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News for Growth

Press coverage involving Growth staff or research is listed below.

La República

Aranceles y petróleo dominarán los temas en la cumbre del G20 en Osaka / Tariffs and oil will dominate the issues at the G20 summit in Osaka

Reaffirming this idea, John Van Reenen, economist at MIT, explained that this division could point to a scenario in which the only one harmed is the global economy. "Given the assault of Trump and the growing band of 'strong men' as leaders, there is a risk of a return to the economic spheres of influence prior to the Second World War that consist of America versus or China versus Europe. This increases the risk of global recession and conflict," he said.

Related Links:
La República - Aranceles y petróleo dominarán los temas en la cumbre del G20 en Osaka / Tariffs and oil will dominate the issues at the G20 summit in Osaka

CEP Growth

John Van reenen webpage


News Posted: 28/06/2019      [Back to the Top]

The Pioneer

Why women must work

Research by Nick Bloom, James Liang, John Roberts and Zhichun Jenny Ying on Ctrip in China showed a 13.5 per cent rise in worker productivity through work from home policies as employees completed their full shift of work, thus saving commute time. This translates to about an extra day of work every week. With improvements in digital and mobile technology, companies can consider this as a viable option to improve output and performance of their teams. A combination of working from home and working from the office can allow the employees flexibility while also increase productivity.

Related Links:
The Pioneer - Why women must work

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth

Nick Bloom webpage


News Posted: 28/06/2019      [Back to the Top]

Investors Chronicle FT

Damaging uncertainty

Thirdly, it is exporters who are being especially hard hit by Brexit uncertainty and it is these who tend to be more efficient than the average company. Brute maths, says Stanford University's Nick Bloom, means that this depresses productivity.

Related Links:
Investors Chronicle FT - Damaging uncertainty

Measuring Economic Policy Uncertainty

CEP Growth

Nick Bloom webpage


News Posted: 27/06/2019      [Back to the Top]

The Guardian

Next Bank of England governor must serve the whole of society; 94 academics and representatives of civil society organisations call for Mark Carney's successor to be someone who will foster a pluralistic policymaking culture

Snippet... Philippe Aghion London School of Economics Felix Fitzroy St Andrews Marianne Sensier University of Manchester Christine Cooper University of Edinburgh Elisa Van Waeyenberge Soas Roberto Veneziani Queen Mary University of London Andrew Denis City University Stewart Lansley University of Bristol

Related Links:
The Guardian - Next Bank of England governor must serve the whole of society; 94 academics and representatives of civil society organisations call for Mark Carney's successor to be someone who will foster a pluralistic policymaking culture

CEP Growth

Philippe Aghion webpage


News Posted: 04/06/2019      [Back to the Top]

MP Weixin

Euro 20 years: too important to fail, too fragile to succeed


Related Links:
MP Weixin - Euro 20 years: too important to fail, too fragile to succeed

CEP Growth

John Van reenen webpage


News Posted: 03/06/2019      [Back to the Top]

Caijing Mobile

Euro 20 years: too important to fail, too fragile to succeed


Related Links:
Caijing Mobile - Euro 20 years: too important to fail, too fragile to succeed

CEP Growth

John Van reenen webpage


News Posted: 03/06/2019      [Back to the Top]

Kuaibao

Euro 20 years: too important to fail, too fragile to succeed

John van Reenen, a professor of economics at the Massachusetts Institute of Technology, told the Caijing reporter that economically, the rationality of the euro has never been proven. In response to the negative impact, the ability of the euro zone member states to make temporary adjustments has removed a level due to the existence of the euro…

Related Links:
CEP Growth

John Van reenen webpage


News Posted: 03/06/2019      [Back to the Top]

CITY AM

Small businesses to be given artificial intelligence boost

Dr Anna Valero, innovation fellow at the London School of Economics, said the results of the funding would inform local and national governments to improve access to technology.

Related Links:
CITY AM - Small businesses to be given artificial intelligence boost

CEP Growth

Anna Valero webpage

John Van reenen webpage


News Posted: 06/05/2019      [Back to the Top]

American Economic Review

What drives differences in management?


Related Links:
American Economic Review - What drives differences in management?

What Drives Differences in Management?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 01/05/2019      [Back to the Top]

Quarterly Journal of Economics

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


Related Links:
Quarterly Journal of Economics - Who Becomes an Inventor in America? The Importance of Exposure to Innovation

Lost Einsteins: who becomes an inventor in America?

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

CEP Growth CEP Labour Markets

John Van reenen webpage

Xavier Jaravel webpage


News Posted: 01/05/2019      [Back to the Top]

The Quarterly Journal of Economics

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


Related Links:
The Quarterly Journal of Economics - Who Becomes an Inventor in America? The Importance of Exposure to Innovation

CEP Growth CEP Labour Markets

Xavier Jaravel webpage

John Van reenen webpage


News Posted: 01/05/2019      [Back to the Top]

The Quarterly Journal of Economics

The Unequal Gains from Product Innovations: Evidence from the U.S. Retail Sector


Related Links:
The Quarterly Journal of Economics - The Unequal Gains from Product Innovations: Evidence from the U.S. Retail Sector

CEP Growth CEP Labour Markets

Xavier Jaravel webpage


News Posted: 01/05/2019      [Back to the Top]

Bloomberg

The US Doesn't Need More Superstar Companies

Economists David Autor, David Dorn, Lawrence Katz, Christina Patterson and John Van Reenen, who wrote one of the first papers to bring attention to the phenomenon of rising concentration, also endorse a story of so-called superstar companies. They point out that the companies that have been establishing dominance tend to use less labor to generate revenue, suggesting that they're winning because they're more productive.

Related Links:
Bloomberg - The US Doesn't Need More Superstar Companies

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 26/04/2019      [Back to the Top]

Business Standard

Are superstar companies killing competition and taking over the US economy?


Related Links:
Business Standard - Are superstar companies killing competition and taking over the US economy?

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 26/04/2019      [Back to the Top]

Harvard Business Review

How to Survive a Recession and Thrive Afterward

A company's performance during and after a recession depends not just on the decisions it makes but also on who makes them. In a 2017 study, Raffaella Sadun (of Harvard Business School), Philippe Aghion (of College de France), Nicholas Bloom and Brian Lucking (of Stanford), and John Van Reenen (of MIT) examined how organizational structure affects a company's ability to navigate downturns. On the one hand, "the need to make tough decisions may favor centralized firms," the researchers write, because they have a better picture of the organization as a whole and their incentives are typically more closely aligned with company performance. On the other hand, decentralized firms may be better positioned to weather macro shocks "because the value of local information increases."

Related Links:
Harvard Business Review - How to Survive a Recession and Thrive Afterward

Turbulence, Firm Decentralization and Growth in Bad Times

CEP Growth

Nick Bloom webpage

Philippe Aghion webpage

Raffaella Sadun webpage

John Van reenen webpage


News Posted: 16/04/2019      [Back to the Top]

Caixan online / The blog of the Shannon Economic Academic Circle

Do we need industrial policies? Evidence from regional funding programs

Original information: Chiara Criscuolo, Ralf Martin, Henry G. Overman, John Van Reenen. Some Causal Effects of an Industrial Policy. American Economic Review, 2019, 109(1): 48-85. Governments around the world provide large amounts of subsidies to private companies, requiring companies to keep jobs, reduce unemployment, and increase productivity, especially in areas with poor geographical conditions. However, there are very few quantitative assessments of these policies, as these projects may only fund activities that the company would have carried out anyway, and the measurement estimates are unrecognizable.

Related Links:
Caixan online / The blog of the Shannon Economic Academic Circle - Do we need industrial policies? Evidence from regional funding programs

Some Causal Effects of an Industrial Policy

CEP Growth CEP Trade CEP Urban and Spatial Programme

Chiara Criscuolo webpage

Ralf Martin webpage

Henry Overman webpage

John Van reenen webpage


News Posted: 14/04/2019      [Back to the Top]

NIHCM Foundation

Announcing the Winners of the 25th Annual Research Award


Related Links:
NIHCM Foundation - Announcing the Winners of the 25th Annual Research Award

The Price Ain't Right? Hospital Prices and Health Spending on the Privately Insured

CEP Growth

Zack Cooper webpage

John Van reenen webpage


News Posted: 11/04/2019      [Back to the Top]

LSE Business Review

As the Phoenicians sailed across the Mediterranean, they spread mice and growth

One of the first major trade expansions in human history provides early evidence that trade promotes growth, write Jan David Bakker, Stephan Maurer, Jorn-Steffen Pischke and Ferdinand Rauch.

Related Links:
LSE Business Review - As the Phoenicians sailed across the Mediterranean, they spread mice and growth

Trade and growth in the Iron Age

Of Mice and Merchants: Trade and Growth in the Iron Age

CEP Wellbeing CEP Labour Markets CEP Trade CEP Growth

Jan Bakker webpage

Stephan Maurer webpage

Jörn-Steffen Pischke webpage

Ferdinand Rauch webpage


News Posted: 04/04/2019      [Back to the Top]

El Diario de Madryn

Crear universidades impacta directamente en el crecimiento económico de la región / Creating universities directly impacts the economic growth of the region

Snippet: Creating universities directly impacts the economic growth of the region

Snippet: According to a study conducted by researchers at the London School of Economics in England and the Massachusetts Institute of Technology (MIT), the increase in the number of universities is positively associated with the growth of the pro ...

Related Links:
El Diario de Madryn - Crear universidades impacta directamente en el crecimiento económico de la región / Creating universities directly impacts the economic growth of the region

How universities boost economic growth

The Economic Impact of Universities: Evidence from Across the Globe

CEP Growth

John Van reenen webpage

Anna Valero webpage


News Posted: 01/04/2019      [Back to the Top]

Investors Chronicle (Magazine)

The dark side of the jobs miracle

Secondly, workers are not being displaced by new technology. Business investment has fallen since 2016. There are countless reasons for this, many of them longstanding structural ones. One, which might have become more intense recently, is uncertainty about Brexit. Stanford University's Nick Bloom and colleagues estimate that this has depressed capital spending since 2016.
[Subscription only]

Related Links:
CEP Growth

Nick Bloom webpage


News Posted: 29/03/2019      [Back to the Top]

Axios

Gutenberg's legacy and populism

Johannes Gutenberg died in 1468, a little over a decade after inventing movable type. But he had already set in motion a gold rush-like frenzy of European entrepreneurs who flung open print shops to cash in on his technological earthquake.

Why it matters: We may be seeing the echoes of Gutenberg's printing fever in the political and social tumult all around us, Jeremiah Dittmar, the lead author of new research published by the London School of Economics, tells Axios.

Related Links:
Axios - Gutenberg's legacy and populism

Europe's transformation after Gutenberg: the impact of new media and competition

New Media and Competition: Printing and Europe's Transformation after Gutenberg

CEP Growth CEP Trade CEP Urban and Spatial Programme

Jeremiah Dittmar webpage


News Posted: 28/03/2019      [Back to the Top]

Le Monde

Quand une star scientifique meurt, d'autres idées fleurissent /When a scientific star dies, other ideas flourish

In 2010, along with two other colleagues at MIT and the University of California at San Diego, he had already observed that the productivity of former star coworkers decreased by 5% to 8% after such a fatal event. "Since then, many have taken this idea of the shock of death," said Xavier Jaravel, professor of economics at the London School of Economics and Political Science, which showed in 2017 that the co-inventors of a deceased are less productive and that the revenues from their patents fall after a disappearance.

Related Links:
Le Monde - Quand une star scientifique meurt, d'autres idées fleurissent /When a scientific star dies, other ideas flourish

CEP Growth CEP Labour Markets

Xavier Jaravel webpage


News Posted: 27/03/2019      [Back to the Top]

Emirates Business

Low interest rates might be what is hurting growth

Meanwhile, a very interesting new paper by economists Philippe Aghion, Antonin Bergeaud, Gilbert Cette, Remy Lecat and Helene Maghin looks at the relationship between credit constraints and productivity at the level of industrial sectors and individual companies, using French data. They find a U-shaped relationship at the sectoral level - at first, more lending is correlated with rising productivity, but as credit becomes very loose, productivity tends to fall. Unproductive companies with easy access to credit tend not to exit the market - a clear mechanism by which low rates might create zombies.

Related Links:
Emirates Business - Low interest rates might be what is hurting growth

The Inverted-U Relationship between Credit Access and Productivity Growth

CEP Growth

Philippe Aghion webpage


News Posted: 27/03/2019      [Back to the Top]

CNN

Women inventors, long overlooked, are churning out more patents than ever

However, women inventors made up only 12% of all inventors on patents granted in 2016 - the most recent year for which data is available - according to the patent office. That disparity is not a good sign and even hurts the country's economy, says John Van Reenan, who co-authored the 2017 study about inventors. "You can grow to some degree by copying other people, but what really moves the dial is when you can come out with great new ideas and innovation and new technology," he says.

Related Links:
CNN - Women inventors, long overlooked, are churning out more patents than ever

Lost Einsteins: who becomes an inventor in America?

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

CEP Growth CEP Labour Markets

John Van reenen webpage

Xavier Jaravel webpage


News Posted: 26/03/2019      [Back to the Top]

Yahoo Finance

Low Interest Rates Might Be What's Hurting Growth

Meanwhile, a very interesting new paper by economists Philippe Aghion, Antonin Bergeaud, Gilbert Cette, Remy Lecat and Helene Maghin looks at the relationship between credit constraints and productivity at the level of industrial sectors and individual companies, using French data. They find a U-shaped relationship at the sectoral level - at first, more lending is correlated with rising productivity, but as credit becomes very loose, productivity tends to fall. Unproductive companies with easy access to credit tend not to exit the market - a clear mechanism by which low rates might create zombies.

Related Links:
Yahoo Finance - Low Interest Rates Might Be What's Hurting Growth

The Inverted-U Relationship between Credit Access and Productivity Growth

CEP Growth

Philippe Aghion webpage


News Posted: 25/03/2019      [Back to the Top]

LSE Business Review

Regulating mobile money: what’s at stake

A new analysis suggests a trajectory and policy recommendations, write Adeline Pelletier, Susanna Khavul and Saul Estrin. In the past decade, mobile payment systems (MPS) have rapidly emerged in many developing economies, addressing several well-known gaps in the provision of financial services. MPS, also known as mobile money, has allowed consumers who are often unbanked or underbanked, to transact and to store money more efficiently, thereby reducing the costs of engaging in undertaking all transactions, including purchasing and selling goods and paying labour...

Related Links:
LSE Business Review - Regulating mobile money: what’s at stake

CEP Growth

Saul Estrin webpage


News Posted: 25/03/2019      [Back to the Top]

Bloomberg Quint

Low interest rates might be what's hurting growth

Meanwhile, a very interesting new paper by economists Philippe Aghion, Antonin Bergeaud, Gilbert Cette, Remy Lecat and Helene Maghin looks at the relationship between credit constraints and productivity at the level of industrial sectors and individual companies, using French data.

Related Links:
Bloomberg Quint - Low interest rates might be what's hurting growth

The Inverted-U Relationship between Credit Access and Productivity Growth

CEP Growth

Philippe Aghion webpage


News Posted: 25/03/2019      [Back to the Top]

Conversable Economist

What Did Gutenberg's Printing Press Actually Change?

In a similar spirit, I of course know that the introduction of a printing press with moveable type by to Europe in 1439 by Johannes Gutenberg is often called one of the most important inventions in world history. However, I'm grateful that Jeremiah Dittmar and Skipper Seabold have been checking it out. They have written "Gutenberg's moving type propelled Europe towards the scientific revolution," for the LSE Business Review (March 19, 2019). It's a nice accessible version of the main findings from their research paper, "New Media and Competition: Printing and Europe's Transformation after Gutenberg" (Centre for Economic Performance Discussion Paper No 1600 January 2019).

Related Links:
Conversable Economist - What Did Gutenberg's Printing Press Actually Change?

Europe's transformation after Gutenberg: the impact of new media and competition

New Media and Competition: Printing and Europe's Transformation after Gutenberg

CEP Growth CEP Trade

Jeremiah Dittmar webpage


News Posted: 22/03/2019      [Back to the Top]

Financial Times

Bank of England policymaker warns of risk to UK jobs market

Jonathan Haskel worried by falling business investment driven by uncertainty.

Related Links:
Financial Times - Bank of England policymaker warns of risk to UK jobs market

CEP Growth

Jonathan Haskel webpage


News Posted: 14/03/2019      [Back to the Top]

LSE Business Review (Blog)

Gutenberg’s moving type propelled Europe towards the scientific revolution

Book prices fell, the salaries of university professors rose, and revolutionary religious ideas spread, write Jeremiah Dittmar and Skipper Seabold.

Related Links:
LSE Business Review (Blog) - Gutenberg’s moving type propelled Europe towards the scientific revolution

Europe's transformation after Gutenberg: the impact of new media and competition

New Media and Competition: Printing and Europe's Transformation after Gutenberg

CEP Growth CEP Trade CEP Urban and Spatial Programme

Jeremiah Dittmar webpage


News Posted: 14/03/2019      [Back to the Top]

Financial Times

Politics is failing on Brexit but economics has been on the money

A few days before the vote, three of the UK's most reputable economic institutions - the National Institute of Economic and Social Research, the Institute for Fiscal Studies and the Centre for Economic Performance at the London School of Economics - wrote a short joint statement under the heading: "Leaving the EU would almost certainly damage our economic prospects".

Why leaving the EU would almost certainly damage our economic prospects.

BREXIT Papers & Analyses from the CEP.

Related Links:
Financial Times - Politics is failing on Brexit but economics has been on the money

CEP Growth

John Van reenen webpage


News Posted: 14/03/2019      [Back to the Top]

Bloomberg

BOE’s Haskel Warns Brexit Deal May Not End Economic Uncertainty

Bank of England policy maker Jonathan Haskel warned that the UK may not see a material pickup in investment growth even if the government secures an exit deal with the European Union this month.

Haskel, in his first speech since joining the Monetary Policy Committee last September, also said Brexit is to blame for a majority of the UK's recent substandard investment performance.


Related Links:
Bloomberg - BOE’s Haskel Warns Brexit Deal May Not End Economic Uncertainty

CEP Growth

Jonathan Haskel webpage


News Posted: 11/03/2019      [Back to the Top]

CNBC

Elizabeth Warren wants to turn the internet into a literal sewer (service): Commentary

Arguably, it is also simply getting harder to innovate. As economists Nick Bloom, Chad Jones, John Van Reenen and Michael Webb argue, ....

Related Links:
CNBC - Elizabeth Warren wants to turn the internet into a literal sewer (service): Commentary

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 10/03/2019      [Back to the Top]

Truth on the Market (Blog)

Elizabeth Warren wants to turn the internet into a literal sewer (service)

Arguably, it is also simply getting harder to innovate. As economists Nick Bloom, Chad Jones, John Van Reenen and Michael Webb argue, ....

Related Links:
Truth on the Market (Blog) - Elizabeth Warren wants to turn the internet into a literal sewer (service)

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 09/03/2019      [Back to the Top]

Harvard Business Review

Research: Better-Managed Companies Pay Employees More Equally

By Nicholas Bloom Scott Ohlmacher Cristina Tello-Trillo Melanie Wallskog
For 2010 and 2015, the U.S. Census Bureau fielded the Management and Organizational Practices Survey (MOPS) in partnership with a research team of subject matter experts, including one of us (Nick), as well as Erik Brynjolfsson and John Van Reenen.

Related Links:
Harvard Business Review - Research: Better-Managed Companies Pay Employees More Equally

The Fall of the Labor Share and the Rise of Superstar Firms

What Drives Differences in Management?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 06/03/2019      [Back to the Top]

VideoVox

Technological Revolutions Must be Matched by Policies

Phlippe Aghion (College of France, LSE, and CEPR) discusses work on merged datasets from the UK - one detailing occupation & wages, the other looking at R&D and investment.


Related Links:
VideoVox - Technological Revolutions Must be Matched by Policies

CEP Growth

Philippe Aghion webpage


News Posted: 04/03/2019      [Back to the Top]

The New Statesman

We need a political party that is tough on the causes of Brexit. The Independent Group isn’t

Economists like David Blanchflower, John Van Reenen and I set out just how bad UK economic performance had been over the previous five years, but once again expertise was ignored. As far as the media were concerned, reducing the deficit had become the most important priority for the economy, and that was how they judged politicians. You will not find that in any textbook either, but the media had either sold or been sold a narrative and they didn't want to know any different.

Related Links:
The New Statesman - We need a political party that is tough on the causes of Brexit. The Independent Group isn’t

CEP Growth

John Van reenen webpage


News Posted: 26/02/2019      [Back to the Top]

The Wall Street Journal

Despite Tight Job Market, Labor Force's Income Is Squeezed

"One of the features of these very big firms is that they've got high profits but they have low labor shares," said John Van Reenen, an economics ... [paywall]

Related Links:
The Wall Street Journal - Despite Tight Job Market, Labor Force's Income Is Squeezed

CEP Growth

John Van reenen webpage


News Posted: 23/02/2019      [Back to the Top]

The National Institute for Health Care Management (NIHCM) Foundation

Rising Hospital Prices Are Driving Up Health Care Spending

A new study found that hospital prices paid by private insurers for inpatient and outpatient care grew much more quickly than the prices paid to the physicians who provide care in these settings. For all inpatient care, hospital prices grew by 42 percent compared to 18 percent for physician prices. The same pattern was observed for four specific high-volume hospital-based procedures. This Research Insights summarizes the findings of this study, conducted by NIHCM grantee Zack Cooper and colleagues, and outlines proposed policy solutions.

Cooper Z, Craig S, Gaynor M, Harish NJ, Krumholz HM and Van Reenen J. "Hospital Prices Grew Substantially Faster Than Physician Prices for Hospital-Based Care in 2007-14." Health Affairs, 38(2):184-9, February 2019.

