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CEP Press Releases can be found in our News and Vistors section


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New research findings from CEP:

New research from the Centre for Economic Performance (CEP) are highlighted in the Autumn 2014 issue of CentrePiece magazine.

CentrePiece
  • IMPROVING EDUCATION IN POOR COUNTRIES: The demand is there in rural India
  • TROPHY ARCHITECTS: It’s worth a fortune to ‘game’ London’s planning system
  • DIGITAL MUSIC: Album sales suffer when free online videos are made unavailable
  • OPEN SOURCE: Big benefits from Wikipedia’s collective production of knowledge
  • MANUFACTURING: Machines cannot fully replace people even in high-tech industries
  • AUCTIONING VISAS: It’s time to reform the ‘investor route’ to UK citizenship
  • OVERSEAS STUDENTS: Universities use fees to subsidise domestic postgraduates
  • WIND FARMS: Wind farms reduce house prices in places where turbines are visible
  • TREATING MENTAL ILLNESS: Proven psychological therapies effectively cost nothing

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

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

    BIG IDEAS

    BIG IDEAS

    The impact of CEP's research on public policy and debate

    Go to our Big Ideas website

    The impact of CEP's research on public policy and debate is profound. This is clear from seeing how often our research is quoted in the media and by policy makers.

    But the influence of our research ideas is often harder to see in the daily news cycle, as often it enters the DNA of political discourse without reference back to the original work.

    In this series of "Big Ideas" we survey some of the ways in which CEP's research has had an impact and how this has happened.


    Press inquiries should be directed to Romesh Vaitilingam (Tel: 07768-661095 Email: romesh@vaitilingam.com), or if unavailable, to Helen Durrant (Tel: 020 7955 7395 Email: h.durrant@lse.ac.uk)

    Go to our Big Ideas website


    Latest Papers from the CEP


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    For a full list or to browse a complete series select from the menu options on the left.

    Papers listed most recent first. Authors listed in alphabetical order, unless otherwise specified.

    CEP Discussion Paper
    Making Do With Less: Working Harder During Recessions
    Edward P.  Lazear,  Kathryn L.  Shaw,  Christopher  Stanton,  December 2014
    Paper No' CEPDP1321: Read Abstract | Full paper (pdf)
    CEP Discussion Paper
    "American Idol" - 65 years of Admiration
    Alan  Manning,  Amar  Shanghavi,  December 2014
    Paper No' CEPDP1320: Read Abstract | Full paper (pdf)
    CEP Discussion Paper
    Reservation Wages and the Wage Flexibility Puzzle
    Felix  Koenig,  Alan  Manning,  Barbara  Petrongolo,  December 2014
    Paper No' CEPDP1319: Read Abstract | Full paper (pdf)
    CEP Discussion Paper
    The Value of Bosses
    Edward P.  Lazear,  Kathryn L.  Shaw,  Christopher T.  Stanton,  December 2014
    Paper No' CEPDP1318: Read Abstract | Full paper (pdf)

    Books

    Thrive: the power of evidence-based psychological therapies

    Thrive

    Thrive: the power of evidence-based psychological therapies
    By Richard Layard & David M. Clark
    Published by Allen Lane / Penguin, July 2014
    ISBN: 9781846146053 | £20.00

    A ground-breaking argument for better treatment of mental health from Richard Layard (author of Happiness) and David M. Clark.

    Britain has become a world leader in providing psychological therapies thanks to the work of Richard Layard and David Clark. But, even so, in Britain and worldwide the majority of people who need help still don't get treatment. This is both unjust and a false economy. This book argues for change.


    More about Thrive
    Download Press Release - RE Parliamentary Meeting, 1st July
    Thrive Book Launch - LSE Public Event with Authors and Andrew Marr, 10 July 2014
    View the Thrive book launch event on the LSE You Tube channel
    Purchase this book from the publisher


    El Dilema De España

    El Dilema De España
    El Dilema De España
    By Luis Garicano
    Published by Grup 62, January 2014
    ISBN: 8499422829, 9788499422824;
    €17.90

    Spain's Dilemma
    Spain is at a historic crossroads. On the one hand, the country could follow the easy path of populism and statism - a 'Hispanic' road to underdevelopment that is exemplified by Venezuela and Argentina, and which has always tempted Spanish politicians. On the other hand, the country could choose a path that requires substantial changes in the short term but would result in a more productive society and economy.

    Choosing the second path involves implementing reforms in at least three priority areas: education, focusing on developing analytical skills rather than rote memory; economic institutions, enhancing the transparency of markets; and political institutions, improving the quality of political leaders and making them more accountable to citizens.

