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LSE Business Review blog

Does social media foster polarisation? A close look at the handle @realdonaldtrump

Extreme polarisation is not persistent over time; people are more likely to react to specific events or news, writes Maria Molina-Domene. Social media facilitates communication and an appealing question is whether citizens use it to endorse or criticize the government. I investigate individuals’ potential polarisation about President Trump, as reflected in his personal Twitter account. In this context, polarisation relates to expressing positive or negative judgements through social media.   


Related Links:
LSE Business Review blog - Does social media foster polarisation? A close look at the handle @realdonaldtrump

CEP Labour Markets

Maria Molina-domene webpage



News Posted: 16/02/2018      [Back to the Top]

CityMetric

Aberdeen’s slowdown shows the dangers of being a one-industry town

When we consider these findings in light of research published last July by Centre for Cities and the Centre for Economic Performance – which suggested that Aberdeen's economy would be hit harder than that of any other city by either a 'hard' or 'soft' Brexit – It all adds up to a worrying picture.


Related Links:
CityMetric - Aberdeen’s slowdown shows the dangers of being a one-industry town

The Local Economic Effects of Brexit

CEP Trade CEP Labour Markets CEP Urban and Spatial Programme

Swati Dhingra webpage

Stephen Machin webpage

Henry Overman webpage



News Posted: 15/02/2018      [Back to the Top]

Economia

Londres acull un debat impossible a Madrid o Barcelona/London welcomes an impossible debate in Madrid or Barcelona

Scene of the meeting, the London School of Economics, in the center of the British capital, in the third session of a cycle of debates centered on the relationship between Catalonia and Spain. In London, not in Barcelona or in Madrid, as if sitting in the same table, the economics consultant Andreu Mas-Colell and prominent economists, colleagues Jordi Galí, Ángel de la Fuente, Ramon Marimon and Antonio Cabrales in one of the Two cities of the State were impossible. Almost a metaphor for the lack of dialogue not between the five academics present at the event, but between the leading Spanish class and the one that led the Process in Catalonia.


Related Links:
Economia - Londres acull un debat impossible a Madrid o Barcelona/London welcomes an impossible debate in Madrid or Barcelona

CEP Education and Skills

Jenifer Ruiz-valenzuela webpage



News Posted: 15/02/2018      [Back to the Top]

El Pais

Direct: The economic dimension of the Catalan crisis

The London School of Economics hosts a new debate of the series that is celebrating, in collaboration with Politikon, about the future of Spain and Catalonia. On this occasion, with the moderation of Jenifer Ruiz-Valenzuela, of the LSE, Antonio Cabrales, Ángel de la Fuente, Jordi Galí, Ramon Marimon and Andreu Mas-Colell talk about the economic dimension of the Catalan crisis.


Related Links:
El Pais - Direct: The economic dimension of the Catalan crisis

CEP Education and Skills

Jenifer Ruiz-valenzuela webpage



News Posted: 14/02/2018      [Back to the Top]

El Comercio (Peru)

Kindernomics: ¿Cómo combatir desigualdad en la innovación?/Kindernomics: how to comabat inequality in innovation?

In a paper he signed with John Van Reenen, Neviana Petkova, Xavier Jaravel and Alex Bell it was discovered that people with parents who are among the richest 1% of the United States are ten times more likely to become successful inventors than those who they grow in households with incomes below the average.

Related publications

‘Who Becomes an Inventor in America?  The Importance of Exposure to Innovation’, Alex Bell, Raj Chetty, Xavier Jaravel, Neviana Petkova and John Van Reenen, mimeo, December 2017

http://www.equality-of-opportunity.org/assets/documents/inventors_paper.pdf


Related Links:
El Comercio (Peru) - Kindernomics: ¿Cómo combatir desigualdad en la innovación?/Kindernomics: how to comabat inequality in innovation?

CEP Growth

John Van reenen webpage



News Posted: 14/02/2018      [Back to the Top]

Le Monde

What should corporate profits really be used for ?

Dominique Steiler, professor of management, proposes in a tribune to the "World" to break with the paradigm of the hyper-competitiveness and the economic war to make the company a factor of individual happiness and social peace. per capita and, consequently, increase happiness. Some have benefited from the first, but the inequalities are important and growing. For the second, the research work of Prof. Layard of the London School of Economics, conducted over fifty ...


Related Links:
Le Monde - What should corporate profits really be used for ?

CEP Wellbeing

Richard Layard webpage



News Posted: 14/02/2018      [Back to the Top]

The Gulf Today

‘Citizens’ wellbeing priority’

DUBAI: Professor Jeffrey Sachs, renowned economist and Chair of the World Happiness Council, has led a plenary session to discuss the findings of the first Global Happiness Policy Report on the opening day of the sixth World Government Summit, WGS 2018, in Dubai.  In the session titled, “Insights and Reflections from the Global Happiness Policy Report,” industry experts highlighted key takeaways from the report, unanimously agreeing that governments need to prioritise the well-being of their citizens.  Fellow World Happiness Council members, economist Richard Layard and psychologist Martin Seligman, joined Professor Sachs in the discussion along with economist Jan-Emmanuel De Neve.  Initiating the dialogue, Sachs said, “If you teach happiness and propound altruistic philosophy, you are actually happier. This report is a compendium of important case studies on the application of the science of happiness and will help governments understand, measure and monitor happiness around the world. Only 22 of the 193 governments present at the United Nations currently have happiness policies in place. Our mission is to spread this information to the world community.”  Layard, in turn, observed that tackling mental illness and the stigma that surrounds it remains a challenge today. “Even in developed nations, only a quarter of people with mental illnesses and similar conditions get treated. This would cause an outrage if these numbers reflected treatment for physical disabilities,” he said.

www.gulftoday.ae/portal/40edca98-a238-4a3c-88d4-a7195aae1423.aspx

 

Related publications

‘World Happiness Report 2017’, John Helliwell, Richard Layard and Jeffrey Sachs (Eds).

http://worldhappiness.report/


Related Links:
CEP Wellbeing

Jan-Emmanuel De neve webpage

Richard Layard webpage



News Posted: 13/02/2018      [Back to the Top]

Forsal (Poland)

"Optimal" would be to tax happiness in life [FELIETON]

The approach to happiness and bad luck translates into expectations regarding the social security system, including taxes and benefits. If we assume that nobody is fully responsible for their achievements, social policy has to solve two problems. First of all, it is necessary to measure how much individual outcomes affect the initial conditions of childhood, the so-called uneven start: when a child comes into the world in a family with lower income, human capital, access to social networks, etc. The idea of ​​a welfare state it is based on equal opportunities so that the child's ability to obtain higher education and proper health care is not limited by the parents' life decisions. Research shows that so far we are not doing it much, because over 20 percent. pay inequalities can be attributed to uneven start, as demonstrated by Daniele Checchi (Politecnico di Milano) and Vito Peragine (University of Bari). What's more, the last three decades have been the decrease in the so-called income mobility in Europe (studies by the head of the Center for Economic Performance at LSE, Steve Machin), as well as in the USA (research by Raji Chetty's team). This is examined, among others by checking whether the income position of parents affects the income position of children. For example, if for every decile of parents' income I have the same chance of earning money in the middle of a decay, society is characterized by high mobility. Data for the US and the United Kingdom show that it is more and more likely every year that poor children will remain poor and rich people rich, while it is less likely to improve the social ladder from generation to generation.


Related Links:
Forsal (Poland) - "Optimal" would be to tax happiness in life [FELIETON]

Real Wages and Living Standards

Falling real wages

CEP Labour Markets

Stephen Machin webpage



News Posted: 12/02/2018      [Back to the Top]

Univision

Los ‘Einsteins perdidos’: cómo se desperdicia el potencial de los niños más brillantes de familias pobres y cómo solucionarlo / The 'lost Einsteins': how the potential of the brightest children of poor families is wasted and how to fix

Article by by Xavier Jaravel, Raj Chetty, John Van Reenen and Alexander Bell

A new analysis shows how much the socioeconomic status of a student's family influences whether he becomes an inventor as he grows up. The key to diminishing the disadvantages suffered by the poorest children? Expose them to more inventors.

Related publications

‘Who Becomes an Inventor in America?  The Importance of Exposure to Innovation’, Alex Bell, Raj Chetty, Xavier Jaravel, Neviana Petkova and John Van Reenen, mimeo, December 2017

http://www.equality-of-opportunity.org/assets/documents/inventors_paper.pdf


Related Links:
Univision - Los ‘Einsteins perdidos’: cómo se desperdicia el potencial de los niños más brillantes de familias pobres y cómo solucionarlo / The 'lost Einsteins': how the potential of the brightest children of poor families is wasted and how to fix

CEP Growth

John Van reenen webpage



News Posted: 11/02/2018      [Back to the Top]

Financial Times

The old normal - Your weekly briefing on the UK economy

Last week’s highlights - Assessing the impact assessments - Almost all of the interesting results you get out of modelling Brexit are down to the judgments and assumptions you put in, said Robert Chote, head of the Office for Budget Responsibility, to the Institute for Government last week. But as the government’s models are being kept under lock and key in Whitehall all we have so far are hints of the results and no idea of what the government are putting in. Our Westminster team report the models say that Remain-voting areas will get off lightly (an opposite conclusion to work done by the London School of Economics), retailers will suffer the most from higher barriers to trade and new trade deals with non-European countries will provide very limited benefits.


Related Links:
Financial Times - The old normal - Your weekly briefing on the UK economy

The Local Economic Effects of Brexit

CEP Trade CEP Labour Markets CEP Urban and Spatial Programme

Swati Dhingra webpage

Stephen Machin webpage

Henry Overman webpage



News Posted: 11/02/2018      [Back to the Top]

Zawya

Global dialogue for happiness discusses design of happiness policies based on science and technology

In a similar session titled ‘What Makes People Happy?’, Paul Dolan, Head of Department and Professor of Behavioral Science in Psychological and Behavioral Science at the London School of Economics and Political Science, offered an alternative explanation to the meaning of happiness. Dolan maintained that simple lifestyle changes can have a big impact on peoples’ happiness. Studies have shown that increased happiness coincides with increases in wealth and productivity. He identified different aspects of happiness that can be measured and monitored. Emotional happiness, moral happiness, and evaluative happiness, in addition to happiness that is related to the environment, education, healthcare, society, government services, and infrastructure, are some of them.

Paul Dolan CEP publications webpage:  http://cep.lse.ac.uk/_new/publications/author.asp?author=dolan

 


Related Links:
Zawya - Global dialogue for happiness discusses design of happiness policies based on science and technology

CEP Wellbeing

Paul Dolan webpage



News Posted: 11/02/2018      [Back to the Top]

The Times

Phone home

Other studies have come to similar conclusions. In 2015 researchers at the London School of Economics studied results at 91 secondary schools in London, Birmingham, Manchester and Leicester that banned mobile phones. They found a rise in results in schools where the ban was tightly enforced, but none where it was flouted.


Related Links:
The Times - Phone home

In brief... Phone home: should mobiles be banned in schools?

Ill Communication: Technology, Distraction & Student Performance

CEP Education and Skills

Richard Murphy webpage



News Posted: 10/02/2018      [Back to the Top]

The Times

Marathons, botox and sex: there's a perfect age to do everything

Research led by Richard Layard and published in a book, The Origins of Happiness, this month reveals that even ill health, a drop in income or being divorced or widowed makes relatively little difference to the life satisfaction of those in their sixties and seventies, which is famously high.

Related publications

The Origins of Happiness by Andrew Clark, Sarah Flèche, Richard Layard, Natavudh Powdthavee and George Ward is published by Princeton University Press, January 2018


Related Links:
The Times - Marathons, botox and sex: there's a perfect age to do everything

CEP Wellbeing

David Clark webpage

Sarah Flèche webpage

Richard Layard webpage

Nattavudh Powdthavee webpage

George Ward webpage



News Posted: 10/02/2018      [Back to the Top]

El Mercurio de Tamaulipas (Mexico)

La salud mental como estrategia para la sostenibilidad económica/Mental health as a strategy for economic sustainability

We no longer speak only of the individual situation of the people affected, we speak of the economic situation of a whole country. Referring to the research done by one of the most illustrious economists of the London School of Economics, Lord Richard Layard, the lack of action in the area of mental health is more expensive than any plan of action. Investment in mental health benefits the economic development of a country. In Spain, every euro invested in the prevention or treatment of depression or anxiety (the two most widespread disorders among the population), leads to a return of 4 euros in better health and skills for the labor market.