Management Practices and Organisational Structures webpage

Health Service Journal: Cowper's Cut: Tesco, Disneyfication and avoiding the real problems
Lord Prior also reiterated his view that competition in the NHS has proven "deeply damaging" and "failed almost totally". This may come as news to those familiar with the peer-reviewed academic work of Carol Propper, Zack Cooper and John Van Reenen. (The meaningful debate here is probably whether the effectiveness of competition is also cost-effective in both financial and opportunity cost terms.)

Related Links:
The National Institute for Health Care Management (NIHCM) Foundation - Rising Hospital Prices Are Driving Up Health Care Spending

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 18/02/2019      [Back to the Top]

Health Affairs

Hospital Prices Grew Substantially Faster than physician prices from 2007 to 2014


Related Links:
Health Affairs - Hospital Prices Grew Substantially Faster than physician prices from 2007 to 2014

The Price Ain't Right? Hospital Prices and Health Spending on the Privately Insured

CEP Growth

Zack Cooper webpage

John Van reenen webpage


News Posted: 04/02/2019      [Back to the Top]

Health Affairs

Variation in Health Spending Growth For The Privately Insured From 2007 To 2014


Related Links:
Health Affairs - Variation in Health Spending Growth For The Privately Insured From 2007 To 2014

The Price Ain't Right? Hospital Prices and Health Spending on the Privately Insured

CEP Growth

Zack Cooper webpage

John Van reenen webpage


News Posted: 04/02/2019      [Back to the Top]

Quarterly Journal of Economics

The Price Ain’t Right? Hospital prices and health spending on the privately insured


Related Links:
Quarterly Journal of Economics - The Price Ain’t Right? Hospital prices and health spending on the privately insured

The Price Ain't Right? Hospital Prices and Health Spending on the Privately Insured

CEP Growth

Zack Cooper webpage

John Van reenen webpage


News Posted: 01/02/2019      [Back to the Top]

Economics of Education Review (Journal)

The Economic Impact of Universities: Evidence from Across the Globe, Anna Valero and John Van Reenen

Volume 68, February 2019, Pages 53-67

The Economic Impact of Universities: Evidence from Across the Globe, Anna Valero, John Van Reenen. NBER Working Paper No. 22501

How universities boost economic growth Anna Valero, John Van Reenen
Related Links:
Economics of Education Review (Journal) - The Economic Impact of Universities: Evidence from Across the Globe, Anna Valero and John Van Reenen

The Economic Impact of Universities: Evidence from Across the Globe

CEP Growth

Anna Valero webpage

John Van reenen webpage


News Posted: 01/02/2019      [Back to the Top]

Huff Post

The Real Problem Isn't Executive Pay, It's That Everyone Else Is Underpaid

One little-known study could, however, help shed light on where the problem really lies. According to Professors Bell and Van Reenen of the LSE, the real issue is not that CEO pay has been inflated, but that worker pay has simply not kept pace. And not merely by a few percent here or there, but by a whopping 15 times. Every year. With this kind of disparity you can see it doesn't take long for a yawning pay chasm to develop, which then compounds exponentially.
Related Links:
Huff Post - The Real Problem Isn't Executive Pay, It's That Everyone Else Is Underpaid

Firm Performance and Wages: Evidence from Across the Corporate Hierarchy

CEP Growth CEP Labour Markets

Brian Bell webpage

John Van reenen webpage


News Posted: 29/01/2019      [Back to the Top]

ITPro

The fund will be split between fifteen projects which will all aim to encourage SMBs to adopt the latest technologies

"Lessons from this RCT will provide valuable insight into the most (a) effective and (b) cost-effective means of driving adoption of AI; whether education and convening is sufficient to drive adoption or whether a degree of 'hand-holding' is needed when seeking to drive adoption of perceived cutting edge technologies, said Dr Anna Valero, economist and researcher at LSE.
Related Links:
ITPro - The fund will be split between fifteen projects which will all aim to encourage SMBs to adopt the latest technologies

CEP Growth

Anna Valero webpage


News Posted: 29/01/2019      [Back to the Top]

The Financial Times

Three strategies for left-behind places

The first is a strategy of reversal. This consists of interventions that aim to offset or compensate for the technological and market dynamics that cause cost disadvantages for value creation in left-behind places - place-based investment subsidies, tax credits and the like. This is the most traditional type of industrial policy, and one that is more often marked by failure than success. But they can work: Chiara Criscuolo and her colleagues have examined European investment subsidies for areas that lag behind and found that greater subsidies can increase manufacturing investment and employment — but only by small, existing companies, not the biggest and most productive ones, nor new start-ups.

Related Links:
The Financial Times - Three strategies for left-behind places

Some Causal Effects of an Industrial Policy

CEP Growth CEP Trade CEP Urban and Spatial Programme

Chiara Criscuolo webpage

Ralf Martin webpage

Henry Overman webpage

John Van reenen webpage


News Posted: 21/01/2019      [Back to the Top]

iPolitics.ca

Brexit chaos belies Quebec sovereigntist promise of painless breakup

Long term is worse. "Our best estimate is that GDP per capita will be 6.3 to 9.5 per cent per year lower than it would be if we were to remain in the EU," wrote John Van Reenen, today an economics professor at MIT. "At the mid-point of this range, this means an eight per cent real pay cut: about four years of 'normal' wage gains wiped out in a deliberate act of economic self-harm."

Related Links:
iPolitics.ca - Brexit chaos belies Quebec sovereigntist promise of painless breakup

CEP Growth

John Van reenen webpage


News Posted: 18/01/2019      [Back to the Top]

The Times

The force of gravity on Britain's trade

But economists at the LSE argue that Mr Minford made no allowance for differences in quality among the manufactured goods being considered (Economists for Brexit: A Critique, Thomas Sampson, Swati Dhingra, Gianmarco Ottaviano, and John Van Reenen.) This is the crux of whether or not the EU can be seen as protectionist in manufactured goods. If goods of the same quality cost more in the EU than outside it, then there is a strong case for calling the bloc a protectionist one. But if prices are higher inside the bloc because they are of a higher quality, and because they are safer and more reliable than those on sale outside, then it is much harder to argue that the EU is protectionist.

Related Links:
The Times - The force of gravity on Britain's trade

‘ECONOMISTS FOR BREXIT’: A critique

CEP Growth CEP Trade

Thomas Sampson webpage

Swati Dhingra webpage

Gianmarco Ottaviano webpage

John Van reenen webpage


News Posted: 18/01/2019      [Back to the Top]

The Times

The force of gravity on Britain's trade

Claiming that manufacturing is protected in the EU is far more contentious. Mr Minford makes his case by taking an OECD databank of the prices of manufactured products around the world. He adjusts them for transport and distribution costs and concludes that the prices of manufactured products in the EU are 10 per cent above the world price.

But economists at the LSE argue that Mr Minford made no allowance for differences in quality among the manufactured goods being considered (Economists for Brexit: A Critique, by Thomas Sampson, Swati Dhingra, Gianmarco Ottaviano, and John Van Reenen).

Related Links:
‘ECONOMISTS FOR BREXIT’: A critique

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 17/01/2019      [Back to the Top]

Le Monde

Paul Seabright : « La politique industrielle a la capacité de soutenir l’emploi et l’investissement » / Paul Seabright: "Industrial policy has the capacity to support jobs and investment"

A British study estimated the impact of public subsidies in regions in difficulty. If a gain for the job was found but the big companies, first beneficiaries, do not change their behavior, notes the professor of economy in his column.

Fortunately, a study published a few days ago in the prestigious American Economic Review allows us to estimate the impact of a British program of support for businesses in regions in difficulty ("Some Causal Effects of an Industrial Policy", Chiara Criscuolo, Ralf Martin, Henry G. Overman and John Van Reenen, American Economic Review No. 109/1, January 2019).

Related Links:
Le Monde - Paul Seabright : « La politique industrielle a la capacité de soutenir l’emploi et l’investissement » / Paul Seabright: "Industrial policy has the capacity to support jobs and investment"

Some Causal Effects of an Industrial Policy

CEP Growth CEP Trade CEP Urban and Spatial Programme

Chiara Criscuolo webpage

Ralf Martin webpage

Henry Overman webpage

John Van reenen webpage


News Posted: 14/01/2019      [Back to the Top]

ActuAI (video)

Conférence « Intelligence artificielle et croissance » par Philippe Aghion/ Conference "Artificial Intelligence and Growth" by Philippe Aghion


Related Links:
ActuAI (video) - Conférence « Intelligence artificielle et croissance » par Philippe Aghion/ Conference "Artificial Intelligence and Growth" by Philippe Aghion

CEP Growth

Philippe Aghion webpage


News Posted: 04/01/2019      [Back to the Top]

Financial Times

The FT polled 81 economists about prospects for 2019

Swati Dhingra, associate professor, LSE
Slowdown like earlier, low GDP growth relative to other OECD countries. Dampening of investments. Hard to predict numbers here because short-term forecasts are not the most reliable but direction likely to be negative.

Stephen Machin, professor, LSE
Much of the uncertainty has already been factored in, but more recent events and extra uncertainty associated with that may magnify the effects we have already seen: upward pressure on price inflation, firms cutting back on intangibles like worker training and overtime, and associated negative effects on firm productivity.

John Van Reenen, professor, MIT Economics Department and Sloan Management School
It will affect it negatively, especially over investment and hiring (as it is currently doing).

Related Links:
Financial Times - The FT polled 81 economists about prospects for 2019

CEP Growth CEP Labour Markets

Swati Dhingra webpage

John Van reenen webpage

Stephen Machin webpage


News Posted: 02/01/2019      [Back to the Top]

The Economist

Macron tries to buy off his critics

"Macron has acknowledged his past behavioural mistakes," said Philippe Aghion, an economist who advised him during his campaign but has judged him ...

Related Links:
The Economist - Macron tries to buy off his critics

CEP Growth

Philippe Aghion webpage


News Posted: 11/12/2018      [Back to the Top]

The Observer

Why are so many UK businesses just barely managing to get by?

John Van Reenen argues that competent managers are desperately undervalued in the UK. The MIT economics professor, who until recently headed the LSE's Centre for Economic Performance, concedes that most studies that compare the skills and training of modern managers from one country with another can be difficult to decipher. But one thing is sure, he says: "There is a bigger fraction of atrociously managed firms in the UK than the US."
Read more at the Harvard Business Review: "Does management really work?", Nicholas Bloom, Raffaellla Sadun and John Van Reenen, November 2012

Related Links:
The Observer - Why are so many UK businesses just barely managing to get by?

Does Management Matter In Schools?

CEP Growth

Nick Bloom webpage

Raffaella Sadun webpage

John Van reenen webpage


News Posted: 08/12/2018      [Back to the Top]

New York Times

‘Yellow Vest’ Protests Shake France. Here’s the Lesson for Climate Change.

"We are in the transition period and the government has run into political economic problems," said Philippe Aghion, an economist at the prestigious College de France who advised Mr. Macron during his presidential campaign. "So you need to smooth out this period. You need to reach out a hand to help people across the bridge."

Related Links:
New York Times - ‘Yellow Vest’ Protests Shake France. Here’s the Lesson for Climate Change.

CEP Growth

Philippe Aghion webpage


News Posted: 07/12/2018      [Back to the Top]

LSE Brexit Blog

Resist, Rebel and Remain: the nation deserves and demands a second chance

Parliament should vote down Theresa May’s Brexit deal on Tuesday. John Van Reenen (MIT/LSE) writes that while the argument for remaining in the EU is fundamentally moral and political, and not economic, it is important for lawmakers to know that Brexit will make their constituents poorer. Ultimately, however, the nation deserves and demands a second chance to stay in Europe and to forge a new path with our allies and reject the crude nationalism and empty slogans of the Brexiters. The British people are better than this, he argues.
Related Links:
LSE Brexit Blog - Resist, Rebel and Remain: the nation deserves and demands a second chance

The Economic Consequences of the Brexit Deal

CEP Growth CEP Trade

Thomas Sampson webpage

John Van reenen webpage


News Posted: 07/12/2018      [Back to the Top]

LSE Business Review (Blog)

Capitalising on technological change and the low-carbon transition in the UK

As the UK has sought to redefine its relationship with the EU and the rest of the world, a renewed focus on sustainable growth becomes more urgent, write James Rydge, Ralf Martin and Anna Valero.

Related Links:
LSE Business Review (Blog) - Capitalising on technological change and the low-carbon transition in the UK

CEP Growth CEP Urban and Spatial Programme

Ralf Martin webpage

Anna Valero webpage


News Posted: 03/12/2018      [Back to the Top]

The Economic Times

A World Bank economist shows how to create the right jobs for a country

This report draws conclusions globally. For India, we understand there's been a lot of progress on improving allocative efficiencies. For many policy makers the next frontier is some of the capabilities which are internal to the firm, like management, for instance. There is a well-known study by Nick Bloom and colleagues which has found that for even medium to large sized firms the quality of management can oftentimes be poor. But very simple things can make long lasting differences in productivity. Starting to think more about how we can help firms improve their own capabilities is an agenda that globally is getting more attention and empirical traction.

Related Links:
The Economic Times - A World Bank economist shows how to create the right jobs for a country

CEP Growth

Nick Bloom webpage


News Posted: 26/11/2018      [Back to the Top]

Qrius

Brexit is a major and growing source of uncertainty for firms

The majority of businesses in the UK report that Brexit is a source of uncertainty. This column uses survey responses from around 3,000 businesses to evaluate the level and impact of this uncertainty. It finds that Brexit uncertainty has already reduced growth in investment by 6 percentage points and employment by 1.5 percentage points, and is likely to reduce future UK productivity by half of a percentage point.

Related Links:
Qrius - Brexit is a major and growing source of uncertainty for firms

CEP Growth

Nick Bloom webpage


News Posted: 25/11/2018      [Back to the Top]

MoneyWeek Magazine

Relative returns: why you should seek out family-run firms

The danger of nepotism
Professor John Van Reenen of the Massachusetts Institute of Technology thinks nepotism is a key risk. A 2011 study authored by Reenen, with Nicholas Bloom and Raffaella Sadun, found that those family firms overseen by professional managers tended to be well run, since the outside family members kept the managers on their toes.

Related Links:
MoneyWeek Magazine - Relative returns: why you should seek out family-run firms

Management Practices Across Firms and Countries

CEP Growth

Nick Bloom webpage

Raffaella Sadun webpage

John Van reenen webpage


News Posted: 22/11/2018      [Back to the Top]

YouthToday

Opinion: How Talented Kids From Low-income Families Become America’s ‘Lost Einsteins’

Innovation is widely viewed as the engine of economic growth.
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.

Related Links:
YouthToday - Opinion: How Talented Kids From Low-income Families Become America’s ‘Lost Einsteins’

Lost Einsteins: who becomes an inventor in America?

CEP Growth

John Van reenen webpage

Xavier Jaravel webpage


News Posted: 21/11/2018      [Back to the Top]

LSE Business Review (Blog)

Universities and industrial strategy in the UK

Evidence on how the positive economic effects of universities on individuals and the economy can be maximised - by Ghazala Azmat, Richard Murphy, Anna Valero and Gill Wyness.
Related Links:
LSE Business Review (Blog) - Universities and industrial strategy in the UK

Universities and industrial strategy in the UK

Universities and Industrial Strategy in the UK: Review of Evidence and Implications for Policy

CEP Education and Skills CEP Growth

Ghazala Azmat webpage

Richard Murphy webpage

Anna Valero webpage

Gill Wyness webpage


News Posted: 21/11/2018      [Back to the Top]

The Economist

Across the West powerful firms are becoming even more powerful

There is a rise of an innovative elite that is an engine of efficiency. Its members are companies that have mastered digital technologies and enjoy network effects that help them fend off slower competitors, says John Van Reenen.


Related Links:
The Economist - Across the West powerful firms are becoming even more powerful

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

John Van reenen webpage


News Posted: 15/11/2018      [Back to the Top]

New York Times

When Hospitals Merge to Save Money, Patients Often Pay More

Numerous studies by economists and others have underscored how hospital consolidation is driving up the cost of medical care. “Within the academic community, there is near unanimity,” said Zack Cooper, a health economist at Yale University who is among a group of researchers that has looked at how dominant hospitals affect prices.,br>
Related Links:
New York Times - When Hospitals Merge to Save Money, Patients Often Pay More

The Price Ain't Right? Hospital Prices and Health Spending on the Privately Insured

CEP Growth

Zack Cooper webpage

John Van reenen webpage


News Posted: 14/11/2018      [Back to the Top]

Tony Blair Institute for Global Change

New Labour's Domestic Policies: Neoliberal, Social Democratic or A Unique Blend?

Labour's move towards greater competition between hospitals where it was allowed may well have helped. Mortality rates for some illnesses appear to have declined faster where patient choice was expanded.

CEP work cited:


Related Links:
Tony Blair Institute for Global Change - New Labour's Domestic Policies: Neoliberal, Social Democratic or A Unique Blend?

Does Competition Improve Public Hospitals' Efficiency? Evidence from a Quasi-Experiment in the English National Health Service

Reducing Crime: More Police, More Prisons or More Pay?

CEP Growth CEP Urban and Spatial Programme

Zack Cooper webpage

Steve Gibbons webpage


News Posted: 14/11/2018      [Back to the Top]

Financial Times

Brexit doubts weaken productivity growth

Nick Bloom on Brexit uncertainty.

A survey of 3,000 companies, funded by the Bank of England, which notes "Brexit's importance as a source of uncertainty has risen further in recent months".

Nick Bloom, said:

"Less investment and employment growth by productive firms brings down the average UK productivity".


Related Links:
Financial Times - Brexit doubts weaken productivity growth

CEP Growth

Nick Bloom webpage


News Posted: 12/11/2018      [Back to the Top]

The Wall Street Journal

Humans Are Winning the Battle With Robots

John Van Reenen comments on whether executives in many industries are sold on the technical revolution.
"There is a big debate on whether robots are really delivering on the productivity benefits they might promise."

Related Links:
The Wall Street Journal - Humans Are Winning the Battle With Robots

CEP Growth

John Van reenen webpage

Nick Bloom webpage


News Posted: 09/11/2018      [Back to the Top]

Bloomberg Opinion

Health-Care Costs Are Still Eating the US Economy

A second possible reason is health-care providers' monopoly power. Often, patients don't have the option of driving a long distance to find a different provider. Research by economists Zack Cooper, Stuart V Craig, Martin Gaynor and John Van Reenen has found that hospital mergers tend to raise prices more when the combining hospitals are close to each other - clear evidence of monopoly power in the industry. Consolidation of suppliers and middleman purchasers may also be a factor.


Related Links:
Bloomberg Opinion - Health-Care Costs Are Still Eating the US Economy

The Price Ain't Right? Hospital Prices and Health Spending on the Privately Insured

CEP Growth

John Van reenen webpage

Zack Cooper webpage


News Posted: 29/10/2018      [Back to the Top]

The Scotsman

Brexit and trade: Why stakes for business are so high

The Centre for Economic Performance estimates that a "No-Deal WTO rules only" scenario would reduce the UK's trade with the EU by 40 per cent over ten years, bringing a fall in income per head of 2.6 per cent per year (net of the savings from no membership fees). And if that isn't scary enough, a leaked Civil Service Cross-Whitehall Report has suggested that it will cost the UK 7.7 per cent of GDP over the next decade and a half.


Related Links:
The Scotsman - Brexit and trade: Why stakes for business are so high

Brexit and the UK Economy

The Costs and Benefits of Leaving the EU: Trade Effects

The consequences of Brexit for UK trade and living standards

CEP Growth CEP Trade

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 25/10/2018      [Back to the Top]

Warwick.ac.uk

Wiley Prize in Economics awarded to Associate Professor Mirko Draca of Warwick Economics

The prize, sponsored by Wiley is worth £5,000 and is awarded annually for achievement in research by an outstanding early career economist.

Associate Professor Mirko Draca was named by the British Academy and Wiley as the winner of this year’s prize for his promising early-career work in economics, especially for his work on the effect of Chinese imports.


Related Links:
Warwick.ac.uk - Wiley Prize in Economics awarded to Associate Professor Mirko Draca of Warwick Economics

CEP Growth

Mirko Draca webpage


News Posted: 09/08/2018      [Back to the Top]

The Independent

UK economy will suffer more than EU in 'no deal' Brexit scenario, warns IMF

The OECD estimated before the referendum that a WTO Brexit could cost the UK up to 5.1 percent of GDP over 15 years. A study by the London School of Economics estimated a 9.5 per cent hit.


Related Links:
The Independent - UK economy will suffer more than EU in 'no deal' Brexit scenario, warns IMF

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

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage

Jonathan Wadsworth webpage


News Posted: 20/07/2018      [Back to the Top]

The Wall Street Journal

The problem with innovation: the biggest companies are hogging all the gains

There is a “lack of self-awareness among lots of firms,” says John Van Reenen, professor of economics at the Massachusetts Institute of Technology. “Some think they are awesome. But they are actually doing pretty badly.” 


Related Links:
The Wall Street Journal - The problem with innovation: the biggest companies are hogging all the gains

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

John Van reenen webpage

Chiara Criscuolo webpage

Nick Bloom webpage


News Posted: 15/07/2018      [Back to the Top]

Financial Express (India)

Why India needs better management

One problem in assessing the impact of management is that it is an amorphous and multifaceted category, including a variety of possible activities. This problem has been addressed by the work of economists like Nicholas Bloom and John Van Reenen, who have been leaders in creating a survey of management practices in 12,000 firms across 34 countries, spanning a decade and a half. They have systematised, and quantified to a considerable extent, the measurement of management practices and quality.


Related Links:
Financial Express (India) - Why India needs better management

Why do Management Practices Differ Across Firms and Countries?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


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

LSE Business Review blog

When a large company enters a local market, it stimulates local innovation

Proximity to a large plant plays an important role in the diffusion of knowledge and patent production, write Vincenzo Scrutinio, Christian Fons-Rosen and Katalin Szemeredi.

