth interviewed on unemployment figures.

This interview was broadcast on Channel 4 News on 21 April 2010 (no link avaliable)

Related links
Jonathan Wadsworth webpage
Labour Markets Programme webpage

Business World
The view from Taft - by Dante V. Sy: education and crime

The 2010 Annual Conference of the Royal Economic Society (RES) held at the University of Surrey in Guildford, London, revealed another important consequence of education. A paper written and presented by Stephen Machin of University College, Olivier Marie of Maastrich University and Suncica Vujic of the London School of Economics, indicated that spending more on education is a cost-effective way of preventing or cutting down the incidence of crime.

This article appeared in Business World on 21 April 2010 Link to article

Related links
Stephen Machin webpage
Olivier Marie webpage
Education and Skills Programme webpage
Stephen Machin publications webpage
Olivier Marie publications webpage

Forexyard
Analysis – Identity crises and overpaid bankers

The scale of the mismatch between UK-based bankers' wages and the failure of their institutions was shown this week by data from the Centre for Economic Performance. It said the increased share alone of total UK wages that bankers received in the decade to 2008 amounted to some 12 billion pounds a year.

This article appeared in Forexyard on 21 April 2010. Link to article

Related links
‘Bankers’ Bonuses’ CEP Election Analysis by Brian Bell
‘Bankers’ Pay and Extreme Wage Inequality in the UK’ by Brian Bell and John Van Reenen, Centre for Economic Performance Special Paper No.21, April 2010 Brian Bell webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

Also in
The Khaleej Times Link

CEP Election Analysis
Jobs and Youth Unemployment: It's bad, but not as bad as you might think

The UK's rate of unemployment has just hit 8 per cent and the number of people unemployed has risen to 2.5 million. According to researchers at the Centre for Economic Performance (CEP), while these figures are bad, they are not as bad as might be expected given the large fall in output in the current recession, the worst decline of any other post-war recession.

Young people, however, have fared much worse than other groups with larger increases in their unemployment and bigger falls in hours and wages than for adults. The CEP researchers argue that, unfortunately, this is to be expected as young people always suffer worst during downturns. It does not seem that (relatively) they are doing particularly badly in the latest recession compared with the 1980s and 1990s recessions.

More worrying, however, is that the fact that youth unemployment and numbers of NEETs (young people 'not in employment, education or training') were bad going into the recession, having been rising since 2004.

The latest CEP Election Analysis provides more detail on the research evidence on jobs and youth unemployment - and the potential policy responses. The publication is summarised below and can be found in full on the CEP Election Analysis Site

For further information, contact Romesh Vaitilingam on 07768 661095 (Email: romesh@vaitilingam.com).

Jobs and Youth Unemployment: It's bad, but not as bad as you might think
  • The Great Recession of 2008-2010 has inflicted a larger cumulative loss of UK output than any of the other post-war recessions. Nevertheless, unemployment is much lower than we would have expected given past experience.

  • Young people have fared badly during the recession, with larger increases in their unemployment rates than adults. But young people always do worse in downturns, and there is no evidence that they are doing relatively worse this time round than in previous recessions.

  • Youth unemployment has fallen since the last recession, but then rose after 2004 prior to the onset of the current recession. The weakening of the adult labour market can only account for part of this rise. Increased immigration, the minimum wage, skill demand changes and schooling are other possible explanations - but there is little compelling evidence for any of these factors.

  • Labour's welfare reforms - such as the New Deal for Young People introduced in 1998 - have had a positive impact on jobs. But after 2004, the Employment Service put less emphasis on the young unemployed compared with other groups (such as lone parents and people on incapacity benefits), and this may be a factor in the post-2004 rise in youth unemployment.

  • The trends for 18-24 year olds 'not in employment, education or training' (NEETs) follow the same pattern as youth unemployment. NEET rates for 16-17 year olds are very high (and rising) only if we include all part-time students. When these are removed, teenage NEET rates are more like 10 per cent.

  • There is substantial consensus between the main parties on jobs and youth. An unanswered question for all parties is: if they think the current system is not working, then how will 'more of the same' radically improve things?
Download Jobs and Youth Unemployment: It's bad, but not as bad as you might think (in Adobe PDF)

Daily Mail
Goldman Sachs banker facing fraud charges bags share of mega £3.2bn payout

Goldman Sachs banker facing fraud charges bags share of mega £3.2bn payout The revelations came as a study by the London School of Economics found that soaring salaries in the financial sector have been responsible for 60 per cent of the increase in the gap between rich and poor over the past decade.

This article appeared in the Daily Mail on 20 April 2010 Link to article

Related links
‘Bankers’ Bonuses’, CEP Election Analysis by Brian Bell
‘Bankers’ Pay and Extreme Wage Inequality in the UK’ by Brian Bell and John Van Reenen, Centre for Economic Performance Special Paper No.21, April 2010
Brian Bell webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

Daily Mail
Daily mail comment: Culture of greed that makes society poorer

Gordon Brown’s rush to attack the ‘moral bankruptcy’ of Goldmans may have been hypocritical, given his Government’s cosy relationship with the bank, on whose ‘expertise’ it relied during the Northern Rock crisis. However, he is right to point to the trail of financial misery the banks and their insidious culture of greed have left behind. Consider today’s report by the London School of Economics which says 60 per cent of the increase in the wealth gap between the richest and poorest members of society between 1998 and 2008 is down to soaring financial services earnings.

This article appeared in the Daily Mail on 20 April 2010 Link to article

Related links
‘Bankers’ Bonuses’ CEP Election Analysis by Brian Bell
‘Bankers’ Pay and Extreme Wage Inequality in the UK’ by Brian Bell and John Van Reenen, Centre for Economic Performance Special Paper No.21, April 2010
Brian Bell webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

Daily Mail
Soaring City pay 'has done most to widen wealth gap'

A pay explosion in the city has been the biggest cause of rising social inequality under Labour, researchers claim. Dr Brian Bell who authored the research from the LSE's Centre for Economic Performance with fellow academic John Van Reenen said rising bonuses had played a huge part.

This article appeared in the Daily Mail on 20 April 2010 Link to article

Related links
‘Bankers’ Bonuses’ CEP Election Analysis by Brian Bell
‘Bankers’ Pay and Extreme Wage Inequality in the UK’ by Brian Bell and John Van Reenen, Centre for Economic Performance Special Paper No.21, April 2010
Brian Bell webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

Scotsman
Bill Jamieson More than higher taxes needed to curb culture of excess

Here in Britain, the issue of bankers' pay and bonuses wafts in and out of the election campaign like a bad smell. Two axioms have been repeated and with as yet little challenge. One is that paying bankers' bonuses in shares rather than cash would reduce the temptation to take serious risks. Another, advanced by banker apologists, is that if further taxes are levied, this would simply act to drive the high earners overseas – to the loss of UK taxpayer. Both are faulty, according to the conclusions of a paper this week from the Centre for Economic Performance

This article appeared in the Scotsman on 20 April 2010 Link to article

Full series of Election Analyses Link

The Guardian
Here's what Labour can do about the Lib Dem dilemma

Yesterday's report from the Centre for Economic Performance showed how bonanza bonuses in the finance sector cause risk-taking that contributed to the financial crisis.

This article appeared in The Guardian on 20 April 2010 Link to article

Full series of Election Analyses Link

Daily Telegraph
General Election 2010: Lib Dem pay policy ‘not the solution', warns LSE

The Centre for Economic Performance (CEP) a division of the LSE, has said that the Lib Dem pledge that all bonuses over £2,500 will have to be paid in shares is "likely to be ineffective" in changing risk behaviour.

This article appeared in the Daily Telegraph on 20 April 2010 Link

Related links
‘Bankers’ Bonuses’ CEP Election Analysis by Brian Bell
‘Bankers’ Pay and Extreme Wage Inequality in the UK’ by Brian Bell and John Van Reenen, Centre for Economic Performance Special Paper No.21, April 2010
Brian Bell webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

Public Finance
Education policies converge but details remain sketchy

Sandra McNally director of education and skills at the London School of Economics’ Centre for Economic Performance agrees that the evidence base for charter and free schools is unconvincing. Positive effects of the Swedish reforms do not last beyond high school, she says, while a report by Stanford University last year found only 17% of US charter schools reported significantly better academic gains than traditional public schools.

This article appeared in the Daily Telegraph on 20 April 2010 Link to article

Related links
Sandra McNally webpage
Education and Skills Programme webpage
‘Evaluating Education Policies: The Evidence from Economic Research’ CEP Election Analysis by Sandra McNally
Full series of Election Analyses link
Sandra McNally publications webpage

Dispatch online
Tricky economy tops UK election campaign

Whichever group wins next month’s vote, economists say taxation hikes and spending cuts are needed, as borrowing is forecast to hit a record £167 billion (about R2trillion) in 2009- 2010. However, the manifestos are unclear on where the axe will fall, according to economist Linda Yueh

This article appeared on Dispatch Online on 20 April 2010 Link to article

Related links
Linda Yueh webpage
Globalisation Programme webpage

Third Sector
Craig Dearden-Phillips: Despite my ‘inner Margaret Thatcher' I believe the sector must push for more equality

Columnist is caught between his rejection of higher taxes and desire for greater equality.
I try to read around a bit these days, and I pick a range of stuff so I don't just hear the same thing over again. So I exited Waterstone's last week with Phillip Blond's Red Tory, David Willetts' The Pinch, The Spirit Level by Richard Wilkinson and Kate Pickett, and Richard Layard's book Happiness. Each sits somewhere between traditional right and firm left.

This article appeared in Third Sector on 20 April 2010 Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage
Richard Layard publications webpage

This is money
City pay 'has done most to widen wealth gap'

Some 60% of the increase in the gap between the richest and poorest between 1998 and 2008 is down to soaring financial services earnings, according to a report from the London School of Economics. Dr Brian Bell who authored the research from the LSE's Centre for Economic Performance with fellow academic John van Reenen said rising bonuses had played a huge part.

This article appeared in This is Money on 20 April 2010 Link to article

Related links
‘Bankers’ Bonuses’ CEP Election Analysis by Brian Bell
‘Bankers’ Pay and Extreme Wage Inequality in the UK’ by Brian Bell and John Van Reenen, Centre for Economic Performance Special Paper No.21, April 2010
Brian Bell webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

Le Monde
Le Hommerton Hospital, symbole de la santé publique choyée par le Labour

Le Hommerton Hospital, symbole de la santé publique choyée par le Labour Zack Cooper discusses the need for reform of the NHS.