    In this book, the economist and LSE professor, Luis Garicano, advocates the second route, based on human capital investment, profound reforms to the state and justice system, and enforced compliance with the law. He proposes a workable vision of what Spain needs to do to exit its current crisis.

    Purchase this book from the publisher

    Investing for Prosperity: A manifesto for growth

    Investing for Prosperity
    Investing for Prosperity: A manifesto for growth
    Edited by Tim Besley and John Van Reenen
    LSE (September 2013)
    ISBN 978-1-909890-02-2
    £19.99

    Why is economic growth such a rare and elusive butterfly in the UK garden? What institutions and policies are needed to sustain UK economic growth in the dynamic global economy of the twenty-first century?

    After years of inadequate investment in skills, infrastructure and innovation, there are longstanding structural weaknesses in the economy, all rooted in a failure to achieve stable planning, strategic vision and a political consensus on the right policy framework to support growth. This must change if we are to meet our current challenges and others that may arise in the future.

    Despite the current recession gloom, the UK has many assets that can be mobilised to its advantage. It has strong rule of law, generally competitive product markets, flexible labour markets and a world-class university system. It has strengths in many key sectors, with cutting-edge firms in both manufacturing and services. These and other assets helped to reverse the UK's relative economic decline over the century before 1980.

    This book, based on the work of the LSE Growth Commission and greatly expanding upon its first published report, argues that the UK should build on these strengths and proposes how we can address the inadequate institutional structures that have deterred long-term investment to support our future prosperity.

    The book is edited by Professors Tim Besley and John Van Reenen at the London School of Economics and Political Science. It develops on the themes outlined in the Commission's first brief report published in January 2013.

    The Commissioners and contributors also include: Philippe Aghion, Lord John Browne, Francesco Caselli, Sir Richard Lambert, Rachel Lomax, Christopher Pissarides, Lord Nicholas Stern, Nitika Bagaria, Novella Bottini, Miguel Coelho, Joao Paulo Pessoa, Isabelle Roland and Jennifer Kao.

    Visit Growth Commission Website
    Purchase this book from the publisher | Download Press Release (PDF)

    Combatting Unemployment

    Combatting Unemployment
    IZA Prize in Labor Economics
    Richard Layard and Stephen J. Nickell
    Edited by Werner Eichhorst and Klaus F. Zimmermann
    OUP (May 2011)
    ISBN 978-0-19-960978-9

    £35.99

    Combatting Unemployment is a collection of key papers from seminal labour economists Richard Layard and Stephen J. Nickell.

    The authors received the IZA Prize in Labor Economics in 2008 for their path-breaking work on the relationship between labor market institutions and unemployment

    Why is unemployment higher in some countries than others? Why does it fluctuate between decades? Why are some people at greater risk than others?

    Layard and Nickell have worked on these issues for thirty years. Their famous model, first published in 1986, is now used throughout the world. It asserts that unemployment must be high enough to reduce the real wages for which workers settle to the level justified by productivity. So what affects 'wage push'? The authors showed early on that the key factors affecting 'wage push' are how unemployed workers are treated and how wages are negotiated. If unemployed people get benefits without being required to accept jobs, vacancies go unfilled and mass unemployment results. The solution is welfare-to-work policies like those now introduced in most parts of the world.

    The authors have proposed these policies for the last twenty-five years in a series of key articles reproduced in this book. Their original analysis explains the subsequent movement of unemployment over the last two decades. They conclude the book with a new chapter on what should be done in the recession: no-one, they say, should be given unemployment benefit beyond a year, after which they should be offered work.

    Purchase this book from the publisher

    Happiness: Lessons from a New Science (2nd Edition)

    Happiness
    Happiness: Lessons from a New Science
    Richard Layard
    Penguin (April 2011)
    ISBN 9780241952795

    £9.99

    In this new edition of his landmark book, Richard Layard shows that there is a paradox at the heart of our lives. Most people want more income. Yet as societies become richer, they do not become happier. This is not just anecdotally true, it is the story told by countless pieces of scientific research. We now have sophisticated ways of measuring how happy people are, and all the evidence shows that on average people have grown no happier in the last fifty years, even as average incomes have more than doubled. In fact, the First World has more depression, more alcoholism and more crime than fifty years ago. This paradox is true of Britain, the United States, continental Europe, and Japan. What is going on? Now fully revised and updated to include developments since first publication, Layard answers his critics in what is still the key book in 'happiness studies'.

    Purchase this book from the publisher
    Press Release


    The Labour Market in Winter: The State of Working Britain

    Labour Market in Winter
    The Labour Market in Winter: The State of Working Britain
    Paul Gregg & Jonathan Wadsworth (Editors)
    Oxford University Press (January 2011)
    ISBN 978-0-19-958737-7

    £30.00 / $55.00
    This collection of essays - by leading economic experts on the UK labour market - provides an overview of the key issues concerning the performance of the labour market, and the policy issues surrounding it, with a focus on the recent recession and its aftermath. The result is the first comprehensive analysis of the economic downturn and the Labour government's record in the fields of employment, education, and welfare.