  


Related Links:
LSE Business Review blog - When a large company enters a local market, it stimulates local innovation

Colocation and Knowledge Diffusion: Evidence from Million Dollar Plants

CEP Growth

Vincenzo Scrutinio webpage


News Posted: 30/06/2018      [Back to the Top]

CEP Awards

Economics PhD student wins the AQR Top Finance Graduate Award 2018 at CBS

Congratulations to Kilian Huber, Economics PhD and Job market candidate, who is among the Winners of the AQR Top Finance Graduate 2018 Award at the Copenhagen Business School!  The award recognizes the most promising finance PhD graduates in 2018, specifically graduates specializing in financial economics pursuing degrees in any field of study, e.g. business or economics, whose dissertation and broader research potential carry the greatest promise of making an impact on the finance practice and academia. Each winner will receive a cash prize of 1,400 USD sponsored by AQR and present their research in Copenhagen on June 8, 2018. For further information please see here.


Related Links:
CEP Awards - Economics PhD student wins the AQR Top Finance Graduate Award 2018 at CBS

CEP Growth

Kilian Huber webpage


News Posted: 03/06/2018      [Back to the Top]

Times Higher Education

Are universities engines or products of economic growth?

Research productivity – measured by number of papers produced per head of population – also correlates reasonably strongly with economic development measures. So do enrolment levels in tertiary education – although, interestingly, the correlation declines as enrolment rates increase, suggesting that a law of diminishing returns could apply. In addition, according to Anna Valero, an ESRC innovation fellow at the London School of Economics, “simple country-level correlations show that those with more universities tend to have more patents. And evidence suggests links between local patenting and growth. These effects tend to be stronger for growth in industries that are relevant for the particular patent or research area”.


Related Links:
Times Higher Education - Are universities engines or products of economic growth?

How universities boost economic growth

The Economic Impact of Universities: Evidence from Across the Globe

CEP Growth

Anna Valero webpage


News Posted: 31/05/2018      [Back to the Top]

PBS

Who becomes an inventor? This Arkansas innovation hub is trying to spark a new generation

As part of a larger ongoing study of inequality in America, researchers used patent data to focus on innovation. Among their findings, children from high-income families are 10 times as likely to become inventors as those from low-income families. White children are three times more likely to become inventors than black children. And just 18 percent of inventors are women. Harvard’s Alex Bell worked on the study. He met us at the National Inventors Hall of Fame Museum in Alexandria, Virginia. Alex Bell:  What we see is that there are a lot of talented kids who seem like they have the right stuff to become inventors, but yet they don’t follow careers of innovation. This is concerning because it seems like we’re leaving a lot of innovation on the table, and innovation we really think is the fuel for a long-run economic growth.


Related Links:
PBS - Who becomes an inventor? This Arkansas innovation hub is trying to spark a new generation

Lost Einsteins: who becomes an inventor in America?

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

CEP Growth

John Van reenen webpage


News Posted: 30/05/2018      [Back to the Top]

Science Times – blog (China)

The “headline party” is polluting our scientific and technological community

Recent studies show that scientific progress is decelerating and tends to stagnate on the whole. In the paper “Innovating Harder and Harder to Find?” published in March of this year, four economists (Nicholas Bloom, Charles Jones, Michael Webb of Stanford University, and John Van Reenen of MIT) stated: “From various lines The large amount of evidence from various industries, companies, and products indicates that the large amount of investment in scientific research has resulted in a dramatic drop in the effectiveness of research.”


Related Links:
Science Times – blog (China) - The “headline party” is polluting our scientific and technological community

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 24/05/2018      [Back to the Top]

Bilan

Businesses are widening income inequalities

We must go back in time to grasp this issue, both economic and societal. According to researcher Nicholas Bloom, the profound technological and structural change that has transformed business operations in recent decades is one of the aggravating factors. This American offers an unpublished reading of the widening income differences in the United States by examining the role played by employers. The figures are compelling: the 1% of the better off earn today 81 times more than half of the least rich workers, compared to 27 times more in 1980. According to Nicholas Bloom, this pay gap between companies largely explains the increase in income inequality in the United States. It also accounts for a substantial part of their rise in other countries as shown by research conducted in the United Kingdom, Germany and Sweden. "According to the US economist, the increase in salary amplitudes between companies can be attributed three factors: the rise of outsourcing, the adoption of information technology and the cumulative effects of prosperity.


Related Links:
Bilan - Businesses are widening income inequalities

Firming Up Inequality

CEP Growth

Nick Bloom webpage


News Posted: 22/05/2018      [Back to the Top]

Bloomberg

Roman Abramovich and Britain’s next crusade

A paper from the Center for Economic Performance at the London School of Economics estimated that Brexit could lead to a 22 percent fall in FDI over the next decade, causing a 3.4 percent decline in real income. As Britain prepares to leave the European Union, its economy needs to hold on to as much foreign capital as possible.

Related publications

‘The impact of Brexit on foreign investment in the UK’, Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen, CEP Brexit Analyses Paper No.3, April 2016

http://cep.lse.ac.uk/pubs/download/brexit03.pdf


Related Links:
Bloomberg - Roman Abramovich and Britain’s next crusade

Foreign investors love Britain - but Brexit would end the affair

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 22/05/2018      [Back to the Top]

OK Diario

Garicano advierte de que si no se distribuye la riqueza, la clase media se irá al populismo/Garicano warns that if wealth is not distributed, the middle class will go to populism

The economic brain of Citizens, Luis Garicano, has warned that "things (the economic situation) are about to be twisted by the rise of populism" and predicts that if the current system is not able to distribute the wealth that is going to generate among the middle class, these will end inevitably on the populist shore.


Related Links:
OK Diario - Garicano advierte de que si no se distribuye la riqueza, la clase media se irá al populismo/Garicano warns that if wealth is not distributed, the middle class will go to populism

CEP Growth


News Posted: 18/05/2018      [Back to the Top]

New Zealand Herald

Study finds work-from-home employees more productive than office workers

Those who work from home are more productive than people who work in an office, according to a new two-year study. The ground-breaking experiment, conducted by Stanford University professor Nicholas Bloom, showed an astounding productivity boost among the telecommuters and a decrease in attrition, according to Thrive Global. To conduct the study, Bloom enlisted the help of former Stanford student James Liang, who is now the co-founder and CEO of Ctrip, China's largest travel agency, with 16,000 employees.

Also in:

Sightline

Weekend Reading

Stanford economist Nicholas Bloom ran a two-year randomized experiment tracking 500 employees of CTRIP: half were assigned to work from home and other half to continue working in the office. Guess what? Working from home massively improved employees’ productivity. And their job satisfaction—quit rates decreased by 50 percent in the work from home group. And of course, society benefited from less pollution and traffic from all those commutes. Article here and Bloom’s TEDx talk here (skip to 7:10 for discussion of the study).

http://www.sightline.org/2018/05/18/weekend-reading-5-18-2018/

 

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015


Related Links:
New Zealand Herald - Study finds work-from-home employees more productive than office workers

CEP Growth

Nick Bloom webpage


News Posted: 18/05/2018      [Back to the Top]

Cinco Noticias (Spain)

Un estudio demuestra que trabajar desde casa es más productivo que hacerlo en una oficina/A study shows that working from home is more productive than working in an office

Professor Nicholas Bloom led this research developed over two years on the basis of 500 workers of Ctrip, a technology securities company based in China. Ctrip has a payroll of approximately 16,000 employees.

Also in:

IT-Zoom (Germany)

Digital jobs make employees more productive

As a result, positive effects such as an increase in the productivity of homeworkers arose. But there were also disadvantages visible: Many employees feel isolated after some time, because they lacked the exchange with colleagues. They also complained that their work was less recognized because they were also less visible due to lack of corporate presence. Nicholas Bloom, one of the authors of the study, therefore recommends that companies limit home work to two to three days a week so as not to jeopardize the cohesion of teams.

https://www.it-zoom.de/mobile-business/e/digitale-arbeitsplaetze-machen-beschaeftigte-produktiver-19800/

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015


Related Links:
Cinco Noticias (Spain) - Un estudio demuestra que trabajar desde casa es más productivo que hacerlo en una oficina/A study shows that working from home is more productive than working in an office

CEP Growth

Nick Bloom webpage


News Posted: 17/05/2018      [Back to the Top]

The Times

Brexit will weaken stronger companies, says top economist

Leaving the European Union is likely to reduce productivity in Britain as it will strengthen weaker companies while hurting the strongest, an economist has warned. Nicholas Bloom, a professor at Stanford University in California, added that company bosses had spent 2 per cent of their working time preparing for Brexit, which had cost the economy in wasted opportunities. He said that living standards would be damaged post-Brexit as companies that were the most optimistic were also the least productive.

Also in:

The Times

Our survey says...leave the questions to the grown-ups

Nicholas Bloom, a British economist at Stanford University in California, was back home yesterday to discuss the new discipline of measuring business expectations. Surveys, apparently, are the way to do it and they depend on the quality of personnel inputting the information. Managers and financial controllers are fine, but God forbid anyone in human resources is assigned the task. “This is the category I worry about a lot. I really don’t want HR or admin filling this survey out. Thankfully, at worst it’s 10 per cent of people who really don’t know what they are talking about,” Professor Bloom said.

https://www.thetimes.co.uk/article/our-survey-says-leave-the-questions-to-the-grown-ups-lwcd809lw

 

 


Related Links:
The Times - Brexit will weaken stronger companies, says top economist

CEP Growth

Nick Bloom webpage


News Posted: 17/05/2018      [Back to the Top]

ViveUSA.mx (Mexico)

Esto es lo peor de trabajar desde casa/This is the worst of working from home

A study conducted by Nicholas Bloom, an economics expert at Stanford University, showed that working from home increases the productivity of workers by up to 13 percent, and employees did not wear out as much.

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015

 


Related Links:
ViveUSA.mx (Mexico) - Esto es lo peor de trabajar desde casa/This is the worst of working from home

CEP Growth

Nick Bloom webpage


News Posted: 16/05/2018      [Back to the Top]

Asharq Al-Awsat

Maybe this is as Good as Innovation Gets

That daunting prospect has received some support from a new paper by economists Nicholas Bloom, Charles I. Jones, John Van Reenen and Michael Webb, entitled “Are Ideas Getting Harder to Find?” They look at several areas in fields like semiconductors, agriculture and medicine, and find that while steady progress continues, keeping it going has required an ever-increasing army of researchers. That’s true whether productivity is measured economically, or in more concrete terms like crop yields, new drug discoveries, transistor density on computer chips, or the number of academic publications.


Related Links:
Asharq Al-Awsat - Maybe this is as Good as Innovation Gets

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 13/05/2018      [Back to the Top]

Global Times

Macron’s reform train should not be derailed

By Philippe Aghion and Benedicte Berner

French President Emmanuel Macron received plenty of praise in the international media for his recent speeches in Washington DC, and Brussels. But for the French, what really matters is Macron's management of domestic problems, of which there are many, not least rolling strikes by railway workers across the country.


Related Links:
Global Times - Macron’s reform train should not be derailed

CEP Growth

Philippe Aghion webpage


News Posted: 13/05/2018      [Back to the Top]

Pacific Standard

Health-care costs are growing in the U.S., thanks in large part to private insurers

Health economists Zack Cooper, Stuart V. Craig, Martin Gaynor, and John Van Reenen recently released an updated version of an older paper analyzing variations in health-care pricing for privately insured patients across the country. They noted significant variations across regions and hospitals, and within hospitals. They also found that a significant driver of the variation is market structure, concluding that "[m]onopoly hospitals are associated with 12 percent higher prices," whereas hospitals located in concentrated insurer markets have lower prices.

Related publications

‘The Price Ain’t Right? Hospital Prices and Health Spending on the Privately Insured’, Zack Cooper, Stuart V. Craig, Martin Gaynor and John Van Reenen, mimeo, May 7 2018

http://www.healthcarepricingproject.org/sites/default/files/20180507_variationmanuscript_0.pdf


Related Links:
Pacific Standard - Health-care costs are growing in the U.S., thanks in large part to private insurers

The Price Ain't Right? Hospital Prices and Health Spending on the Privately Insured

CEP Growth

Zack Cooper webpage

John Van reenen webpage


News Posted: 10/05/2018      [Back to the Top]

Pacific Standard Magazine

Health-Care Costs are Growing in the U.S., Thanks in Large Part to Private Insurers

On a related note, health economists Zack Cooper, Stuart V. Craig, Martin Gaynor, and John Van Reenen recently released an updated version of an older paper analyzing variations in health-care pricing for privately insured patients across the country. They noted significant variations across regions and hospitals, and within hospitals. They also found that a significant driver of the variation is market structure, concluding that "[m]onopoly hospitals are associated with 12 percent higher prices," whereas hospitals located in concentrated insurer markets have lower prices.

Related publications

‘The Price Ain’t Right? Hospital Prices and Health Spending on the Privately Insured’, Zack Cooper, Stuart V. Craig, Martin Gaynor and John Van Reenen, mimeo, May 7 2018

http://www.healthcarepricingproject.org/sites/default/files/20180507_variationmanuscript_0.pdf

 


Related Links:
Pacific Standard Magazine - Health-Care Costs are Growing in the U.S., Thanks in Large Part to Private Insurers

The Price Ain't Right? Hospital Prices and Health Spending on the Privately Insured

CEP Growth

Zack Cooper webpage

John Van reenen webpage


News Posted: 10/05/2018      [Back to the Top]

The Wall Street Journal

Trump’s trade threats are hurting growth

Economists Scott Baker, Nicholas Bloom and Steven Davis —authors of the study that measured Depression-era uncertainty—have found that economic uncertainty related to trade this March was more than five times as great as the pre-election average for 2016.


Related Links:
The Wall Street Journal - Trump’s trade threats are hurting growth

Economic Recovery and Policy Uncertainty

CEP Growth

Nick Bloom webpage


News Posted: 10/05/2018      [Back to the Top]

Vox

The absurdity of American health care pricing, in one chart

We’ve known for decades now that there is widespread variation in what different hospitals charge for the same medical procedures. Study after study confirms this finding (one of my favorite studies shows that, in California, an appendectomy can cost anywhere between $1,529 and $186,955 depending on where it was performed). But a new paper from economists Zack Cooper, Stuart Craig, Martin Gaynor, and John Van Reenen sheds light on another fascinating type of variation: price differences within a single hospital. Their research is the first I’ve seen that shows insurers pay different prices for the same procedure at the same hospital.           

Related publications

‘The Price Ain’t Right? Hospital Prices and Health Spending on the Privately Insured’, Zack Cooper, Stuart V. Craig, Martin Gaynor and John Van Reenen, mimeo, May 7 2018

http://www.healthcarepricingproject.org/sites/default/files/20180507_variationmanuscript_0.pdf


Related Links:
Vox - The absurdity of American health care pricing, in one chart

The Price Ain't Right? Hospital Prices and Health Spending on the Privately Insured

CEP Growth

Zack Cooper webpage

John Van reenen webpage


News Posted: 09/05/2018      [Back to the Top]

Entrepreneur

Your team wants to work from home. All you have to do is keep them connected

Although telecommuting is not yet universal, its adoption by technology giants and startups is very telling. Accordingly, many perks account for the meteoric rise of this nascent shift. On the employees’ side, remote working means avoiding traffic jams, flexibility and more time for life outside works. Employers save overhead costs and can hire from a larger pool of talents. In a study conducted by Stanford University professor Nicholas Bloom, more employees and employers are confirming that remote workers are more productive. In a nutshell, it is a win-win situation.

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015


Related Links:
Entrepreneur - Your team wants to work from home. All you have to do is keep them connected

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth

Nick Bloom webpage


News Posted: 09/05/2018      [Back to the Top]

The Times

Perfectly timed heatwave stops economy from cooling down

The record-breaking bank holiday heatwave was perfectly timed to boost Britain’s economy after a decidedly cool start to the year, experts said yesterday.  Economists suggested that the hot spell was likely to have helped businesses to recover some ground after the Beast from the East brought heavy snow in February. … “If it had been in the middle of a working week you might expect that people would have been more tempted to skive off work,” Anna Valero, a research fellow at the Centre for Economic Performance at the London School of Economics, said. “But given that everybody has just had a few days of it, most of us will have had enough sun and are happy to go back to work.”


Related Links:
The Times - Perfectly timed heatwave stops economy from cooling down

CEP Growth

Anna Valero webpage


News Posted: 09/05/2018      [Back to the Top]

Project Syndicate

Macron's reform train will not be derailed

Article by Philippe Aghion and Beneficte Berner:  French President Emmanuel Macron was elected with a clear mandate to reform the French economy, and he has not hesitated to target politically sensitive institutions such as the national railway. But if Macron acquiesces to ongoing protests by France's unions, the rest of his reform agenda will become vulnerable.


Related Links:
Project Syndicate - Macron's reform train will not be derailed

CEP Growth

Philippe Aghion webpage


News Posted: 08/05/2018      [Back to the Top]

The Hindu

Secularising Europe’s economy

It is widely known that the Protestant Reformation, which was launched by popular reformers like Martin Luther and John Calvin in the 16th century, brought about an abrupt end to the massive and unquestioned powers of the Catholic Church. What is not fully appreciated, however, is the role that the Reformation played in secularising the European economy. This is elaborated in a forthcoming paper in the Quarterly Journal of Economics, “Religious competition and reallocation: The political economy of secularisation in the Protestant Reformation”, by Davide Cantoni, Jeremiah Dittmar and Noam Yuchtman.

Related publications

Religious Competition and Reallocation: The Political Economy of Secularization in the Protestant Reformation , Davide Cantoni, Jeremiah Dittmar, Noam Yuchtman , NBER Working Paper No. 23934.October 2017.


Related Links:
The Hindu - Secularising Europe’s economy

Reallocation and Secularization: The Economic Consequences of the Protestant Reformation

CEP Growth CEP Trade

Jeremiah Dittmar webpage


News Posted: 08/05/2018      [Back to the Top]

Foreign Affairs

Trump’s trade rhetoric is already hurting America

Since Trump was elected president, many measures of policy uncertainty have jumped. Take the widely used monthly U.S. Policy Uncertainty Index created by the economists Scott Baker, Nicholas Bloom, and Steven Davis, which tracks discussions of policy uncertainty in major U.S. newspapers. From 1985 (when the index began) through October 2016, the index averaged a value of about 109. Since Trump’s election, it has…


Related Links:
Foreign Affairs - Trump’s trade rhetoric is already hurting America

Measuring Economic Policy Uncertainty

Policy uncertainty: a new indicator

CEP Growth

Nick Bloom webpage


News Posted: 07/05/2018      [Back to the Top]

Les Echos.fr

Etendons la négociation collective aux seuils sociaux/ Let's extend collective bargaining to social thresholds

Economic publications show that these effects would have a strong impact on the level of macroeconomic equilibrium and consequently on that of structural unemployment. A recent article by Luis Garicano, Claire Lelarge and John Van Reenen* provides a strong illustration of the threshold of 50 employees (the heaviest in terms of obligations).

            Related publications

‘Firm size distortions and the productivity distribution : Evidence from France’, American Economic Review, 2016, 106 (11), pp. 3439-3479

https://pubs.aeaweb.org/doi/pdf/10.1257/aer.20130232


Related Links:
Les Echos.fr - Etendons la négociation collective aux seuils sociaux/ Let's extend collective bargaining to social thresholds

Firm Size Distortions and the Productivity Distribution: Evidence from France

CEP Growth

John Van reenen webpage


News Posted: 04/05/2018      [Back to the Top]

The Economist – ‘Open Markets’ blog

A healthy re-examination of free trade’s benefits and shocks

An interview with John Van Reenen of MIT.  The Economist: At its most basic level, what is free trade? John Van Reenen: Free trade means allowing good and services to move as freely as possible across different countries. As countries developed, they started making and swapping things among people within the borders of their own country. As transport improved, they could start buying and selling stuff abroad. For a long time there were big barriers to international trade. At a time when governments struggled to raise tax from their own people, levying heavy import duties on things coming in from abroad was easier to implement. But economists eventually won the argument, which said that keeping those barriers as low as possible was sensible policy.


Related Links:
The Economist – ‘Open Markets’ blog - A healthy re-examination of free trade’s benefits and shocks

CEP Growth

John Van reenen webpage


News Posted: 04/05/2018      [Back to the Top]

Cambridge Network

The EU single market at 25

A conference at Cambridge Judge marked the 25th anniversary of the European Union’s single market, in advance of a special issue of the Review of Industrial Organisation journal. There has been much progress, but plenty of work remains to translate institutional change into greater consumer benefit. The European Union’s border-free “single market” came into effect on 1 January 1993, and to mark its 25th anniversary a special issue of the Review of Industrial Organization journal will be published early next year with eight papers on a variety of topics related to the single market. The guest editors of the special journal issue are Cambridge Judge Business school faculty members Michael Pollitt, Professor of Business Economics, and Christos Genakos, University Senior Lecturer in Economics, who organised a conference at Cambridge Judge on 20 April entitled “Review of Industrial Organization Celebrating 25 Years of the EU Single Market”.