This article appeared in Le Monde on 20 April 2010. Link to article

Related links
Zack Cooper webpage
LSE Health webpage

Business World online
Opinion: Education and crime

The 2010 annual conference of the Royal Economic Society (RES) held at the University of Surrey in Guildford, London, revealed another important consequence of education. A paper written and presented by Stephen Machin of University College, Olivier Marie of Maastrich University, and Suncica Vujic of the London School of Economics indicated that spending more on education is a cost-effective way of preventing or cutting down the incidence of crime.

This article appeared on Business World Online on 21 April 2010. (No link avaliable)

Related links
Stephen Machin webpage
Olivier Marie webpage
Education and Skills Programme webpage
Stephen Machin publications webpage
Olivier Marie publications webpage

Employee Benefits.co.uk
Top 10% of workers see wages increase over the past decade

The top 10% of workers in the UK have their annual wages rise by 3% over the past decade according to research from the London School of Economics (LSE).

Its report Bankers' Pay and Extreme Wage Inequality in the UK from the Centre for Economic Performance (CEP) at LSE showed that from 1998 this group of employees' share of annual wages rose from 27% to 30%.

This article appeared in EmployeeBenefits.co.uk on 19 April 2010 Link to article

Related links
‘Bankers’ Bonuses’ CEP Election Analysis by Brian Bell
‘Bankers’ Pay and Extreme Wage Inequality in the UK’ by Brian Bell and John Van Reenen, Centre for Economic Performance Special Paper No.21, April 2010
Brian Bell webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

Wall Street Journal online
A bailout will still leave Greece struggling with debt

But as Peter Boone of the London School of Economics and Simon Johnson, a former IMF chief economist, point out in their Baseline Scenario blog even a cutback of this magnitude leaves Greece seeking to raise more than €50 billion this year, money that will finance interest payments and expand its borrowing by a further 4%.

This article appeared in the Wall Street Journal online on 19 April 2010. Link to article

Related links
Peter Boone webpage
Effective Intervention Programme webpage
Peter Boone publications webpage

Emirates Business
Economy and public debt at heart of UK Election

Linda Yueh quoted in the AFP story, commenting on the manifestos and the implications of the timing of fiscal austerity measures. ‘However, the manifestos are unclear on where the axe will fall, according to Linda Yueh a fellow in economics at Oxford University. "The parties have not given enough detail to assess how far apart they really are on the ways to reduce the budget deficit," Yueh said. "There are significant unspecified spending cuts that are needed – which have to go beyond just efficiency savings – that make it hard to judge the particular mix of cuts to tax rises which will be implemented."

This article appeared in Emirates Business on 19 April 2010. Link to article

Related links
Linda Yueh webpage
Globalisation Programme webpage

Reuters
Press digest

City bankers saw near unprecedented income growth over the past decade, with the highest paid receiving nearly a third of the UK's total wage bill, according to research by the Centre for Economic Performance at the London School of Economics.

This article appeared on Reuters.com on 19 April Link to article

Related links
Brian Bell webpage
Productivity and Innovation Programme webpage
‘Bankers’ Bonuses’, CEP Election Analysis by Brian Bell webpage
Brian Bell publications webpage
Full series of Election Analyses webpage

Financial Times
City drives rise in pay inequality

Bankers' bonuses and pay at the top end of the financial services industry have driven Britain's rising inequality over the past decade, new research from the London School of Economics shows. City bankers have experienced near-unprecedented income growth over the past decade, with the highest-paid workers taking home nearly a third of the UK's total wage bill, according to the analysis from the Centre for Economic Performance at the LSE. The study reveals that the self-styled "masters of the universe" were the big winners in the pay stakes under Labour, with the top 10 per cent of workers seeing their share of wages rise from 27 per cent to 30 per cent between 1998 and 2008.

This article appeared in the Financial Times on 19 April 2010. Link to article

Related links
Brian Bell webpage
Productivity and Innovation Programme webpage
‘Bankers’ Bonuses’, CEP Election Analysis by Brian Bell webpage
Brian Bell publications webpage
Full series of Election Analyses: Link

CEP Election Analysis
Financial Regulation: Can We Avoid Another Great Recession?

The latest CEP Election Analysis gives an overview of the research evidence on financial regulation, one of the key battlegrounds of the 2010 General Election.

The publication is summarised below and can be found in full on the CEP Election Analysis Site

For further information, contact Romesh Vaitilingam on 07768 661095 (Email: romesh@vaitilingam.com).

Financial Regulation: Can We Avoid Another Great Recession?
  • The Great Recession of 2008-2010 had its roots in the crisis of financial markets, which spread to the real economy.

  • The structural problem with the financial sector is that there is strong 'contagion' between institutions within the financial sector and also between the financial sector and other parts of the economy. A large bank can pull down the financial sector, which can, in turn, pull down large parts of the rest of the economy in a 'domino effect'.

  • Because of these contagion effects, governments will inevitably bail out banks; and because banks know this, they take excessive risks. This structural 'moral hazard' problem has not been dealt with by the existing regulatory regime.

  • To deal with the problem, we need to (a) make bankruptcy more credible; (b) shrink the size of banks so that there are fewer organisations that are 'too big to fail'; and (c) improve existing regulations in a variety of ways.

  • Most current proposals do not deal with this fundamental problem. Improving corporate governance, reforming bankers' pay and crude taxes on all banks and/or financial transactions are mainly distractions.

  • Without reform, the risks of a repeat of a repeat financial crisis have increased. There is less uncertainty that governments will bail out banks, and key sectors like investment banking are more concentrated.
Download CEP Election Analysis - Financial Regulation: Can We Avoid Another Great Recession? (in Adobe PDF)

CEP Election Analysis
Bankers' Bonuses

The latest CEP Election Analysis gives an overview of bankers' bonuses and extreme wage inequality, one of the key battlegrounds of the 2010 General Election.

The publication is summarised below and can be found in full on the CEP Election Analysis Site

For further information, contact Romesh Vaitilingam on 07768 661095 (Email: romesh@vaitilingam.com).

Bankers' Bonuses
    Over the decade from 1998, the top 10 per cent of workers in the UK saw their share of total annual wages rise from 27 per cent to 30 per cent. The majority of this went to the top 1 per cent and can be mainly accounted for by bonuses to financial sector workers. By 2008, the increased share that bankers were taking amounted to an extra £12 billion per year in wages alone.

  • The size of these bonuses and their structure may have been a contributing factor to the financial crisis. Bankers paid large cash bonuses on the basis of short-term returns often unadjusted for risk have incentives to take on excessive risk.

  • All the parties have attacked bankers' bonuses - the Liberal Democrats have said that they would ban all bonuses to board members and force all bonuses above £2,500 to be paid in shares.

  • It is unclear why shifting away from cash toward equity-based compensation would alter any perverse risk incentives since unlike a CEO (chief executive officer), an individual banker typically has only a small effect on the share price.

  • Another proposal is to 'claw back' bonuses if performance is sub-standard in the future. Unlike simply deferring bonuses, this in principle could improve incentives.

  • The government has increased the marginal tax rate to 50 per cent for those earning over £150,000 and introduced a one-off 50 per cent tax on bankers' bonuses over £25,000 for the 2009/10 pay period. The Conservatives do not pledge to reverse the first policy and the second will theoretically have been completed by the time of the election.

  • There is very little evidence whether such tax rises will cause a significant number of firms and workers to leave Britain. In any case, highly paid workers are likely to change their behaviour to minimise the impact of the tax rises and so reduce the expected revenue gains to the Exchequer.
Download CEP Election Analysis - Bankers' Bonuses (in Adobe PDF)

For further information about Banker's Bonuses please read CEP Special Paper 21: Bankers' Pay and Extreme Wage Inequality in the UK

Financial Times (FT Weekend Magazine)
Why recessions aren't all about job losses

Christopher Pissarides of the London School of Economics points to research showing that workers who hop from one job to another during a boom enjoy a hefty jump in take-home pay, while workers who change jobs during a recession do not. That suggests, claims Pissarides, that wages (or at least the wages offered to new hires) are more flexible than many economic theorists assume. Not so fast, respond those theorists.

This article appeared in the FT magazine on 17 April 2010. Link to article

Related links
Christopher Pissarides webpage
Macro Programme webpage
Christopher Pissarides publications webpage

Bloomberg
Conservative cut plans economically illiterate, Skidelsky says

The letter in the Times was written with Lord Richard Layard a Labour Party peer in the Lords and professor of economics at the London School of Economics.

This article appeared on Bloomberg on 16 April 2010 Link to article

Richard Layard webpage
Wellbeing Programme webpage
Richard Layard publications webpage

Personnel Today
Leading academics sign letter criticizing Tory efficiency plans

The economists supporting the letter include David Blanchflower and Labour peer Richard Layard.

This article appeared in Personnel Today on 16 April 2010. Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage
Richard Layard publications webpage

New York Times
Economix: the next global problem: Portugal

Peter Boone is chairman of the charity Effective Intervention and a research associate at the Center [sic] for Economic Performance at the London School of Economics.

This article appeared in the New York Times on 16 April 2010 Link to article

Related links
Peter Boone webpage
Effective Intervention Programme webpage
Peter Boone publications webpage

Manila Times
Economists attack Tory plans ahead of British TV debate

Signatories of the letter include David Blanchflower, a former member of the monetary policy committee, and Richard Layard emeritus professor of economics at the London School of Economics.

This article appeared in the Manila Times on 16 April 2010. Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage
Richard Layard publications webpage

Economist
The power to disrupt

A special report on innovation in emerging markets
Uses'Why do Management Practices Differ Across Firms and Countries?' by Nick Bloom and John Van Reenen as a source.

This article appeared in The Economist on 15 April 2010 Link to article

Related links
Nick Bloom webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Nick Bloom publications webpage
John Van Reenen publications webpage

UTV Internet
General election 2010: labour tactics blunted by leak of economists' letter

Signatories to the letter include David Blanchflower, a former member of the monetary policy committee, Lord Peston, and Lord Layard emeritus professor of economics at the London School of Economics and a Labour peer. The letter was organised by Lord Skidelsky, emeritus professor of political economy at Warwick University and a crossbench peer. Layard told the Guardian: "The issue of the stimulus this year is a bit like the climate change debate in scientific circles. I would think almost 90% of economists worldwide think it needs to be kept going.