    The result is the first serious comprehensive analysis of the economic downturn and the Labour government's record in the field of employment, spanning its time in office. An indispensable reference source on contemporary labour market developments in the UK, this book will be required reading, and of lasting use, to academics, students, practitioners, and policy makers.

    Professor Paul Gregg and Professor Jonathan Wadsworth are both senior research fellows in LSE's Centre for Economic Performance's labour markets programme.

    Purchase this book from the publisher

    Go to the The Labour Market in Winter website where you can

    The Comingled Code: Open Source and Economic Development

    Comingled Code
    The Comingled Code: Open Source and Economic Development
    Josh Lerner & Mark Schankerman
    MIT Press (Dec 2010)
    ISBN-10: 0-262-01463-7
    ISBN-13: 978-0-262-01463-2

    £25.95 / $35.00

    Discussions of the economic impact of open source software often generate more heat than light. Advocates passionately assert the benefits of open source while critics decry its effects. Missing from the debate is rigorous economic analysis and systematic economic evidence of the impact of open source on consumers, firms, and economic development in general. This book fills that gap. In The Comingled Code, Josh Lerner and Mark Schankerman, drawing on a new, large-scale database, show that open source and proprietary software interact in sometimes unexpected ways, and discuss the policy implications of these findings.

    The new data (from a range of countries in varying stages of development) documents the mixing of open source and proprietary software: firms sell proprietary software while contributing to open source, and users extensively mix and match the two. Lerner and Schankerman examine the ways in which software differs from other technologies in promoting economic development, what motivates individuals and firms to contribute to open source projects, how developers and users view the trade-offs between the two kinds of software, and how government policies can ensure that open source competes effectively with proprietary software and contributes to economic development.

    For more info, or to purchase online, please visit the MIT website


    Press

    The Economist - 15 Jan 2011, p.78, Unattributed
    Open-source software Untangling code
    Editorial regarding programs written by volunteers. It is mentioned that John Lerner and Mark Schankerman, professor at Harvard Business School and the LSE have written 'The Comingled Code'.

    The Future of Finance: The LSE Report

    Future of Finance

    The Future of Finance: The LSE Report
    Adair Turner, Richard Layard, Peter Boone, Charles Goodhart, Andrew Haldane, Simon Johnson, John Kay, Andrew Large, Andrew Smithers, Sushil Wadhwani, Martin Wolf & Paul Woolley.
    London School of Economics (September 2010)
    ISBN-10: 085328458X
    ISBN-13: 9780853284581

    288 pages
    £14.99

    This book presents a novel approach to the reform of the world’s financial system, starting with the basic question, what is a financial system for? It shows that the existing system has become far more complicated than it needs to be to discharge its functions – and dangerously unstable into the bargain. It proposes some drastic remedies.

    The Future of Finance: The LSE Report is the work of a group of leading academics, financiers, journalists and officials from the UK’s Financial Services Authority, the Bank of England and the Treasury. They met twelve times, for what many of those present described as the best and most searching discussions they had ever participated in.

    The first author is Adair Turner, chair of the Working Party of the G20 Financial Stability Board reporting to the G20 Summit in November 2010; the others are major international players in policymaking or public debate.

    Order a copy online from Central Books
    Email: mo@centralbooks.com Tel: +44 (0)845 458 9910

    Visit the Future of Finance Website
    Download slides and videos of presentations from the Future of Finance conference

    Endorsements

    “The UK has been at the epicenter of both the financial crisis and the ongoing debate over the future of finance. Here the leading figures in that debate tell us how to think about the process of financial reform. Their thoughts deserve the widest possible audience, not just in Britain but in the United States and globally.”
    Barry Eichengreen, University of California, Berkeley

    “A preoccupation with public good is what distinguishes this book from others about the crisis. The authors take a broader perspective in exploring new approaches for understanding the functions of banks and financial markets. It is particularly refreshing to see the London School of Economics re-establishing its traditional leadership in social sciences research oriented towards social welfare advancement.”
    Jean Charles Rochet, University of Zurich and Toulouse School of Economics

    “As we look forward to the reform of the financial system, there is a need for a more fundamental review of the nature of financial intermediation, its scope and size. This volume is in the best traditions of the LSE in weaving together the perspectives of academics and policymakers to address a topic of great importance. It is a must read for anyone who wishes to delve deeper into the policy issues.”
    Hyun Song Shin, Princeton University