Related links

Mental Health research webpage:  http://cep.lse.ac.uk/_new/research/Wellbeing/mental_health.asp


Related Links:
El Mercurio de Tamaulipas (Mexico) - La salud mental como estrategia para la sostenibilidad económica/Mental health as a strategy for economic sustainability

CEP Wellbeing

Richard Layard webpage



News Posted: 09/02/2018      [Back to the Top]

Knowledge

Why the multinationals that influence the world are born

Business groups rule the global economy. Data show that about 70% of the global international trade is linked to multinational groups and about a third is linked to companies belonging to the same multinational group. These large groups with hundreds of subsidiaries all over the world influence macroeconomic phenomena. But why do they decide to perform their activities through subsidiaries? And which hierarchical structure do they choose?   Carlo Altomonte (Department of Policy Analysis and Public Management) and Gianmarco Ottaviano (Department of Economics) provide an answer in the paper co-authored with Armando Rungi Business Groups as Knowledge-based Hierarchies. The choice to organize economic activities as a business group rather than an integrated entity is driven by a series of trade-offs between competitive advantages and knowledge dispersion. The authors provide an empirical support exploiting a dataset including 270,000 parent companies controlling more than 1,500,000 subsidiaries worldwide. “The make-or-buy decision is usually studied in relation to outsourcing”, Altamonte says. “We applied it to parent companies performing their activities through legally autonomous companies under their control. We found that it is more likely that a company will organize itself through subsidiaries when it operates in a context where intellectual property rights are protected. However, given the risk of knowledge dispersion, the same company does not use independent external subcontractors”.   The authors also investigate business groups’ hierarchical structure. “A vertical group is more likely to emerge than an horizontal one if the parent company faces lower communication costs between its hierarchical layers. Routine production problems are dealt with by subsidiaries lower in the group’s hierarchy. The activities become increasingly complex as we get near to the parent company”. This is the case of Alphabet Inc, the multinational conglomerate that owns Google. The most innovative companies such as Deep Mind (artificial intelligence research and application) and Waymo (the self-driving car project) are hierarchically closer to the parent.


Related Links:
Knowledge - Why the multinationals that influence the world are born

CEP Trade

Gianmarco Ottaviano webpage



News Posted: 09/02/2018      [Back to the Top]

Centre for Cities – blog

Aberdeen’s economic slowdown highlights the dangers of being a one-sector city

Moreover, when we consider these findings in light of research published last July by Centre for Cities and the Centre for Economic Performance, which suggested that Aberdeen’s economy would be hit harder than that of any other city by either a ‘hard’ or ‘soft’ Brexit, it all adds up to a worrying picture for Aberdeen.


Related Links:
Centre for Cities – blog - Aberdeen’s economic slowdown highlights the dangers of being a one-sector city

The Local Economic Effects of Brexit

CEP Trade CEP Education and Skills CEP Urban and Spatial Programme

Swati Dhingra webpage

Stephen Machin webpage

Henry Overman webpage



News Posted: 09/02/2018      [Back to the Top]

Diario responsible

Mental health as a strategy for the economic sustainability of Spain

We no longer speak only of the individual situation of the people affected, we speak of the economic situation of a whole country. Referring to the research done by one of the most illustrious economists of the London School of Economics, Lord Richard Layard, the lack of action in the area of mental health is more expensive than any plan of action. Investment in mental health benefits the economic development of a country. In Spain, every euro invested in the prevention or treatment of depression or anxiety (the two most widespread disorders among the population), leads to a return of 4 euros in better health and skills for the labor market.


Related Links:
Diario responsible - Mental health as a strategy for the economic sustainability of Spain

CEP Wellbeing

Richard Layard webpage



News Posted: 08/02/2018      [Back to the Top]

The Times

Children of positive mothers get better GCSE grades

Findings suggest that a mother’s personality has a big impact on the academic performance of teenagers, regardless of other factors. Academics assessed women’s “internal locus of control”, how much they believed that they controlled their own lives rather than having good or bad luck. Babies born to mothers with a strong belief in their own power did better in GCSEs, even when the family background, mother’s education and her IQ and the locus of control of the child were taken into account. The findings by the Centre for Economic Performance, at the London School of Economics, are published in The Economic Journal. The study analysed data from the Children of the 90s project, which tracks the lives of more than 10,000 people born in Bristol.

Related publications

Locus of Control and its Intergenerational Implications for Early Childhood Skill Formation (pages 298-329)

The Economic Journal Volume 128, Issue 608, February 2018

Warn N. Lekfuangfu, Nattavudh Powdthavee, Nele Warrinnier, Francesca Cornaglia

DOI: 10.1111/ecoj.12414

 


Related Links:
The Times - Children of positive mothers get better GCSE grades

Locus of Control and Its Intergenerational Implications for Early Childhood Skill Formation

CEP Education and Skills CEP Wellbeing

Nuarpear Lekfuangfu webpage

Nattavudh Powdthavee webpage

Nele Warrinnier webpage



News Posted: 08/02/2018      [Back to the Top]

Guardian

Research every teacher should know: self-control and learning

With technology such as mobile phones in some classrooms increasing distractions, the ability to improve self-control and delayed gratification has become a particularly important skill. Perhaps it’s not surprising that recent research by the London School of Economics found that banning mobiles phones in schools can help improve students’ test scores.


Related Links:
Guardian - Research every teacher should know: self-control and learning

In brief... Phone home: should mobiles be banned in schools?

Ill Communication: Technology, Distraction & Student Performance

CEP Education and Skills

Richard Murphy webpage



News Posted: 08/02/2018      [Back to the Top]

EdSurge News

Why college is not an employment agency

While Caplan dismisses the possibility that universities offer society any real economic benefit, data shows otherwise. After studying new data from UNESCO’S World Higher Education Database, covering 15,000 colleges and universities across 78 countries between 1950 and 2010, Anna Valero, a London School of Economics scholar, found that “the expansion of higher education from 1950 onwards was not just the product of growing wealth, it has also helped fuel economic growth around the world.”

Related article

The Conversation, September 15 2016

How universities boost economic growth

https://theconversation.com/how-universities-boost-economic-growth-65017


Related Links:
EdSurge News - Why college is not an employment agency

CEP Growth

Anna Valero webpage



News Posted: 06/02/2018      [Back to the Top]

The Economic Journal, Volume 128, Issue 608, February 2018

Locus of Control and its Intergenerational Implications for Early Childhood Skill Formation (pages 298-329)

Related publications

Locus of Control and its Intergenerational Implications for Early Childhood Skill Formation (pages 298-329)

The Economic Journal Volume 128, Issue 608, February 2018

Warn N. Lekfuangfu, Nattavudh Powdthavee, Nele Warrinnier, Francesca Cornaglia

DOI: 10.1111/ecoj.12414


Related Links:
The Economic Journal, Volume 128, Issue 608, February 2018 - Locus of Control and its Intergenerational Implications for Early Childhood Skill Formation (pages 298-329)

Locus of Control and Its Intergenerational Implications for Early Childhood Skill Formation

CEP Education and Skills CEP Wellbeing

Nuarpear Lekfuangfu webpage

Nattavudh Powdthavee webpage

Nele Warrinnier webpage



News Posted: 05/02/2018      [Back to the Top]

The Economic Journal, Volume 128, Issue 608, February 2018

Distinctively Different: A New Approach to Valuing Architectural Amenities (pages 1-33)

DOI: 10.1111/ecoj.12429

 

Related publications

Distinctively Different: A New Approach to Valuing Architectural Amenities Gabriel M. Ahlfeldt and Nancy Holman, SERC Discussion Paper No.171, February 2015


Related Links:
The Economic Journal, Volume 128, Issue 608, February 2018 - Distinctively Different: A New Approach to Valuing Architectural Amenities (pages 1-33)

CEP Urban and Spatial Programme

Gabriel Ahlfeldt webpage



News Posted: 05/02/2018      [Back to the Top]

•The Economic Journal, Volume 128, Issue 608, February 2018

Resetting the Urban Network: 117–2012 (pages 378-412)

  • DOI: 10.1111/ecoj.12424

Related Links:
•The Economic Journal, Volume 128, Issue 608, February 2018 - Resetting the Urban Network: 117–2012 (pages 378-412)

Resetting the Urban Network: 117-2012

CEP Labour Markets CEP Trade

Guy Michaels webpage

Ferdinand Rauch webpage



News Posted: 05/02/2018      [Back to the Top]

BBC Radio 4

PM [5:21:51]

  

Anna Valero interviewed, speaking about the big picture of UK productivity:  low investment, bad training, bad management and lack of infrastructure. BBC business correspondent Jonty Bloom examines what the British problems are, that we are pretty unproductive in many industries and in most of the country and as Anna Valero from the centre for economic performance at the London school of economics explains, for many different reasons: the British economy is chronically under-invested in all the key areas t- such as skills, management practices, technology and infrastructure - that are important for raising productivity.

  


Related Links:
BBC Radio 4 - PM [5:21:51]

CEP Growth

Anna Valero webpage



News Posted: 05/02/2018      [Back to the Top]

Financial Times

Like great coffee, good ideas take time to percolate

A decade ago, economists at Berkeley, Stanford and the World Bank conducted a randomised trial in which the bank paid for some textile factories in Mumbai to receive consulting advice from a global company. These factories tended to have utterly chaotic systems, so help with modern inventory management made a big difference. The factories saw their productivity transformed.More recently, those economists revisited the experiment. How much of the good advice had lasted? Had any of it spread? There was good news and bad news.


Related Links:
Financial Times - Like great coffee, good ideas take time to percolate

In brief: Improving management in India

Does Management Matter? Evidence from India

CEP Growth

Nick Bloom webpage



News Posted: 02/02/2018      [Back to the Top]

Chicago Booth Review

Economy-boosting ideas are increasingly hard to find

To sustain economic growth, the United States must double its overall research effort every 13 years. That’s because it is taking an increasing amount of effort to generate enough ideas to power the economy, according to research by Stanford’s Nicholas Bloom and Charles I. Jones, Stanford PhD candidate Michael Webb, and MIT’s John Van Reenen.


Related Links:
Chicago Booth Review - Economy-boosting ideas are increasingly hard to find

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage



News Posted: 02/02/2018      [Back to the Top]

BBC TV News Channel

Afternoon Live

Snippet: ...ard to the next one. So do I. is more important than Happiness at school and should even be factored academic qualifications - into the curriculum. That's the conclusion of a major report by Lord Richard Layard from the London School of Economics, who used data from ...

 

Related publications

The Origins of Happiness by Andrew Clark, Sarah Flèche, Richard Layard, Natavudh Powdthavee and George Ward is published by Princeton University Press, January 2018


Related Links:
BBC TV News Channel - Afternoon Live

CEP Wellbeing

Andrew Clark webpage

Sarah Flèche webpage

Richard Layard webpage

Nattavudh Powdthavee webpage

George Ward webpage



News Posted: 01/02/2018      [Back to the Top]

BBC Kent (2/1/2018 5:15:30 PM)

Broadcast

Snippet: ...ic King BBC Radio isn't this statement happiness score is more important than ECB academic qualifications and could even be factored into the cricket them the conclusion of a major report by Lord Richard Layard from the London School of Economics used data for more t...
Outlet: BBC Radio Kent

Related publications

The Origins of Happiness by Andrew Clark, Sarah Flèche, Richard Layard, Natavudh Powdthavee and George Ward is published by Princeton University Press, January 2018


Related Links:
BBC Kent (2/1/2018 5:15:30 PM) - Broadcast

CEP Wellbeing

Andrew Clark webpage

Sarah Flèche webpage

Richard Layard webpage

Nattavudh Powdthavee webpage

George Ward webpage



News Posted: 01/02/2018      [Back to the Top]

The Telegraph

The EU refuses a soft Brexit, so we must invoke the WTO immediately

An authoritative report last year by a team under MIT trade expert John Van Reenen for the Centre for Economic Performance estimated that a WTO option would cut British living standards by 2.7pc over time. But it pushed the losses to a range of 6.3pc to 9.4pc once “dynamic” effects are included. This is to rely heavily on the “black box” of productivity, a malleable concept. I would presume that the Treasury uses the same method since Prof Van Reenen once advised them.


Related Links:
The Telegraph - The EU refuses a soft Brexit, so we must invoke the WTO immediately

The Costs and Benefits of Leaving the EU: Trade Effects

CEP Growth CEP Trade

Swati Dhingra webpage

Hanwei Huang webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage



News Posted: 01/02/2018      [Back to the Top]

The Telegraph

The EU refuses a soft Brexit, so we must invoke the WTO immediately


Related Links:
The Telegraph - The EU refuses a soft Brexit, so we must invoke the WTO immediately





News Posted: 01/02/2018      [Back to the Top]

Economics Department News – LSE

Dr Swati Dhingra awarded an ERC Starting Grant

Swati Dhingra has been awared a European Research Council Starting Grant for the BIGlobal project, which will examine the sources of firm growth and market power to provide new insights into welfare and policy in a globalised world.

The project will determine how firm decisions matter for the aggregate gains from globalisation, the division of these gains across different individuals and their implications for policy design.

January 2018


Related Links:
Economics Department News – LSE - Dr Swati Dhingra awarded an ERC Starting Grant

CEP Trade

Swati Dhingra webpage



News Posted: 01/02/2018      [Back to the Top]

London Live (Radio)

Glitter force

…7 23 is a town which is just a month ago happiness school is more important than academic qualifications should even be factored into the correctly That's the conclusion of a major report by Lord Richard and the London School of Economics which used data from...