This appeared on UTV internet on 16 April 2010. Link

Related links
Richard Layard webpage
Wellbeing Programme webpage
Richard Layard publications webpage

AFP
Economists attack Tory plans ahead of TV debate

Signatories of the letter include David Blanchflower, a former member of the monetary policy committee, and Richard Layard emeritus professor of economics.

This article appeared on AFP on 16 April 2010. Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage
Richard Layard publications webpage

Times online (blog)
The economists and their letter

What to make of the economists - led by Robert Skidelsky and Richard Layard - writing in support of Gordon Brown's position on borrowing?

This article appeared on Times Online on 15 April 2010 Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage
Richard Layard publications webpage

BBC News
Economists Warn Over Tory Efficiency Plans

The Telegraph reported that it had seen a leaked letter in which 58 economists, including Lord Layard , Lord Skidelsky, Lord Peston and Sir David Hendry, back Gordon Brown's plans for the recovery.

This was broadcast on BBC News on 15 April 2010. Link

Related links
Richard Layard webpage
Wellbeing Programme webpage
Richard Layard publications webpage

Radio 4
Today Programme (6.30am)

Richard Layard interviewed about the support for Gordon Brown’s plans for the recovery.

This interview was broadcast on Radio 4 on 15 April 2010. (no link avaliable)

Related links
Richard Layard webpage
Wellbeing Programme webpage
Richard Layard publications webpage

Daily Telegraph
General Election 2010: letter in full of economists 'backing Gordon Brown'

More than 50 economists from around the world have signed a letter backing Gordon Brown’s economic plans. Signatories include Richard Layard , Richard Freeman and Stephen Machin from the Centre for Economic Performance.

This letter appeared in the Daily Telegraph on 15 April 2010. Link to aticle

Also in
Daily Telegraph
General Election 2010: Gordon Brown finally finds experts ‘to back economic plans’ Link to article

Money Marketing
Economists warn on Tory cuts Link to article

Daily Mail
Tory spending cuts could push Britain back into recession, economists warn Link to article

City am
Economists back Brown Link to article

The Australian
Economists attack Tory’s fiscal plans Link to article

Wales online
Breaking the bonds of dependency

Prof Lord Richard Layard of the Centre for Economic Performance at the London School of Economics, argues that a job guarantee scheme must be introduced to impact on the UKs long-term unemployment.

This article appeared in Wales Online on 15 April 2010. Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage
Richard Layard publications webpage

Sun
Be happy for 80k

The Centre for Economic Performance at the London School of Economics is searching for a World Director of Happiness. In the ad for the job, bosses want someone with "proven leadership ability" with a "vision of society in which people are motivated by more than just money". Founder of the Movement For Happiness Lord Layard said: "We think we will be deluged with applications."

This article appeared in the Sun on 15 April 2010 (No link avalible)

Related links
Richard Layard webpage
Wellbeing Programme webpage
Richard Layard Publications webpage

ITN News
Economists ‘issue warning over Tory plans'

More than 50 leading economists have reportedly issued a warning that Tory plans for cuts this year risk pushing the economy back into recession. …signatories included such respected academic economists as Lord Layard, Lord Skidelsky, Lord Peston and Sir David Hendry.

This was broadcast on 14 April 2010 on ITV News. Link

Related links
Richard Layard webpage
Wellbeing Programme webpage
Richard Layard publications webpage

BBC Radio 4
Today Programme

Linda Yueh interviewed, to comment on the tensions over the Chinese exchange rate and analyse the outcome of the meeting between Presidents Obama and Hu over the issue.

This interveiw was broadcast on 14 April 2010 Link

Also on:
BBC Radio Wales – ‘Good Evening Wales’, commenting on the Labour government’s apologies over the financial regulatory regime. Link

Related links
Linda Yueh webpage
Globalisation Programme webpage

Yahoo UK and Ireland
Greek bonds falter again, Portugal raises two billion euros

Some analysts suggest that the deal, which in the first instance would enable Greece to borrow up 30 billion euros (41 billion dollars) from the eurozone this year if necessary, is only prolonging the agony. They contend it would be far better to let Greece default and restructure quickly than keep the country afloat by adding ever more debt to its books. Peter Boone of the London School of Economics and Simon Johnson of MIT's Sloan School noted that the International Monetary Fund's experience in Argentina in the 1990s which eventually defaulted after many years of support.

This article appeared on Yahoo UK and Ireland on 14 April 2010. Link to article

Related links
Peter Boone webpage
Effective Intervention Programme webpage
Peter Boone publications webpage

EU Business
Greek bailout masks Argentine slippery slope: analysts

Europe's bailout will only stick a patch on Greek finances and do nothing for the euro's long-term health, with the slippery slope to an Argentina-style default a real concern, analysts warn. "It all seems horribly reminiscent to those early days when Argentina slid towards a cruel collapse," said Canadian Peter Boone , a research associate at the London School of Economics, in a detailed paper that argued against International Monetary Fund support.

This article appeared in ebusiness.com on 14 April 2010 Link to article

Related links
Peter Boone webpage
Effective Intervention Programme webpage
Peter Boone Publications webpage

Daily Telegraph
No more carrot and stick

Does money actually motivate staff in the best way? And does it make them happy? David Marsden Professor of Industrial Relations at the London School of Economics believes that income is important up to a point but beyond that, there is not much correlation between extra money and greater happiness. People are motivated by a whole variety of factors, Marsden says, and the interest they derive from work can be as important as any financial incentive.

This article appeared in the Daily Telegraph on 14 April 2010. (No link avaliable)

Related links
David Marsden webpage
Labour Markets Programme webpage
David Marsden Publications webpage

CEP Election Analysis
Health: Higher Spending has Improved Quality, But Productivity Must Increase

The latest CEP Election Analysis, published jointly with LSE Health, gives an overview of the research evidence on UK healthcare, one of the key battlegrounds of the 2010 General Election.

The publication is summarised below and can be found in full on the CEP Election Analysis Site

For further information, contact Romesh Vaitilingam on 07768 661095 (Email: romesh@vaitilingam.com) .

Health: Higher Spending has Improved Quality, But Productivity Must Increase
  • UK healthcare spending has increased by nearly 7 per cent a year in real terms in the last decade - the largest ever sustained increase in the history of the National Health Service.

  • Spending on the NHS will slow in the next decade, making it necessary to achieve significant improvements in productivity. Neither of the major political parties has been explicit about their budget proposals for the NHS or provided specific plans to improve the productivity of the health service.

  • Since taking office in 1997, the Labour government has implemented a combination of market-based reforms to the hospital sector and performance management for general practitioners (GPs) and waiting times.

  • Clinical performance and patient satisfaction have increased substantially and waiting times have dropped significantly since Labour has been in power.

  • The NHS still lags behind other European countries on several quality indicators and in particular on cancer mortality.

  • A key battleground in the General Election will be over the centralisation of the health service. The opposition parties want to abolish targets and the Conservatives are also proposing to limit political involvement by creating an independent NHS board.

  • There has been a rush of policy proposals in the run-up to the election. Recently, the Labour government has proposed paying for social care for anyone in care for more than two years. Likewise, the Conservatives have proposed guaranteeing all NHS patients access to any cancer medication that has been approved since 2005. Neither party has directly addressed how to pay for their proposals.
Download CEP Election Analysis - Health: Higher Spending has Improved Quality,But Productivity Must Increase (in Adobe PDF)

Public Finance Magazine
Education, education, by Sandra McNally

New – or supposedly new – policies on education are a central focus of what the party manifestos, published this week, are offering the electorate. Research by the Centre for Economic Performance (CEP) provides some evidence on the impact of past initiatives and the prospective success of some of the proposed reforms.
Dr Sandra McNally is director of Education and Skills at the Centre for Economic Performance, London School of Economics and Political Science.
More information on CEP election analyses available from http://cep.lse.ac.uk

This article appeared in Public Finance Magazine on 13 April 2010 Link to article

Related links
Sandra McNally webpage
Education and Skills Programme webpage
‘Evaluating Education Policies: The Evidence from Economic Research’, CEP Election Analysis by Sandra McNally download
Sandra McNally publications webpage
Full series of Election Analyses webpage

CEP Election Analysis
Evaluating Education Policies: The Evidence from Economic Research

The latest CEP Election Analysis gives an overview of the research evidence on education policy, one of the key battlegrounds of the 2010 General Election.

The publication is summarised below and can be found in full on the CEP Election Analysis Site

For further information, contact Romesh Vaitilingam on 07768 661095 (Email: romesh@vaitilingam.com) or education election analysis author Sandra McNally (Email: s.mcnally1@lse.ac.uk).

Evaluating Education Policies: The Evidence from Economic Research
  • Educational expenditure in the UK has increased enormously - but it is still only just above the OECD average. In 1997/98, expenditure on education and training as a percentage of GDP was 4.9 per cent (the same level as in 1987/88) whereas in 2006, it was 5.9 per cent of GDP. There is robust evidence that the increase in school expenditure between 2002 and 2007 led to a modest increase in educational attainment.

  • Exam performance has improved over time for secondary schools. But the improvement in primary schools since 2000 has been more muted. Exam performance has improved at a faster rate for poorer pupils, although the gap between rich and poor pupils is still substantial.

  • A 'pupil premium' that would follow disadvantaged pupils would help to correct inequities in how funding gets allocated to schools. Research evidence suggests that economically disadvantaged pupils benefit disproportionately from rises in general school expenditure.

  • Early evidence on the effects of the academies programme suggests that the growth in educational attainment for pupils attending academies is no different than for pupils attending other similar schools. Evidence for Sweden does not suggest that the application of a similar system in the UK would raise overall educational attainment.

  • Increasing the entry-level qualifications for teachers is a difficult challenge in view of the high labour market returns available to graduates and the continuing need for more teachers to replace those who leave the profession. Research evidence suggests that 'teacher quality' is important for their pupils' results, but it does not suggest that there is a relationship between 'teacher quality' and teachers' own educational credentials.
Download CEP Election Analysis - Evaluating Education Policies: The Evidence from Economic Research (in Adobe PDF)

El Pais (Spain)
Sangre, sudor y lágrimas en Reino Unido

Muy afectados por el estallido de una doble burbuja, la financiera y la inmobiliaria, y con un fuerte déficit público, los británicos tienen que apretarse el cinturón. El cómo es el elemento clave del debate electoral.