Related Links:
Cambridge Network - The EU single market at 25

CEP Growth

Christos Genakos webpage


News Posted: 03/05/2018      [Back to the Top]

The Economist - China chill

Fears that China has hurt innovation in the West are overblown

America’s patents and research spending have soared alongside its trade deficit with China.  Article in the Economist refers to the research paper ‘

Related publications

Trade Induced Technical Change? The Impact of Chinese Imports on Innovation, IT and Productivity, Nicholas Bloom, Mirko Draca and John Van Reenen, Review of Economic Studies, 83:1, January 2016


Related Links:
The Economist - China chill - Fears that China has hurt innovation in the West are overblown

Trade Induced Technical Change? The Impact of Chinese Imports on Innovation, IT and Productivity

CEP Growth

Nick Bloom webpage

Mirko Draca webpage

John Van reenen webpage


News Posted: 03/05/2018      [Back to the Top]

Vietnambiz

If you keep the habit of arbitrary, business people themselves 'take the foot kicking'

Pointing out the weaknesses of the small business, Professor Nicholas Bloom and his colleagues developed a survey instrument for measuring business quality. According to the Vietnam Chamber of Commerce and Industry's 2017 CPI Report, "56% of domestic firms use just a few Data Reports to make business decisions."  Professor Bloom's research team also pointed out, "Vietnamese exporters, directly or indirectly, will have a high level of management, followed by those with direct clients. outside - FDI. In the economy, the weakest managers are mainly involved in wholesaling and retailing for the domestic market or providing goods and services to Vietnamese state agencies and enterprises.”

Related Publications

'Measuring and Explaining Management Practices Across Firms and Nations', Nick Bloom and John Van Reenen, Quarterly Journal of Economics (2007) 122 (4), 1351-1408.

https://doi.org/10.1162/qjec.2007.122.4.1351


Related Links:
Vietnambiz - If you keep the habit of arbitrary, business people themselves 'take the foot kicking'

International Data on Measuring Management Practices

Measuring and Explaining Management Practices Across Firms and Countries

CEP Growth

Nick Bloom webpage


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

Elite Daily

Here’s how to get a free flight from NYC to Hawaii through Hawaii’s tourism contest

More industries have embraced remote positions in response to the desires of an evolving workforce, with a study by Stanford professor Nicholas Bloom finding that working remotely was directly tied to increased productivity and employee satisfaction. Enter Hawaii Tourism United States, which hopes to use its new remote program, “Work From Hawaii,” to prove that the elusive work-life balance might be closer than you think (aka relaxing on a Hawaiian beach with a tropical drink in your hand).

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015


Related Links:
Elite Daily - Here’s how to get a free flight from NYC to Hawaii through Hawaii’s tourism contest

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth

Nick Bloom webpage


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

Bloomberg.com

Maybe this is as good as innovation gets

The scary idea is that easy-to-discover technology is a finite, exhaustible resource. … That daunting prospect has received some support from a new paper by economists Nicholas Bloom, Charles I. Jones, John Van Reenen and Michael Webb, entitled “Are Ideas Getting Harder to Find?” They look at several areas in fields like semiconductors, agriculture and medicine, and find that while steady progress continues, keeping it going has required an ever-increasing army of researchers. That’s true whether productivity is measured economically, or in more concrete terms like crop yields, new drug discoveries, transistor density on computer chips or the number of academic publications.


Related Links:
Bloomberg.com - Maybe this is as good as innovation gets

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


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

CMI – Chartered Management Institute

Why promotion breeds incompetence in managers

One study suggests incompetent managers are at the root of poor performance issues in UK offices, with 96% of the 800 HR professionals surveyed citing performance management as a problem at their organisation. Research from the Centre for Economic Performance at the London School of Economics also suggests poor managers are a cause of the UK’s productivity woes in recent years, with the country scoring just 3.03 out of five for management best practice, behind the US (3.31), Japan (3.23), Germany (3.21) and Canada (3.14).


Related Links:
CMI – Chartered Management Institute - Why promotion breeds incompetence in managers

The New Empirical Economics of Management

CEP Growth

Nick Bloom webpage

Renata Lemos webpage

Raffaella Sadun webpage

Daniela Scur webpage

John Van reenen webpage


News Posted: 30/04/2018      [Back to the Top]

CEP mentions in Parliament

LSE Research mentioned in Lords Committee

Professor Menon from KCL referenced LSE research in his appearance before the Lords EU Sub-Cttee looking at Brexit and the value of the Commons Security and Defense Policy (CSDP) missions to the UK's foreign policy goals. Professor Menon said "economists at the LSE predicted a few months ago that the impact economically of our leaving the single market and the customs union will be approximately 3% of GDP year on year" in an exchange on forecasting. The session took place in January and the transcript was published this week. 


Related Links:
CEP mentions in Parliament - LSE Research mentioned in Lords Committee

The Costs and Benefits of Leaving the EU: Trade Effects

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 27/04/2018      [Back to the Top]

Coingeek

Financial watchdog confirms crypto derivatives’ regulatory status in UK

In March, the FCA launched a cryptocurrency task force with the Bank of England to explore how to regulate and control the cryptocurrency sector. It planned to release an analytical report on cryptocurrencies later this year. John Van Reenen, an MIT Professor of Economics, recently said that the UK would more than likely be taking a favorable stance on cryptocurrencies; however, the latest measures seem to indicate a different story.

 


Related Links:
Coingeek - Financial watchdog confirms crypto derivatives’ regulatory status in UK

CEP Growth

John Van reenen webpage


News Posted: 27/04/2018      [Back to the Top]

LSE Blog - British Politics & Policy

Kwasi Kwarteng: Does the UK need its own infrastructure bank?

Several commentators have suggested that a domestic infrastructure bank could fill the void if the UK was unable to access EIB support. The LSE Growth Commission have promoted the creation of such an institution arguing that it would ‘help to reduce policy risk and…make investments that could then provide powerful examples with catalytic effects on private investment’. Indeed, examples from around the world demonstrate the success of such institutions.

Related publications

‘Investing for Prosperity: Skills, Infrastructure and Innovation’, Philippe Aghion, Tim Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Chris Pissarides, Nick Stern and John Van Reenen, LSE Growth Commission Report, January 2013http://www.lse.ac.uk/researchAndExpertise/units/growthCommission/documents/pdf/LSEGC-Report.pdf

Related links

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

 


Related Links:
LSE Blog - British Politics & Policy - Kwasi Kwarteng: Does the UK need its own infrastructure bank?

Investing for Prosperity: Skills, Infrastructure and Innovation

CEP Growth CEP Trade

Philippe Aghion webpage

Timothy Besley webpage

John Van reenen webpage


News Posted: 27/04/2018      [Back to the Top]

TechNews (Taiwan)

Low turnover at home, high efficiency, research indicates no loss to the company

As urban traffic gets more and more jammed, housing prices in urban centers are getting higher and higher, commuting distances are getting longer and longer, and professional women have family burns in their homes. Many people think of working at home as a dream, but most employers still do not I want employees to work from home. Nicholas Bloom, a professor of economics at Stanford University, points out that working from home is not only more efficient but also has higher job satisfaction and lower turnover.

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015


Related Links:
TechNews (Taiwan) - Low turnover at home, high efficiency, research indicates no loss to the company

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth

Nick Bloom webpage


News Posted: 26/04/2018      [Back to the Top]

Forbes

A growing number of Indian Americans are leading America’s best business schools

But beyond just the numbers, the onset of globalization and its impact on international finance and global commerce has forced American business schools to seek new ways to burnish their “international” credentials.  From launching satellite campuses abroad, to attracting greater numbers of foreign students at home, these universities are focused on both looking and acting global. Indian American faculty are uniquely well positioned in this regard, says prominent Stanford Business School professor Nicholas Bloom. In addition to their unparalleled expertise, these individuals are “fluent English speakers but also international – a huge advantage for appealing to both a domestic and overseas audiences.”


Related Links:
Forbes - A growing number of Indian Americans are leading America’s best business schools

In brief: Improving management in India

Does Management Matter? Evidence from India

CEP Growth

Nick Bloom webpage


News Posted: 25/04/2018      [Back to the Top]

Ad.nl

According to this study, everyone could work better at home/ Volgens dit onderzoek zou iedereen beter thuis kunnen werken

"The management of the company was a bit pessimistic," says  researcher Nicholas Bloom  in a Ted Talk about the research. "They expected the homeworkers to go to bed. They were afraid that they would watch the Chinese equivalent of Jerry Springer all day or play computer games. "

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015


Related Links:
Ad.nl - According to this study, everyone could work better at home/ Volgens dit onderzoek zou iedereen beter thuis kunnen werken

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth

Nick Bloom webpage


News Posted: 23/04/2018      [Back to the Top]

The Week

The hidden dangers of flexible work hours

One notable study was conducted in 2015 by Stanford University researcher Nicholas Bloom, who wanted to test whether the belief that workers slack off more when working from home was valid. Bloom and his crew studied the differences between the employees at a call center in China who worked from home, and…

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015


Related Links:
The Week - The hidden dangers of flexible work hours

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth

Nick Bloom webpage


News Posted: 22/04/2018      [Back to the Top]

Red Pepper

Chartism for the 21st Century: Why trade unions are backing an overhaul of Westminster

And academics at the Centre for Economic Performance at LSE looked at the relationship between marginal seats and hospital closures between 1997 and 2005. They found “Marginality…has a significant positive impact on the number of hospitals that exist” (Bloom et. al., 2010). In other words, hospitals in safe seats are more likely to close down than those in ‘swing’ seats.


Related Links:
Red Pepper - Chartism for the 21st Century: Why trade unions are backing an overhaul of Westminster

The Impact of Competition on Management Quality: Evidence from Public Hospitals

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 19/04/2018      [Back to the Top]

Business Wire

Harvard Business Review announces 59th Annual HBR McKinsey Award winners

BOSTON--(BUSINESS WIRE)--Organizations need competent management just as much as they need analytical brilliance, argue the winners of this year’s HBR McKinsey Award, which honors the best Harvard Business Review article of the year. In "Why Do We Undervalue Competent Management?,” Raffaella Sadun, Nicholas Bloom, and John Van Reenen challenge the conventional thinking that operational effectiveness is not a source of competitive differentiation. Through in-depth research involving over 12,000 firms in 34 countries, they found that companies with strong managerial processes do significantly better on metrics such as profitability, growth, longevity, and productivity. What’s more, the differences in process quality persist over time, suggesting that competent management is not easy to imitate.


Related Links:
Business Wire - Harvard Business Review announces 59th Annual HBR McKinsey Award winners

CEP Growth

Raffaella Sadun webpage

Nick Bloom webpage

John Van reenen webpage


News Posted: 17/04/2018      [Back to the Top]

Lifehacker

Research shows working from home is better, as long as you can handle the isolation

Mautz cites a two-year study conducted by Stanford economics professor Nicholas Bloom, where 250 of 500 employees from China-based travel agency Ctrip volunteered to work from home. Then, over the 24 months, they were compared to their office-dwelling counterparts.

  


Related Links:
Lifehacker - Research shows working from home is better, as long as you can handle the isolation

Does Working from Home Work? Evidence from a Chinese Experiment

Working or shirking?

CEP Growth

Nick Bloom webpage


News Posted: 17/04/2018      [Back to the Top]

Harvard Business School

Press Release: Associate Professor Raffaella Sadun Wins Harvard Business Review McKinsey Award for Best Article

Harvard Business School associate professor Raffaella Sadun and coauthors Nicholas Bloom of Stanford University and John Van Reenen of MIT have been named the first-place winners of the 59th Annual HBR McKinsey Award, which honors the best Harvard Business Review article of the year. In "Why Do We Undervalue Competent Management?,” which appeared in the September-October 2017 issue of the magazine, the authors challenge the conventional thinking that operational effectiveness is not a source of competitive differentiation. Through in-depth research involving over 12,000 firms in 34 countries, they found that companies with strong managerial processes do significantly better on metrics such as profitability, growth, longevity, and productivity. What’s more, the differences in process quality persist over time, suggesting that competent management is not easy to imitate. 


Related Links:
Harvard Business School - Press Release: Associate Professor Raffaella Sadun Wins Harvard Business Review McKinsey Award for Best Article

CEP Growth

Nick Bloom webpage

Raffaella Sadun webpage

John Van reenen webpage


News Posted: 17/04/2018      [Back to the Top]

Les Echos.fr

Philippe Aghion: "There is, in France, a problem of economic inculture"/ Philippe Aghion : « Il y a, en France, un problème d'inculture économique »

INTERVIEW - The economist, close to Emmanuel Macron, is leading a group of experts to rewrite programs in economics and social sciences. He assured the "Echos" want to lead "debates without taboos and without a priori".


Related Links:
Les Echos.fr - Philippe Aghion: "There is, in France, a problem of economic inculture"/ Philippe Aghion : « Il y a, en France, un problème d'inculture économique »

CEP Growth

Philippe Aghion webpage


News Posted: 11/04/2018      [Back to the Top]

LSE Business Review blog

Public education benefited from oil booms in the postbellum South

Oil-rich counties were more likely to contribute funds to build schools and hire more teachers for rural black children, writes Stephan Maurer. In a recent study, I analyse how local oil booms in the Southern United States during the first half of the 20th century affected public spending, focusing on education expenditures. 


Related Links:
LSE Business Review blog - Public education benefited from oil booms in the postbellum South

Oil Discoveries and Education Spending in the Postbellum South

CEP Growth CEP Labour Markets

Stephan Maurer webpage


News Posted: 11/04/2018      [Back to the Top]

Lavoce.info (Italy)

Productivity size weighs on productivity

Article by Giuseppe Berlingieri, Sara Calligaris, Stefano Costa e Chiara Criscuolo.  In Italy, medium-large and large companies are productive and competitive. The problem is that they are few compared to other countries. And the most productive ones employ on average about one third of the employees employed in the corresponding European companies. 


Related Links:
Lavoce.info (Italy) - Productivity size weighs on productivity

CEP Growth CEP Trade

Giuseppe Berlingieri webpage

Chiara Criscuolo webpage


News Posted: 10/04/2018      [Back to the Top]

Scientific American

Cross-Check: Is science hitting a wall?, Part 1

Once again, I’m brooding over science’s limits. I recently posted Q&As with three physicists with strong opinions on the topic--David Deutsch, Marcelo Gleiser and Martin Rees--as well as this column: “Is Science Infinite?” Then in March I attended a two-day brainstorming session--which I’ll call “The Session”--with 20 or so science-y folks over whether science is slowing down and what we can do about it. The Session was inspired in part by research suggesting that scientific progress is stagnating. InAre Ideas Getting Harder to Find?”, four economists claim that “a wide range of evidence from various industries, products, and firms show[s] that research effort is rising substantially while research productivity is declining sharply.” The economists are Nicholas Bloom, Charles Jones and Michael Webb of Stanford and John Van Reenen of MIT.

  


Related Links:
Scientific American - Cross-Check: Is science hitting a wall?, Part 1

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 07/04/2018      [Back to the Top]

The Daily Mail

Set your OWN salary: Firm allows employees to decide how much they are paid (and no it’s not an April Fool)

Jordi Blanes i Vidal, a professor at the London School of Economics, said such a system would work best in areas such as sales where there are clear markers of performance. 

He said: 'But in settings in which it is not as easy to justify differences in pay - that is, pay inequality - with differences in productivity, pay transparency can be very demotivating.' 


Related Links:
The Daily Mail - Set your OWN salary: Firm allows employees to decide how much they are paid (and no it’s not an April Fool)

CEP Growth

Jordi Blanes i vidal webpage


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

VoxDev

Do management interventions last? Evidence from India

 

Article by Nicholas Bloom, Aprajit Mahajan, David McKenzie and John Roberts. In our recent research, we examine the persistence of an intensive management intervention carried out in India (Bloom et al. 2018). In 2008, we started a randomised experiment involving 28 plants in 17 firms in the woven cotton fabric industry in India. 


Related Links:
VoxDev - Do management interventions last? Evidence from India

In brief: Improving management in India

Does Management Matter? Evidence from India

CEP Growth

Nick Bloom webpage


News Posted: 29/03/2018      [Back to the Top]

Daily Mirror

Rees-Mogg’s threat to oust May over Brexit

 

…Ex-Tory Cabinet Minister Chris Patten said he was a “caricature” with no idea about trade deals. Brexit may cost us £1,700 a year each, says the London School of Economics.


Related Links:
The consequences of Brexit for UK trade and living standards

CEP Growth CEP Trade

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 28/03/2018      [Back to the Top]

Cointelegraph

What to make of British cryptocurrency task force

Cointelegraph reached out to MIT Professor of Economics John van Reenen OBE to give his take on the move by the British Treasury and the touted cryptocurrency taskforce. The renowned economist painted a slightly bleak picture in terms of the possibility of change in sentiment from British financial institutions. He believes there is no change in sentiment in “official circles, government or main financial institutions” but that public perception was easing. However, Van Reenen did concede that cryptocurrency markets may pick up in the UK if there was clarity on regulation coupled with a rise in popularity of virtual currencies.

 


Related Links:
Cointelegraph - What to make of British cryptocurrency task force

CEP Growth

John Van reenen webpage


News Posted: 28/03/2018      [Back to the Top]

Times of Malta

Brexit could cost the average Briton up to £1,700 a year

Disruption to trade caused by Brexit could cost the average Briton as much as £1,700 a year, with Remain-backing areas bearing the brunt, a report has claimed. The research suggested many of the worst-affected areas would be in the Remain-voting South East because their prosperity depends more heavily on services, which are more sensitive than goods to trade barriers. The findings, released by the London School of Economics Centre for Economic Performance, are at odds with official Whitehall assessments that Leave-backing areas of the North East will pay the highest price for any disruption to trade. Unveiling his research at the Social Market Foundation think tank in London, the LSE's Nikhil Datta said a "soft" Norway-style Brexit, where the UK remained in the European single market, would result in annual economic growth being 1.3% lower over the next 10 years - around £850 per head of population. A "hard" Brexit, where the UK leaves without a trade deal, would mean growth being 2.7% lower over the period, the equivalent of £1,700 a person, he said.

  


Related Links:
Times of Malta - Brexit could cost the average Briton up to £1,700 a year

The Local Economic Effects of Brexit

CEP Growth

Nikhil Datta webpage


News Posted: 27/03/2018      [Back to the Top]

Sputnika

Wann bringt Homeoffice eigentlich etwas?/when does home office bring something?

The creators of NEUARBEITEN explain why working from home in this country is still a niche topic and how it can still benefit employees and employers. … Home office offers employees one thing above all: more flexibility. This almost inevitably leads to greater satisfaction and at the same time makes you more productive. For routine work, this can be confirmed by Nicholas Bloom of Stanford University. His test subjects stated that they could work 13 percent more effectively on average through the home office.


Related Links:
Sputnika - Wann bringt Homeoffice eigentlich etwas?/when does home office bring something?

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth

Nick Bloom webpage


News Posted: 22/03/2018      [Back to the Top]

The Economist (online)

How and why to search for young Einsteins

Snippet: ...tests in the third year of primary school are many times more likely than the other 95% to file patents in later life. But the likelihood is still much greater among smart kids from rich families. Philippe Aghion of the London School of Economics and colleagues found...


Related Links:
The Economist (online) - How and why to search for young Einsteins

The Social Origins of Inventors

CEP Growth

Philippe Aghion webpage


News Posted: 22/03/2018      [Back to the Top]

Vozpopuli (Spain)

Tres grandes falacias sobre desigualdad/Three great fallacies about inequality

That a counter-cyclical monetary policy of low interest rates can raise the yields of certain financial assets, whose property tends to be biased towards families with higher assets and this encourage inequality, is an argument that I believe may be valid. There is some evidence of this, so we could include this explanation in the long list of possible candidates. But there are other explanations that can also lead us to find that these same policies can have an opposite effect on inequality. For example, because they improve access to credit, because they reduce unemployment, because they reduce financial costs to those who have a net debit position, and so on. In addition, and assuming that the effect of monetary policies can be very ambiguous, this would be one of many other explanations that it is not reasonable to discard, when these also have much greater empirical relevance. I think Daron Acemoglu, David Author, Kevin M. Murphy, David Card, John E. DiNardo, Brooks Pierce, Stephen Machin, J. van Reenen, David Dorn, Nicole Fortin, Thomas Lemieux, Matthias Cortés, Lawrence Katz, Goldin, Eli Berman, John Bound, Enmanuel Saez, Thomas Piketty, Anthony Atkinson, Nicholas Bloom, Thomas Phillipon, Branko Milanovic, Stefanie Stantcheva, Per Krusell, Oded Galor, Omer Moav, Tony Smith, Gustavo Ventura, Martin Gervais, Facundo Alvaredo, Peter Gottschalk, Sergio Firpo, Dirk Krueger, Fabrizio Perri, Amin Sufi, Kurt Minam, Greg Kaplan, Benjamín Moll, Makoto Nakajima, Antonia Díaz, Javier Díaz Giménez, Josep Pijoan, Laura Hospido, Jorge Onrubia, Olimpia Bover, Lee E. Ohanian, José- Víctor Ríos-Rull, Giovanni L. Violantel, Luis Ayala, Nacho González, Clara Martínez-Toledano, Miguel Artola or Enrico Moretti, among others, are not going to be, all wrong, right?


Related Links:
Vozpopuli (Spain) - Tres grandes falacias sobre desigualdad/Three great fallacies about inequality

CEP Community CEP Growth

Nick Bloom webpage

John Van reenen webpage

Stephen Machin webpage


News Posted: 12/03/2018      [Back to the Top]

LSE Business Review

Analysing the distributional effects of higher education funding reforms in the UK

Free Higher Ed wouldn't enhance equity: students are disproportionately from high-income households, write Ghazala Azmat and Stefania Simion.


Related Links:
LSE Business Review - Analysing the distributional effects of higher education funding reforms in the UK

Higher Education Funding Reforms: A Comprehensive Analysis of Educational and Labour Market Outcomes in England

CEP Growth

Ghazala Azmat webpage


News Posted: 12/03/2018      [Back to the Top]

Evening Standard

Russell Lynch: Spreadsheet Phil’s grinning like a Cheshire cat at his £30bn windfall

In the latest issue of the Economic Journal, there’s new research looking at how marathon runners respond to prize money pots, studying races over the past three decades. It turns out that the contests with the richest “winner takes all” prize pots don’t necessarily attract the best fields. While the runner’s chances of competing increase with the average prize on offer, they fall in proportion as more talented rivals join the field. The authors Ghazala Azmat and Marc Möller say that “talent repels talent to the extent that the contests with the highest prizes do not necessarily attract the most talented competitors”.