 

Related publications

The Origins of Happiness by Andrew Clark, Sarah Flèche, Richard Layard, Natavudh Powdthavee and George Ward is published by Princeton University Press, January 2018


Related Links:
London Live (Radio) - Glitter force

CEP Wellbeing

Andrew Clark webpage

Sarah Flèche webpage

Richard Layard webpage

Nattavudh Powdthavee webpage

George Ward webpage



News Posted: 01/02/2018      [Back to the Top]

The Times

Housing crisis: Green belt brand is ‘hiding ugly truth’

The green belt is associated in most people’s minds with England’s “green and pleasant land” immortalised by William Blake in his poem Jerusalem. But according to Paul Cheshire, professor of economic geography at the London School of Economics (LSE), many parts of the protected areas around towns and cities have little aesthetic or environmental value.


Related Links:
The Times - Housing crisis: Green belt brand is ‘hiding ugly truth’

Turning houses into gold: the failure of British planning

CEP Urban and Spatial Programme

Paul Cheshire webpage



News Posted: 01/02/2018      [Back to the Top]

Neviditelny Pes (Czech)

WORLD: Craving for happiness as the most authentic value

Richard Layard, an elected economist and professor at the London School of Economics, emphasized in his lecture (March 3, 2003) that the people of the Western countries have been very wealthy over the last thirty years, their working hours are significantly shorter, have longer vacations, travel, live longer and healthier. But they are not happier. In the 2005 book Happiness: Lessons from a New Science, the table shows the correlation between average national income and a sense of life satisfaction. Among the poor states, the lowest degree of satisfaction is shown by Ukraine, it is better for Bangladesh and even better for the former popular democracy. (Hungary, Poland, Lithuania, Bulgaria, Romania - listed in descending order). The Czech Republic even ranked higher than Japan, showing a higher average income for its population. Lord Layard makes it quite clear that raising money is not a guarantee of blessing, but the more we have, the happier we feel if we are poor. Now exactly twelve years ago, The Economist (11 February 2006) reported the results of evaluating the subjective feelings of well-being based on the World Values ​​Survey. On the 0-4 scale, the best result was achieved by Switzerland (4), followed by the USA (3.5). The United Kingdom reached just under 3, Spain, Italy and Japan 2, and Poland and Turkey less than 1. The Czech Republic was not listed here. In the case of Germany, the distance between the Germans in the West and the former Dederons was established.

Related publications

Happiness: Lessons from a New Science, Richard Layard, Penguin, 2nd edition 2011

https://www.penguin.co.uk/books/54928/happiness/


Related Links:
Neviditelny Pes (Czech) - WORLD: Craving for happiness as the most authentic value

CEP Wellbeing

Richard Layard webpage



News Posted: 01/02/2018      [Back to the Top]

LSE News

New book on the origins of happiness

A new book by Professor Richard Layard and colleagues presents evidence on the origins of happiness, drawing on unique survey data on over 100,000 individuals in Australia, Germany, the UK and the United States.  “Public policy needs a new focus: not ‘wealth creation’ but ‘wellbeing creation’.” “Public expenditure, taxation and regulation should increasingly be based on evidence about how they affect the subjective wellbeing of the people.”

Related publications

The Origins of Happiness by Andrew Clark, Sarah Flèche, Richard Layard, Natavudh Powdthavee and George Ward is published by Princeton University Press, January 2018


Related Links:
LSE News - New book on the origins of happiness

CEP Wellbeing

Andrew Clark webpage

Sarah Flèche webpage

Richard Layard webpage

Nattavudh Powdthavee webpage

George Ward webpage



News Posted: 01/02/2018      [Back to the Top]

Wired Video

Documentary: how migrant entrepreneurs help power growth in the London economy

"Migrants are more likely, on average, to be self-employed and to start up companies." Max Nathan of CEP's Urban Programme interviewed for the documentary made by Wired in partnership with the Museum of London as part of their City Now City Future season which explores the challenges, initiatives and innovations taking place without our cities.


Related Links:
Wired Video - Documentary: how migrant entrepreneurs help power growth in the London economy

CEP Urban and Spatial Programme

Max Nathan webpage



News Posted: 31/01/2018      [Back to the Top]

McKinsey & Company – McKinsey Global Institute

Rebuilding trust in Europe: Three pathways

Briefing note prepared for the World Economic Forum Annual Meeting in Davos, Switzerland

Concerns about automation’s impact add to the climate of mistrust. In the European public debate over automation, the fear that “robots could take our jobs” is a recurring theme that adds to the climate of mistrust and fear. Our research suggests that historically there has been enough work to offset the portion of existing jobs displaced by technology, although not all sectors are affected equally and wages can be affected for some time.

Further Reading:  Graetz, Georg and Guy Michaels, Robots at work, Centre for Economic Performance, discussion paper CEPDP 1335, March 2015.


Related Links:
McKinsey & Company – McKinsey Global Institute - Rebuilding trust in Europe: Three pathways

Robots at work: the impact on productivity and jobs

Robots at Work

CEP Labour Markets

Georg Graetz webpage

Guy Michaels webpage



News Posted: 31/01/2018      [Back to the Top]

The Morning Call

Anthony Patrick O’Brien: Why immigration is good for the U.S. economy

Gianmarco Ottaviano of the London School of Economics and Giovanni Peri of UC, Davis, looking at U.S. labor markets, estimate that between 1990 and 2006 new immigrants reduced wages of previous immigrants by about 7 percent but did not affect wages of native-born workers. This study has its critics as well. Given the difficulty of separating the effect of immigration from other factors determining wages, economists may never settle this issue. But it seems unlikely that immigration has had much impact on wages.

Related publications

‘Rethinking the effect of immigration on wages’, Gianmarco Ottaviano and Giovanni Peri, Journal of the European Economic Association, Volume 10, Issue 1, February 2012

http://onlinelibrary.wiley.com/doi/10.1111/j.1542-4774.2011.01052.x/abstract

‘Immigration, Offshoring, and American Jobs’, Gianmarco Ottaviano, Giovanni Peri and Greg C. Wright, American Economic Review, Volume 103, No.5, August 2013

https://pubs.aeaweb.org/doi/pdfplus/10.1257/aer.103.5.1925


Related Links:
The Morning Call - Anthony Patrick O’Brien: Why immigration is good for the U.S. economy

CEP Trade

Gianmarco Ottaviano webpage



News Posted: 30/01/2018      [Back to the Top]

Expansion (Spain)

La economía de la felicidad/The economy of happiness

"Money can not buy me love" (with money I can not buy love) the Beatles sang, although it is doubtful that it was a rigorous empirical affirmation. Still, no one denies that money is not everything in life, and according to the book The Origins of Happiness, government policies should be aimed at achieving happiness.

Related publications

The Origins of Happiness by Andrew Clark, Sarah Flèche, Richard Layard, Natavudh Powdthavee and George Ward is published by Princeton University Press, January 2018


Related Links:
Expansion (Spain) - La economía de la felicidad/The economy of happiness

CEP Wellbeing

Andrew Clark webpage

Sarah Flèche webpage

Richard Layard webpage

Nattavudh Powdthavee webpage

George Ward webpage



News Posted: 30/01/2018      [Back to the Top]

Irish Daily Mail

Teachers: get phones out of our schools

Snippet: ... to answer Facebook calls, to answer Facebook messages.' She added that the gadgets are having a negative impact on the children's ability to concentrate in class, a key finding of recent research published by the London School of Economics. 'They're not even …


Related Links:
Irish Daily Mail - Teachers: get phones out of our schools

In brief... Phone home: should mobiles be banned in schools?

Ill Communication: Technology, Distraction & Student Performance

CEP Education and Skills

Richard Murphy webpage



News Posted: 29/01/2018      [Back to the Top]

Teachappy

Teachers can have a huge impact on pupil wellbeing

On Monday 22nd January, I got to meet a #wellbeing hero of mine, Lord Richard Layard. Layard has been at the forefront of the wellbeing movement in the UK, forcing it onto the agenda of governments past and present. I was attending the launch of Layard’s new book, The Origins of Happiness, when I got to meet him (see photo below). It was a great evening with Layard presenting some of the key findings from the book, and then being interviewed by BBC’s Andrew Marr (you can watch the event here https://www.youtube.com/watch?v=qQR7IltAEFk).


Related Links:
Teachappy - Teachers can have a huge impact on pupil wellbeing

CEP Wellbeing

Nattavudh Powdthavee webpage

George Ward webpage

Andrew Clark webpage

Sarah Flèche webpage

Richard Layard webpage



News Posted: 28/01/2018      [Back to the Top]

The Economic Times (India)

How performance-based rankings are shaking up the rigid world of government

Rankings inform the world who is the biggest, the richest, the happiest, the saddest, the most powerful or the most successful. In the 1990s, Stephen Nickell at the Centre for Economic Performance in the London School of Economics and Political Science, led a research to find out what boosts productivity. It found out that tougher and intense competition provided a large and persistent boost to a firm's productivity.


Related Links:
The Economic Times (India) - How performance-based rankings are shaking up the rigid world of government

Productivity Growth in UK Companies

CEP Labour Markets

Stephen Nickell webpage



News Posted: 28/01/2018      [Back to the Top]

BantenNews.co.id (Indonesia)

Cinta bias dibeli dengan uang, tapi kebahagiaan tikak!/Love can be purchased with money, but no happiness

Thus said Professor Richard Layard, the leader of the research, as quoted from kompas.com. "In the past, the country has managed to overcome the problem of poverty, unemployment, education, and physical health," said Layard. However, Layard said, fixing problems such as domestic violence, alcoholism, depression and anxiety, loneliness experienced by young people, and other life issues, are equally important.

Related publications

The Origins of Happiness by Andrew Clark, Sarah Flèche, Richard Layard, Natavudh Powdthavee and George Ward is published by Princeton University Press, January 2018


Related Links:
BantenNews.co.id (Indonesia) - Cinta bias dibeli dengan uang, tapi kebahagiaan tikak!/Love can be purchased with money, but no happiness

CEP Wellbeing

Andrew Clark webpage

Sarah Flèche webpage

Richard Layard webpage

Nattavudh Powdthavee webpage

George Ward webpage



News Posted: 26/01/2018      [Back to the Top]

Financial Times

The economics of happiness

... it is easy to sympathise with Thomas Jefferson’s remark, shortly after he stepped down as US president, that “The care of human life & happiness, & not their destruction, is the first & only legitimate object of good government.”The question is what that means for government policy — and whether the academic study of wellbeing can help. The five authors of The Origins of Happiness, including Professor Richard Layard of the London School of Economics, focus on answers to the question “Overall, how satisfied are you with your life these days?” on a scale of 0-10.

Related publications

The Origins of Happiness by Andrew Clark, Sarah Flèche, Richard Layard, Natavudh Powdthavee and George Ward is published by Princeton University Press, January 2018


Related Links:
Financial Times - The economics of happiness

CEP Wellbeing

Andrew Clark webpage

Sarah Flèche webpage

Richard Layard webpage

Nattavudh Powdthavee webpage

George Ward webpage



News Posted: 26/01/2018      [Back to the Top]

The Times (Northern Ireland)

Brexit dogma must be challenged

The intervention in the Brexit debate by the Confederation of British Industry (CBI) this week, coming out in support of Britain remaining in a customs union, is timely. ... The idea that a UK free to negotiate unilaterally its own trade deals with the rest of the world will deliver an economic windfall is deeply misguided. In fact, analysis by the London School of Economics presents a depressing alternative vista. The introduction of significant trade barriers between the UK and the EU could seriously disrupt existing trade flows, leading to a fall in UK household income of £1,700 annually. Even a relatively benign outcome to talks could result in annual household income dropping by £850.

Related publications

‘Life after BREXIT: What are the UK’s options outside the European Union?’, Swati Dhingra and Thomas Sampson, CEP Brexit Analyses, Paper No.1, February 2016

http://cep.lse.ac.uk/pubs/download/brexit01.pdf

 


Related Links:
The Times (Northern Ireland) - Brexit dogma must be challenged

Life after Brexit : What are the UK’s options outside the European Union?

CEP Trade

Swati Dhingra webpage

Thomas Sampson webpage



News Posted: 26/01/2018      [Back to the Top]

Gloucestershire Echo

Letters:Brexit aftermath is not rosy

…nearly six years.  The Centre for Economic Performance says that the vote has cost the …


Related Links:
Gloucestershire Echo - Letters:Brexit aftermath is not rosy

BREXIT 2016: Policy Analysis from the Centre for Economic Performance

CEP Trade CEP Growth CEP Labour Markets

Holger Breinlich webpage

Swati Dhingra webpage

Saul Estrin webpage

Hanwei Huang webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage

Jonathan Wadsworth webpage



News Posted: 25/01/2018      [Back to the Top]

Yahoo! UK and Ireland

Happiness and housework are as important as economic growth

A third problem with GDP is that it doesn’t tell us anything about whether or not people are satisfied with their lives. Nobel Prize-winners Joseph Stiglitz and Amartya Sen have long argued that we should measure “general wellbeing”, GWB — alongside GDP. In practice, this means asking the public how happy they feel. This might sound soppy but it’s actually something that the Office for National Statistics now does on a regular basis to help inform government policy. And there’s good reason for ministers to pay attention. According to researchers at the London School of Economics, the happiness of a nation is a much better predictor of election results than GDP. If voters are glum, then governments will tend to be booted out of office.