This article appeared in El Pais, Spain on 10 April 2010. Link to article

Related links
Luis Garicano webpage
Luis Garicano publications webpage
John Van Reenen webpage
John Van Reenen publications webpage
Productivity and Innovation Programme webpage

CEP Election Analysis - Update
Reducing Crime: More Police, More Prisons or More Pay?

Crime is usually high on the list of voter concerns. This might seem surprising since total crime has fallen significantly since the mid 1990s. Yet two thirds of the population still (wrongly) think that crime is rising nationally.Politicians must take account of the public's false perception of increasing levels of crime, which seems to be sustained even in years when both recorded crime and victimisation surveys point to reductions in overall crime.

This updated CEP Election Analysis describes crime trends and research evidence relevant to the post election policies. The publication is summarised below and can be found in full on the CEP Election Analysis Site

For further information, contact Romesh Vaitilingam on 07768 661095 (Email: romesh@vaitilingam.com)

Reducing Crime: More Police, More Prisons or More Pay?
  • Just over 4.3 million crimes were recorded by the police forces of England and Wales in 2009/10, of which 71 per cent were property crimes and 23 per cent were violent crimes.

  • The British Crime Survey, which asks consistent questions over time shows that overall crimes committed have fallen by almost half since 1997.

  • Overall recorded crime has also fallen since the early 1990s. The introduction of better recording practices in 1997 and 2002, however, make it difficult to fully assess recent trends in violent crime, although it has clearly been decreasing in the past five years.

  • Despite this fall in crime rates, three quarters of the public still think the national picture is worsening.

  • Several crime-busting strategies work. First, increases in police numbers, combined with new policing strategies such as the Street Crime Initiative have reduced robberies. Second, targeting prolific offenders is an effective tool to reduce crime. Third, recent evidence suggests that early release on electronic monitoring helps reduce recidivism rates of ex-prisoners.

  • There is no clear evidence that the large increase in locking people up has reduced cut crime, especially in terms of its long-term impact on offending behaviours.

  • Poor education and bad labour market opportunities are associated with higher levels of crime. Government policies aimed at improving education and ‘making work pay’ can have indirect effects on crime reduction.
Download CEP Election Analysis - Reducing Crime: More Police, More Prisons or More Pay? (in Adobe PDF)

Diariocritico de la Comunitat Valenciana
Fusiones como 'matrimonios de conveniencia política'

El catedrático de Estrategia y Ciencias Económicas de la London School in Economics (LSE) Luis Garicano, defendió este martes las fusiones de cajas de ...

This article appeared in Diariocritico de la Comunitat Valenciana on 4 April 2010 Link to article

Related links
Luis Garicano webpage
Luis Garicano publications webpage
Productivity and Innovation Programme webpage

CEP Election Analysis
Immigration and the UK Labour Market:The Evidence from Economic Research

A new series of Election Analyses is launched today by the Centre for Economic Performance (CEP). The series will discuss the research evidence on some of the key policy battlegrounds of the 2010 General Election, including macroeconomic policy, immigration, health, education, crime, poverty and inequality, labour market policy, regional policy, energy and the environment, financial regulation and bankers' bonuses, and foreign aid.

The first CEP Election Analysis examines the research evidence on immigration and the UK labour market. The publication is summarised below and can be found in full on the CEP Election Analysis Site

For further information, contact Romesh Vaitilingam on 07768 661095 (Email: romesh@vaitilingam.com)

Immigration and the UK Labour Market:The Evidence from Economic Research
  • Immigration to the UK had been rising from 1995 to 2008. Inflows to the UK had been falling since 2006 and now the stock of immigrants has also fallen back. This is because immigration almost always falls during a recession.

  • By late 2009, 14 per cent of the UK's working age population had been born abroad, up from around 8 per cent in 1995. There are now 5.3 million adults of working age in the UK who were born abroad.

  • The UK has a lower share of immigrants in its total population (10.2 per cent) than Australia (25 per cent), Germany (12.9 per cent) or the United States (13.6 per cent).

  • Immigrants are arriving from many more countries than in the past. Poland, India and Pakistan are now the countries that contribute the biggest proportion of new arrivals, followed by South Africa and the United States.

  • Compared with the UK-born, immigrants are younger and better educated. The most recent immigrants are even more educated. Immigrants are concentrated in London. About 60 per cent of Brent's working age population was born overseas compared with under 3 per cent in Knowsley.

  • Aside from arrivals from other members of the European Union (EU), the number of new immigrants who are allowed to work in the UK is now controlled by the government through a 'points' system.

  • Immigrants, on average, are less likely to be in social housing than people born in the UK, even when the immigrant is from a developing country. Only immigrants who became UK citizens are neither more nor less likely to be in social housing than UK-born individuals.

  • There are potential economic benefits associated with migration, especially to fill gaps in the UK labour market - where there are shortages of workers, whether high- or low-skilled. While there may be costs to particular groups, there is little evidence of an overall negative impact on jobs or wages.
Download CEP Election Analysis - Immigration and the UK Labour Market:The Evidence from Economic Research (in Adobe PDF)

Channel 4 News
Chancellors clash over deficit and tax plans

Analysis: Professor John Van Reenen from London School of Economics
Everyone signed up to how big the fiscal position was and the need to reduce the deficit, the priority of the NHS, the scandal of bank bonuses (although not much clarity over what to do about it), cutting back excessive public pensions…..

This article appeared on Channel 4.com on 30 March 2010. Link to article

Related Links
John Van Reenen webpage
Productivity and Innovation webpage

Channel 4 News
Chancellors debate: A few blows, but no knockout

John Van Reenen Director of the Centre for Economic Performance and Professor of Economics at the London School of Economics says all would-be Chancellors agreed on many issues
"I was mainly struck by the main similarities between the three parties: the basic refrain was "we're broke, it's miserable and it's going to get worse - get used to it"

This article appeared on Channel 4 News.com on 30 March 2010. Link to article

Related Links
John Van Reenen webpage
Productivity and Innovation webpage

The Strengths Foundation
H:is for happiness

Richard [Layard] is a Professor at the London School of Economics. His primary focus is well-being, together with the economic and other benefits this brings to society. You can discover more at his profile page at the LSE

This article appeared on the Strength Foundation's website on 18 March 2011 link to article

Related publications
Happiness: Lessons from a New Science, Richard Layard Details

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

Healthcare Republic
Rate your PCT: Are NHS markets ruining relations?

... the evidence that market reforms have improved healthcare in England is mixed. Competitive areas A study from the London School of Economics showed fewer 30-day deaths from acute MI in more competitive areas and concluded that 'NHS market-based reforms.

This article appeared in Healthcare Republic on 18th march 2010. Link to article

Related publications
‘Management Practices in the NHS’ by John Van Reenen, Nick Bloom, Carol Propper and Stephan Seiler, article in CentrePiece Vol 14 Issue 3 Winter 2009/2010

Related links
John Van Reenen webpage
Nick Bloom webpage
Stephan Seiler webpage
Productivity and Innovation Programme webpage

The Director
Selling off Britain

Tim Leunig an academic at the London School of Economics specialising in the history of business, agrees. "There is arguably a bigger risk that being owned by Kraft rather than staying independent makes Cadbury vulnerable to having its manufacturing sent abroad," he admits.

This article appeared in the Director on 17 March 2010 Link to article

Related links
Tim Leunig webpage
Globalisation Programme webpage

Business Week
Zapatero's bid to avoid Greek fate hobbled by Spanish regions

“The key problem is that the regions have been given power over spending without the responsibility of having to go to the taxpayer to ask for money,” said Luis Garicano, an economics professor at the London School of Economics. “They don’t have the right incentives to spend in line with their revenue capabilities.”

This article appeared in Business Week on 17th March 2010. Link to article

Related links
Luis Garicano webpage
Productivity and Innovation Programme webpage

The Trumpet
Want to hire a self-centred, greedy diva?

The report's author, Jean-Baptiste Michau of the Center for Economic Performance explained, “When workers from the baby boom generation entered the labor market in the 1970s, they had a weaker work ethic than their parents and the moral hazard problem of unemployment benefits became much more severe.”

This article appeared in The Trumpet on 17 March 2010 Link to article

Related links
Jean-Baptiste Michau webpage
Macro Programme webpage

BBC Radio 4
Am I normal?

Lord Layard on well-being and clinical treatment therapy.

This interview was broadcast on Radio 4 on 16 March 2010. (No link avaliable)

Related Links
Richard Layard webpage
Happiness research webpage
Wellbeing Programme webpage

Dr Dobb's
Understanding regression analysis

A regression charts such a link, in so doing pinpointing "an average causal effect," as MIT economist Josh Angrist and his co-author Jorn-Steffen Pischke of the London School of Economics put it in their 2009 book, Mostly Harmless Econometrics.

This article appeared in Dr Dobb's on 16 March 2010. Link to article

Related publications
Mostly Harmless Econometrics: An Empiricist’s Companion by Joshua Angrist and Jörn-Steffen Pischke, Princeton University Press, January 2009. details

Related links
Jörn-Steffen Pischke webpage
Labour Markets Programme webpage

CNBC Europe
Squawk Box

Linda Yueh interviewed, commenting on global economic developments, including the Euro Zone finance ministers' meeting over the Greece debt crisis.

This interview appeared on CNBC Europe on 15th March 2010. Link

Related links
Linda Yueh webpage
Globalisation Programme webpage

Public Finance Magazine
Better managed NHS trusts have better medical results

Hospitals with stronger management have better clinical results, according to a London School of Economics study. The LSE’s Centre for Economic Performance found that management was better where more senior staff had clinical backgrounds.

This article appeared in Public Finance Magazine on 15th March 2010. Link to article

Related publications
‘Management Practices in the NHS’ by John Van Reenen, Nick Bloom, Carol Propper and Stephan Seiler, article in CentrePiece Vol 14 Issue 3 Winter 2009/2010

Related links
John Van Reenen webpage
Carol Propper webpage
Nick Bloom webpage
Stephan Seiler webpage
Productivity and Innovation Programme webpage

Financial Times (FT Weekend Magazine)
Road to recovery

Nicholas Timmins' extensive report on the NHS briefly quotes "the most recent work .. by academics at the London School of Economics and Bristol University, [which] does suggest that competition between hospitals may improve the quality of care."

How New Labour succeeded with NHS policy
It started with what Carol Propper, professor of economics at Imperial College, London, has dubbed “targets and terror” – and something the health department prefers to characterise as “help and hassle”. The most recent work, however, by academics at the London School of Economics and Bristol University, does suggest that competition between hospitals may improve the quality of care.