Related publications

‘The Distribution of Talent Across Contests’, Ghazala Azmat and Marc Möller, The Economic Journal, Volume 128, Issue 609, March 2018

Doi: 10.1111/ecoj.12426 ; http://onlinelibrary.wiley.com/doi/10.1111/ecoj.12426/epdf


Related Links:
Evening Standard - Russell Lynch: Spreadsheet Phil’s grinning like a Cheshire cat at his £30bn windfall

CEP Growth

Ghazala Azmat webpage


News Posted: 09/03/2018      [Back to the Top]

Exame (Portugal)

The redemption of Chris Hughes, co-founder of Facebook

Plausibility of the idea is a matter of debate. Branko Milanovic, a scholar on income inequality, and Dean Baker, an economist at the Center for Economic and Policy Research, believe the plan is realistic given the current political climate. Baker also mentioned that policy changes to restructure the economy, such as softer patent laws and copyright and public funding for generic drugs, are a more urgent need. Stanford professor and conservative economist Nicholas Bloom mentioned the potential for fraud, adding that government control would be difficult.


Related Links:
Exame (Portugal) - The redemption of Chris Hughes, co-founder of Facebook

CEP Growth

Nick Bloom webpage


News Posted: 07/03/2018      [Back to the Top]

The Irish News

DUP openly supporting further division in our divided land

Opinion – Letters to the Editor:  Alastair Hamilton must acknowledge Brexit realities Writing in the Huffington Post Invest NI chief executive Alastair Hamilton has described the concern that Brexit would be an “economic calamity” as “fiction”. This is a remarkable contention given that many impact assessments including those by the Department for the Economy, the British Treasury and the London School of Economics agree that economic growth will suffer in the event of Brexit. But Mr Hamilton does not cite any actual studies. Nor does he refer to the possibility of our trade with the EU being disrupted by tariff and non-tariff barriers. He also ignores the implications for farmers who depend on EU funding. The prospect of universities losing students, staff and research funding is omitted. The pivotal issue of the border is not even mentioned.


Related Links:
The Irish News - DUP openly supporting further division in our divided land

BREXIT 2016: Policy Analysis from the Centre for Economic Performance

CEP Labour Markets CEP Growth CEP Trade

Holger Breinlich webpage

Swati Dhingra webpage

Saul Estrin webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

Jonathan Wadsworth webpage


News Posted: 07/03/2018      [Back to the Top]

Patria.cz (Czech Republic)

Economic incompetence of the president and his men

Even customs duties, which will help US companies in the short term, can be detrimental in the long run. This protection of the domestic market can lead to a decline in qualitative competitiveness. In this context, an interesting 2007 study, in which economists Nicholas Bloom, Mirko Draca and John Van Reenen show that competition from Chinese goods pushed for a drop in jobs in the US, but also to increase the productivity and competitiveness of Canadian companies. A much better idea of how to reduce trade deficits would, according to Smith, be an effort to reduce budget deficits, as they tend to push up business.

Related publications

Trade Induced Technical Change? The Impact of Chinese Imports on Innovation’, IT and Productivity, Nicholas Bloom, Mirko Draca and John Van Reenen, Review of Economic Studies, 83:1, January 2016


Related Links:
Patria.cz (Czech Republic) - Economic incompetence of the president and his men

Trade Induced Technical Change? The Impact of Chinese Imports on Innovation, IT and Productivity

CEP Growth

Nick Bloom webpage

Mirko Draca webpage

John Van reenen webpage


News Posted: 06/03/2018      [Back to the Top]

Kurzy.cz (Czech Republic)

Economic incompetence of the president and his men

Even customs duties, which will help US companies in the short term, can be detrimental in the long run. This protection of the domestic market can lead to a decline in qualitative competitiveness. In this context, an interesting 2007 study, in which economists Nicholas Bloom, Mirko Draca and John Van Reenen show that competition from Chinese goods pushed for a drop in jobs in the US, but also to increase the productivity and competitiveness of Canadian companies. A much better idea of how to reduce trade deficits would, according to Smith, be an effort to reduce budget deficits, as they tend to push up business.

Related publications

Trade Induced Technical Change? The Impact of Chinese Imports on Innovation’, IT and Productivity, Nicholas Bloom, Mirko Draca and John Van Reenen, Review of Economic Studies, 83:1, January 2016

 


Related Links:
Kurzy.cz (Czech Republic) - Economic incompetence of the president and his men

Trade Induced Technical Change? The Impact of Chinese Imports on Innovation, IT and Productivity

CEP Growth

Nick Bloom webpage

Mirko Draca webpage

John Van reenen webpage


News Posted: 06/03/2018      [Back to the Top]

The Japan Times

What Trump’s trade guru doesn’t get about economics

Using tariffs to restore American competitiveness could easily backfire. If U.S. companies can hunker behind trade barriers and sell to a captive market, many will lose their edge. Research by economists Nicholas Bloom, Mirko Draca, and John Van Reenen has shown that while exposure to Chinese competition did destroy U.S. jobs, it also made U.S. businesses more productive, in part by forcing them to innovate faster. A 2007 study by Alla Lileeva and Daniel Trefler found that increased exposure to U.S. competition raised productivity at Canadian manufacturing plants. In fact, across a variety of countries, trade barriers seem to hold back productivity.

Also in:

Capital.gr (Greece)

What Trump’s trade guru does not understand about the economy

http://www.capital.gr/bloomberg-view/3277078/ti-den-katalabainei-gia-tin-oikonomia-o-emporikos-gkourou-tou-tramp

 

Related publications

Trade Induced Technical Change? The Impact of Chinese Imports on Innovation’, IT and Productivity, Nicholas Bloom, Mirko Draca and John Van Reenen, Review of Economic Studies, 83:1, January 2016


Related Links:
The Japan Times - What Trump’s trade guru doesn’t get about economics

Trade Induced Technical Change? The Impact of Chinese Imports on Innovation, IT and Productivity

CEP Growth

Nick Bloom webpage

Mirko Draca webpage

John Van reenen webpage


News Posted: 05/03/2018      [Back to the Top]

Bloomberg.com

What Trump’s trade guru doesn’t get about economics

Using tariffs to restore American competitiveness could easily backfire. If U.S. companies can hunker behind trade barriers and sell to a captive market, many will lose their edge. Research by economists Nicholas Bloom, Mirko Draca, and John Van Reenen has shown that while exposure to Chinese competition did destroy U.S. jobs, it also made U.S. businesses more productive, in part by forcing them to innovate faster. A 2007 study by Alla Lileeva and Daniel Trefler found that increased exposure to U.S. competition raised productivity at Canadian manufacturing plants. In fact, across a variety of countries, trade barriers seem to hold back productivity.

            Related publications

Trade Induced Technical Change? The Impact of Chinese Imports on Innovation’, IT and Productivity, Nicholas Bloom, Mirko Draca and John Van Reenen, Review of Economic Studies, 83:1, January 2016


Related Links:
Bloomberg.com - What Trump’s trade guru doesn’t get about economics

Trade Induced Technical Change? The Impact of Chinese Imports on Innovation, IT and Productivity

CEP Growth

Nick Bloom webpage

Mirko Draca webpage

John Van reenen webpage


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

Campden FB

FB roundup: Rothschild, Berkshire, and family firm management Family firms have worse management practices, says study: New research has shown that second-generation family chief executives tend to exhibit poorer management practices, and that their firms suffer as a result.

All in the Family? CEO Choice and Firm Organization, by the Centre for Economic Performance at the London School of Economics, is the first study showing a causal link between dynastic family firms and poorer performance. “Although there is mixed evidence on whether family ownership is a good thing, the weight of the evidence is that dynastic family CEOs are usually bad news for productivity,” writes researcher Daniela Scur in her summary of the study, which looked at more than 800 companies around the world.

Related publications

'Family firms: the problem of second-generation bosses', Renata Lemos and Daniela Scur. Article in CentrePiece Volume 23, Issue 1, Spring 2018


Related Links:
Campden FB - FB roundup: Rothschild, Berkshire, and family firm management Family firms have worse management practices, says study: New research has shown that second-generation family chief executives tend to exhibit poorer management practices, and that their firms suffer as a result.

Family firms: the problem of second-generation bosses

CEP Growth

Daniela Scur webpage


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

Contrepoints

Les Geants du capitalisme menacent-ils la concurrence?/Do capitalist giants threaten competition?

The share of start-ups in employment in the United States has been declining since 1980. This is in line with that of David Autor and his coauthors on the rise of superstars, David Autor, David Dorn, Lawrence F. Katz and Christina Patterson. John Van Reenen, American Economic Review, May 2017.


Related Links:
Contrepoints - Les Geants du capitalisme menacent-ils la concurrence?/Do capitalist giants threaten competition?

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

John Van reenen webpage


News Posted: 24/02/2018      [Back to the Top]

Wall Street Journal blog

Forget stock buybacks. Here's where CEOs should invest their tax windfall

In this regard, scholars such as Erik Brynjolffson, Lorin Hitt, Nick Bloom, and John Van Reenen have all shown that computers by themselves don't unleash rapid productivity growth; rather, it takes new business processes, new ways of interacting with customers and suppliers, and coordinated worker training to unlock...


Related Links:
Wall Street Journal blog - Forget stock buybacks. Here's where CEOs should invest their tax windfall

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 21/02/2018      [Back to the Top]

NY Times

Book Review: The redemption of Chris Hughes

The Stanford professor and economist Nicholas Bloom brought up the potential for fraud, adding that government enforcement would be difficult.


Related Links:
NY Times - Book Review: The redemption of Chris Hughes

CEP Growth

Nick Bloom webpage


News Posted: 21/02/2018      [Back to the Top]

Slates Star Codex

Technological unemployment: much more than you wanted to know

This is potentially consistent with a story where the jobs that have been easiest to automate are middle-class-ish. Some jobs require extremely basic human talents that machines can’t yet match – like a delivery person’s ability to climb stairs. Others require extremely arcane human talents likewise beyond machine abilities – like a scientist discovering new theories of physics. The stuff in between – proofreading, translating, records-keeping, metalworking, truck driving, welding – is more in danger. As these get automated away, workers – in accord with the theory – migrate to the unautomatable jobs. Since they might not have the skills or training to do the unautomatable upper class jobs, they end up in the unautomatable lower-class ones. There’s nothing in economic orthodoxy that says this can’t happen. David Autor and his giant block of citations agree:  Because jobs that are intensive in either abstract or manual tasks are generally found at opposite ends of the occupational skill spectrum—in professional, managerial, and technical occupations on the one hand, and in service and laborer occupations on the other—this reasoning implies that computerization of “routine” job tasks may lead to the simultaneous growth of high-education, high-wage jobs at one end and low-education, low-wage jobs at the other end, both at the expense of middle-wage, middle education jobs—a phenomenon that Goos and Manning (2003) called “job polarization.” A large body of US and international evidence confirms the presence of employment polarization at the level of industries, localities, and national labor markets (Autor, Katz, and Kearney 2006, 2008; Goos and Manning 2007; Autor and Dorn 2013; Michaels, Natraj, and Van Reenen 2014; Goos, Manning, and Salomons 2014; Graetz and Michaels 2015; Autor, Dorn, and
Hanson 2015)

Related publications

Goos, M., A. Manning, and A. Salomons, 2014, Explaining Job Polarization: Routine-Biased Technological Change and Offshoring, American Economic Review, 104(8), 2509-2526.  https://www.aeaweb.org/articles?id=10.1257/aer.104.8.2509

Goos, M., A. Manning, and A. Salomons, 2009, Job Polarization in Europe, American Economic Review: Papers & Proceedings, 99(2), 58-63.  https://www.aeaweb.org/articles?id=10.1257/aer.99.2.58

Michaels, G., A. Natraj, and J. Van Reenen, 2014, Has ICT Polarized Skill Demand? Evidence from Eleven Countries Over Twenty-Five Years, The Review of Economics and Statistics, 96(1), 60-77.  https://www.mitpressjournals.org/doi/abs/10.1162/REST_a_00366


Related Links:
Slates Star Codex - Technological unemployment: much more than you wanted to know

Robots at work: the impact on productivity and jobs

Robots at Work

CEP Labour Markets CEP Growth

Georg Graetz webpage

Alan Manning webpage

Guy Michaels webpage

John Van reenen webpage


News Posted: 19/02/2018      [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]

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]

BBC Radio 4

PM

Anna Valero gave a live interview on UK productivity.


Related Links:
BBC Radio 4 - PM

CEP Growth

Anna Valero webpage


News Posted: 09/02/2018      [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]

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]

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

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 01/02/2018      [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

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage

Jonathan Wadsworth 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’


Related Links:
The Conversation - How talented kids from low-income families become America’s ‘Lost Einsteins’

Lost Einsteins: who becomes an inventor in America?

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

CEP Growth CEP Labour Markets

John Van reenen webpage

Xavier Jaravel webpage


News Posted: 24/01/2018      [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]

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]

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]

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]

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]

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]

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]

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]

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]

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]

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]

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]

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]

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]

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 Financial Express

Study shows income-disparity in early-life is strongly correlated to later-life fulfilment of innovation potential

While there could be many factors hobbling innovation, findings of a recent study by Alex Bell, Raj Chetty, Xavier Jaravel, Neviana Petkova, and John Van Reenen—who are associated with various American institutions and, in the case of Jaravel, with and English one—throw up a host of interesting takes on this and also one whether current policy measures are indeed the right ones to spur innovation. Bell et al studied the lives of more than 1 million inventors in the US and found that large disparities in innovation rates exist, influenced by socioeconomic class, race and gender.

 

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 Financial Express - Study shows income-disparity in early-life is strongly correlated to later-life fulfilment of innovation potential

CEP Growth

John Van reenen webpage


News Posted: 29/12/2017      [Back to the Top]

Forbes

Prepare for a fightback against big tech

Fortunately, in an age when data is king, there are increasing amounts of facts and figures  to illustrate the problem. A paper published earlier this year by the Massachusetts Institute of Technology's David Autor, Christina Patterson and John Van Reenen, along with David Dorn of the University of Zurich and Harvard's Lawrence F. Katz, is creating a lot of interest within anti-trust law circles. Essentially, the authors argue that the concentration ratios - a standard indication of monopoly power - have been trending upwards in all sectors of the economy, with particularly sharp increases in such sectors as retail and finance. Crucially, the research finds that this concentration results in greater growth in sales than in employment. In other words, modern superstar firms are able to increase revenues significantly without having to employ many more people.


Related Links:
Forbes - Prepare for a fightback against big tech

The Fall of the Labor Share and the Rise of Superstar Firms

Concentrating on the Fall of the Labor Share

CEP Growth

John Van reenen webpage


News Posted: 27/12/2017      [Back to the Top]

LSE Business Review blog

Reading list: seven leading LSE women researchers

Anna Valero, Beverley Skeggs, Connson Locke, Emily Jackson, Shani Orgad, Sonia Livingstone and Susanna Khavul

Budget 2017: productivity is the focus, but ‘fixes’ are unlikely to be enough


Related Links:
LSE Business Review blog - Reading list: seven leading LSE women researchers

CEP Growth

Anna Valero webpage


News Posted: 26/12/2017      [Back to the Top]

LiveMint

The Lost Einsteins

It is no secret that innovation is a powerful driver of growth in any modern economy. How does a country promote innovation activity? A recent study by economists Alex Bell, Raj Chetty, Xavier Jaravel, Neviana Petkova and John Van Reenen on a million inventors in the US offers some fascinating insights.

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:
LiveMint - The Lost Einsteins

CEP Growth

John Van reenen webpage


News Posted: 25/12/2017      [Back to the Top]

Vox

Lost Einsteins: How exposure to innovation influences who becomes an inventor

Article by Alex Bell, Raj Chetty, Xavier Jaravel, Neviana Petkova and  John Van Reenen: Relatively little is known about the factors that induce people to become inventors. Using data on the lives of over one million inventors in the US, this column sheds light on what policies can be most effective in increasing innovation. In particular, it shows that increasing exposure to innovation among women, minorities, and children from low-income families may have greater potential to spark innovation and growth than traditional approaches such as reducing tax rates.

  


Related Links:
Vox - Lost Einsteins: How exposure to innovation influences who becomes an inventor

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

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News Posted: 24/12/2017      [Back to the Top]

The National

Economics 101: Are there many 'lost Einsteins' in the Arab world?

By obtaining highly detailed data on more than one million American inventors, a recent study by Alex Bell (Harvard University), Raj Chetty (Stanford University), Xavier Jaravel (London School of Economics), Neviana Petkova (US Treasury), and John Van Reenen (Massachusetts Institute of Technology) sheds light on the genesis of these innovators, furnishing policymakers all over the world with insights on how to nurture the next batch of 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:
The National - Economics 101: Are there many 'lost Einsteins' in the Arab world?

CEP Growth

John Van reenen webpage


News Posted: 23/12/2017      [Back to the Top]

Iz.ru (Russia)

The EU was told about the multi-billion losses due to Brexit

As the portal iz.ru wrote, according to calculations for the Center for Economic Performance, each British family will lose up to £404 per year because of Brexit. This is due to rising prices for consumer goods with a high proportion of imported component. We are talking about bread, cereals, milk, eggs, cheese, beer, wine, furniture, jewelry and watches.


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Iz.ru (Russia) - The EU was told about the multi-billion losses due to Brexit

The Brexit Vote, Inflation and UK Living Standards

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Thomas Sampson webpage

Dennis Novy webpage


News Posted: 19/12/2017      [Back to the Top]

Investing.com

Optimistic UK business confidence indicators predict smooth Brexit

The possible options for the long-term economic partnership range along a wide spectrum – from a European Economic Area-type broad-based single market access, through a Canada-type free trade agreement, to the spectre of an abrupt exit from the EU without any deal. Some economists argue that the latter, no-deal scenario would in fact be best for the UK, because that would allow the UK to unilaterally introduce free trade with all countries of the world and deregulate the UK economy. This, in their view, would bring major benefits to the UK. But such views are in minority and received major criticism; see, for example, the clear arguments of Thomas Sampson, Swati Dhingra, Gianmarco Ottaviano and John Van Reenen. And business leaders intensively lobby for a broad-based trade deal with the EU – rightly so, in my view.

Also in:

Bruegel.org (blog)

Optimistic UK business confidence indicators predict smooth Brexit

Some economists argue that the latter, no-deal scenario would in fact be best for the UK, because that would allow the UK to unilaterally introduce free trade with all countries of the world and deregulate the UK economy. This, in their view, would bring major benefits to the UK. But such views are in minority and received major criticism; see, for example, the clear arguments of Thomas Sampson, Swati Dhingra, Gianmarco Ottaviano and John Van Reenen. And business leaders intensively lobby for a broad-based trade deal with the EU – rightly so, in my view.

http://bruegel.org/2017/12/optimistic-uk-business-confidence-indicators-predict-smooth-brexit/


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Investing.com - Optimistic UK business confidence indicators predict smooth Brexit

The consequences of Brexit for UK trade and living standards

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Thomas Sampson webpage

John Van reenen webpage


News Posted: 19/12/2017      [Back to the Top]

Japan Times

Nurture as important as nature for success

How about the notion that smarts determine life success? That idea too has come under assault from recent research. A recent paper by economists Alex Bell, Raj Chetty, Xavier Jaravel, Neviana Petkova, and John Van Reenen -- a star-studded list of names -- finds that at least for certain kinds of achievement, factors other than natural ability matter quite a lot. 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.


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Japan Times - Nurture as important as nature for success

CEP Growth

John Van reenen webpage


News Posted: 16/12/2017      [Back to the Top]

Fortune

The desperate search for the next great American idea

John Van Reenen, an economist at MIT and another of the “Ideas” paper’s authors, has performed studies that look at talent cultivation in the U.S. by trying to determine the likelihood of someone becoming an inventor. He found that those born into the top 1% income level were 10 times as likely to become inventors as those born into the bottom 50%. He also found that men were more likely to be inventors, and minorities less likely.


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Fortune - The desperate search for the next great American idea

Are Ideas Getting Harder to Find?

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Nick Bloom webpage

John Van reenen webpage


News Posted: 15/12/2017      [Back to the Top]

Inc.com

A Stanford professor says working from home makes you happier and more efficient. There’s just 1 catch

Work from home or go to an office: which kind of workers are happier and more efficient? For the first time – surprisingly – there’s some solid academic research on the subject, led by a Stanford economics professor. … First, the research, which was reported recently in a working paper… led by Stanford economics professor Nicholas Bloom and his graduate student James Liang.


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Inc.com - A Stanford professor says working from home makes you happier and more efficient. There’s just 1 catch

Does Working from Home Work? Evidence from a Chinese Experiment

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Nick Bloom webpage


News Posted: 14/12/2017      [Back to the Top]

Bloomberg.com

Nurture counts as much as nature in success

How about the notion that smarts determine life success? That idea too has come under assault from recent research. A recent paper by economists Alex Bell, Raj Chetty, Xavier Jaravel, Neviana Petkova, and John Van Reenen -- a star-studded list of names -- finds that at least for certain kinds of achievement, factors other than natural ability matter quite a lot. 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.

 


Related Links:
Bloomberg.com - Nurture counts as much as nature in success

CEP Growth

John Van reenen webpage


News Posted: 12/12/2017      [Back to the Top]

Education Week online

Can schools help uncover ‘Lost Einsteins’ in next generation of inventors?

At nearly 326,000, the number of new U.S. patents has more than doubled from 2005 to 2015. But in every year since 2008, the patents granted to foreign inventors have outpaced those of U.S. inventors, and a new study suggests the nation could be overlooking thousands of potential young inventors. As part of the ongoing Equality in Opportunity Project, researchers from Harvard and Stanford Universities, the Massachusetts Institute of Technology, the London School of Economics, and the U.S. Treasury Department analyzed data from 1.2 million inventors, using patents issued from 1996 to 2014, linked to tax records, to trace the role of early grades and environment to their later innovation. The working paper was published by the National Bureau of Economic Research.