Related publications

The Origins of Happiness by Andrew Clark, Sarah Flèche, Richard Layard, Natavudh Powdthavee and George Ward is published by Princeton University Press, January 2018


Related Links:
Yahoo! UK and Ireland - Happiness and housework are as important as economic growth

CEP Wellbeing

Andrew Clark webpage

Sarah Flèche webpage

Richard Layard webpage

Nattavudh Powdthavee webpage

George Ward webpage



News Posted: 25/01/2018      [Back to the Top]

Smithsonian.com

Expose talented kids from low-income families to inventors and they're more likely to invent

...Our first finding is that there are large differences in innovation rates by socioeconomic class, race and gender. Using new de-identified data that allows us to track 1.2 million inventors from birth to adulthood, we found that children born to parents in the top 1 percent of the income distribution are 10 times as likely to become inventors as those born to parents in the bottom half. Similarly, white children are three times as likely to become inventors as are black children. Only 18 percent of the youngest generation of inventors are female. Although the gender gap narrows somewhat each year, at the current rate of convergence, we won’t see gender balance until next century.

 

Good (magazine)

How smart kids from low-income families become America's 'lost Einsteins'

by Xavier Jaravel, Raj Chetty, John Van Reenen and Alexander Bell

Innovation is widely viewed as the engine of economic growth.

To maximize innovation and growth, all our brightest youth should have the opportunity to become inventors. But a study we recently conducted, jointly with Neviana Petkova of the U.S. Treasury, paints a different picture. We found that a child’s potential for future innovation seems to have as much to do with the circumstances of their family background as it does with their talent.

 

Also in

Before It's News

How talented kids from low-income families become America's 'lost Einsteins'

http://beforeitsnews.com/economy/2018/01/how-talented-kids-from-low-income-families-become-americas-lost-einsteins-2931766.html

Ladies Want More

How smart kids from low-income families become America's 'lost Einsteins'

http://www.ladieswantmore.com/how-smart-kids-from-low-income-families-become-americas-lost-einsteins/

Related publications

‘Who Becomes an Inventor in America?  The Importance of Exposure to Innovation’, Alex Bell, Raj Chetty, Xavier Jaravel, Neviana Petkova and John Van Reenen, mimeo, December 2017

http://www.equality-of-opportunity.org/assets/documents/inventors_paper.pdf


Related Links:
Smithsonian.com - Expose talented kids from low-income families to inventors and they're more likely to invent

CEP Growth

John Van reenen webpage



News Posted: 25/01/2018      [Back to the Top]

The Conversation

How talented kids from low-income families become America's 'lost Einsteins'

Article by Xavier Jaravel, Raj Chetty, John Van Reenen and Alexander Bell

A new analysis shows how family background influences who grows up to invent. The key to turning things around? Expose kids to more inventors.

Also in:

 

Times Union

How talented kids from low income families become America's 'lost Einsteins'

To maximize innovation and growth, all of our brightest youth should have the opportunity to become inventors. But a study we recently conducted, jointly with Neviana Petkova of the U.S. Treasury, paints a very different picture. We found that a child’s potential for future innovation seems to have as much to do with the circumstances of his or her family background as it does with his or her talent. We concluded that there are many “Lost Einsteins” in America – children who had the ability to innovate, but whose socioeconomic class or gender greatly reduced their ability to tap into the social networks and resources necessary to become inventors. Our analysis sheds light on how increasing these young people’s exposure to innovators may be an important way to reduce these disparities and increase the number of inventors.

http://www.timesunion.com/news/article/How-talented-kids-from-low-income-families-become-12520832.php

 

Newstimes

How talented kids from low-income families become America's 'lost Einsteins'

http://www.newstimes.com/news/article/How-talented-kids-from-low-income-families-become-12520832.php

Related publications

‘Who Becomes an Inventor in America?  The Importance of Exposure to Innovation’, Alex Bell, Raj Chetty, Xavier Jaravel, Neviana Petkova and John Van Reenen, mimeo, December 2017

http://www.equality-of-opportunity.org/assets/documents/inventors_paper.pdf

 


Related Links:
The Conversation - How talented kids from low-income families become America's 'lost Einsteins'

CEP Growth

John Van reenen webpage



News Posted: 24/01/2018      [Back to the Top]

The Times

We must act now to prevent the skills gap becoming unbridgeable

The Federation of Master Builders reports that “skyrocketing” skill shortages mean that there are not enough workers available in all the key construction skills. The Black Country Chamber of Commerce says that skill shortages have reached “critical” levels; they are high in manufacturing and have never been higher in services. The CBI said yesterday that, for manufacturers, more companies cited skills shortages as a factor restricting output than at any time over the past four decades. Research for the National Institute of Economic and Social Research shows why we should be concerned. The research, in collaboration with the Centre for Vocational Education Research, shows a worrying decline in the proportion of employed people undergoing training. Over the past ten to twelve years, the proportion of workers who have undertaken learning activities in the previous thirteen weeks has dropped from nearly a third to just over a quarter. The duration of training activities has fallen, too, and is typically less than a week.

Related publications

Industrial Strategy: building a Britain Fit for the Future. Department for Business, Energy & Industrial Strategy. November 2017.

Consultation for the “Building our Industrial Strategy” Green Paper. Steven McIntosh, Sandra McNally, Stefan Speckesser, Lucia Barbone, October 2017.

‘An analysis of the duration and achievement of apprenticeships in England’, Matthew Bursnall, Vahé Nafilyan and Stefan Speckesser, CVER Briefing Paper No.4, September 2017 http://cver.lse.ac.uk/textonly/cver/pubs/cverbrf004.pdf

Related links

Stefan Speckesser webpage:  http://cver.lse.ac.uk/about/Research_Staff.asp#Speckesser

 


Related Links:
The Times - We must act now to prevent the skills gap becoming unbridgeable

CEP CVER CEP CVER



News Posted: 24/01/2018      [Back to the Top]

Huffington Post – The Blog

For the third time we surveyed MPs on their attitude to Brexit – and the results were fascinating

What is clear is that the thinking on Conservative benches is in sharp contrast to the consensus amongst professional economists. Here, we find a different logic entirely. Leaving the single market and the customs union will make trade with the EU much more costly – even if a post-Brexit EU-UK FTA means we avoid the hardest of hard Brexits.  Swati Dhingra estimates that non-tariff barriers in services have an ad valoram equivalent of between 8.5 and 47.3% when it comes to services trade between the EU and the US. Outside the single market, the UK will be liable to at least some of these costs. In aggregate terms, she estimates that a hard Brexit would directly reduce GDP by about 3% per year due to higher trade barriers – with potential indirect costs that could double or triple this figure.


Related Links:
Huffington Post – The Blog - For the third time we surveyed MPs on their attitude to Brexit – and the results were fascinating

Life after Brexit : What are the UK’s options outside the European Union?

CEP Trade

Swati Dhingra webpage



News Posted: 22/01/2018      [Back to the Top]

Chinese Social Sciences Today - CSSN (China)

Focusing on the importance of environment on innovation

One of the researchers, John Van Reenen, a professor of management and economics at the Massachusetts Institute of Technology, told this reporter that the study found that the childhood environment was a key factor influencing innovation. The probability that a child who grew up in a larger number of inventors was the inventor was significantly higher. This effect first works through parents. For those who filed or held patents up until 2014, born in 1979-1985, the rate of innovation was 18 ‰ and 2 ‰, respectively, for those whose parents were inventors and whose parents were not inventors.


Related Links:
Chinese Social Sciences Today - CSSN (China) - Focusing on the importance of environment on innovation

Who Becomes an Inventor in America? The Importance of Exposure to Innovation

CEP Growth

John Van reenen webpage



News Posted: 22/01/2018      [Back to the Top]

What Works Centre for Wellbeing blog

Origins of Happiness: new research

Today is the launch of The Origins of Happiness by Andrew Clark, Sarah Flèche, Richard Layard, Nick Powdthavee and George Ward. Prof. Layard outlines the key findings and recommendations from the research.

Over the course of our lives, what factors stand out as having the biggest impact on our wellbeing? All else being equal, what single element, or group of elements, make a difference to how anxious or dissatisfied we are with our lives?

I and my colleagues looked at the evidence from survey data on over 100,000 individuals in Australia, Germany, the UK and the US to discover what the origins of happiness might be.

Related publications

The Origins of Happiness by Andrew Clark, Sarah Flèche, Richard Layard, Natavudh Powdthavee and George Ward is published by Princeton University Press, January 2018


Related Links:
What Works Centre for Wellbeing blog - Origins of Happiness: new research

CEP Wellbeing

Sarah Flèche webpage

Andrew Clark webpage

Richard Layard webpage

Nattavudh Powdthavee webpage

George Ward webpage



News Posted: 22/01/2018      [Back to the Top]

CNBC online

CEOs make $15.6 million on average – here’s how much their pay has increased compared to yours over the year

CEO pay is quickly outpacing gyours. In 2016, the CEOs of the top 350 U.S. firms earned on average $15.6 million.  “There are CEOs getting paid hundreds of millions,” Stanford economics professor Nicholas Bloom tells WNYC “Freakonomics Radio” podcast. “So I find it hard to defend those amounts.”


Related Links:
CNBC online - CEOs make $15.6 million on average – here’s how much their pay has increased compared to yours over the year

CEP Growth

Nick Bloom webpage



News Posted: 22/01/2018      [Back to the Top]

The Mental Elf

The Origins of Happiness: can we predict life satisfaction?

 

The prospect of this book did make me happy. The idea that a group of well-respected, eminent economists would be making the case that government should focus its efforts on increasing the happiness and life satisfaction of the population, rather than just focussing on money and Gross Domestic Product, is something to warm the heart on a cold winters evening. The book begins by quoting Thomas Jefferson “the care of human life and happiness… is the only legitimate object of good government” and the authors then set out their main purpose as to “lay out in quantitative terms what is known about the causes of well-being”. The authors do this by undertaking a series of analyses of data from longitudinal studies of human development (mostly from the UK), and they base their conclusions predominantly on this form of evidence. Related publications

The Origins of Happiness by Andrew Clark, Sarah Flèche, Richard Layard, Natavudh Powdthavee and George Ward is published by Princeton University Press, January 2018

 

   


Related Links:
The Mental Elf - The Origins of Happiness: can we predict life satisfaction?

CEP Wellbeing

George Ward webpage

Sarah Flèche webpage

Andrew Clark webpage

Richard Layard webpage

Nattavudh Powdthavee webpage



News Posted: 22/01/2018      [Back to the Top]

CEP/LSE Press Release

The Origins of Happiness: A book on the science of wellbeing over the life course

Schools and individual teachers have a huge effect on the happiness of their children. Indeed, the school that children attend affects their happiness nearly as much as it affects their academic performance. What’s more, if we wish to predict which children will lead satisfying adult lives, the best indicator is their emotional health at age 16. This is more important than their academic qualifications right up to the age of 25 – and more important than their behaviour in childhood. These are among the findings of a new book by Professor Richard Layard and colleagues, which presents evidence on the origins of happiness drawing on unique survey data on over 100,000 individuals in Australia, Germany, the UK and the United States.  


Related Links:
CEP/LSE Press Release - The Origins of Happiness: A book on the science of wellbeing over the life course

CEP Wellbeing

Andrew Clark webpage

Sarah Flèche webpage

George Ward webpage

Nattavudh Powdthavee webpage

Richard Layard webpage



News Posted: 22/01/2018      [Back to the Top]

The British Psychological Society - Community Psychology Section

A Community Psychology Section response to ‘The Origins of Happines’

In his new book 'The Origins of Happiness', Richard Layard argues that the biggest predictor of happiness is not any economic factor, but rather mental health. Based on this, Layard proposes a number of policy recommendations aimed at improving the population's well-being with a focus on individual change. The Community Psychology Section has written this response to Layard's book. 

Related publications

The Origins of Happiness by Andrew Clark, Sarah Flèche, Richard Layard, Natavudh Powdthavee and George Ward is published by Princeton University Press, January 2018


Related Links:
The British Psychological Society - Community Psychology Section - A Community Psychology Section response to ‘The Origins of Happines’

CEP Wellbeing

David Clark webpage

Sarah Flèche webpage

Richard Layard webpage

Nattavudh Powdthavee webpage

George Ward webpage



News Posted: 21/01/2018      [Back to the Top]

The Sunday Times

Happiness is a warm Gus

Lord (Richard) Layard, the economist, hosted a dinner at the London School of Economics last week to celebrate the publication of a new book by him and his colleagues, called The Origins of Happiness. It is dedicated to Gus O'Donnell for the work he did promoting the cause of happiness in government. That is not most ...