This article appeared in the Financial Times on 13th March 2010. Link to article

Related publications
‘Management Practices in the NHS’ by John Van Reenen, Nick Bloom, Carol Propper and Stephan Seiler, article in CentrePiece Vol 14 Issue 3 Winter 2009/2010

Related links
John Van Reenen webpage
Carol Propper webpage
Nick Bloom webpage
Stephan Seiler webpage
Productivity and Innovation Programme webpage

Times (Weekend)
How to find the right therapist

Fiona Macdonald-Smith gives advice on how to find a therapist, quoting Lord Layard, Emeritus Professor of Economics at the LSE on the subject of cognitive behavourial therapy.

This article appeared in the Times on 13 March 2010. Link to article

Related Publications
The Depression Report: A New Deal for Depression and Anxiety Disorders Centre for Economic Performance Mental Health Policy Group, June 2006

Related Links
Richard Layard webpage
Richard Layard publications
Wellbeing Programme webpage

InsideHousing
Should I stay or should I go?

If housing associations really want to know how good they are, they should give tenants the option to leave, argues Tim Leunig.

This article appeared in Inside Housing on 12th March 2010. Link to article

Related links
Tim Leunig webpage
Globalisation Programme webpage

Belfast Telegraph
Comprehensive failure

One study looked at the income progression of a sample of people born in 1958 with a similar group born in 1970. It concluded mobility fell markedly and that it was children from poorer homes who suffered disproportionately (London School of Economics April 2005).

This article appeared in the Belfast Telegraph on 12th March 2010. Link to article

Related Publications
'Social Mobility in Britain: low and falling' in CentrePiece Spring 2005 Intergenerational Mobility in Europe and North America by Jo Blanden, Paul Gregg and Stephen Machin.

Related links
Jo Blanden webpage
Stephen Machin webpage
Paul Gregg webpage
Education and Skills Programme webpage

Business Week
If you want to see entrepreneurs, go to China

According to a paper (‘China’s entrepreneurs’) in CentrePiece Spring 2008: by Oxford University economics fellow Linda Yueh the government sector accounted for more than 90% of China's GDP as recently as 1978. And the National Bureau of Statistics in China reports that the public sector still accounts for approximately 40% of GDP.

This article appeared in Business Week on 12th March 2010 Link to article

Related publications
‘China’s Entrepreneurs’ CentrePiece, Spring 2008

Related links
Linda Yueh webpage
Globalisation Programme webpage

New Statesman
Smile now, cry later

In 2005, [Richard] Layard published Happiness: Lessons from a New Science, which drew on positive psychology. In the past, psychology had been "focused heavily on what had gone wrong with people", he wrote. "Human beings have largely conquered nature but they have yet to conquer themselves."

The impact of this thinking in Britain has been as widespread as it was in the US. Before Layard, cognitive behavioural therapy (CBT) - which is based on short-term treatments of between six and eight sessions - was one of many therapies offered by the NHS. Now it is almost the only one.

This article appeared in the New Statesmen on 12th March 2010 Link to article

Related Publications
Happiness: Lessons from a New Science by Richard Layard, Penguin, 2005

Related Links
Richard Layard webpage
Happiness research webpage
Wellbeing Programme webpage

New York Times
Greece, the Latest and Greatest Bubble

Bubbles are back as a topic of serious discussion, as they were before the financial crisis. The questions today are: (1) Can you spot bubbles? (2) Can policy makers do anything to deflate them gently? (3) Can anyone make money when bubbles get out of control? Column by Simon Johnson and Peter Boone chairman of the charity Effective Intervention and a research associate at the Centre for Economic Performance at the London School of Economics.

This article appeared in the New York Times on 11 March 2010. Link to article

Related publications
‘The Doomsday Cycle’ by Peter Boone and Simon Johnson, article in CentrePiece Volume 14 Issue 3, Winter 2009/2010

Related links
Peter Boone webpage
Effective Intervention Programme webpage

Economist
Failing schools for whom the bell tolls

Sandra McNally of the London School of Economics says new schools may raise standards but won't improve choice much.

This article appeared in the Economist on 11 March 2010. Link to article

Related publications
‘A Swedish Model for UK Schools?’ by Helena Holmlund and Sandra McNally, article in CentrePiece Vol 14 Issue 3 Winter 2009/2010

Related links
Helena Holmlund webpage
Sandra McNally webpage
Education and Skills programme webpage

Financial Times
Spain has the means to avoid Greece's fate

By Luis Garicano After six quarters of negative growth and unemployment rates inching towards 20 per cent, perhaps the most surprising feature of the ...

This article appeared in the Financial Times on 11th March 2010. Link to article

Related links
Luis Garicano webpage
Productivity and Innovation Programme webpage

Times
Insurgents' reaction to news puts allies' hands on a key lever

Dr Radha K. Iyengar a lecturer at the London School of Economics, discusses the Chilcot inqury. She says: "It is widely accepted that openness, transparency and independent scrutiny of official policy improve the quality of decision-making in democracies."

This article appeared in the Times on 26 February 2010 Link to article

Related publications
‘Violence in Iraq: the Impact of Public Debate during Wartime’ by Radha Iyengar, article in CentrePiece Vol 14 Issue 3 Winter 2009/2010

Related links
Radha Iyengar webpage
Productivity and Innovation Programme webpage
Labour Markets Programme webpage

Times
Researchers point finger at doctors over manipulating figures

The hospitals with the best managers deliver the best patient care, according to researchers at the Centre for Economic Performance. Hospitals which took people management, monitoring and target-setting seriously had the best clinical outcomes, shorter waiting times, better financial performance and higher staff satisfaction than those that didn’t.

This article appeared in the Times on 26th February 2010. Link to article

Related publications
‘Management Practices in the NHS’ by John Van Reenen, Nick Bloom, Carol Propper and Stephan Seiler, article in CentrePiece Vol 14 Issue 3, Winter 2009/2010

The research on management in manufacturing was detailed first in CEP Discussion Paper No. 716, March 2006

This paper has been published as: ‘Measuring and Explaining Management Practices across Firms and Countries’ by Nick Bloom and John Van Reenen, Quarterly Journal of Economics 122(4): 1351-1408
More recent work is in the latest issue of the Journal of Economic Perspectives.

Related links
John Van Reenen webpage
Nick Bloom webpage
Stephan Seiler webpage
Productivity and Innovation Programme webpage

Department Of Economics Public Debate - Thursday 4 March 2010
Men of Letters: What Should Be Done About the UK Budget Deficit?

Speakers: Professor Tim Besley, Professor Alan Manning

Date: Thursday 4 March 2010

Time: 6.30pm -8.00pm

Venue: Sheikh Zayed Theatre, New Academic Building

The UK government has a massive budget deficit at the moment. What should be done about this, now and in the future? In recent weeks economists have entered the debate and a number, including economists from the LSE economics department, have signed letters to the press expressing their views. These letters have become part of a heated political discussion ahead of the election. This debate - between signatories of two of those letters – aims to explore the scope for common ground in this debate in an effort to spread light not heat.

Tim Besley is Kuwait professor of economics and political science at the London School of Economics, and served on the Bank of England's Monetary Policy Committee from September 2006 until August 2009. He is director of the Suntory Toyota International Centres for Economics and Related Disciplines (STICERD) at LSE.

Alan Manning is head of the department of economics and professor of economics at the London School of Economics.

This event is free and open to all with no ticket required. Entry is on a first come, first served basis. For more information, email events@lse.ac.uk or call 020 7955 6043.

Media queries: please contact the Press Office if you would like to reserve a press seat or have a media query about this event, email pressoffice@lse.ac.uk


Number10.gov.uk
PM's speech on education

The Prime Minister’s office released a transcript of the PM’s speech on education, delivered at Woodberry Down Community Primary School in Hackney on 23 February 2010. In his speech, Gordon Brown said “And the Centre for Economic Performance at the London School of Economics has recently argued that the Swedish schools model – if introduced here – would be expensive to implement, and would most likely fail to make real improvements in standards or offer real change in the choices available to the vast majority of parents.”

The transcript of this speech appeared on Number10.gov.uk on 23rd February 2010. Link to article

Related publications
‘A Swedish Model for UK Schools?’ by Helena Holmlund and Sandra McNally, article in CentrePiece Vol 14 Issue 3 Winter 2009/2010

Related links
Helena Holmlund webpage
Sandra McNally webpage
Education and Skills programme webpage

HealthInvestor
Competition in the NHS has improved services

Hospitals and their patients have benefited from exposure to competition, according to new research by the Centre for Economic Performance at the London School of Economics

This article appeared HealthInvestor on 22nd February 2010 Link to article

Related publications
‘Management Practices in the NHS’ by John Van Reenen, Nick Bloom, Carol Propper and Stephan Seiler, article in CentrePiece Vol 14 Issue 3 Winter 2009/2010

The research on management in manufacturing was detailed first in CEP Discussion Paper No. 716, March 2006 This paper has been published as: ‘Measuring and Explaining Management Practices across Firms and Countries’ by Nick Bloom and John Van Reenen, Quarterly Journal of Economics 122(4): 1351-1408 More recent work is in the latest issue of the Journal of Economic Perspectives.

Related links
John Van Reenen webpage
Nick Bloom webpage
Stephan Seiler webpage
Productivity and Innovation Programme webpage

Financial Times
Competition in NHS makes hospitals better, study says

Competition produces better managed hospitals which, in turn, produce better outcomes for patients, according to new research from the Centre for Economic Performance at the LSE. With the role of choice and competition in the National Health Service still highly controversial - the British Medical Association is currently running a large campaign against the commercialisation of the NHS - the research provides "clear cut evidence that competition between hospitals produces benefits," Carol Propper, one of the study's authors, said. The study interviewed managers and clinicians at 100 big NHS hospitals.

This article appeared in the Financial Times on 19th February 2010 Link to article

Related publications
‘Management Practices in the NHS’ by John Van Reenen, Nick Bloom, Carol Propper and Stephan Seiler, article in CentrePiece Vol 14 Issue 3 Winter 2009/2010

The research on management in manufacturing was detailed first in CEP Discussion Paper No. 716, March 2006

This paper has been published as: ‘Measuring and Explaining Management Practices across Firms and Countries’ by Nick Bloom and John Van Reenen, Quarterly Journal of Economics 122(4): 1351-1408 More recent work is in the latest issue of the Journal of Economic Perspectives.