 

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:
Education Week online - Can schools help uncover ‘Lost Einsteins’ in next generation of inventors?

CEP Growth

John Van reenen webpage


News Posted: 11/12/2017      [Back to the Top]

Eurasia Review

House prices and the UK economy – analysis

CFM-CEPR expert survey explores two aspects of recent developments in UK house prices

Question 2: Do you agree that a more widespread weakening of the UK housing market will slow UK GDP growth significantly?

Many panel members point out problems of looking at correlations between economic activity and house prices. … John Van Reenen (MIT Sloan) similarly argues that a Brexit-induced decline in real incomes will cause “both a fall in consumption and house prices (relative to trend)”.


Related Links:
Eurasia Review - House prices and the UK economy – analysis

CEP Growth

John Van reenen webpage


News Posted: 08/12/2017      [Back to the Top]

Fortune

American Inventors Are Mostly White Men Due To Opportunity Gaps, Says Stanford 'Lost Einsteins' Study


Related Links:
Fortune - American Inventors Are Mostly White Men Due To Opportunity Gaps, Says Stanford 'Lost Einsteins' Study

Lost Einsteins: who becomes an inventor in America?

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

CEP Growth CEP Labour Markets

John Van reenen webpage

Xavier Jaravel webpage


News Posted: 05/12/2017      [Back to the Top]

Derstandard (Austria)

Globaler Vergleich: Österreich verschläft Pensionsreformen/ Global comparison: Austria overseats pension reforms

The skepticism about future growth potential is becoming international. Stanford economist Nicholas Bloom recently pointed out that innovation as a growth engine has become increasingly costly. "What worries me most is our pension systems and budget deficits," says Bloom. The policy looks back 20 to 30 years and assume that the next decades are going similarly well. That could give a rude awakening.


Related Links:
Derstandard (Austria) - Globaler Vergleich: Österreich verschläft Pensionsreformen/ Global comparison: Austria overseats pension reforms

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 05/12/2017      [Back to the Top]

WMOT Roots Radio

Should you work from home?

Stanford Graduate School of Business professor Nicholas Bloom said in a TED talk earlier this year that requiring employees to be in the office is an outdated tradition that doesn’t take into account all the technology we have available to us nor the complicated lives we lead today.

 


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WMOT Roots Radio - Should you work from home?

Does Working from Home Work? Evidence from a Chinese Experiment

Working or shirking?

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Nick Bloom webpage


News Posted: 05/12/2017      [Back to the Top]

Fortune.com

American inventors are mostly white men due to opportunity gaps, says Stanford ‘Lost Einsteins’ study

There’s a lot of inequality affecting where innovation comes from, according to a new study from the Equality of Opportunity Project. “There are very large gaps in innovation by income, race, and gender,” Stanford economist Raj Chetty, who led the research, told The Atlantic. “These gaps don’t seem to be about differences in ability to innovate — they seem directly related to environment.” Chetty, who appeared on Fortune’s 40 Under 40 list in 2014, worked with Alex Bell of Harvard, Xavier Jaravel of the London School of Economics, Neviana Petkova of the U.S. Treasury Department, and John Van Reener of MIT to link together millions of anonymized tax records, patents, and test scores in order to create a sample of 1.2 million inventors to study.

Related publications

‘Who becomes an inventor in America? The importance of exposure to innovation’, Alex Bell, Raj Chetty, Xavier Jaravel, Neviano Petkova and John Van Reenen, The Equality of Opportunity Project, December 2017

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


Related Links:
Fortune.com - American inventors are mostly white men due to opportunity gaps, says Stanford ‘Lost Einsteins’ study

CEP Growth

John Van reenen webpage


News Posted: 05/12/2017      [Back to the Top]

The Atlantic

America’s lost Einsteins

The discrepancy in who gets patents is not the result of innate abilities, Chetty and his team, Alex Bell of Harvard, Xavier Jaravel of the London School of Economics, Neviana Petkova of the U.S. Treasury Department, and John Van Reenen of MIT, conclude. Children from many different backgrounds excel in math and science tests in third grade, for instance. But it’s the wealthy children who do well in math and science that end up getting patents. Why? Because they have more exposure to innovation in their childhood, the researchers say. This exposure comes mostly from interacting with people who are themselves inventors. If young kids know people who are inventors, or hear conversations at the dinner table about research and innovation, they’re more likely to become interested in pursuing careers in that field, Chetty told me. “Opportunity broadly, and exposure to innovation in particular, are really the keys to increasing innovation,” he said.


Related Links:
The Atlantic - America’s lost Einsteins

CEP Growth

John Van reenen webpage


News Posted: 04/12/2017      [Back to the Top]

Moody’s Analytics – Economy.com

Social capital matters

New research from Raj Chetty and his Equality of Opportunity team shows a significant amount of inequality in innovation. Even controlling for ability, their results show that there is less patenting from low-income families, women and minorities. If these groups invented at the same rate as white men, total innovation in the U.S. would quadruple. This research adds to an increasing body of evidence that social capital is an important driver of inequality. The focus on innovation brings a new level importance to the debate; it suggests that uneven social capital and the inequality it produces matter for economic growth.

Related publications

‘Who becomes an inventor in America? The importance of exposure to innovation’, Alex Bell, Raj Chetty, Xavier Jaravel, Neviano Petkova and John Van Reenen, The Equality of Opportunity Project, December 2017

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


Related Links:
Moody’s Analytics – Economy.com - Social capital matters

CEP Growth

John Van reenen webpage


News Posted: 04/12/2017      [Back to the Top]

Vox

Groundbreaking empirical research shows where innovation really comes from

The study, undertaken by Chetty along with Alex Ball of Harvard, Xavier Jaravel of the London School of Economics, Neviana Petkova of the US Treasury, and John Van Reenen of MIT, is unique due to its ability


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Vox - Groundbreaking empirical research shows where innovation really comes from

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News Posted: 04/12/2017      [Back to the Top]

New York Times

Lost Einsteins: the innovations we’re missing

…For this reason, societies have a big interest in making sure that as many people as possible have the opportunity to become scientists, inventors and entrepreneurs. It’s not only a matter of fairness. Denying opportunities to talented people can end up hurting everyone. … The researchers worked with the Treasury Department to link the tax records with patent records. Doing so allowed them to study the backgrounds of patent holders (and the study focused on the most highly cited, significant patents). The researchers — [Raj] Chetty, Alex Bell, Xavier Jaravel, Neviana Petkova and John Van Reenen — were also able to link these records to elementary-school test scores for some patent holders. Not surprisingly, children who excelled in math were far more likely to become inventors. But being a math standout wasn’t enough. Only the top students who also came from high-income families had a decent chance to become an inventor.

 

Related publications

‘Who becomes an inventor in America?  The importance of exposure to innovation: Executive Summary’, Alex Bell, Raj Chetty, Xavier Jaravel, Neviana Petkova and John Van Reenen, The Equality of Opportunity Project, December 2017

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


Related Links:
New York Times - Lost Einsteins: the innovations we’re missing

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John Van reenen webpage


News Posted: 03/12/2017      [Back to the Top]

Business Daily

Open door policy could raise Nairobi’s status as African economic hub

In a paper title Brexit and the Impact of Immigration on the UK by Jonathan Wadsworth, Swati Dhingra, Gianmarco Ottaviano and John Van Reenen, the writers reveal that European Union (EU) immigration has tripled in numbers in the last 20 years. In 2015, there were around 3.3 million EU immigrants living in the UK up form 0.9 million in 1995. Around 2.5 million of these immigrants are aged between 16-64 and about two million are productively working.


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Business Daily - Open door policy could raise Nairobi’s status as African economic hub

Brexit and the Impact of Immigration on the UK

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Jonathan Wadsworth webpage

Swati Dhingra webpage

Gianmarco Ottaviano webpage

John Van reenen webpage


News Posted: 03/12/2017      [Back to the Top]

Freakonomics Podcast

Are we running out of ideas? - Freakonomics

Economists have a hard time explaining why productivity growth has been shrinking. One theory: true innovation has gotten much harder – and much more expensive. So what should we do next?

John VAN REENEN: Yeah. I know whenever I go to parties and people ask me, “What you do?” and I say “I am an economist,” they say, “What do you study?” I say “productivity.” And they usually walk off at that point.


Related Links:
Freakonomics Podcast - Are we running out of ideas? - Freakonomics

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Nick Bloom webpage

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News Posted: 29/11/2017      [Back to the Top]

LSE Business Review blog

Budget 2017: productivity is the focus, but ‘fixes’ are unlikely to be enough

The danger is not making a real difference to productivity when the country needs it the most, writes Anna Valero. Budget 2017 began with a bleak assessment of the UK’s growth prospects. For those of us following the economic trends and policy debate, there was little surprise at the downgrade of future productivity growth by the Office for Budget Responsibility. Productivity has flat-lined since the financial crisis as successive budgets have failed to have much discernible effect on the key issues of underinvestment in innovation, skills and infrastructure. This has long been a concern because without productivity growth, living standards will continue to suffer and public services will continue to be squeezed. In addition, there is the uncertainty surrounding Brexit, which has already had a damaging impact on living standards, and which poses a number of economic risks depending on the form it ultimately takes. Some of the costs of Brexit are short-term – for example, the costs of formulating new customs or regulatory arrangements (for which the Chancellor has put aside a further £3 billion), or the losses of trade that would be associated with increasing trade barriers. But from a productivity perspective, we must be mindful of the longer-term impacts of reduced trade, inward investment and access to international talent on. Further reading: ‘   Family policies, the allocation of talent, productivity and growth   ’, Oriana Bandiera and Anna Valero, LSE mimeo.

 


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News Posted: 24/11/2017      [Back to the Top]

The Conversation (blog)

No, we aren’t running out of new ideas

We’ve picked all the low hanging fruit when it comes to new ideas, and the world is set for more parsimonious times. This is the idea put forward in a recent research paper by Nicholas Bloom, John Van Reenen and their co-authors. The paper argues that productivity growth has been low or declining since the 1940s, despite an increase in the number of researchers. The idea is that a rising number of researchers should lead to an acceleration of productivity. A proven good idea can potentially be applied to the whole production system and so a rise in researchers should increase this effect. This message should be taken seriously but not simplistically.

Also in:

Phys Org

No, we aren’t running out of new ideas

https://phys.org/news/2017-11-ideas.html

&

Friday 24 November

Swinburne University of Technology News online

No, we aren’t running out of new ideas

http://www.swinburne.edu.au/news/latest-news/2017/11/no-we-arent-running-out-of-new-ideas.php


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News Posted: 23/11/2017      [Back to the Top]

eGospodarka.pl (Poland)

How will the trade ban on the economy affect the economy?

Traf also said that in 2015, one of the most comprehensive studies on the impact of Sunday trade on the European economy was published, published by the London Center for Economic Performance (CEP), a research center of the London School of Economics (LSE). The authors of Christos Genakos and Svetoslav Danchev examined the countries where retail conditions were relaxed on the last day of the week, with four aspects: sales volume, market concentration, employment and prices.


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Evaluating the Impact of Sunday Trading Deregulation

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News Posted: 23/11/2017      [Back to the Top]

Hunt Scanlon Media

What makes successful CEOs

New research from Harvard Business Review looks at data from over 1,000 chief executives and the financial performance of their companies to explore what makes CEOs tick. The report was authored by Oriana Bandiera, Stephen Hansen, Andrea Prat and Raffaella Sadun.


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Hunt Scanlon Media - What makes successful CEOs

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News Posted: 21/11/2017      [Back to the Top]

Bloomberg View

Small colleges can save towns in middle America

Other research confirms that the beneficial effect of universities isn't just correlation. A 2015 paper by economist Shimeng Liu found that areas where the U.S. federal government made land grants to universities back in the 1860s have been flourishing in the 21st century. In other words, investing in universities was one of the most far-sighted moves that the government ever made. The effect appears to be worldwide. Looking at countries around the globe in a recent paper, economists Anna Valero and John Van Reenen find: Increases in the number of universities are positively associated with future growth…Doubling the number of universities per capita is associated with over 4% higher future GDP per capita. Furthermore, there appear to be positive spillover effects from universities to geographically close neighboring regions.


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News Posted: 14/11/2017      [Back to the Top]

Banco Bilbao vizcaya Argentaria

A basic dictionary of blockchain: 10 terms you should know

The strength of the public blockchain networks lies in their 100% democratic nature. Everything is decentralized and all parties have the same information; no one individual is above another. But, as Luis Garicano, professor at the London School of Economics, explained during the recent South Summit in Madrid, that strength harbors an implied weakness. “If everything is decentralized and everyone has to agree with the changes, you won´t be able to change anything, improve anything. And if you centralize in part in order to make changes, you are attacking the very nature of blockchain.”


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Banco Bilbao vizcaya Argentaria - A basic dictionary of blockchain: 10 terms you should know

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News Posted: 10/11/2017      [Back to the Top]

The NBER Digest

Bang for the R&D buck is in a long, steady decline

In Are Ideas Getting Harder to Find? (NBER Working Paper No.23782), Nicholas Bloom, Charles I. Jones, John Van Reenen and Michael Webb argue that, to maintain a given rate of economics growth, resources devoted to research must increase over time.


Related Links:
The NBER Digest - Bang for the R&D buck is in a long, steady decline

Are Ideas Getting Harder to Find?

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Nick Bloom webpage

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News Posted: 10/11/2017      [Back to the Top]

The Conversation

Weightlifters and divers offer a lesson for business in risk and reward

In practice, competitors often do not only choose their level of effort; they also have to decide between more or less risky strategies. For example, a pharmaceutical firm that is lagging behind in a patent race may start exploring more risky projects, and a money manager with below-market returns might start investing in riskier assets.  So, colleagues and I looked at top-level weightlifting and diving competitions, including the Olympics, to examine athletes’ choices about effort and risk-taking in a tournament setting, with an eye on whether we could draw any lessons which applied to business.


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The Conversation - Weightlifters and divers offer a lesson for business in risk and reward

Weightlifting competitions: lessons for performance management

Weightlifting competitions: lessons for performance management

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Christos Genakos webpage


News Posted: 02/11/2017      [Back to the Top]

Vox

The religious roots of the secular West: The Protestant Reformation and the allocation of resources in Europe

Article by Davide Cantoni, Jeremiah Dittmar and Noam Yuchtman. Five hundred years ago today, Martin Luther posted 95 theses on the Wittenberg Castle church door critiquing Catholic Church corruption, setting off the Protestant Reformation. This column argues that the Reformation not only transformed Western Europe's religious landscape, but also led to an immediate and large secularisation of Europe’s political economy.


Related Links:
Vox - The religious roots of the secular West: The Protestant Reformation and the allocation of resources in Europe

Reallocation and Secularization: The Economic Consequences of the Protestant Reformation

CEP Growth CEP Trade

Jeremiah Dittmar webpage


News Posted: 31/10/2017      [Back to the Top]

Tech.co

Why working remote can improve employee productivity

One of the most remarkable studies done to measure telecommuters’ performance was conducted by Stanford University. Led by Professor Nicholas Bloom, a team of scholars performed a Work From Home (WFH) experiment in 2012-2013 at CTrip, a NASDAQ-listed Chinese travel agency. The 9-month long study showed a “13 percent increase in the remote workers’ productivity with more time per shift or fewer sick leaves and breaks.”

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015

in brief…Working or shirking?’, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying.


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Tech.co - Why working remote can improve employee productivity

Does Working from Home Work? Evidence from a Chinese Experiment

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Nick Bloom webpage


News Posted: 31/10/2017      [Back to the Top]

Fast Company

How the most (and least) successful CEOs spend their workdays

A group of professors from Harvard Business School, the London School of Economics, Columbia University, and the University of Oxford pondered the same question and conducted a survey of more than 1,000 CEOs in six countries to find out what they’re doing and how that behavior relates to the success or failure of their companies. Their findings were published in the Harvard Business Review. ... “You are more likely to find CEOs that are leaders in larger companies that are more complex,” says study coauthor Raffaella Sadun, associate professor of business administration at Harvard Business School. “Manager CEOs are often found in smaller, simpler organizations.”


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Fast Company - How the most (and least) successful CEOs spend their workdays

What Do CEOs Do?

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Raffaella Sadun webpage


News Posted: 30/10/2017      [Back to the Top]

Derbund blog

Die dunkle Seite der Tech-Macht /The dark side of tech power

Sie hat zur Folge, dass der Anteil der Arbeitseinkommen am Gesamtprodukt schrumpft und die Ungleichheit zunimmt. Die Grafik unten zeigt für ausgewählte Länder, wie der Anteil der Arbeitseinkommen von 1975 bis 2010 zurückgegangen ist. Wie die Ökonomen David Autor, David Dorn, Lawrence Katz, Christine Patterson und John Van Reenen zeigen, dehnen Superstar-Firmen ihren Umsatz und ihre Gewinne aus, ohne dass sie dafür mehr Leute einstellen. Je grösser daher der Anteil der Superstar-Firmen an der Gesamtwirtschaft ist, desto geringer ist die durchschnittliche Beschäftigung und desto grösser ist daher auch die Macht der Kapitaleigner gegenüber den Beschäftigten, was wiederum den Lohndruck erhöht. Das ist ein Grund dafür, weshalb trotz besserer Wirtschaftslage die Inflation kaum reagiert.


Related Links:
Derbund blog - Die dunkle Seite der Tech-Macht /The dark side of tech power

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

John Van reenen webpage


News Posted: 30/10/2017      [Back to the Top]

LiveMint

Innovation problem

Nicholas Bloom, Charles Jones, John Van Reenen and Michael Webb show through detailed analysis of firms that research productivity is declining even as research efforts are rising. One of their key findings: “The number of researchers required today to achieve the famous doubling every two years of the density of computer chips is more than 18 times larger than the number required in the early 1970s.” It seems the famous Moore’s Law has just hit an important roadblock.


Related Links:
LiveMint - Innovation problem

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 30/10/2017      [Back to the Top]

Chicago Booth Review blog

The market power of ‘superstar’ companies is growing

The standard metric of monopoly power is the concentration ratio, or the share of the market accruing to the top four (or 20) firms. In a 2017 paper, MIT’s David Autor, Christina Patterson, and John Van Reenen, along with University of Zurich’s David Dorn and Harvard’s Lawrence F. Katz, compute the four- and 20-firm concentration ratios for six sectors of the US economy: manufacturing, wholesale trade, retail trade, services, finance, and utilities and transportation, for 1982–2012. Together, the six sectors account for 676 industries, nearly 4 million companies, and 80 percent of total private-sector employment. … In 2010, the US Census Bureau conducted its first Management and Organizational Practices Survey. Nearly 40,000 manufacturing establishments participated in MOPS, which used 36 multiple-choice questions to poll businesses on their management practices (processes for setting targets, monitoring performance, and providing incentives), organizational practices (structure, span of control, and the use of information), and basic characteristics (the number of managers and nonmanagers, educational attainment of managers, and union participation). Stanford’s Nicholas Bloom, MIT’s Erik Brynjolfsson and Van Reenen, Lucia Foster and Ron Jarmin of the US Census Bureau, and Tel Aviv University’s Itay Saporta-Eksten analyzed this data set by constructing an aggregate score for each manufacturer’s answer to the 36 questions (normalized to a 0–1 scale). As their results demonstrate, there is enormous dispersion in the quality of management and organizational practices across US firms.


Related Links:
Chicago Booth Review blog - The market power of ‘superstar’ companies is growing

The Fall of the Labor Share and the Rise of Superstar Firms

What Drives Differences in Management?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 26/10/2017      [Back to the Top]

Design World

The cost of having a manager annoy you

…there have been numerous studies claiming that better management – sometimes equated with more management – is the key to productivity. One in particular – done by economists in Stanford, MIT, the U.S. Census Bureau, and LSE, Centre for Economic Performance – looked at 30,000 manufacturing firms and claimed that those with more structured management practices were more productive, innovative, and had faster employment growth.


Related Links:
Design World - The cost of having a manager annoy you

In brief: Management in America

IT and Management in America

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 26/10/2017      [Back to the Top]

City A.M.

No matter what the research says about the UK as a whole, productivity in London is actually pretty good

An excellent study published last month by a research group at the London School of Economics looks at the differences in economic activity in varying parts of the UK. The finding are intriguing and sometimes betray conventional wisdom. For instance, the financial sector spans a greater section of the UK than generally thought, and is “far less London-centric than the creative industries”.

Related links

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


Related Links:
City A.M. - No matter what the research says about the UK as a whole, productivity in London is actually pretty good

Industry in Britain - An Atlas

CEP Growth

Anna Valero webpage

Richard Davies webpage


News Posted: 26/10/2017      [Back to the Top]

The Press and Journal (Aberdeen)

Scottish Secretary “does not recognise” expert analysis of Brexit hit to Aberdeen

Scottish Secretary David Mundell has told opponents of Brexit to stop bandying about “damning figures” such as an analysis that Aberdeen will be worst hit by the divorce from Brussels. The London School of Economics yesterday published data suggesting a “no deal” departure from the bloc would cost the Granite City £3.5billion over five years – £1billion more than a so-called “soft” Brexit.