Related publications

The Origins of Happiness by Andrew Clark, Sarah Flèche, Richard Layard, Natavudh Powdthavee and George Ward is published by Princeton University Press, January 2018


Related Links:
The Sunday Times - Happiness is a warm Gus

CEP Wellbeing

Andrew Clark webpage

Sarah Flèche webpage

Richard Layard webpage

Nattavudh Powdthavee webpage

George Ward webpage



News Posted: 21/01/2018      [Back to the Top]

IG

What is the economic impact of Brexit?

With the UK due to leave the EU at 11pm on 29 March 2019, countries on both sides of the channel are figuring out what Brexit will mean for their economies. We speak to Panmure Gordon’s David Buik on Brexit, and look at the possible effects on the UK over the coming years…. only the US and China receive more foreign direct investment (FDI) than the UK. FDI is an important factor in productivity, and hence plays a major role in shaping the country’s output and wages. The LSE’s Centre for Economic Performance estimates about half of the UK’s FDI comes from other EU members, and flags the UK’s access to the single market as one of the main reasons it is able to attract it from non-EU members.


Related Links:
IG - What is the economic impact of Brexit?

The UK Treasury analysis of 'The long-term economic impact of EU membership and the alternatives': CEP Commentary

The impact of Brexit on foreign investment in the UK

CEP Growth CEP Trade

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage



News Posted: 19/01/2018      [Back to the Top]

CNBC online

The ‘critically important’ trait that makes a CEO successful, according to a Stanford economics professor

The most successful companies are run by CEOs who have one “critically important” trait in common: They pay attention to detail.  “They’re unbelievably detail-oriented,” says Stanford economics Professor Nicholas Bloom in a WNYC “Freakonomics Radio” podcast.


Related Links:
CNBC online - The ‘critically important’ trait that makes a CEO successful, according to a Stanford economics professor

CEP Growth

Nick Bloom webpage



News Posted: 19/01/2018      [Back to the Top]

Law Professors – Antitrust & Competition Policy blog

Efficiency in large markets with firm heterogeneity

Swati Dhingra and John Morrow discuss Efficiency in Large markets with Firm Heterogeneity. ABSTRACT: Empirical work has drawn attention to the high degree of productivity differences within industries, and its role in resource allocation. In a benchmark monopolistically competitive economy, productivity differences introduce two new margins for allocational inefficiency. When markups vary across firms, laissez faire markets do not select the right distribution of firms and the market-determined quantities are inefficient. We show that these considerations determine when increased competition from market expansion takes the economy closer to the socially efficient allocation of resources. As market size grow large, differences in market power across firms converge and the market allocation approaches the efficient allocation of an economy with constant markups.


Related Links:
Law Professors – Antitrust & Competition Policy blog - Efficiency in large markets with firm heterogeneity

Efficiency in Large markets with Firm Heterogeneity

CEP Trade

Swati Dhingra webpage

John Morrow webpage



News Posted: 18/01/2018      [Back to the Top]

Epoch Times (China)

Bonus spending to reduce the era of high pay for large companies gone

Stanford economist Nicholas Bloom and his cohort analyzed the federal revenue data from the late 1970s to 2013 and found that the gap has shrunk to 20%. Professor Bloom said: "The big pay has existed for more than 100 years but seems to have collapsed in the United States in the last 30 or 40 years." He said for low-income workers and those without a college degree, This phenomenon has basically disappeared. In 2013, laborers with incomes at the bottom 50% earn almost no income from large companies than from small ones. The income gap between university graduates in large and small companies remained stable.

Related publications

'Measuring Economic Policy Uncertainty', Scott R. Baker, Nicholas Bloom, Steven J. Davis, The Quarterly Journal of Economics, Vol 131, Issue 4, November 2016


Related Links:
Epoch Times (China) - Bonus spending to reduce the era of high pay for large companies gone

Measuring Economic Policy Uncertainty

CEP Growth

Nick Bloom webpage



News Posted: 18/01/2018      [Back to the Top]

VoxDev

Management and the wealth of nations

Article by John Van Reenen

A 15-year survey of 12,000 firms across 34 countries shows that management practices explain a large share of productivity gaps. Income differences between rich and poor countries remain staggering, and these inequalities are in good part due to unexplained productivity gaps (what economists call total factor productivity, or TFP for short).

Related links

Management Practices and Organisational Structures research webpage:  http://cep.lse.ac.uk/_new/research/growth/management_practices_and_organisational_structures.asp


Related Links:
VoxDev - Management and the wealth of nations

CEP Growth

John Van reenen webpage



News Posted: 18/01/2018      [Back to the Top]

The Irish Times

Does Ireland need a dedicated minister for loneliness?

He told The Irish Times that the impact of loneliness on physical health was “equivalent to 15 cigarettes a day and a study by the London School of Economics found that it cost the UK state an average of £6,000 per person per year”.

Related publications

The Depression Report: A New Deal for Depression and Anxiety Disorders, A report by the Centre for Economic Performance's Mental Health Policy Group, 18 June 2006

http://cep.lse.ac.uk/pubs/download/special/depressionreport.pdf


Related Links:
The Irish Times - Does Ireland need a dedicated minister for loneliness?

Tackling Depression and Anxiety Disorders

The Depression Report: A New Deal for Depression and Anxiety Disorders

CEP Wellbeing

Richard Layard webpage



News Posted: 18/01/2018      [Back to the Top]

LSE Business Review blog

Second-generation family CEOs: are they up to the task?

Research shows the first causal evidence that dynastic family firms have worse management practices, writes Daniela Scur

We push the literature forward in two main ways: first, we show the first causal evidence that dynastic family CEO successions lead to worse management. Second, we go beyond the usual suggestions of improving information and skills, and suggest that the specific labour context that family firms act in is important. We propose that the implicit employment commitments between family managers and their workers should factor into both how management upgrading projects are presented to prospective firm managers as well as into the expected take-up and long-term adherence of such improvements. This is a key consideration as many organisations push forward in enacting management upgrading projects around the world.

Related publications

‘All in the family? CEO choice and firm organization’, Renata Lemos and Daniela Scur, mimeo, January 2018

http://www.danielascur.com/wp-content/uploads/2018/01/danielascurjmp_allinthefamily.pdf


Related Links:
LSE Business Review blog - Second-generation family CEOs: are they up to the task?

CEP Growth

Daniela Scur webpage

Renata Lemos webpage



News Posted: 18/01/2018      [Back to the Top]

Freakonomics Radio

What does a CEO actually do?

Today on Freakonomics Radio, we’re launching “The Secret Life of C.E.O.’s,” a special series that’ll get inside the minds of these rare and rarified creatures. Some of the questions we’ll be asking: What do C.E.O.’s actually do? What makes a good C.E.O. — and how can you even tell? Why do C.E.O.’s make so much money — and are they worth it? How did they get to be where they are? And: is it lonely at the top? You’ll hear from lots of big-time C.E.O.’s as well as the academics who know them best. And, if you find yourself thinking – hey, I’d like to do that too … Nicholas BLOOM: It’s frankly a horrible job. I wouldn’t want it. *      *      * Let’s begin with this guy … BLOOM: I’m Nicholas Bloom. I’m a professor of economics at Stanford University. DUBNER: And if I were to just ask you, what’s your general specialty? BLOOM: I work on trying to understand management practices, so, why some firms are better-managed than others, and how that helps improve their performance. …Raffaella SADUN: I deal with people who are going to be C.E.O.’s one day. That is Raffaella Sadun. She’s an economist who teaches at Harvard Business School. SADUN: I’m very interested in understanding how management and managers affect firm performance….Raffaella Sadun, along with Nicholas Bloom and the M.I.T. economist John Van Reenen, analyzed data from more than 12,000 companies to try to learn what makes some better than others. “Management practices,” they wrote, “can account for a large fraction of performance differences.” And yet, they argued: “achieving operational excellence is still a massive challenge for many organizations.”

Related links

Management Practices and Organisational Structures research webpage:  http://cep.lse.ac.uk/_new/research/growth/management_practices_and_organisational_structures.asp


Related Links:
Freakonomics Radio - What does a CEO actually do?

CEP Growth

Nick Bloom webpage

Raffaella Sadun webpage

John Van reenen webpage



News Posted: 17/01/2018      [Back to the Top]

New Statesman

Ed Miliband's speech on mental health: full text

Politics: 29 October 2012

The extra physical healthcare necessitated by mental illness costs the NHS a further £10 billion a year, according to the London School of Economics.


Related Links:
New Statesman - Ed Miliband's speech on mental health: full text

Tackling Depression and Anxiety Disorders

The Depression Report: A New Deal for Depression and Anxiety Disorders

CEP Wellbeing

Richard Layard webpage



News Posted: 17/01/2018      [Back to the Top]

Macleans (Canada)

Editorial: MPs should put down their phones and get back to governing

 

A recent British study by the Centre for Economic Performance compared student results across schools based on cellphone-use policies and concluded, "Schools that restrict access to mobile phones subsequently experience an improvement in text scores."


Related Links:
Macleans (Canada) - Editorial: MPs should put down their phones and get back to governing

In brief... Phone home: should mobiles be banned in schools?

Ill Communication: Technology, Distraction & Student Performance

CEP Education and Skills

Richard Murphy webpage



News Posted: 17/01/2018      [Back to the Top]

Local Government Chronicle - LGC

How should councils respond to Brexit's economic shocks?

Article by Henry Overman

With all British cities likely to see a fall in economic output as a result of Brexit, thoughts are turning to the policies needed to help local economies adjust to the challenges ahead. Leaving the EU may bring opportunities, but has rightly raised fears that some places and industries will face major job losses. These may occur when large firms close, downsize or restructure in a single town or city; or when structural change has a big impact on communities because of the geographical concentration of affected industries. The What Works Centre for Local Economic Growth has been working with local councils to develop appropriate policy responses to these shocks, looking at lessons from recent policy interventions aimed at dealing with major job losses. Our findings are summarised in our toolkit for policy-makers.


Related Links:
Local Government Chronicle - LGC - How should councils respond to Brexit's economic shocks?

CEP Urban and Spatial Programme

Henry Overman webpage



News Posted: 16/01/2018      [Back to the Top]

Universommma.it (Italy)

Trovato il segreto della felicita per I bambini di oggi: parola di esparto/Found the secret of happiness for today's children: word of esparto

Trovato il segreto della felicita per I bambini di oggi: parola di esparto/Found the secret of happiness for today's children: word of esparto

After investigating the factors that in a person's life can predict if they will have a happy life, a team led by one of the most famous experts of "happiness", Professor Richard Layard, has carried out a study that could be controversial. The study of the Wellbeing research program of the London School of Economics' Center for Economic Performance entitled "What Predicts to Successful Life? A Life-course Model of Well-Being ", published in the Economic Journal, aims to change the point of view of education in recent years.

Related publications

What predicts a successful life? A life-course model of well-being", Andrew E Clark, Francesca Cornaglia, Richard Layard, Nattavudh Powdthavee and James Vernoit, The Economic Journal, 124(F720-738), November 2014


Related Links:
Universommma.it (Italy) - Trovato il segreto della felicita per I bambini di oggi: parola di esparto/Found the secret of happiness for today's children: word of esparto

What Predicts a Successful Life? A Life-Course Model of Well-Being

What Predicts a Successful Life? A Life-Course Model of Well-Being

CEP Wellbeing

Richard Layard webpage



News Posted: 16/01/2018      [Back to the Top]

Original 106 FM

(1/15/2018 9:00:24 AM)

Type: Broadcast
Mention of LSE report which said that Aberdeen would be the UK city worst hit by a hard Brexit.


Related Links:
Original 106 FM - (1/15/2018 9:00:24 AM)

The Local Economic Effects of Brexit

CEP Labour Markets CEP Trade CEP Urban and Spatial Programme

Swati Dhingra webpage

Stephen Machin webpage

Henry Overman webpage



News Posted: 15/01/2018      [Back to the Top]

Kaplan Herald (USA)

Rockland: cellphones at school? The principles differ

Students scored almost seven percent higher following strict phone bans at school, according to a 2015 study published by the Center for Economic Performance at the London School of Economics.


Related Links:
Kaplan Herald (USA) - Rockland: cellphones at school? The principles differ

In brief... Phone home: should mobiles be banned in schools?

Ill Communication: Technology, Distraction & Student Performance

CEP Education and Skills

Richard Murphy webpage



News Posted: 15/01/2018      [Back to the Top]

The News Lens (China)

Raise the base salary a handful of winners or universal win?