Related links
John Van Reenen webpage
Nick Bloom webpage
Stephan Seiler webpage
Productivity and Innovation Programme webpage

Sky News
Darling Gets Backing From Economists' Letter

More than 60 leading economists have backed Chancellor Alistair Darling over his decision to delay spending cuts until next year. The other, organised by Lord Layard, emeritus professor of economics at the London School of Economics, commends Mr Darling's "sensible" plan for reducing the deficit.

This article appeared on Sky News Online on 19th February 2010. Link to article

Related links
John Van Reenen webpage
Richard Layard webpage

Also in:
Stourbridge News link to article

AOL (UK)
Economists back Darling over cuts - AOL News

The other group, led by Lord Layard, emeritus professor of economics at the London School of Economics, commends Mr Darling's "sensible" plan for reducing the deficit.

This article appeared on AOL UK on 19th February 2010. Link to article

Related links
John Van Reenen webpage
Richard Layard webpage

BBC News
Economists back delay on government spending cuts

The other, organised by Lord Layard, emeritus professor of economics at the London School of Economics, says Mr Darling's plan for reducing the deficit was ...

This article appeared on bbc.co.uk on 19th February 2010 Link to article

Related links
John Van Reenen webpage
Richard Layard webpage

Financial Times
First priority must be to restore robust growth

Letter to the Financial Times disagreeing with the letter to The Sunday Times of February 14 from 20 economists, which called for an accelerated programme of fiscal consolidation. Signatories include Graham Wallas, Professor of Political Science, LSE; and John Van Reenen, Professor of Economics, LSE.

This article appeared in the Financial Times on 19th February 2010. Link to article

Related links
John Van Reenen webpage
Richard Layard webpage

Financial Times
Sharp shock now would be dangerous for UK

Letter to the Financial Times arguing that an economic "sharp shock" now would be dangerous for the UK economy. Signatories include Lord Layard Emeritus Professor of Economics, LSE, and founder of the LSE Centre for Economic Performance.

This article appeared in the Financial Times on 19th February 2010. Link to article

Related links
John Van Reenen webpage
Richard Layard webpage

Guardian
Top economists hit back at Tories over spending cuts

A war of words has broken out among some of Britain's most respected economists over Conservative plans to begin cutting public spending immediately if they win the general election. Fifty heavyweight academics, many of them professors, have issued a stinging rebuke to the claim by shadow chancellor George Osborne that a consensus of economic experts supports his policies. Signatories to today's letter include John Van Reenen, director of the centre for economic policy at the LSE.

This article appeared in the Guardian on 19th February 2010 Link to article

Related links
John Van Reenen webpage
Richard Layard webpage

Public Finance
Better managed NHS trusts 'have better medical results'

Hospitals with stronger management have better clinical results, according to a London School of Economics study. The LSE’s Centre for Economic Performance found that management was better where more ...

This article appeared in Public Finance on 18th February 2010 Link to article

Related publications
'Management Practices in the NHS’ by John Van Reenen, Nick Bloom, Carol Propper and Stephan Seiler, article in CentrePiece Vol 14 Issue 3 Winter 2009/2010

The research on management in manufacturing was detailed first in CEP Discussion Paper No. 716, March 2006

This paper has been published as: ‘Measuring and Explaining Management Practices across Firms and Countries’ by Nick Bloom and John Van Reenen, Quarterly Journal of Economics 122(4): 1351-1408
More recent work is in the latest issue of the Journal of Economic Perspectives

Related links
John Van Reenen webpage
Nick Bloom webpage
Stephan Seiler webpage
Productivity and Innovation Programme webpage

Nursing Times
Competition between hospitals improves care, says research

Hospitals perform better when senior staff have clinical backgrounds and there is competition from nearby health trusts, according to research. Strong NHS management was linked to the number of neighbouring trusts competing for patients and effective communication with nurses and medical staff, the London School of Economics found.

This article appeared in Nursing Times on 18th February 2010 Link to article

Related publications
‘Management Practices in the NHS’ by John Van Reenen, Nick Bloom, Carol Propper and Stephan Seiler, article in CentrePiece Vol 14 Issue 3 Winter 2009/2010

The research on management in manufacturing was detailed first in CEP Discussion Paper No. 716, March 2006
This paper has been published as: ‘Measuring and Explaining Management Practices across Firms and Countries’ by Nick Bloom and John Van Reenen, Quarterly Journal of Economics 122(4): 1351-1408
More recent work is in the latest issue of the Journal of Economic Perspectives.

Related links
John Van Reenen webpage
Nick Bloom webpage
Stephan Seiler webpage
Productivity and Innovation Programme webpage

Financial Times
LSE questions schools model

The Swedish schools model championed by the Conservatives may not be cost-effective if imported to England, says the London School of Economics.

This article appeared in the Financial Times on 18th February 2010. Link to article

Related publications
‘A Swedish Model for UK Schools?’ by Helena Holmlund and Sandra McNally, article in CentrePiece Vol 14 Issue 3 Winter 2009/2010

Related links
Helena Holmlund webpage
Sandra McNally webpage
Education and Skills programme webpage

Daily Telegraph
Swedish schools ‘A leap of faith that won't make a difference'

The Conservatives' plan to adopt a Swedish-style school system was described yesterday as a "leap of faith" that would "not make much difference" in Britain. The scheme, in which parents' groups, charities and not-for-profit organisations run state-funded schools, has been feted by senior Tories. But in a report yesterday, Dr Sandra McNally and Dr Helena Holmlund , from the London School of Economics, argued otherwise. They said the most recent studies of Swedish reform found evidence of "only small positive effects". "Importing the Swedish model may not make very much difference to the UK's status quo," they said. Nick Gibb, the shadow schools minister, described the report as "deeply flawed".

This article appeared in The Daily Telegrpah on 18th February 2010. (No link avalible).

Related publications
‘A Swedish Model for UK Schools?’ by Helena Holmlund and Sandra McNally, article in CentrePiece Vol 14 Issue 3 Winter 2009/2010

Related links
Helena Holmlund webpage
Sandra McNally webpage
Education and Skills programme webpage

Daily Telegraph
Hospitals more likely to close in safe seats

Around 400 deaths could be prevented every year from heart attacks alone if hospitals made a tiny improvement in the way they were managed, the study from LSE’s Centre for Economic Performance (CEP) found.

This article appeared in the Daily Telegraph on the 15th February 2010. Link to aticle

Related publications
Can Pay Regulation Kill? Panel Data Evidence on the Effect of Labor Markets on Hospital Performance Emma Hall, Carol Propper, John Van Reenen, Centre for Economic Performance Discussion Paper No.843, January 2008. download
‘Management Practices in the NHS’, John Van Reenen et al, article in forthcoming CentrePiece Volume 14, Issue 3, to be published week of February 15, 2010.

Related links
John Van Reenen webpage
Productivity and Innovation Programme webpage

The Guardian
Hospitals less likely to shut in marginal seats

Professor John Van Reenen director of the Centre for Economic Performance at the LSE and co-author of the report, said he wanted to find out why hospital performance varied so much around the country.

This article appeared in The Guardian on 14 February 2010. Link to article

Related publications
Can Pay Regulation Kill? Panel Data Evidence on the Effect of Labor Markets on Hospital Performance Emma Hall, Carol Propper, John Van Reenen, Centre for Economic Performance Discussion Paper No.843, January 2008. download
‘Management Practices in the NHS’, John Van Reenen et al, article in forthcoming CentrePiece Volume 14, Issue 3, to be published week of February 15, 2010.

Related links
John Van Reenen webpage
Productivity and Innovation Programme webpage

Los Angeles Times
Britain smug about euro crisis but has its own problems

Linda Yueh quoted, commenting on differences between Britain and Greece in terms of the latter’s debt crisis.

This article appeared in the LA Times on 13th February 2010. Link to article

Related links
Linda Yueh webpage
Globalisation Programme webpage

BBC World News
World Business Report

Linda Yueh was interviewed, to comment on the latest euro zone GDP figure.

This interview was broadcast on BBC World News on 12 February 2010 (no link avaliable).

Related links
Linda Yueh webpage
Globalisation Programme webpage

FM 91.5 - China Radio International in Beijing
Tim Leunig

Tim Leunig interviewed for Chinese radio programme ‘People in the Know’, speaking about the takeover of Cadbury by Kraft.

This interview was broadcast on China Radio International on 5 February Link to article

Also broadcast on radio in:
major cities in China
Southeast Asia
Australia
North America
Africa


Related links
Tim Leunig webpage
Globalisation Programme webpage

The Independent
Three cheers for the Liberal Democrats

The Liberal Democrats have seized on the findings of last week's National Equality Report and decided they would give each poor child a pupil premium of £2,500. "They should be commended for doing so," says an Independent leader column. "Last week's report showed that the richest 10 per cent are more than 100 times as rich as the poorest 10 per cent and that government spending on deprivation is not going to those most in need.

This article appeared in The Independent on 4th February 2010. Link to article

Related publications
‘An Anatomy of Economic Inequality in the UK. Report of the National Equality Panel’, The Centre for Analysis of Social Exclusion (CASE), London School of Economics, January 27, 2010. Link to report
Details

Related links
Contributors to Report:
Sandra McNally webpage
Jo Blanden webpage
Steve Machin webpage
Richard Murphy webpage
Education and Skills Programme webpage

BBC News
Ed Balls gives a lesson in conflict

It's not often you hear a Cabinet member telling a Westminster crowd to sit down and work quietly in pairs. But then it is not everyday that England's schools Secretary becomes your teacher for the.... Research by the London School of Economics recently revealed how social and economic background is still the most significant factor influencing a child's outcomes in life.