Related Links:
The Press and Journal (Aberdeen) - Scottish Secretary “does not recognise” expert analysis of Brexit hit to Aberdeen

The Local Economic Effects of Brexit

CEP Labour Markets CEP Growth CEP Urban and Spatial Programme

Swati Dhingra webpage

Stephen Machin webpage

Henry Overman webpage


News Posted: 25/10/2017      [Back to the Top]

Guardian

Universities deplore ‘McCarthyism’ as MP demands list of tutors lecturing on Brexit

Tory whip writes to every vice-chancellor to ask for syllabus and any online material

Academics are accusing a Tory MP and government whip of “McCarthyite” behaviour, after he wrote to all universities asking them to declare what they are teaching their students about Brexit and to provide a list of teachers’ names. … Prof Kevin Featherstone, head of the European Institute at the LSE, is also outraged: “The letter reflects a past of a McCarthyite nature. It smacks of asking: are you or have you ever been in favour of remain? There is clearly an implied threat that universities will somehow be challenged for their bias.” Featherstone says LSE academics had already feared Brexit censorship after the Electoral Commission made inquiries during last year’s referendum campaign about academics’ debates and research, following a complaint by Bernard Jenkin, another Tory MP. Jenkin filed a complaint when the LSE hosted an event at which the secretary general of the Organisation for Economic Cooperation and Development said there was “no upside for the UK in Brexit”. Jenkin, a board member of the Vote Leave campaign, also accused the LSE’s Centre for Economic Performance of producing partisan research designed to convince the public to stay in the EU. The commission, whose job is to ensure fair campaigning, investigated and took no action against the university.


Related Links:
Guardian - Universities deplore ‘McCarthyism’ as MP demands list of tutors lecturing on Brexit

BREXIT 2016: Policy Analysis from the Centre for Economic Performance

CEP Labour Markets CEP Trade CEP Growth

Holger Breinlich webpage

Swati Dhingra webpage

Saul Estrin webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage

Jonathan Wadsworth webpage


News Posted: 24/10/2017      [Back to the Top]

Economic Policy Volume 32, Issue 92, October 2017

Articles Editors’ Choice

‘This paper estimates the welfare effects of Brexit in the medium to long run, focusing on trade and fiscal transfers. We use a standard quantitative general equilibrium trade model with many countries and sectors and trade in intermediates. We simulate a range of counterfactuals reflecting alternative options for European Union (EU)–United Kingdom (UK) relations following Brexit. Welfare losses for the average UK household are 1.3% if the UK remains in the EU’s Single Market like Norway (a ‘soft Brexit’). Losses rise to 2.7% if the UK trades with the EU under World Trade Organization rules (a ‘hard Brexit’). A reduced-form approach that captures the dynamic effects of Brexit on productivity more than triples these losses and implies a decline in average income per capita of between 6.3% and 9.4%, partly via falls in foreign investment. The negative effects of Brexit are widely shared across the entire income distribution and are unlikely to be offset from new trade deals.’

[Full Text]


Related Links:
Economic Policy Volume 32, Issue 92, October 2017 - Articles Editors’ Choice

The Costs and Benefits of Leaving the EU: Trade Effects

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 23/10/2017      [Back to the Top]

Quartz

We’re running out of big ideas

Modern-day inventors–even those in the league of Steve Jobs–will have a tough time measuring up to the productivity of the Thomas Edisons of the past. That’s because big ideas are getting harder and harder to find, and innovations have become increasingly massive and costly endeavors, according to new research from economists at the Stanford Institute for Economic Policy Research. As a result, tremendous continual increases in research and development will be needed to sustain even today’s low rate of economic growth. SIEPR senior fellow Nicholas Bloom, a Stanford GSB professor of economics by courtesy and co-author of a paper released this week by the National Bureau of Economic Research, contends that so many game-changing inventions have appeared since World War II that it’s become increasingly difficult to come up with the next big idea. “The thought now of somebody inventing something as revolutionary as the locomotive on their own is inconceivable,” Bloom says.


Related Links:
Quartz - We’re running out of big ideas

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 20/10/2017      [Back to the Top]

MIT Sloan Experts

Good managers, not machines, drive productivity growth - John Van Reenen

 Article by John Van Reenen. When people discuss what drives long-run productivity, they usually focus on technical change. But productivity is about more than robots, new drugs and self-driving vehicles. First, if you break down the sources of productivity across nations and firms there is a large residual left over (rather inelegantly named “Total Factor Productivity” or TFP for short). And observable measures of technology can only account for a small fraction of this dark matter. On top of this, a huge number of statistical analyses and case studies of the impact of new technologies on firm performance have shown that there is a massive variation in its impact. What’s much more important than the amount spent on fancy tech is the way managerial practices are used in the firms that implement the changes.

 


Related Links:
MIT Sloan Experts - Good managers, not machines, drive productivity growth - John Van Reenen

Management as a Technology?

CEP Growth

John Van reenen webpage


News Posted: 18/10/2017      [Back to the Top]

MIT Management Newsroom

Brexit, explained

Article by John Van Reenen:  ... “An argument that was made in favor of Brexit was that by restricting Europeans coming into Britain, it would create an economic boon,” said MIT Sloan professor John Van Reenen, an economist who studies Brexit and its economic implications. This was based on the assumption that immigration displaced British workers, increasing their unemployment and decreasing their wages. “There’s been a lot of research on that,” said Van Reenen, “and the pretty unequivocal answer is that it’s totally wrong.”... For more analysis, check out the Centre for Economic Performance’s Brexit page.


Related Links:
MIT Management Newsroom - Brexit, explained

BREXIT 2016: Policy Analysis from the Centre for Economic Performance

CEP Growth

John Van reenen webpage


News Posted: 18/10/2017      [Back to the Top]

LSE Brexit blog

Why Brexit could hit productivity in the UK

UK economic performance has been poor since the vote to leave the EU in June 2016, but has not been the catastrophe that many predicted. Nicholas Bloom (Stanford) and Paul Mizen (Nottingham University) draw four results from the evidence gathered in the new Decision Maker Panel survey of around 2,500 businesses in the UK. While most firms expect a negative impact of Brexit on sales, investment and costs, only larger firms and those that are more exposed to international markets are likely to think that they might move part of their business abroad.


Related Links:
LSE Brexit blog - Why Brexit could hit productivity in the UK

CEP Growth

Nick Bloom webpage


News Posted: 17/10/2017      [Back to the Top]

Spectator – Coffee House blog

The embarrassing role of economists on Brexit

A major impediment to clarity has been the weight of advice from what Michael Gove calls ‘organisations with acronyms’ suggesting that  a ‘no deal’ on trade will greatly damage the UK economy. Our careful and detailed re-evaluation of the reports issued by the Treasury, OECD, the LSE’s Centre for Economic Performance and others, shows that much of this was wrong. The key flaw in each case was the use of inappropriate benchmarks to judge the potential losses to the UK economy.


Related Links:
Spectator – Coffee House blog - The embarrassing role of economists on Brexit

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

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage

Jonathan Wadsworth webpage


News Posted: 13/10/2017      [Back to the Top]

LSE Research Briefing October 2017

New LSE report on uneven spread of UK industry

The South-East is not the country’s productivity engine, rather a band stretching west from the capital towards Bristol is, according to a new LSE report which challenges prevailing wisdom on the uneven spread of industry across the UK. 


Related Links:
LSE Research Briefing October 2017 - New LSE report on uneven spread of UK industry

Industry in Britain - An Atlas

CEP Growth

Richard Davies webpage

Anna Valero webpage


News Posted: 12/10/2017      [Back to the Top]

Forbes

Benefits of a lenient work-from-home policy

When it comes to debating a work-from-home policy, there are two schools of thought on the subject. While one group believes employees will abuse the system and productivity will be lost, the other believes that workers will be happier, healthier and therefore more productive during working hours. A study by Stanford economics professor Nicholas A. Bloom and Stanford graduate student James Liang suggests that when employees are given the opportunity to work from home, productivity increases and stress decreases.

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015


Related Links:
Forbes - Benefits of a lenient work-from-home policy

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth

Nick Bloom webpage


News Posted: 06/10/2017      [Back to the Top]

Kathimerini.gr (Greece)

Source of uncertainty, but not destruction, Brexit

Article by NICHOLAS BLOOM*, PAUL MIZEN

The conditions in the British economy worsened after the Brexit referendum, but there was no disaster predicted by various economists. Growth rates in Britain have fallen, and today they are down to around 0.5% compared to Europe and the US. However, the economy did not collapse and the disaster did not occur. Today's conditions in Britain are attributed to four factors, according to a survey of 2,500 businesses in the UK. First, British companies exporting to the EU have benefited from the 20% drop in sterling, as exports to the single European market have become more attractive. As long as access to the EU is maintained, export firms will benefit from weakening sterling. Second, demand for exports is boosted in the Eurozone due to the improvement of the economic landscape during the current year. Growth in the Eurozone is now homogeneous, with the European South recovering dynamically. Thirdly, monetary policy remains relaxed, with the base interest rate standing at the historical low of 0.25%. Fourth, half of the voters are optimistic about Britain's course.


Related Links:
Kathimerini.gr (Greece) - Source of uncertainty, but not destruction, Brexit

CEP Growth

Nick Bloom webpage


News Posted: 06/10/2017      [Back to the Top]

Share Radio [8:40:11 am]

CEP on Radio

… the share price of companies did worse than the company's ceo who actually paid less than average so if anything what you see now is actually pay for underperformance that us companies and there's another study done by two economists at the london school of economics at looked at the equivalent of big uk companies they found there was a correlation between executive high executive pay and a decent share price performance but they also found very interesting me that there was a lot of reward for luck either when there was a positive shocked to a company's share price had nothing to do with the skill executive those executives tend to get paid better they also found that mrs ceo pay these top big uk first was much more sensitive to increase his first term the firm's performance than decreases whereas we're often told that this is …

 


Related Links:
Share Radio [8:40:11 am] - CEP on Radio

CEO Pay and the Rise of Relative Performance Contracts: A Question of Governance?

CEP Growth

Brian Bell webpage

John Van reenen webpage


News Posted: 06/10/2017      [Back to the Top]

Livemint

A learning crisis in the developing world

A 2015 study by Stanford University’s Nicholas Bloom and others on management practices across 1,800 high schools in eight countries, including India, showed that better management produced better educational outcomes, and schools with greater autonomy did especially well (explaining at least in part the success of the UK academies and the US charter schools). Yet, in the developing world, school managements are rarely empowered or incentivized to improve learning outcomes.


Related Links:
Livemint - A learning crisis in the developing world

Does Management Matter In Schools?

CEP Growth

Nick Bloom webpage

Renata Lemos webpage

Raffaella Sadun webpage

John Van reenen webpage


News Posted: 05/10/2017      [Back to the Top]

Harvard Business Review

The real reason superstar firms are pulling ahead

But why is IT leading to winner-take-all competition? Bessen’s paper can’t answer that, however he raises two possibilities. It could be because “software development typically requires large upfront fixed costs,” meaning that firms that are already pretty large are the ones who can afford to invest in it. If it’s expensive to adopt and get good at IT, it’s more economical for big companies like Wal-Mart that can spread those costs out over lots and lots of products sold. Or maybe the firms succeeding with IT know something their competitors don’t. Perhaps, as OECD economist Chiara Criscuolo wrote in 2015, “Some firms clearly ‘get it’ and others don’t.” … superstars aren’t succeeding because of IT per se, but because they effectively combine it with other intangibles, like good management, well-known brands, or intellectual property. And, as with IT, each of those can require considerable upfront investment, meaning bigger players are better positioned to take advantage. … This hypothesis is bolstered by another recent paper. In it, John Van Reenen, Christina Patterson, and their coauthors find that industries with superstars aren’t distinguished by more investment in computers, but by more innovation as measured by patents. It’s not IT that creates superstars, but the combination of IT with other intangibles like R&D. Bessen also finds evidence linking intangible investment to higher profit margins. And it’s possible that his measure of IT employees isn’t a proxy for IT investment, but for the intangibles required to make IT profitable. … For an example of scalable intangibles in action, we can turn to McDonald’s. As Stanford’s Nicholas Bloom explains, McDonald’s created a system for running a restaurant, which required upfront effort but then could be scaled across stores. “Once a firm ‘invents’ good management it will then grow rapidly and dominate the market,” Bloom argues. …Moreover, as Sadun, Bloom, and Van Reenen have documented, cost isn’t the only reason some firms fail to adopt good management practices. Many managers simply don’t realize that their firms are poorly run; something similar could be happening with IT. In other words, maybe firms with terrible IT don’t realize how far behind they really are.

Related publications

Chiara Criscuolo CEP publications webpage:  http://cep.lse.ac.uk/_new/publications/author.asp?author=criscuolo

Related links

Chiara Criscuolo CEP alumni webpage:  http://personal.lse.ac.uk/criscuol/


Related Links:
Harvard Business Review - The real reason superstar firms are pulling ahead

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

Nick Bloom webpage

Raffaella Sadun webpage

John Van reenen webpage


News Posted: 05/10/2017      [Back to the Top]

Devex.com

Opinion: If we’re going to strengthen our schools, we need to strengthen their leadership

A growing body of research shows the role that school leaders play at influencing student outcomes. After studying headmasters in India and abroad, Stanford University Professor Nick Bloom and his colleagues recently wrote that a one-point increase on their scoring of school management practices is associated with a 10 percent increase in student performance. McKinsey & Company’s global review cites that a school principal — just one person — accounts for 25 percent of the impact that schools have on student learning.

Related article

‘Does Management Really Work?’, Nicholas Bloom, Raffaella Sadun and John Van Reenen, Harvard Business Review, November 2012 issue

https://hbr.org/2012/11/does-management-really-work


Related Links:
Devex.com - Opinion: If we’re going to strengthen our schools, we need to strengthen their leadership

Does Management Matter In Schools?

CEP Growth

Nick Bloom webpage

Raffaella Sadun webpage

John Van reenen webpage


News Posted: 04/10/2017      [Back to the Top]

Exame (Brazil)

Está ficando mais difícil encontrar boas ideias?/Is it getting harder to find good ideas?

"Ideas, and in particular the exponential growth they entail, are getting harder and harder to find," according to a recent study by the National Bureau of Economic Research in the United States. The authors are Michael Webb, Charles I. Jones and Nicholas Bloom of the Stanford University School of Economics and John Van Reenen of the Massachusetts Institute of Technology. In a Stanford blog post, Bloom points out that there have been so many revolutionary inventions in post-World War II that it has become difficult for scientists to keep up.


Related Links:
Exame (Brazil) - Está ficando mais difícil encontrar boas ideias?/Is it getting harder to find good ideas?

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 03/10/2017      [Back to the Top]

LSE British Politics and Policy blog

Where industry is strong and where it’s weak – key facts of UK business geography

Financial services aren’t as London-centric as the creative industries, and the coast-inland divide is growing, write Sandra Bernick, Richard Davies, and Anna Valero.

The UK’s financial services industry is not nearly as London-centric as the creative industries. Rather than the South East of England being the country’s productivity engine, it is a band stretching west from the capital along the M4 corridor towards Bristol. The East of England stands out nationally in terms of the intensity of local investment in research and development (R&D). And in addition to longstanding concerns about the North-South divide, there are emerging disparities between coastal and inland areas. These are among the key findings in our new ‘atlas’ of industry in Britain. In the latest update from the LSE Growth Commission , the new study describes and maps ten key facts about the UK’s business geography.


Related Links:
LSE British Politics and Policy blog - Where industry is strong and where it’s weak – key facts of UK business geography

Industry in Britain - An Atlas

CEP Growth

Anna Valero webpage

Richard Davies webpage


News Posted: 02/10/2017      [Back to the Top]

GrowthBusiness.co.uk

How to grow with R&D tax credits

R&D tax relief encourages investment in research and development across the economy, according to a recently published study by the London School of Economics (LSE). Researchers from the LSE’s Centre for Economic Performance (CEP) noted that a downward trend in UK business enterprise R&D had levelled off in the mid-2000s. They also noted a change in government policy on R&D tax relief in 2008. This extended the more generous R&D tax relief scheme for small and medium-sized enterprises (SMEs) to firms with assets above €43 million (the original limit) to those with assets up to €86 million.


Related Links:
GrowthBusiness.co.uk - How to grow with R&D tax credits

Do Tax Incentives for Research Increase Firm Innovation? An RD Design for R&D

CEP Growth CEP Urban and Spatial Programme

Antoine Dechezleprêtre webpage

Elias Einiö webpage

Ralf Martin webpage

John Van reenen webpage


News Posted: 02/10/2017      [Back to the Top]

Yeni Safak (Turkey)

Happier working at home

According to a survey conducted by Stanford University Professor of Economics Nicholas Bloom in Singapore, those who work from home are happier than those who work in the office. We asked the people who work at home to be happy. The greatest happiness of those who work from home in Turkey is not to get into traffic. So they know the job, but they do not go to work.


Related Links:
Yeni Safak (Turkey) - Happier working at home

Does Working from Home Work? Evidence from a Chinese Experiment

Working or shirking?

CEP Growth

Nick Bloom webpage


News Posted: 01/10/2017      [Back to the Top]

BBC Brasil

Why injustice upsets inequality, according to research

A society in which poverty does not exist sounds utopian - this society is equal but unfair, so it risks collapse, argues Nicholas Bloom, a professor of economics at Stanford University. "People do not work, create or struggle without the motivation to do so," he says.

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:
BBC Brasil - Why injustice upsets inequality, according to research

Measuring Economic Policy Uncertainty

CEP Growth

Nick Bloom webpage


News Posted: 01/10/2017      [Back to the Top]

Trome (Spain)

Should companies let their employees work from home? This study states that it is the best option

This is stated in the unique study of Stanford University economics professor Nicholas Bloom. According to the study, the number of people working from home has tripled in the last 30 years. However, the number of people following this system is very small compared to the traditional system.


Related Links:
Trome (Spain) - Should companies let their employees work from home? This study states that it is the best option

Does Working from Home Work? Evidence from a Chinese Experiment

Working or shirking?

CEP Growth

Nick Bloom webpage


News Posted: 30/09/2017      [Back to the Top]

El Diario.es (Spain)

The technology affects employment, but the fault is not (only) Uber or the robots

"There have always been, but the increase in numbers seems to have started about 30 years ago," says MIT researcher John Michael Van Reenen, one of the proponents of this theory and co-author of the study. pick up Surely the names of the signatures sound to you: in the list of corporate celebrities of Van Reenen and his colleagues are included the experienced Google, Amazon, Facebook and Apple as the relatively new Airbnb, Tesla and Uber.


Related Links:
El Diario.es (Spain) - The technology affects employment, but the fault is not (only) Uber or the robots

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

John Van reenen webpage


News Posted: 29/09/2017      [Back to the Top]

Economist

The cost of innovation has risen, and productivity has suffered

But the exploitation of currently available knowledge is far from complete

A recent paper by Nicholas Bloom, Charles Jones and Michael Webb of Stanford University, and John Van Reenen of the Massachusetts Institute of Technology…


Related Links:
Economist - The cost of innovation has risen, and productivity has suffered

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 29/09/2017      [Back to the Top]

The Beacon

How the UK can benefit from a free trade future after Brexit - even outside the Single Market

Too many economists have refused to take seriously the idea that Brexit has the potential to provide economic benefits to the UK. Before the referendum, Treasury economists assured the public that a vote to leave would cause “an immediate and profound shock to our economy” leading to recession and a large increase in unemployment. These are predictions that have since proved to be very wide of the mark. Modelling by the LSE’s Centre for Economic Performance (CEP) predicted that leaving the EU could only have negative consequences for the UK economy


Related Links:
The Beacon - How the UK can benefit from a free trade future after Brexit - even outside the Single Market

Foreign investors love Britain - but Brexit would end the affair

The impact of Brexit on foreign investment in the UK

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 28/09/2017      [Back to the Top]

Independent

Brexit: 'Zero chance' leaving EU will make Britons better off, Nobel laureate economist Paul Krugman says

Exclusive: Krugman rejects the assertions of Brexiteers that leaving the single market and customs union will ultimately help the UK export more to the rest of the world. A study by economists at the London School of Economics has estimated the damage could be as great as 9.5 per cent of GDP if the UK leaves the EU without a free trade deal.


Related Links:
Independent - Brexit: 'Zero chance' leaving EU will make Britons better off, Nobel laureate economist Paul Krugman says

Brexit: the impact on UK trade and living standards

The consequences of Brexit for UK trade and living standards

CEP Growth CEP Trade

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 27/09/2017      [Back to the Top]

Kurzy.cz (Czechoslovakia)

Governing excessive growth pessimism, we do not believe so many official numbers

There may come a whole range of inventions that we can hardly imagine today. Already existing innovations also need some time to affect productivity in production chains. This concerns robotics and a range of new technologies. But key progress will be made in the scientific field, it is estimated that 90% of all scientists who have ever lived are alive now. But their marginal productivity seems to fall sharply. Nicholas Bloom of MIT says it's getting harder to come up with a breakthrough idea, and more and more scientists are needed to keep productivity growth.

Also in:

Patria.cz (Czechoslovakia)

Governing excessive growth pessimism, we do not believe so many official numbers

https://www.patria.cz/zpravodajstvi/3634619/vladne-prehnany-rustovy-pesimismus-neverme-tolik-oficialnim-cislum.html


Related Links:
Kurzy.cz (Czechoslovakia) - Governing excessive growth pessimism, we do not believe so many official numbers

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 27/09/2017      [Back to the Top]

The Wire

As scaling effects of research productivity diminish, India must step up R&D investment

A new working paper at the NBER looks into the productivity of research effort, that is, how research effort correlates with an increase in output. ‘Are Ideas Getting Harder to Find‘, authored by Nicholas Bloom and Michael Webb of Stanford University, John Van Reenen of Massachusetts Institute of Technology and Jones himself, tries to empirically calculate research productivity in the US both at the micro (industry) level and the aggregate US economy as a whole.


Related Links:
The Wire - As scaling effects of research productivity diminish, India must step up R&D investment

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 26/09/2017      [Back to the Top]

Les Echos (France)

Productivity is cultivated

Over the last decade, economists have worked hard on the impact of management on productivity. The effectiveness of management, measured by a set of indicators (quality of internal monitoring, setting clear objectives, promoting talent, appropriate incentives, etc.) remains a strength of America. Economists Nicholas Bloom of Stanford, Raffaella Sadun of Harvard and John Van Reenen of the London School of Economics estimate that management accounts for one-third of countries' total factor productivity lag in the United States covering 11,000 enterprises in 34 countries). Technological progress may be slowing down. But there are still huge fields of productivity to cultivate.