Taiwan has recently raised the basic wage, the issue of whether the basic salary workers benefit from rekindling. However, do you think about it, the salary is higher than the basic wage of many workers, and the soaring what is the relationship? The same as consumers, we should look at this policy? Finally, what can the government do and must do to establish the legal wage standard? What to do? Since April 2016, the United Kingdom has raised its basic salary from the current hourly wage of 6.5 yuan to 7.2 yuan and is expected to be raised to 9 pounds by 2020. For the first time in Germany, the minimum wage of 8.5 euros per hour was adopted in 2015; Japan also raised the minimum wage on July 29, 2015 to an hourly rate of 798 yen (on average for all provinces). There seems to be a trend of raising basic wages all over the world. Regardless of whether the policy is pre-election policy beef or not, the debate on basic wage adjustment, whether at the state or city level, can be seen in various parts of the world as early as decades ago.

Reference:  Autor, David, Alan Manning and Christopher Smith.2010. The Contribution of the Minimum Wage to U.S. Wage Inequality over Three Decades: A Reassessment. NBER Working Paper 16533.

 

Related publications

The Contribution of the Minimum Wage to U.S. Wage Inequality over Three Decades: A Reassessment David H. Autor, Alan Manning and Christopher L. Smith, Centre for Economic Performance Discussion Paper No.1025, November 2010


Related Links:
The News Lens (China) - Raise the base salary a handful of winners or universal win?

CEP Community

Alan Manning webpage



News Posted: 15/01/2018      [Back to the Top]

Original 106 FM

Original 106 FM (7:00:48 AM)

Mention of LSE report which found Aberdeen would be worst hit by a hard Brexit.


Related Links:
Original 106 FM - Original 106 FM (7:00:48 AM)

The Local Economic Effects of Brexit

CEP Trade CEP Urban and Spatial Programme CEP Labour Markets

Swati Dhingra webpage

Stephen Machin webpage

Henry Overman webpage



News Posted: 15/01/2018      [Back to the Top]

The Gleaner (Jamaica)

In-school productivity campaign/millennials & telecommuting – productivity myths busted by recent research

A study conducted in 2013 by Nicholas Bloom, professor of economics at Stanford University, and graduate student James Liang, who is a co-founder of Chinese travel website Ctrip, proved that working at home increased productivity and should be encouraged in the business environment. The study involved 249 employees in the airfare and hotel departments of the Shanghai Call Center who volunteered to work from home for nine months. Half the volunteers would telecommute, while the rest remained in the office as a control group.


Related Links:
The Gleaner (Jamaica) - In-school productivity campaign/millennials & telecommuting – productivity myths busted by recent research

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth

Nick Bloom webpage



News Posted: 15/01/2018      [Back to the Top]

Financial Times

More grammar schools and lower tuition fees are not the answer – the reshuffle at education could mean taking another wrong turn on social mobility

The first criticism of Ms Greening was that she was insufficiently radical in pursuing structural reform — more academies, free schools and grammar schools. Research by the LSE, the Education Policy Institute (EPI) and others has demonstrated that the early academies set up in the Blair era were notably successful in raising attainment in some of the most challenging and disadvantaged schools in the country. But analysis of recent reforms tends to support the cautious Greening approach. LSE research finds little or no significant attainment effects from the more recent academies programme, while an EPI study indicates that claims about the impacts of the free schools programme are exaggerated.


Related Links:
Financial Times - More grammar schools and lower tuition fees are not the answer – the reshuffle at education could mean taking another wrong turn on social mobility

Academy schools and pupil outcomes

Academies 2: The New Batch

The Introduction of Academy Schools to England's Education

CEP Education and Skills

Andrew Eyles webpage

Stephen Machin webpage



News Posted: 14/01/2018      [Back to the Top]

I News

Secrets to a happy life? Marriage, socialising, dinner

Article by Nattavudh Powdthavee

According to Richard Layard, Professor of economics and director of the Wellbeing programme at the London School of Economics, happiness is simply “feeling good – enjoying life and feeling it is wonderful”. However, when we dig a little deeper into the meanings of the word, social scientists like me have discovered that happiness as we understand it can be categorised in three ways.


Related Links:
I News - Secrets to a happy life? Marriage, socialising, dinner

CEP Wellbeing

Nattavudh Powdthavee webpage



News Posted: 14/01/2018      [Back to the Top]

Handbook of the economics of education vol 3

Handbook of the economics of education vol 3

The Government and Public Sector Report has been published today. It provides updated in 2018 year analysis of Government and Public Sector Industries.

How does education affect economic and social outcomes, and how can it inform public policy? Volume 3 of the Handbooks in the Economics of Education uses newly available high quality data from around the world to address these and other core questions.  With the help of new methodological approaches, contributors cover econometric methods and international test score data.  They examine the determinants of educational outcomes and issues surrounding teacher salaries and licensure.  And reflecting government demands for more evidence-based policies, they take new looks at institutional feaures of school systems.  Volume editors Eric A. Hanushek (Stanford), Stephen Machin (University College London) and Ludger Woessmann (Ifo Institute for Economic Research, Munich) draw clear lines between newly emerging research on the economics of education and prior work.  In conjunction with Volume 4, they measure our current understanding of educational acquisition and its economic and social effects. 


Related Links:
Handbook of the economics of education vol 3 - Handbook of the economics of education vol 3

CEP Labour Markets

Stephen Machin webpage



News Posted: 13/01/2018      [Back to the Top]

European Union News

New education secretary must focus on improving quality of early childhood education

Guildford: University of Surrey, of United Kingdom has issued the following news release: Researchers from the University of Surrey, Dr Jo Blanden and Professor Sandra McNally, and University College London, Dr Kirstine Hansen, have completed a comprehensive five-year study on ECEC, funded by the Nuffield Foundation. Using administrative data on all children in preschools and the first years of schooling they found that the policy, introduced by the Labour government in 1998, has had little impact on the educational outcomes of children who have participated


Related Links:
European Union News - New education secretary must focus on improving quality of early childhood education

Quality in Early Years Settings and Children’s School Achievement

CEP Education and Skills

Jo Blanden webpage

Sandra Mcnally webpage



News Posted: 13/01/2018      [Back to the Top]

European Union News

New education secretary must focus on improving quality of early childhood education

Guildford: University of Surrey, of United Kingdom has issued the following news release: Researchers from the University of Surrey, Dr Jo Blanden and Professor Sandra McNally, and University College London, Dr Kirstine Hansen, have completed a comprehensive five-year study on ECEC, funded by the Nuffield Foundation. Using administrative data on all children in preschools and the first years of schooling they found that the policy, introduced by the Labour government in 1998, has had little impact on the educational outcomes of children who have participated.


Related Links:
European Union News - New education secretary must focus on improving quality of early childhood education

Quality in Early Years Settings and Children’s School Achievement

CEP Education and Skills

Jo Blanden webpage

Sandra Mcnally webpage



News Posted: 13/01/2018      [Back to the Top]

Financial Times

It’s not the economy, stupid

Snippet: ...he Human Development Index (HDI) devised by Pakistani economist Mahbub ul Haq in 1990, and widely used in international development since then. Others, such as the measures of happiness promoted by Richard Layard of the London School of Economics, have yet to break i...


Related Links:
Financial Times - It’s not the economy, stupid

CEP Wellbeing

Richard Layard webpage



News Posted: 13/01/2018      [Back to the Top]

The Times

Letter to the Editors - Suggestions for the new education secretary

A 2016 analysis by Stephen Machin and his colleagues at the London School of Economics found that the new phonics mandates were associated with only modest improvements in reading scores by the age of 5, and that those gains disappeared entirely by age 11. If Damian Hinds really wants to make a difference in schools he should instead invest money into the one activity that has been consistently proven to boost reading achievement: putting more books into the school library.

http://cep.lse.ac.uk/textonly/_NEW2014/news/Times11Jan2018_Letter.pdf


Related Links:
The Times - Letter to the Editors - Suggestions for the new education secretary

in brief... Children's reading: evaluating a new teaching method

"Teaching to Teach" Literacy

CEP Education and Skills

Stephen Machin webpage

Sandra Mcnally webpage



News Posted: 12/01/2018      [Back to the Top]

Nuffield Foundation

Early childhood education has had little impact on outcomes since the inception of the free entitlement and politicians must now focus efforts on quality

Authors of a comprehensive study on Early Childhood Education and Care (ECEC) funded by the Nuffield Foundation have called on the Secretary of State for Education to focus on improving the quality of the free entitlement to part time nursery care for 3-year-olds.

Researchers from the University of Surrey, Dr Jo Blanden and Professor Sandra McNally, and University College London, Dr Kirstine Hansen, have completed a comprehensive five-year study on ECEC, funded by the Nuffield Foundation. Using administrative data on all children in preschools and the first years of schooling they found that the policy, introduced by the Labour government in 1998, has had little impact on the educational outcomes of children who have participated.


Related Links:
Nuffield Foundation - Early childhood education has had little impact on outcomes since the inception of the free entitlement and politicians must now focus efforts on quality

Quality in Early Years Settings and Children’s School Achievement

CEP Education and Skills

Jo Blanden webpage

Sandra Mcnally webpage



News Posted: 11/01/2018      [Back to the Top]

BBC Radio Kent

(1/11/2018 6:50:11 AM)

Snippet... there has been a study by the London School of Economics which found where mobiles were banned test scores improved. Richard Murphy, one of the authors, is interviewed o...


Related Links:
BBC Radio Kent - (1/11/2018 6:50:11 AM)

In brief... Phone home: should mobiles be banned in schools?

Ill Communication: Technology, Distraction & Student Performance

CEP Education and Skills

Richard Murphy webpage



News Posted: 11/01/2018      [Back to the Top]

BBC Radio Kent

(1/11/2018 6:50:11 AM)


Related Links:
BBC Radio Kent - (1/11/2018 6:50:11 AM)





News Posted: 11/01/2018      [Back to the Top]

BBC Radio Kent

(1/11/2018 6:50:11 AM)


Related Links:
BBC Radio Kent - (1/11/2018 6:50:11 AM)





News Posted: 11/01/2018      [Back to the Top]

Guardian

Does London mayor Sadiq Khan’s Brexit report stack up?

A no-deal Brexit would leave Britain’s economy diminished and its people poorer. That is the conclusion of the economic forecast commissioned by the mayor of London, Sadiq Khan from Cambridge Econometrics. It’s not the first report to argue that crashing out of the European Union would be bad for business, but it is one of the most comprehensive and draws on a wide range of existing studies. It concludes: “The more severe the type of Brexit, the greater the negative impact will be on the UK.”… The London School of Economics has showed how changes in tariffs and regulations can change the level of imports and exports. The Cambridge study used this study, but ditched widely held economic law, known as the gravity model, that argues countries trade with their neighbours first and foremost, in favour of simple cause and effect of trade barriers on current business relationships.

Related publications

Greater London Authority – ‘Preparing for Brexit’, Final Report from Cambridge Econometrics, January 2018

https://www.london.gov.uk/sites/default/files/preparing_for_brexit_final_report.pdf

 

CEP citation references:

Related Links

Urban and Spatial Programme webpage:  http://cep.lse.ac.uk/_new/research/urban/default.asp


Related Links:
Guardian - Does London mayor Sadiq Khan’s Brexit report stack up?

The Local Economic Effects of Brexit

The impact of Brexit on foreign investment in the UK

The consequences of Brexit for UK trade and living standards

The Impact of Training on Productivity and Wages: Evidence from British Panel Data

CEP Growth CEP Labour Markets CEP Trade

Swati Dhingra webpage

Stephen Machin webpage

Gianmarco Ottaviano webpage

Henry Overman webpage

Thomas Sampson webpage

John Van reenen webpage



News Posted: 11/01/2018      [Back to the Top]

The Australian

Premium paid to employees of big firms has ‘collapsed’ in US

But more recently, that premium has shrunk to just 20 per cent, Stansford University economist Nicholas Bloom and his co-authors found in an analysis of millions of federal income data from the late 1970s through 2013. The study was presented at the annual meeting of the American Economic Association.

[No link available]

 

Related publications

‘Corporations in the age of inequality’, Nicholas Bloom, Harvard Business Review – The Big Idea, March 2017

https://hbr.org/cover-story/2017/03/corporations-in-the-age-of-inequality


Related Links:
The Australian - Premium paid to employees of big firms has ‘collapsed’ in US

CEP Growth

Nick Bloom webpage



News Posted: 11/01/2018      [Back to the Top]

Guardian

Does London mayor Sadiq Khan's Brexit report stack up?

A no-deal Brexit would leave Britain’s economy diminished and its people poorer. That is the conclusion of the economic forecast commissioned by the mayor of London, Sadiq Khan from Cambridge Econometrics. It’s not the first report to argue that crashing out of the European Union would be bad for business, but it is one of the most comprehensive and draws on a wide range of existing studies. It concludes: “The more severe the type of Brexit, the greater the negative impact will be on the UK.”… The London School of Economics has showed  how changes in tariffs and regulations can change the level of imports and exports. The Cambridge study used this study, but ditched widely held economic law, known as the gravity model, that argues countries trade with their neighbours first and foremost, in favour of simple cause and effect of trade barriers on current business relationships. 