    Mostly Harmless Econometrics: An Empiricist's Companion

    Mostly Harmless Econometrics
    Mostly Harmless Econometrics: An Empiricist's Companion
    Joshua D. Angrist and Jörn-Steffen Pischke
    Princeton University Press (4 Jan 2009)
    ISBN-10: 0691120358
    ISBN-13: 978-0691120355
    £54.00 and £24.95

    The core methods in today's econometric toolkit are linear regression for statistical control, instrumental variables methods for the analysis of natural experiments, and differences-in-differences methods that exploit policy changes. In the modern experimentalist paradigm, these techniques address clear causal questions such as: Do smaller classes increase learning? Should wife batterers be arrested? How much does education raise wages? Mostly Harmless Econometrics shows how the basic tools of applied econometrics allow the data to speak. In addition to econometric essentials, Mostly Harmless Econometrics covers important new extensions - regression-discontinuity designs and quantile regression - as well as how to get standard errors right. Joshua Angrist and Jörn-Steffen Pischke explain why fancier econometric techniques are typically unnecessary and even dangerous. The applied econometric methods emphasized in this book are easy to use and relevant for many areas of contemporary social science. This book features: an irreverent review of econometric essentials; focus on tools that applied researchers use most; chapters on regression-discontinuity designs, quantile regression, and standard errors; many empirical examples; and, a clear and concise resource with wide applications.
    Mostly Harmless Econometrics
    View the entertaining Mostly Harmless Econometrics website where you can read about the authors, download extracts, and even buy the T-shirt.




    A Good Childhood: Searching for Values in a Competitive Age

    A Good Childhood
    A Good Childhood: Searching for Values in a Competitive Age
    Richard Layard and Judy Dunn
    Penguin (5 Feb 2009)
    ISBN-10: 0141039434
    ISBN-13: 978-0141039435
    £9.99

    Every day the newspapers lament the problems facing our children - broken homes, pressures to eat and drink, the stress of exams. The same issues are discussed in every pub and at every dinner party. But is life really more difficult for children than it was, and if so why? And how can we make it better? This book, which is a result of a two year investigation by the Children's Society and draws upon the work of the UK's leading experts in many fields, explores the main stresses and influences to which every child is exposed - family, friends, youth culture, values, and schooling, and will make recommendations as to how we can improve the upbringing of our children. It tackles issues which affect every child, whatever their background, and questions and provides solutions to the belief that life has become so extraordinarily difficult for children in general. The experts make 30 specific recommendations, written not from the point of view of academics, but for the general reader - above all for parents and teachers. We expect publication to be a major event and the centre of widespread media attention.

    Richard Layard is Emeritus Professor of Economics at the London School of Economics, and author of the best-selling Happiness (Penguin, 2005). He was founder-director of the Centre for Economic Performance at the London School of Economics and now heads its programme on well-being. He is also a member of the House of Lords.

    Judy Dunn is Professor of Developmental Psychology at the Institute of Psychiatry, King's College London. Her research interests are in children's social, emotional and communicative development, studied in their families and with their friends. She is Chair of the Good Childhood Inquiry.

    Read the press coverage of A Good Childhood: Searching for Values in a Competitive Age

    Policy Analysis:

    [Westminster]
    Objective, brief and non-technical, Policy Analysis is a series of background briefings on key policy issues raised in the news. These analyses are provided by some of our expert researchers and draw on some of our past and current research.

    View our Policy Analysis series that includes two new (May 2014) reports on immigration and the possible trade and welfare effects of leaving the EU.

    We will try to answer inquiries relating to this work whenever possible. Press inquiries should be directed to Romesh Vaitilingam (Tel: 07768-661095 Email: romesh@vaitilingam.com), or if unavailable, to Helen Durrant (Tel: 020 7955 7395 Email: h.durrant@lse.ac.uk)

    See also past briefings in our Election Analysis series, examining key issues in the 2005 and 2010 UK General Election campaigns and the 2012 US Election Campaign.


    Featured Work:

    management practice cover
    Management Practice and Productivity
    The Centre for Economic Performance, McKinsey & Company and Stanford have developed an innovative new methodology to survey management practices in over 4,000 firms across Europe, the US and Asia.

    Analysing this data they demonstrate a surprisingly large dispersion in management practices across firms and nations, and an important role for competition, ownership and education in explaining these differences. They also find firms are surprisingly poor at self assessing their own management practices.

    To download the report and full academic survey methodology, questionnaire and results go to the Management Practice and Productivity site at http://cep.lse.ac.uk/management/

    Annual Report:

    Full details of work completed and projects undertaken at the CEP are available in our Annual Report. [Full document in PDF] The latest annual report was published in April 2013 for work completed and conducted from January 2012 - Dec 2012.

    To view view all our past annual reports see our Annual Report page.