This article appeared on BBC News on 4th February 2010. Link to article

Related publications
‘An Anatomy of Economic Inequality in the UK. Report of the National Equality Panel’, The Centre for Analysis of Social Exclusion (CASE), London School of Economics, January 27, 2010. Link to report
details

Related links
Contributors to Report: Sandra McNally webpage
Jo Blanden webpage
Steve Machin webpage
Richard Murphy webpage
Education and Skills Programme webpage

Christian Science Monitor
UK equality bill: unease over legislating equal treatment

The equality bill contains a clause that would make it a public sector duty to narrow the gap between rich and poor, according to John Hills, a social policy expert at the London School of Economics and chair of the National Equality Panel. Link to article

Related publications
‘An Anatomy of Economic Inequality in the UK. Report of the National Equality Panel’, The Centre for Analysis of Social Exclusion (CASE), London School of Economics, January 27, 2010. Link to article
Details

Related links
Contributors to Report:
Sandra McNally webpage
Jo Blanden webpage
Steve Machin webpage
Richard Murphy webpage
Education and Skills Programme webpage

The Telegraph
New Labour's biggest losers: the children of the poor

The National Equality Panel Report cites the work of Jo Blanden and Stephen Machin who used “birth cohort studies” to follow the progress of two groups of children, one born in 1958, the other in 1970. Blanden and Machin discovered that a child born in 1958 whose parents were in the bottom quarter of incomes was more likely to end up in a higher income bracket than a child born in comparable circumstances in 1970. Similarly, a child born in 1958 whose parents were in the top quarter of incomes was more likely to end up in a lower income bracket than a comparable child born in 1970. This and other similar studies of intergenerational income mobility show that (according to this measure) Britain has the lowest level of social mobility in the developed world, with the exception of Brazil and the USA.

This article appeared in the Daily Telegraph on 2nd February 2010. Link to article

Related publications
‘An Anatomy of Economic Inequality in the UK. Report of the National Equality Panel’, The Centre for Analysis of Social Exclusion (CASE), London School of Economics, January 27, 2010. Link to report
Details of report

Related links
Contributors to Report:
Sandra McNally webpage
Jo Blanden webpage
Steve Machin webpage
Richard Murphy webpage
Education and Skills Programme webpage

Bad Idea
Post-recession, the recession and the search for quality of life

I recently spoke to Christopher Pissarides at the London School of Economics about what he thought was happening to the economy.

This article appeared in the blog Bad Idea. Link to article

Related links
Chris Pissarides webpage
Chris Pissarides’ CEP publications webpage
Macro Programme webpage

City AM
Inequality widens as elite grow richer

According to a report published yesterday, the gap between the wealthiest and the most deprived households in the country has widened dramatically over the past 30 years. Professor John Hills of the London School of Economics, said: "The country was hoping that by tolerating the increase in incomes, the benefits would trickle down through higher economic growth. When you look at what the financial system was built on, that becomes a lot more questionable."

This article appeared in City AM on the 28th January 2010 (No link avaliable).

Related publications
‘An Anatomy of Economic Inequality in the UK. Report of the National Equality Panel’, The Centre for Analysis of Social Exclusion (CASE), London School of Economics, January 27, 2010. Link to report
Details of report

Related links
Contributors to Report:
Steve Machin webpage
Richard Murphy webpage
Education and Skills Programme webpage

Inside Housing
Action needed to tackle social housing inequality

A major study into economic inequality has said more must be done to tackle the wealth gap between social tenants and the rest of the population of the UK.
The study has been produced by the National Equality Panel, a body set up at the request of minister for women and equality Harriet Harman, and chaired by London School of Economics academic professor...

This article appeared in Inside Housing on 27th January 2010. Link to article

Related publications
‘An Anatomy of Economic Inequality in the UK. Report of the National Equality Panel’, The Centre for Analysis of Social Exclusion (CASE), London School of Economics, January 27, 2010. Link to report
Details of report

Related links
Contributors to Report:
Steve Machin Link to article
Richard Murphy webpage
Education and Skills Programme webpage

BBC Radio Cornwall
Laurence Reed

Professor John Hills, LSE, discusses the National Equality Report.

This interview was broadcast on BBC Radio Cornwall on 27th January 2010. (No link avaliable)

Related publications
‘An Anatomy of Economic Inequality in the UK. Report of the National Equality Panel’, The Centre for Analysis of Social Exclusion (CASE), London School of Economics, January 27, 2010. Link to report
details of report


Related links
Contributors to Report:
Steve Machin webpage
Richard Murphy webpage
Education and Skills Programme webpage

4NI
The divide between Britain's rich and poor is at its widest in 40 years, a government-backed report has found

Pay and employment differences for men, women and minority groups remain "deep-seated and systemic", the National Equality Panel said. "....how do you create a level playing field when there are such large differences between the resources that different people have available to them," panel chair Professor John Hills, of the London School of Economics, told ...

This article appeared in 4NI on 27th January 2010 Link to article

Related publications
‘An Anatomy of Economic Inequality in the UK. Report of the National Equality Panel’, The Centre for Analysis of Social Exclusion (CASE), London School of Economics, January 27, 2010. Link to report
Details of report Link

Related links
Contributors to Report:
Steve Machin webpage
Richard Murphy webpage
Education and Skills Programme webpage

Build
Rich-Poor Gap At 1970s Levels

Pay and employment differences for men, women and minority groups remain "deep-seated and systemic", the National Equality Panel said. evel playing field when there are such large differences between the resources that different people have available to them," panel chair Professor John Hills, of the London School of Economics, told ...

This article appeared in Builder.co.uk on the 27th January. Link to article

Related publications
‘An Anatomy of Economic Inequality in the UK. Report of the National Equality Panel’, The Centre for Analysis of Social Exclusion (CASE), London School of Economics, January 27, 2010. Link to article
Details


Related links
Contributors to Report: Steve Machin webpage
Richard Murphy webpage
Education and Skills Programme webpage

Local Government Chronicle
Renewal shake-up needed to tackle inequality

The authors, led by Prof John Hills of the London School of Economics, said schools and education were a “pressing priority” for public investment, given the large gaps in educational attainment rates...

This article appeared in Local Government Chronicle on 27th January 2010. Link to article

Related publications
‘An Anatomy of Economic Inequality in the UK. Report of the National Equality Panel’, The Centre for Analysis of Social Exclusion (CASE), London School of Economics, January 27, 2010. Link to report
details of report

Related links
Contributors to Report:
Steve Machin webpage
Richard Murphy webpage
Education and Skills Programme webpage

BBC News
Rich-poor divide 'wider than 40 years ago'

"Most political parties and people subscribe to the ideal of 'equality of opportunity'," panel chair Professor John Hills, of the London School of Economics, told the BBC.

This article appeared on BBC News website on 27th January 2010. Link to article

Related publications
‘An Anatomy of Economic Inequality in the UK. Report of the National Equality Panel’, The Centre for Analysis of Social Exclusion (CASE), London School of Economics, January 27, 2010. Link to report

Details of Report

Related links
Contributors to Report:
Steve Machin webpage
Richard Murphy webpage
Education and Skills Programme webpage

BBC Radio Wales
''Good Morning Wales''

Linda Yueh was interviewed, to comment on the UK and global recovery as well as financial regulation.

This interview was broadcast on BBC Radio Wales on 27th January 2010. Link

Related links
Linda Yueh webpage
Globalisation Programme webpage

Financial Times
Social advantages still shape life chances

People's origins shape their life chances from cradle to grave, the biggest study of equality and inequality in Britain has demonstrated. John Hills the panel's chair and professor of social policy at the London School of Economics, quoted.

This article appeared in the Financial Times on the 27th January 2010. Link to article

Related publications
‘An Anatomy of Economic Inequality in the UK. Report of the National Equality Panel’, The Centre for Analysis of Social Exclusion (CASE), London School of Economics, January 27, 2010. Download
Details of report

Times
Gap between rich and poor at its widest since the war

The divide between rich and poor is greater after 13 years of Labour rule than at any time since the Second World War, according to the Government's own report into inequality. The report was written by Professor John Hills, at the London School of Economics and the new National Equality Panel.

This article appeared in the Times on the 27th January 2010. Link to article

Related publications
‘An Anatomy of Economic Inequality in the UK. Report of the National Equality Panel’, The Centre for Analysis of Social Exclusion (CASE), London School of Economics, January 27, 2010. Download
Details of report

Related links
Contributors to Report:
Steve Machin webpage
Richard Murphy webpage
Education and Skills Programme webpage

Guardian
Unequal Britain: richest 10% are now 100 times better off than the poorest

Commissioned by Harriet Harman, minister for women and equality, the National Equality Panel has been working on the 460-page document for 16 months, led by Prof John Hills of the London School of Economics.

This article appeared in the Guardian on the 27th January 2010. Link to article

Related publications
‘An Anatomy of Economic Inequality in the UK. Report of the National Equality Panel’, The Centre for Analysis of Social Exclusion (CASE), London School of Economics, January 27, 2010. Download
Details of report

Related links
Contributors to Report: Steve Machin webpage
Richard Murphy webpage
Education and Skills Programme webpage

Report Launch
An Anatomy of Economic Inequality in the UK - Report of the National Equality Panel

'An Anatomy of Economic Inequality in the UK' - the Report of the National Equality Panel - was launched on Wednesday 27 January 2010.

The independent National Equality Panel was set up at the invitation of the Government in 2008 to investigate the relationships between the distributions of various kinds of economic outcome on the one hand and people's characteristics and circumstances on the other. The report addresses questions such as how far up or down do people from different backgrounds typically come in the distributions of earnings, income or wealth.

Professor Steve Machin, one of the panel members writes: 'The National Equality Panel Report is a pathbreaking report that accumulates and interprets a sizeable body of empirical evidence, painting a picture of key aspects of economic and social inequality over time in the UK. A lot of hard work has gone into this comprehensive review of inequality. In my experience, this kind of attention to detail is rarely delivered. The NEP Report however, offers the kind of evidence base that policymakers from all political parties really need in order to make progress in formulating coherent policies - policies to tackle the negative effects that increased inequality has caused.'

Related links: Other CEP contributers to the report

ITV1
GMTV

Linda Yueh interviewed on Britain exiting recession.

This interview was broadcast on GMTV on the 26th January 2010 (No Link availaible).

Also on
AFP “Britain set for exit from record recession”
Linda Yueh also interviewed in APC News Link to article

Related links
Linda Yueh webpage
Globalisation Programme webpage

eGov monitor
TUC Calls On Government To Provide Universal Job Guarantee

The coalition, which includes the TUC, Demos Open Left Project, Professor Paul Gregg, Professor Richard Layard, the Resolution Foundation, The Work Foundation and James Purnell MP, has written to Secretary of State for Work and Pensions Yvette Cooper MP warning against a repeat of mistakes of the last two recessions, when unemployment was allowed to spiral out of control.

This article appeared in eGov monitor on the 25th January 2010. Link to article

Related publication
‘A Job Guarantee’, Paul Gregg and Richard Layard, March 2009 Link

Related links
Paul Gregg webpage
Labour Markets Programme webpage
Richard Layard webpage
Wellbeing Programme webpage

‘Infectious greed – finance and the money culture' blog
The Dutch disease gets a Brazilian

Article on Brazil by Francesco Caselli and Guy Michaels discussed in a blog written by Paul Kedrosky.