Related publication:  Greater London Authority – ‘Preparing for Brexit’, Final Report from Cambridge Econometrics, January 2018 https://www.london.gov.uk/sites/default/files/preparing_for_brexit_final_report.pdf


Related Links:
Guardian - Does London mayor Sadiq Khan's Brexit report stack up?

The Local Economic Effects of Brexit

The impact of Brexit on foreign investment in the UK

The consequences of Brexit for UK trade and living standards

The Impact of Training on Productivity and Wages: Evidence from British Panel Data

CEP Trade CEP Growth CEP Urban and Spatial Programme

Swati Dhingra webpage

Stephen Machin webpage

Gianmarco Ottaviano webpage

John Van reenen webpage

Henry Overman webpage

Thomas Sampson webpage



News Posted: 11/01/2018      [Back to the Top]

Les Échos

Les nouveaux mystères de la productivité/The new mysteries of productivity

But these explanations are not enough. Economists therefore questioned the measure. And if productivity gains were too new to be detected by traditional statistical tools? In the United States, for example, the states with the highest patent densities are those with the lowest productivity gains. Economist Philippe Aghion, a professor at the Collège de France, published works estimating "missing growth" in several countries.


Related Links:
Les Échos - Les nouveaux mystères de la productivité/The new mysteries of productivity

CEP Growth

Philippe Aghion webpage



News Posted: 10/01/2018      [Back to the Top]

Mortgage Introducer

Stamp duty changes won’t loosen market

The cut in stamp duty for first-time buyers was good news but more needs to be done to help overcome the housing crisis, according to the chief executive of the Family Building Society, Mark Bogard.

It followed a report from the London School of Economics, sponsored by Family Building Society, which found that the tax was preventing many people from moving. This was particularly in London and the South East where property values are significantly higher than elsewhere in the UK.

 Related publications

Transfer Taxes and Household Mobility: Distortion on the Housing or Labor Market?’, Christian Hilber and Teemu Lyytikäinen, SERC/Urban and Spatial Programme Discussion Paper No.216, June 2017

http://www.spatialeconomics.ac.uk/textonly/SERC/publications/download/sercdp0216.pdf

‘Transfer Taxes and Household Mobility: Distortion on the Housing or Labor Market?’, Christian Hilber and Teemu Lyytikäinen, Journal of Urban Economics 101, September 2017

https://www.sciencedirect.com/science/article/pii/S0094119017300542

 


Related Links:
Mortgage Introducer - Stamp duty changes won’t loosen market

CEP Urban and Spatial Programme

Christian Hilber webpage



News Posted: 10/01/2018      [Back to the Top]

Financial Times

The case for a special NHS tax

Snippet: ... Mrs May was asked about it in a television interview on Sunday. She was doubtful but some Conservatives, such as the former cabinet member Oliver Letwin, like the idea. Other admirers include the LSE professor Richard Layard, who sits as a Labour peer in the House of Lords...


Related Links:
Financial Times - The case for a special NHS tax

CEP Wellbeing

Richard Layard webpage



News Posted: 09/01/2018      [Back to the Top]

Vox Video

Brexit and living standards

The average British household is already worse off than it was before the Brexit vote. Dennis Novy and Thomas Sampson discuss how much of the rise in inflation is due to Brexit. Higher prices are costing the average household £404 a year.


Related Links:
Vox Video - Brexit and living standards

The Brexit Vote, Inflation and UK Living Standards

CEP Trade

Dennis Novy webpage

Thomas Sampson webpage



News Posted: 08/01/2018      [Back to the Top]

CEP mentions in Parliament

LSE Growth Commission work was mentioned by Viscount Chandos

LSE Growth Commission work was mentioned by Viscount Chandos in a House of Lords debate on Industrial Strategy on evening of 8 January 2018:

In a debate on Industrial Strategy in the House of Lords Viscount Chandos referred to a statement in a recent paper written by Anna Valero and Richard Davies at CEP. Visount Chandos, co-founder of the Social Market Foundation, opened his speech with the line that "Every government has an industrial strategy, however it is articulated". 

Viscount Chandos (Lab)
My Lords, at this late stage in the evening, I will try to speak briefly, with other noble Lords having already made many interesting contributions in response to the "compendium", as the noble Lord, Lord Maude, has called the White Paper. I start by drawing the attention of the House to my entry in the register of interests.

"Every government has an industrial strategy however it is articulated",

wrote Anna Valero and Richard Davies of the LSE in a recent paper. On that basis, perhaps even the nine different strategies that my noble friend Lady Young has counted are an underestimate. But the articulation of a strategy is important and, as the noble Lord, Lord Wrigglesworth, said, over the years—from Sajid Javid back to Nicholas Ridley, who in the Thatcher Government saw his role as Secretary of State to abolish the Department of Trade and Industry—there have been periods of industrial policy minimalism. So we should perhaps welcome the recognition by the current Prime Minister of an articulated industrial strategy. However, to adapt Dr Johnson, I feel churlishly that a Conservative industrial strategy is like the dog walking on its hind legs: it is not done well but you are surprised to find it done at all.

As the co-founder 30 years ago this year of the Social Market Foundation, I was heartened by the advocacy of the social market by the noble Lord, Lord Howell. Indeed, the noble Lord, Lord Wrigglesworth, invoked the Social Democratic Party, for which the social market economy was a central policy. It seems that the noble Lord, the Secretary of State, the noble Lord, Lord Horam, and I have all drunk together from that cup. In a social market, the Government's duty is to intervene when there is market failure—but only then, whether that failure is on the one hand the abuse of oligopolistic power, or on the other hand underinvestment.

On the terms of the White Paper, I would like to talk principally about ideas and the business environment, and in particular the importance of venture capital. Last week, the Secretary of State for Transport talked about his confidence that the UK could be a world leader in autonomous vehicles, based on technological excellence and regulatory liberalism, if not laxness. If Mr Grayling is still Secretary of State, he seems to have been a victim earlier today of some faulty autonomous tweeting. I draw his attention to the advice of the noble Lord, Lord Heseltine, not to confuse healthy ambition with unrealistic assumptions. The network effect is likely to give a huge advantage to companies with scale, such as Waymo and Baidu. I hope and believe that the UK can contribute significantly to autonomous driving and other emerging technologies, but I am not sure it is helpful to couch it in terms of market leadership.

Autonomous driving will rely heavily on artificial intelligence and deep learning, another area of innovation highlighted in the White Paper. It may be worth bearing in mind in this context that 43% of all academic papers ever written on AI have had at least one author who is Chinese. As the noble Lord, Lord Heseltine, said, we face formidable competition. I hope the argument that students should not be included in the main migration figures, which the Prime Minister has so far ignored, even from within her own Cabinet, might yet succeed.

Another way of illustrating the scale of the challenge that the UK faces is to consider the availability of venture capital investment to support early-stage high-technology companies. I think it was Professor Ronald Gilson of Stanford and Columbia Universities who wrote that:

"Venture capital … is widely recognized as a powerful engine that can drive a nation's innovation, job creation, knowledge economy, and macroeconomic growth".

In 2015, $36 billion of venture capital funds were raised in the US and $30 billion in China, where the figure is up six times in 10 years. In Europe as a whole, only around $6 billion equivalent was raised. The British Venture Capital Association records only the funds raised by its members, so underestimates to some degree the size of the total UK market. Its figure for 2015 was only $700 million equivalent.

The White Paper and the November Budget drew on the patient capital review, commissioned in 2016. One of the recommendations from the industry panel was for a patient capital investment vehicle capable of co-investing £1 billion per annum in knowledge economy companies. In the event, the Government have announced a £2.5 billion fund over 10 years, to be run by the British Business Bank. That is around one-quarter of the amount recommended and it is to be floated or sold as soon as is possible—and this at a time when UK venture capital funds will be losing, in all likelihood, up to £400 million per annum of investment from the European Investment Fund, the SME arm of the EIB.

Why has the UK, with its powerful position in financial services, been so weak in the development of a venture capital industry in keeping with its academic, technological and entrepreneurial strengths? There is a clue perhaps in an article from Forbes magazine in April 2016. Forbes is not a magazine for bleeding-heart liberals, nor, I suspect, is it even the second-favourite reading of my right honourable friend the shadow Chancellor, but the headline of the article read: "How the UK's Growth Businesses Became Addicted to Tax Relief". The article was reporting on research commissioned by Her Majesty's Treasury from Ipsos MORI that found that 40% of all investment under tax-advantaged EIS and VCT schemes would, in the view of the investors and the investee company, still have happened without any tax relief. Seventy-nine per cent of investors said that the principal reason for investing was to gain the tax relief. In 2012-13, £2 billion of EIS and VCT investments were made, implying the loss or deferral of tax revenues of between £600 million and £1 billion. The Government have in the November budget proposed some tightening of the rules for EIS and VCT eligibility to prevent, they hope, low-risk investments benefiting from tax relief as they have done in recent years.

However, this is a never-ending treadmill, remembering similar initiatives as far back as the 1980s and 1990s. Up-front tax breaks will invariably attract risk-averse investors and ingenious intermediaries. Even for risk investments there may be little or no additionality yet, at the same time as tightening the eligibility, the Government propose a doubling of annual limits for both investors and companies.

There are two adverse consequences of this: one is the loss of tax revenue and the other, arguably even more important, is the distortion of the market. Thirty years of tax-advantaged investing in unlisted shares—unique in major economies—has contributed significantly to the stunting of a professional institutional venture capital industry on the scale necessary to support our knowledge economy and comparable with those in our principal competing centres.

Breaking an addiction can involve cold turkey, not an appetising prospect for any of us—particularly at this time of year—so I accept that, even if this argument is regarded as valid, any further changes may have to be phased in. However, the Government have a long way to go before there is an effective venture capital industry to support the knowledge economy.

Related articles

‘Towards a modern UK industrial strategy’, Anna Valero and Richard Davies, LSE Business Review blog, 19 September 2017

http://blogs.lse.ac.uk/businessreview/2017/09/19/towards-a-modern-uk-industrial-strategy/

 

Related publications

UK Growth: A new chapter, LSE Growth Commission Report 2017

http://www.lse.ac.uk/researchAndExpertise/units/growthCommission/documents/pdf/2017LSEGCReport.pdf

Related links

LSE Growth Commission website:  http://www.lse.ac.uk/researchAndExpertise/units/growthCommission/home.aspx


Related Links:
CEP mentions in Parliament - LSE Growth Commission work was mentioned by Viscount Chandos

CEP Growth

Richard Davies webpage

Anna Valero webpage



News Posted: 08/01/2018      [Back to the Top]

Financial Times

The case for a special UK health service tax

Even as NHS crises come around like comets, the ritual is the same each time. Producer interests want more money. Ministers want structural reform. The difference is split and the NHS creaks arthritically on. (The third option, of rationing some services, namely the expensive treatment of people with not long to live, is too dark to entertain.) If anything feels different this time, it is the momentum behind the idea of a dedicated NHS tax. Mrs May was asked about it in a television interview on Sunday. She was doubtful but some Conservatives, such as the former cabinet member Oliver Letwin, like the idea. Other admirers include the LSE professor Richard Layard, who sits as a Labour peer in the House of Lords, and Nicholas Macpherson, once permanent secretary of the sceptical Treasury.


Related Links:
Financial Times - The case for a special UK health service tax

CEP Wellbeing

Richard Layard webpage



News Posted: 08/01/2018      [Back to the Top]

MIT News

Innovation, meet organization

Economist John Van Reenen studies the creation and use of technology, from the R&D lab to the workplace

Long before John Van Reenen became a professor at MIT, he was studying MIT topics in an MIT style. “Technology has always been one of the motivations of my work,” says Van Reenen, a high-profile economist who joined the MIT faculty in 2016. More specifically, he adds, he likes to explore “how people come up with ideas, and how ideas spread, among firms and across countries.” In short, Van Reenen studies how our modern world keeps modernizing. Van Reenen became well-known, however, partly by explaining why people in his native Britain have not come up with ideas, at least not as much as they once did. In research during the 1990s, Van Reenen determined that British firms had lagging R&D investment across most of the country’s industrial sectors. This decline was compounded by a significant withdrawal of government support for R&D in the 1980s.


Related Links:
MIT News - Innovation, meet organization

CEP Growth

John Van reenen webpage



News Posted: 08/01/2018      [Back to the Top]

Harvard Business School: Working Knowledge – Business research for business leaders

Working Paper Summaries - Come together: Firm boundaries and delegation

By Laura Alfaro, Nick Bloom, Paola Conconi, Harald Fadinger, Patrick Legros, Andrew F Newman, Raffaella Sadun and John Van Reenen

The study develops a simple model and provides new data to examine the relationship between vertical integration and delegation of decision-making, two critical aspects of a firm organizational design that are typically studied in isolation. The results show that delegation and vertical integration are positively correlated.


Related Links:
Harvard Business School: Working Knowledge – Business research for business leaders - Working Paper Summaries - Come together: Firm boundaries and delegation

CEP Growth CEP Trade

Nick Bloom webpage

Paola Conconi webpage

Raffaella Sadun webpage

John Van reenen webpage



News Posted: 08/01/2018      [Back to the Top]

Sputnik News – Education (Russia)

Thousands of EU professors left Britain because of Brexit

According to the calculations of the Center for Economic Performance (CEP), Brexit will significantly affect inflation, the national currency rate, as well as the income level of the British and the overall quality of their lives. "Brexit on average will cost each family 7.74 pounds per week, which corresponds to a value of up to 404 pounds per year," the authors of the report note.


Related Links:
Sputnik News – Education (Russia) - Thousands of EU professors left Britain because of Brexit

The Brexit Vote, Inflation and UK Living Standards

CEP Trade

Thomas Sampson webpage

Holger Breinlich webpage

Dennis Novy webpage



News Posted: 07/01/2018      [Back to the Top]

LSE Business Review blog

Exposure to innovation influences who becomes an inventor

Exposing women, minorities, and low-income children to innovation may spark innovation and growth, write Alex Bell, Raj Chetty, Xavier Jaravel, Neviana Petkova and John Van Reenen.

 

Related publications

‘Who Becomes an Inventor in America?  The Importance of Exposure to Innovation’, Alex Bell, Raj Chetty, Xavier Jaravel, Neviana Petkova and John Van Reenen, mimeo, December 2017

http://www.equality-of-opportunity.org/assets/documents/inventors_paper.pdf


Related Links:
LSE Business Review blog - Exposure to innovation influences who becomes an inventor

CEP Growth

John Van reenen webpage



News Posted: 05/01/2018      [Back to the Top]

The Western Mail

Blair think-tank expert’s bleak Brexit predictions

AREPORT written by a Welsh political consultant for a thinktank set up by Tony Blair paints a bleak picture of a post-Brexit future. Dafydd Rees, who has held senior positions with the BBC, Sky and Bloomberg, was commissioned to write a paper called Brexit - What We Now Know by the Tony Blair Institute for Global Change. The former Labour prime minister believes it is still possible for the UK to pull back from leaving the EU, and has argued in favour of another referendum once the terms of Brexit have been finalised. In his report, Mr Rees documents a series of outcomes and predictions that indicate a drop in prosperity for Wales and the UK as a whole because of the vote to leave the EU. He states: "The Office for Budget Responsibility has downgraded UK growth expectations for the next five years. The Organisation for Economic Co-operation and Development says the UK went from the top of the G7 growth league to the bottom in the year following the Brexit vote. "The Centre for Economic Policy Research calculates that the Brexit vote has already cost the UK economy £300m a week. "Food prices are growing at their fastest rate in four years. Inflation is over 3% for the first time in nearly six years. The Centre for Economic Performance says that the Brexit vote has cost the average household £404 a year. … "The Resolution Foundation warns that Britain is on course for the longest period of falling living standards since records began back in the 1950s. Northern Ireland, Scotland and Wales are already paying the heaviest economic price for Brexit in terms of higher inflation costs, according to the Centre for Economic Performance at the London School of Economics."

[No link available]


Related Links:
The Western Mail - Blair think-tank expert’s bleak Brexit predictions

The Brexit Vote, Inflation and UK Living Standards

CEP Trade

Holger Breinlich webpage

Dennis Novy webpage

Thomas Sampson webpage



News Posted: 05/01/2018      [Back to the Top]

Institute for Global Change

Tony Blair: Brexit – what we now know – briefing

Executive summary:

This document sets out some of the key things we have learnt since the referendum. These include:

  • The Office for Budget Responsibility has downgraded UK growth expectations for the next five years.
  • The Organisation for Economic Co-operation and Development says the UK went from the top of the G7 growth league to the bottom in the year following the Brexit vote.
  • The Centre for Economic Policy Research calculates that the Brexit vote has already cost the UK economy £300m a week.
  • Food prices are growing at their fastest rate in 4 years. Inflation is over 3% for the first time in nearly six years. 
  • The Centre for Economic Performance says that the Brexit vote has cost the average household £404 a year.

 

Living standards

Inflation has picked up sharply since the Brexit vote. It is over 3% for the first time in nearly six years.The result has been a renewed fall in real wages. The Centre for Economic Performance says the impact it has had is close on to a week’s wages for the average worker.

The Centre for Economic Performance says that the Brexit vote has cost the average household £404 a year.

Northern Ireland, Scotland and Wales are already paying the heaviest economic price for Brexit in terms of higher inflation costs, according to the Centre for Economic Performance at the London School of Economics.

 

Norway model

According to research by the Centre for Economic Performance at the London School of Economics, in 2011 Norway’s contribution to the EU budget was £106 per head capita, only 17% lower than the UK’s EU net contribution for that year of £128 per capita.  

As the CEP observes, “becoming part of the EEA would not generate substantial fiscal savings for the UK government.”

 


Related Links:
Institute for Global Change - Tony Blair: Brexit – what we now know – briefing

The Brexit Vote, Inflation and UK Living Standards

CEP Trade

Holger Breinlich webpage

Elsa Leromain webpage

Dennis Novy webpage

Thomas Sampson webpage



News Posted: 04/01/2018      [Back to the Top]

TIME online

17 Important Business Books Everyone Will Be Reading In 2018

‘The Origins of Happiness’ by by Andrew E. Clark,‎ Sarah Flèche,‎ Richard Layard,‎ Nattavudh Powdthavee,‎ and George Ward (Publication date - January 16)

The authors behind “The Origins of Happiness” are a dream team of social scientists, all members of the Wellbeing Programme at the London School of Economics’ Centre for Economic Performance. Their book explores what really affects well-being, drawn from research on over 100,000 people in different countries. The book also raises questions about potential changes to public policy, with human well-being as the No. 1 priority.


Related Links:
TIME online - 17 Important Business Books Everyone Will Be Reading In 2018

CEP Wellbeing

Andrew Clark webpage

Sarah Flèche webpage

Richard Layard webpage

Nattavudh Powdthavee webpage

George Ward webpage



News Posted: 04/01/2018      [Back to the Top]

Guardian

Spread-betting firm’s profits surge on bitcoin boom

Tom Kirchmaier, professor of finance at the London School of Economics, said the risks of a bitcoin crash could be amplified for CFD speculators. “Just stay out of it,” he said, adding that bitcoin was a “bubble with exponential growth, and one day there will be an explosive decline – it is much more dangerous [trading in CFDs]”.


Related Links:
Guardian - Spread-betting firm’s profits surge on bitcoin boom

CEP Community CEP Labour Markets

Tom Kirchmaier webpage



News Posted: 04/01/2018      [Back to the Top]

CEP mentions on Twitter

Baroness Thornton retweets LSE event on happiness and wellbeing

Glenys Thornton @GlenysThornton
RT @kemonas13: @actionhappiness @LSEnews @LSEpublicevents @CEP_LSE @RichardLayard @AndrewMarr9 @johnvanreenen @AnthonySeldon…


Related Links:
CEP mentions on Twitter - Baroness Thornton retweets LSE event on happiness and wellbeing

CEP Growth CEP Wellbeing

Richard Layard webpage

John Van reenen webpage



News Posted: 03/01/2018      [Back to the Top]

States News Service

Brexit – what we now know

The following information was released by the Office of Tony Blair:

Executive summary

The Centre for Economic Performance says that the Brexit vote has cost the average household 404 a year.


Related Links:
States News Service - Brexit – what we now know

The Brexit Vote, Inflation and UK Living Standards

CEP Trade

Holger Breinlich webpage

Elsa Leromain webpage

Dennis Novy webpage

Thomas Sampson webpage



News Posted: 03/01/2018      [Back to the Top]

Forbes

Six ways to succeed at remote work

IBM recently made headlines for dismantling its policy that allowed remote work. The technology giant was following in the footsteps of Yahoo Inc., which in 2013 also called its employees back to the office, saying it was needed for better speed and efficiency. At Peak Support, we believe working remotely is here to stay. It allows us to hire and work with some of the smartest people around the world, whether they sit in an office or not. Some of the best workers are increasingly demanding flexible schedules. Employees who work from home are more productive and less likely to quit, according to a study by Stanford University Professor Nicholas Bloom.


Related Links:
Forbes - Six ways to succeed at remote work

Does Working from Home Work? Evidence from a Chinese Experiment

Working or shirking?

CEP Growth

Nick Bloom webpage



News Posted: 03/01/2018      [Back to the Top]

City A.M.

In the age of sharing, this is the last taboo

...One of the world's leading behavioural economists, Professor Paul Dolan of the London School of Economics, helped us analyse...


Related Links:
City A.M. - In the age of sharing, this is the last taboo

CEP Wellbeing

Paul Dolan webpage



News Posted: 03/01/2018      [Back to the Top]

LBC (Radio) - 11:30:00 pm

Snippet: Mention of LSE study on problems with planning permission in the UK


Related Links:
LBC (Radio) - 11:30:00 pm - Snippet: Mention of LSE study on problems with planning permission in the UK

UK Housing and Planning Policies: the evidence from economic research

Turning houses into gold: the failure of British planning

CEP Urban and Spatial Programme

Paul Cheshire webpage

Christian Hilber webpage



News Posted: 02/01/2018      [Back to the Top]

Financial Times

Debt and interest rates to be consumers’ big worries, say economists

Q: In 2017, consumers’ finances were squeezed by rapidly rising prices. Will 2018 be an easier year for UK households and what are the implications for consumer spending?

A:  Swati Dhingra, assistant professor, London School of Economics - Depends on which form of Brexit, though the exchange rate depreciation component may have already manifested itself in the price index.

A:  John Van Reenan, Gordon Y Billard professor of management and economics, MIT Sloan School of Management - The Brexit-inspired devaluation will work its way through, but continued uncertainty and the prospects of higher trade costs/lower foreign investment will be a drag.


Related Links:
Financial Times - Debt and interest rates to be consumers’ big worries, say economists

CEP Trade CEP Growth

Swati Dhingra webpage

John Van reenen webpage



News Posted: 01/01/2018      [Back to the Top]

Portfolio (Hungary)

Pesszimisták a britek a Brexit kellős közepén/Pessimists are the British in the middle of Brexit

The latest forecasts from major London economic research houses seem to provoke pensive respondents. The renowned London Economics University, a study by the London School of Economics (CEP), has shown that the unexpected market and real economy shock of a referendum held in 2016 on the British EU membership , mainly due to the sudden weakening of the pound in the one year after the referendum and by June 2017, resulted in 1.7 percentage points of cumulative inflationary acceleration compared to the inflation rate that would have been expected without this shock in the same period.


Related Links:
Portfolio (Hungary) - Pesszimisták a britek a Brexit kellős közepén/Pessimists are the British in the middle of Brexit

The Brexit Vote, Inflation and UK Living Standards

CEP Trade

Holger Breinlich webpage

Elsa Leromain webpage

Dennis Novy webpage

Thomas Sampson webpage



News Posted: 01/01/2018      [Back to the Top]

Governing.com

Should governments measure people's happiness?

This was about where things stood 30 years ago, when Richard Layard, a British economist now ennobled as Baron Layard of Highgate, began promoting a radical doctrine. Maybe, he posited, the time had come to take Bentham seriously again. Layard’s work stemmed from research that showed that rising incomes didn’t make people any happier. Follow this out, Layard said without embarrassment, and the road leads straight to Bentham. “I believe that Bentham’s idea was right,” Layard wrote in 2005, “and that we should fearlessly adopt it and apply it to our lives. The right action is the one that produces the greatest happiness in the world.”


Related Links:
Governing.com - Should governments measure people's happiness?

CEP Wellbeing

Richard Layard webpage



News Posted: 01/01/2018      [Back to the Top]

Financial Times

Gloomy growth projections cloud hopes for UK economy

The UK will remain a relative laggard among developed countries this year as the after-effects of the Brexit referendum mean the economy will only enjoy limited benefits from a global upswing in growth, economists said in the FT’s annual survey of the profession.

Q: How fast do you think the UK economy will grow in 2018 and how will this compare to other countries?

A: John Van Reenen, Gordon Y. Billard Professor of Management and Economics, MIT Department of Economics and Sloan:  “UK GDP growth at 1.8 per cent (1.5 per cent to 2 per cent). The drag down from the uncertainty of Brexit offset by continued good growth in US and rest of EU.”


Related Links:
Financial Times - Gloomy growth projections cloud hopes for UK economy

CEP Growth

John Van reenen webpage



News Posted: 01/01/2018      [Back to the Top]

The Scotsman

Leader comment: Let's not jump off a Brexit cliff in 2018

The London School of Economics has estimated that failing to agree a trade deal could cost the UK economy up to £430 billion over five years.


Related Links:
The Scotsman - Leader comment: Let's not jump off a Brexit cliff in 2018

The Brexit Vote, Inflation and UK Living Standards

CEP Trade

Holger Breinlich webpage

Elsa Leromain webpage

Dennis Novy webpage

Thomas Sampson webpage



News Posted: 01/01/2018      [Back to the Top]