This article appeared in ‘Infectious greed – finance and the money culture’ blog by Paul Kedrosky Link to article

Related publications
‘Do Oil Windfalls Improve Living Standards? Evidence from Brazil’, Francesco Caselli and Guy Michaels, Centre for Economic Performance Discussion Paper No.960, December 2009 Download paper

Related links
Francesco Caselli webpage
Guy Michaels webpage
Macro Programme webpage

CBC News
Why a persistent whiff of doom hangs over economy

Why is doom so popular? Whether spurred by U.S. President Barack Obama's attack on the banks or China's latest plan to manipulate the economy, there is always some economic commentator strutting the electronic streets with a sandwich board bearing the words, "The End Is Near" in ragged type.
The word "doomsday" actually got into a headline in this week's Financial Times in a commentary insisting that it is not high interest rates but low interest rates that will bring down the world economy. The authors, Peter Boone and Simon Johnson, economists at the London School of Economics and the Massachusetts Institute of Technology, respectively, effectively agree with a recent Economist lead article that "something's got to give."

This article appeared in CBC News on 21 January 2010. Link to article

Related links
Peter Boone webpage
Effective Intervention Programme webpage

Economist
Manufacturing blues Another one bites the dust

In the aggregate, however—thanks to a long tail of dozy firms—manufacturers in Britain score badly against their American, Japanese, German and Swedish counterparts. Measured for accepted management best practice, such as performance-tracking, target-setting and manager appraisal, they lag behind the others, according to studies since 2006 by McKinsey, a consulting firm, and John Van Reenen, director of the Centre for Economic Performance at the London School of Economics.

This article appeared in the Economist on 21st January 2010. Link to article

Related Publications
What Drives Good Management Around the World? by Nick Bloom, Christos Genakos, Raffaella Sadun and John Van Reenen. Article in CentrePiece, Volume 12, Issue 2 Autumn 2007 Download
Joint McKinsey/CEP Report, Management Practice and Productivity: Why They Matter by Nick Bloom, Stephen Dorgan, John Dowdy and John Van Reenen, July 2007. Download

Related Links
John Van Reenen webpage
Nick Bloom webpage
Management Practices and Organisationl Structures webpage
Productivity and Innovation Programme webpage

Times Higher Education
Get happy, and get on with it

Projects to boost staff wellbeing are all the rage, but some people wonder if the interest in workers' psychological health belies a rather less altruistic agenda. Melanie Newman reports

university wellbeing programmes has to take account of increasing government interest in citizen contentment. Richard Layard, emeritus professor of economics at the London School of Economics and the Government's "happiness czar", maintains that increasing happiness can save on social welfare costs, principally by encouraging depressed unemployed people into work.

This aricle appeared in Times Higher Education on the 21st January 2010. Link to article

Related publications
Happiness: Lessons from a New Science by Richard Layard. Details

Related links
Richard Layard webpage
Happiness Research webpage
Wellbeing Programme webpage

Times Higher Education
Leader: Reiki riles while Rome burns

The wellbeing of individuals matters, but what matters more is the wellbeing of a sector facing swingeing cuts Happiness is the new despair. Ever since Richard Layard, emeritus professor of economics at the London School of Economics and the Government's happiness czar, published Happiness: Lessons from a New Science in 2005, a ripple of "joyousness" has spread throughout the land. There's been talk of happiness lessons for schoolchildren, therapy for the victims of the recession - the idea being that "negative thinking" and depression could render those made redundant permanently unemployable - and in December, the Department of Health gave us New Horizons: A Shared Vision for Mental Health, a document that set out a "programme of action to help improve everyone's mental wellbeing".

This article appeared in Times Higher Education on 21st January 2010 Link to article

Related publications
Happiness: Lessons from a New Science by Richard Layard. Details

Related links
Richard Layard webpage
Happiness Research webpage
Wellbeing Programme webpage

BBC World Service
The World Today

Linda Yueh interviewed on China's 2009 GDP growth and trade.

This interview was broadcast on 20th January 2010.(No link avaliable)

Related links
Linda Yueh webpage
Globalisation Programme webpage

Also on Thursday 21 January
BBC World Service "World Business News"

The Financial Times
A bank levy will not stop the doomsday cycle

“During the final years of communism’s decline, Soviet bureaucrats argued for futile tweaks to laws that would crack down on speculators and close “loopholes” – all in the vain hope they could keep the unproductive system of incentives intact. The US, UK and key European countries are now making the same errors. Rather than recognising the dangerous systemic failures in our financial system, their leaders are proposing bandages that can – at best – only postpone another, possibly much larger, meltdown.”

This article appeared in The Financial Times on 19th January 2010 Link to article

Related links
Peter Boone webpage
Effective Intervention Programme webpage

Wall Street Journal
What Our Spies Can Learn From Toyota

Article by Luis Garicano and Richard Posner

Real reform of complex institutions is always hard, but it is possible. Consider a storied, historic, indeed iconic American institution that had developed an internal structure so convoluted that information did not flow through it—fiefdoms abounded, and duplication and delays were the rule. After many failed efforts at reform, only the threat and actuality of bankruptcy forced this institution to slim down, streamline and focus. We are referring, of course, to the U.S. auto industry. Mr. [Luis] Garicano is a professor of management and economics at the London School of Economics.

This article appeared in the Wall Street Journal on the 13th January 2010 Link to article

Related links
Luis Garicano webpage
Productivity and Innovation Programme webpage

Futures and Options Intelligence
Chinese equity futures approved but investors are not cheering yet

Linda Yueh quoted in an article in the Euromoney publication, on significant changes in China’s equity markets.

This article appeared in Futures and Options Intelligence on 12th January 2010 Link to article

Related links
Linda Yueh webpage
Globalisation Programme webpage

CNBC Europe
Squawk Box

Linda Yueh was guest host of the programme, commenting on economic topics.

This interview was broadcast on CNBC Europe on the 12th January 2010. (No link avalible)

Related links
Linda Yueh webpage
Globalisation Programme webpage

BBC Radio 4
Today

Linda Yueh interviewed on China’s growth prospects and a potential asset bubble.

This interview was broadcast on BBC Radio 4 on 11th January 2010. Link


Also broadcast on:
BBC Radio 5 “Wake up to Money” Link

Radio Free Europe/Radio Liberty
Is Georgia's business environment as good as it looks?

Francesco Caselli of London School of Economics told RFE/RL that a strong business environment like Georgia's does not necessarily produce economic success.

This interview was broadcast on Radio Free Europe on 8th January 2010. Link to article

Related links
Francesco Caselli webpage
Macro Programme webpage

BBC World Service
World Update

Linda Yueh interviewed on China becoming the world's largest exporter.

This interview was broadcast on BBC World Service on 8th January 2010. No link availaible.

Also broadcast on
BBC World News – “World News Today”

Related links
Linda Yueh webpage
Globalisation Programme webpage

Moneyweek
What housing recovery?

The reality is that British property still looks expensive by historical standards. And prices remain far higher than building costs, says Tim Leunig of the London School of Economics. Finally, on a global basis, Britain remains expensive compared with most of the rest of the world, says The Economist – although it's by no means the worst (see below).

This article appeared in MoneyWeek on 12 January 2010. Link to article

Related links
Tim Leunig webpage
Globalisation Programme webpage

The Economist
If you're so smart why ain't you efficient?

Chris Blattman has a post on his excellent development economics blog summarising some interesting studies (presented at this year’s American Economic Association meeting). They suggest that “the real barrier to firm growth in poor countries could be management”: Nick Bloom talked about an experiment (also with coauthors) with large textile firms in India.

This article appeared in the Economist on 8th January 2010 Link to article

Related publications
Nick Bloom’s CEP publications webpage

Related links
Nick Bloom webpage
Productivity and Innovation Programme webpage

The Independent
Why your country needs you to be happy

The driving force behind this sea-change in Government priorities is the "new science of happiness", positive psychology, enthusiastically championed in the UK by the government's "happiness tsar", the psychologist Lord Richard Layard. The core tenets of positive psychology have become so absorbed by the Government that they can be summed up in the vision statement of "New Horizons", which seeks "to move towards a society where people understand that their mental well-being is as important as their physical health if they are to live their lives to the full".

This article appeared in The Independent on 6th January 2010. Link to article

Related publications
Happiness: Lessons from a New Science by Richard Layard. Details

Related links
Richard Layard webpage
Happiness Research webpage
Wellbeing Programme webpage

Peninsula On-line (Quatar's leading English daily)
Global boom builds for epic bust

Peter Boone and Simon Johnson column warns us to look a little farther down the road and you see serious trouble. The heart of the matter is, of course, the US and European banking systems.
This article appeared on Peninsula On-line on the 6th January 2010. Link to article

Related links
Peter Boone webpage
Effective Intervention Programme webpage

Also appeared in the following on the 7th January:
Trinidad & Tobago Express webpage
The Business Times (Singapore) webpage

Financial Times
Broad consensus that house prices are too high

Tim Leunig quoted in a report on British house prices.
This article appeared in the Financial Times on 4 January 2010. Link to article

Related publications
‘Where to build Britain’s new houses’, Tim Leunig, in CentrePiece, Vol.13, Issue 1, Spring 2008 Link to article

Related links
Tim Leunig webpage
Globalisation Programme webpage

Emerginvest
Ten New Year Questions For Paul Krugman

“The Spanish economist Luis Garicano was asked by the Queen of England the very question I would now like to ask: could you briefly explain to a Spanish public why you think few economists saw the current crisis coming?”

This article appeared on Emerginvest on 3rd January 2010 Link to article

Related links
Luis Garicano webpage
Productivity and Innovation Programme webpage

Sunday Times
Force the big banks to shrink

Peter Boone research associate at the LSE, with Simon Johnson discuss the need for a cheap pound for a long time in order for the UK to "get out of its mess".

This article appeared in the Sunday Times on the 3rd January 2010. Link to article

Related links
Peter Boone webpage
Effective Intervention Programme webpage

Financial Times
Rolls-Royce chief puts his weight behind manufacturing

Tim Leunig, an economic historian at the London School of Economics, is quoted.

This article appeared in the Financial Times on 2nd January 2010 Link to article

Related links
Tim Leunig webpage
Globalisation Programme webpage