Related Links:
Les Echos (France) - Productivity is cultivated

Management as a Technology?

Management Practices Across Firms and Countries

CEP Trade CEP Growth

Nick Bloom webpage

Raffaella Sadun webpage

John Van reenen webpage


News Posted: 26/09/2017      [Back to the Top]

The Independent (Daily Edition)

Zero chance Brexit will make UK better off, Nobel laureate economist says

A study by economists at the London School of Economics has estimated the damage could be as great as 9.5 per cent of GDP if the UK leaves the EU without a free trade deal.

Related article

‘The cost of Brexit to trade? At least £850 per household, per year’, Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen, LSE Brexit blog, 19 March 2017

http://blogs.lse.ac.uk/brexit/2016/03/19/the-cost-of-brexit-to-trade-at-least-850-per-household-per-year/


Related Links:
The Independent (Daily Edition) - Zero chance Brexit will make UK better off, Nobel laureate economist says

The consequences of Brexit for UK trade and living standards

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 26/09/2017      [Back to the Top]

LSE Business Review blog

Where industry is strong and where it's weak: Key facts of UK business geography

Article by Sandra Bernick, Richard Davies and Anna Valero: The UK’s financial services industry is not nearly as London-centric as the creative industries. Rather than the South East of England being the country’s productivity engine, it is a band stretching west from the capital along the M4 corridor towards Bristol. The East of England stands out nationally in terms of the intensity of local investment in research and development (R&D). And in addition to longstanding concerns about the North-South divide, there are emerging disparities between coastal and inland areas. These are among the key findings in our new ‘atlas’ of industry in Britain. In the latest update from the LSE Growth Commission , the new study describes and maps ten key facts about the UK’s business geography.


Related Links:
LSE Business Review blog - Where industry is strong and where it's weak: Key facts of UK business geography

Industry in Britain - An Atlas

CEP Growth

Anna Valero webpage

Richard Davies webpage


News Posted: 25/09/2017      [Back to the Top]

Financial Times

Business fears Brexit will hit sales, study finds

British companies are increasingly concerned that Brexit will hit sales and raise costs, according to a survey backed by the Bank of England. Tracking the views of chief executives and chief financial officers across 2,500 non-financial companies every month, the survey by Nottingham and Stanford universities has been collecting data for a year and has just produced its first results. ... Professor Nick Bloom of Stanford University, California, said the UK's productivity might be hit, since productivity growth had been stronger in areas where business investment sentiment was weakest.


Related Links:
Financial Times - Business fears Brexit will hit sales, study finds

CEP Growth

Nick Bloom webpage


News Posted: 25/09/2017      [Back to the Top]

St Louis Post Dispatch

Why the world’s workers are losing to capitalists

Recently, a lot of attention has focused on the idea that monopoly power might be causing the shift. But the famous paper that draws this connection — by David Autor, David Dorn, Lawrence Katz, Christina Patterson and John Van Reenen — also shows that it can account for perhaps only 20 percent of the change. This means other possible explanations for labor's decline, like increasing automation or globalization, need to be re-examined.

Related publications

‘Concentrating on the Fall of the Labor Share’, David Autor, David Dorn, Lawrence F. Katz, Christina Patterson and John Van Reenen, American Economic Review: Papers & Proceedings, Volume 107(5), May 2017

https://doi.org/10.1257/aer.p20171102

http://pubs.aeaweb.org/doi/pdfplus/10.1257/aer.p20171102


Related Links:
St Louis Post Dispatch - Why the world’s workers are losing to capitalists

Concentrating on the Fall of the Labor Share

CEP Growth

John Van reenen webpage


News Posted: 25/09/2017      [Back to the Top]

NJ Today (New Jersey, USA)

Big ideas are getting harder to find

Nicholas Bloom, a SIEPR senior fellow and co-author of a paper released this week by the National Bureau of Economic Research, contends that so many game-changing inventions have appeared since World War II that it’s become increasingly difficult to come up with the next big idea.


Related Links:
NJ Today (New Jersey, USA) - Big ideas are getting harder to find

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 25/09/2017      [Back to the Top]

Economist

Letters to the Editor: Patrick Minford responds

Rather, by using detailed quality-adjusted OECD prices we reach roughly the same estimates of nontariff barriers that the researchers at the London School of Economics cite for their own w...


Related Links:
Economist - Letters to the Editor: Patrick Minford responds

‘ECONOMISTS FOR BREXIT’: A critique

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage


News Posted: 23/09/2017      [Back to the Top]

The Times

The M4 corridor is more productive for the British economy than the southeast, report finds

The M4 corridor is more productive for the British economy than the southeast, report finds

A study into the industrial breakdown of the country by the Centre for Economic Performance (CEP) at the London School of Economics has exposed some well-worn assumptions about the UK economy as myths and raised questions about how to spread prosperity across the nation.

Also in

The Times

Patchy prosperity is the real British disease

A new study shows poor productivity is not explained by simplistic talk of a north-south divide

Weak productivity equals weak wages, equals social division, equals many of the problems haunting the country today. But the odd thing is that until now no one had thought to dig deep into the data underlying these problems. That all changes today, with the release of a paper by Richard Davies, Anna Valero and Sandra Bernick from the London School of Economics.

https://www.thetimes.co.uk/article/patchy-prosperity-is-the-real-british-disease-d9pqddfh9

Related links

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


Related Links:
The Times - The M4 corridor is more productive for the British economy than the southeast, report finds

Industry in Britain - An Atlas

CEP Growth

Anna Valero webpage

Richard Davies webpage


News Posted: 22/09/2017      [Back to the Top]

LSE News

New LSE report on uneven spread of UK industry

The South-East is not the country’s productivity engine, rather a band stretching west from the capital towards Bristol is, according to a new LSE report which challenges prevailing wisdom on the uneven spread of industry across the UK.
 
Other findings include that the UK’s financial services industry is not nearly as London-centric as the creative industries. The East of England stands out nationally in terms of the intensity of local investment in research and development (R&D). And in addition to longstanding concerns about the North-South divide, there are emerging disparities between coastal and inland areas.
 
These are among the key findings in a new ‘atlas’ of industry in Britain published today in a special report by Sandra Bernick, Richard Davies and Anna Valero at the Centre for Economic Performance (CEP) at the London School of Economics (LSE).

 


Related Links:
LSE News - New LSE report on uneven spread of UK industry

Industry in Britain - An Atlas

CEP Growth

Anna Valero webpage


News Posted: 21/09/2017      [Back to the Top]

Sky News TV

Anna Valero of CEP and LSE interviewed, warning the government that it needs to do more to finance innovation.


Related Links:
Sky News TV - Anna Valero of CEP and LSE interviewed, warning the government that it needs to do more to finance innovation.

The Economic Impact of Universities: Evidence from Across the Globe

CEP Growth

Anna Valero webpage


News Posted: 21/09/2017      [Back to the Top]

Ideas.Ted.com

Why working from home should be standard practice

And if your boss is on the fence, here’s a compelling case study — from economics professor Nicholas Bloom — to show her. Imagine a person working from home. If you pictured somebody in pajamas watching videos on their laptop, you’re not alone. “Many people think of working from home as shirking from home,” says Stanford University economics professor Nicholas Bloom (TEDxStanford Talk: Go ahead, tell your boss you are working from home).


Related Links:
Ideas.Ted.com - Why working from home should be standard practice

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth

Nick Bloom webpage


News Posted: 20/09/2017      [Back to the Top]

Writer Beat blog

Why small isn’t always beautiful: labor regulations and firm growth

Article by John Van Reenen

What are the costs and benefits of regulation? Most countries treat smaller firms more generously when it comes to business regulation, exempting them from some of the burdens on larger firms. This research uses this institutional feature to show how the overall costs of regulation can be calculated from observing companies’ response to this “tax on firm size”.

Related publications

‘Firm Size Distortions and the Productivity Distribution: Evidence from France’, Luis Garicano, Claire Lelarge and John Van Reenen, American Economic Review 106(11) 3439-79, November 2016

https://www.aeaweb.org/articles?id=10.1257/aer.20130232

 


Related Links:
Writer Beat blog - Why small isn’t always beautiful: labor regulations and firm growth

Firm Size Distortions and the Productivity Distribution: Evidence from France

CEP Growth

John Van reenen webpage


News Posted: 20/09/2017      [Back to the Top]

Writer Beat blog

Why small isn't always beautiful: labor regulations and firm growth

Article by John Van Reenen: What are the costs and benefits of regulation? Most countries treat smaller firms more generously when it comes to business regulation, exempting them from some of the burdens on larger firms. This research uses this institutional feature to show how the overall costs of regulation can be calculated from observing companies’ response to this “tax on firm size”.


Related Links:
Writer Beat blog - Why small isn't always beautiful: labor regulations and firm growth

Firm Size Distortions and the Productivity Distribution: Evidence from France

CEP Growth

John Van reenen webpage


News Posted: 20/09/2017      [Back to the Top]

Vox

Ideas aren't running out, but they are getting more expensive to find

Article by Nicholas Bloom, Charles I. Jones, John Van Reenen and Michael Webb: The rate of productivity growth in advanced economies has been falling. Optimists hope for a fourth industrial revolution, while pessimists lament that most potential productivity growth has already occurred. This column argues that data on the research effort across all industries shows the costs of extracting ideas have increased sharply over time. This suggests that unless research inputs are continuously raised, economic growth will continue to slow in advanced nations.


Related Links:
Vox - Ideas aren't running out, but they are getting more expensive to find

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 20/09/2017      [Back to the Top]

European Union News – Durham University: Thought Leadership

How the UK can benefit from a free trade future after Brexit – even outside the single market

Professor of Finance and Economics, Kevin Dowd (Durham University), Professor David Paton (Nottingham University) and Professor David Blake (University of London) discuss how the UK can benefit from a free trade future after Brexit…. Too many economists have refused to take seriously the idea that Brexit has the potential to provide economic benefits to the UK. Before the referendum, Treasury economists assured the public that a vote to leave would cause “an immediate and profound shock to our economy” leading to recession and a large increase in unemployment. These are predictions that have since proved to be very wide of the mark. Modelling by the LSE’s Centre for Economic Performance (CEP) predicted that leaving the EU could only have negative consequences for the UK economy.


Related Links:
European Union News – Durham University: Thought Leadership - How the UK can benefit from a free trade future after Brexit – even outside the single market

The impact of Brexit on foreign investment in the UK

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 20/09/2017      [Back to the Top]

Bloomberg

Why workers are losing to capitalists

Back in April, I wrote about one of the most troubling mysteries in economics, the falling labor share. Less of the income the economy produces is going to people who work, and more is going to people who own things. … Recently, a lot of attention has focused on the idea that monopoly power might be causing the shift. But the famous paper that draws this connection -- by David Autor, David Dorn, Lawrence Katz, Christina Patterson and John Van Reenen -- also shows that it can account for perhaps only 20 percent of the change. This means other possible explanations for labor's decline, like increasing automation or globalization, need to be re-examined.

Related publications

‘Concentrating on the Fall of the Labor Share’, David Autor, David Dorn, Lawrence F. Katz, Christina Patterson and John Van Reenen, American Economic Review: Papers & Proceedings, Volume 107(5), May 2017

https://doi.org/10.1257/aer.p20171102

http://pubs.aeaweb.org/doi/pdfplus/10.1257/aer.p20171102


Related Links:
Bloomberg - Why workers are losing to capitalists

Concentrating on the Fall of the Labor Share

CEP Growth

John Van reenen webpage


News Posted: 20/09/2017      [Back to the Top]

The Times

Rise of the accidental manager lies behind UK's low productivity

Research from the Centre for Economic Performance at the London School of Economics, which developed a management performance score based on employee ratings of supervisors, found that Britain ranked fifth out of the G7 economies.

Related publications

‘New Approaches to Surveying Organizations’, Nicholas Bloom and John Van Reenen, American Economic Review: Papers and Proceedings, Volume 100, May 2010

http://worldmanagementsurvey.org/wp-content/images/2010/07/New-Approaches-to-Surveying-Organizations-Bloom-and-Van-Reenen.pdf

 

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:
The Times - Rise of the accidental manager lies behind UK's low productivity

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 20/09/2017      [Back to the Top]

Managers.org.uk

How accidental managers are draining productivity

Research from the Centre for Economic Performance at the London School of Economics found that the problem was particularly prevalent in Great Britain, with the country scoring just 3.03 out of five for management best practice, behind the US (3.31), Japan (3.23), Germany (3.21) and Canada (3.14).

Related publications

‘New Approaches to Surveying Organizations’, Nicholas Bloom and John Van Reenen, American Economic Review: Papers and Proceedings, Volume 100, May 2010

http://worldmanagementsurvey.org/wp-content/images/2010/07/New-Approaches-to-Surveying-Organizations-Bloom-and-Van-Reenen.pdf

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:
Managers.org.uk - How accidental managers are draining productivity

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 20/09/2017      [Back to the Top]

LSE Business Review blog

Towards a modern UK industrial strategy

There's an opportunity to build a new system based on transparency, independence and a long-term outlook, write Anna Valero and Richard Davies

Every government has an industrial strategy however it is articulated: government affects the investment climate for business through tax and regulation; establishes national priorities; invests in skills, infrastructure and research; and procures outputs from the private sector – all of which influence the evolution of the private economy.

Related publications

UK Growth: A New Chapter, the LSE Growth Commission’s 2017 report

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

Related links

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


Related Links:
LSE Business Review blog - Towards a modern UK industrial strategy

Towards a new UK industrial strategy

CEP Growth

Richard Davies webpage

Anna Valero webpage


News Posted: 19/09/2017      [Back to the Top]

Jordan Times

The two pillars of French economic reform

Article by Philippe Aghion and Benedicte Berner

The French government has just announced the guidelines for a new labour code, its first major reform to boost France’s economy by giving more flexibility to companies to adapt to the marketplace.

The second major reform sought by President Emmanuel Macron’s Cabinet — an overhaul of the French state — is set to follow. The changes to the labour code have four goals. First, direct negotiations between employers and employees in small and medium-size firms (accounting for 55 per cent of the workforce) would be facilitated by allowing such companies to negotiate with elected representatives not mandated by the trade unions.


Related Links:
Jordan Times - The two pillars of French economic reform

CEP Growth

Philippe Aghion webpage


News Posted: 19/09/2017      [Back to the Top]

Pittsburgh Post-Gazette

David Brooks: The economy isn’t broken

In a well-functioning economy, workers are rewarded for their productivity. As output, jobs and hours worked rise, so does income. Over the past two years, that seems to be exactly what’s happening.

The evidence from the past two years strongly supports those who have argued all along that income has not decoupled from productivity. A wide range of economists, including Martin Feldstein, Stephen Rose, Edward Lazear, Joao Paulo Pessoa, John Van Reenen, Richard Anderson of the St. Louis Fed and a team from Goldman Sachs, have produced studies showing wages tracking very predictably with productivity.


Related Links:
Pittsburgh Post-Gazette - David Brooks: The economy isn’t broken

Wage growth and productivity growth: the myth and reality of 'decoupling'

Decoupling of Wage Growth and Productivity Growth? Myth and Reality

CEP Growth

John Van reenen webpage


News Posted: 18/09/2017      [Back to the Top]

The Indiana Gazette

In reality the economy isn’t broken

In a well-functioning economy, workers are rewarded for their productivity. As output, jobs and hours worked rise, so does income. Over the past two years, that seems to be exactly what’s happening.

The evidence from the past two years strongly supports those who have argued all along that income has not decoupled from productivity. A wide range of economists, including Martin Feldstein, Stephen Rose, Edward Lazear, Joao Paulo Pessoa, John Van Reenen, Richard Anderson of the St. Louis Fed and a team from Goldman Sachs, have produced studies showing wages tracking very predictably with productivity.


Related Links:
The Indiana Gazette - In reality the economy isn’t broken

Wage growth and productivity growth: the myth and reality of 'decoupling'

Decoupling of Wage Growth and Productivity Growth? Myth and Reality

CEP Growth

John Van reenen webpage


News Posted: 17/09/2017      [Back to the Top]

Financial Times – Gavyn Davies’ blog

American growth pessimism may be overdone

A fascinating new paper by Nicholas Bloom and colleagues at Stanford and MIT has created waves by claiming that ideas are getting harder to find, which implies that many more researchers are needed to maintain a given rate of growth in total factor productivity in any given field (see Isabella Kaminska here).


Related Links:
Financial Times – Gavyn Davies’ blog - American growth pessimism may be overdone

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 17/09/2017      [Back to the Top]

American Enterprise Institute

Around the web: Correcting the economic narrative, Greg Mankiw’s reading list, and more The economy isn’t broken after all

In a well-functioning economy, workers are rewarded for their productivity. As output, jobs and hours worked rise, so does income. Over the past two years, that seems to be exactly what’s happening. The evidence from the past two years strongly supports those who have argued all along that income has not decoupled from productivity. A wide range of economists, including Martin Feldstein, Stephen Rose, Edward Lazear, Joao Paulo Pessoa, John Van Reenen, Richard Anderson of the St. Louis Fed and a team from Goldman Sachs, have produced studies showing wages tracking very predictably with productivity. . . . The problem of the middle-class squeeze, in short, may not be with how the fruits of productivity are distributed, but the fact that there isn’t much productivity growth at all. It’s not that a rising tide doesn’t lift all boats; it’s that the tide is not rising fast enough. . . .


Related Links:
American Enterprise Institute - Around the web: Correcting the economic narrative, Greg Mankiw’s reading list, and more The economy isn’t broken after all

Wage growth and productivity growth: the myth and reality of 'decoupling'

Decoupling of Wage Growth and Productivity Growth? Myth and Reality

CEP Growth

John Van reenen webpage


News Posted: 15/09/2017      [Back to the Top]

Stanford News

Stanford scholars say big ideas are getting harder to find

Nicholas Bloom, a SIEPR senior fellow and co-author of a paper released this week by the National Bureau of Economic Research, contends that so many game-changing inventions have appeared since World War II that it’s become increasingly difficult to come up with the next big idea. “The thought now of somebody inventing something as revolutionary as the locomotive on their own is inconceivable,” Bloom said.


Related Links:
Stanford News - Stanford scholars say big ideas are getting harder to find

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 14/09/2017      [Back to the Top]

Financial Times – Alphaville

It’s not about the low hanging fruit, it’s about the ideas

…the “dearth of new ideas” thesis still resonates. A new paper from Stanford’s Nicholas Bloom, Charles Jones, Michael Web and MIT’s John Van Reenen examines this particular aspect of the innovation quandary. They ask more simply: Are ideas getting harder to find?


Related Links:
Financial Times – Alphaville - It’s not about the low hanging fruit, it’s about the ideas

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 14/09/2017      [Back to the Top]

Fudzilla

Humanity is running out of ideas

A team of top boffins is starting to worry that humans are running out of ideas and are citing the tech industry’s inability to come up with a solution for Moore's Law as a case study. Economic researchers from Stanford University and the Massachusetts Institute of Technology have just penned a bit of research with the catchy title “Are Ideas Getting Harder to Find?" Economics professors Nicholas Bloom, Charles Jones, and John Van Reenen, and PhD candidate Michael Webb say that across a broad range of case studies ideas – and in particular the exponential growth they imply - "are getting harder and harder to find".


Related Links:
Fudzilla - Humanity is running out of ideas

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 13/09/2017      [Back to the Top]

LSE Business Review blog

The value of good management

To what extent does the quality of management matter for a business to be successful? ask Nicholas Bloom, Erik Brynjolfsson, Lucia Foster, Ron Jarmin, Megha Patnaik, Itay Saporta-Eksten and John Van Reenen

The public remains divided over the value of good management. But what do the data tell us? In our research, we’ve confirmed that management matters – a lot. In fact, it matters as much or more than a number of other factors associated with successful businesses, such as the adoption or generation of new technology.


Related Links:
LSE Business Review blog - The value of good management

In brief...The value of good management

What Drives Differences in Management?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 13/09/2017      [Back to the Top]

Portfolio (Hungary)

Sok munka, sok adó: így élnek a londoni magyarok/There is a lot of work and a lot of taxes: so do the Hungarians living in London

Last year before the Brexit referendum, the Center for Economic Performance (CEP) produced a study on the economic impacts of Eastern European immigrants. The London School of Economics, a research institute from the results of labor market surveys, concluded that immigrants from the EU are typically younger, more skilled and more likely than the British born.


Related Links:
Portfolio (Hungary) - Sok munka, sok adó: így élnek a londoni magyarok/There is a lot of work and a lot of taxes: so do the Hungarians living in London

Immigration and the UK Economy

Why immigration is no reason to leave the EU

Brexit and the Impact of Immigration on the UK

CEP Labour Markets CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

John Van reenen webpage

Jonathan Wadsworth webpage


News Posted: 13/09/2017      [Back to the Top]

The A Register

Boffins fear we might be running out of ideas

Research just isn’t as effective as it used to be

In a paper published Monday through the National Bureau of Economic Research, "Are Ideas Getting Harder to Find?", economics professors Nicholas Bloom, Charles Jones, and John Van Reenen, and PhD candidate Michael Webb, defy Betteridge's Law of Headlines by concluding that an idea drought has indeed taken hold. "Across a broad range of case studies ... we find that ideas – and in particular the exponential growth they imply – are getting harder and harder to find," the authors declare in their paper.


Related Links:
The A Register - Boffins fear we might be running out of ideas

Are Ideas Getting Harder to Find?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 11/09/2017      [Back to the Top]

Financiero online (Spain)

Así impulsará Francia su economía/This will boost France’s economy

Recent research published by the London School of Economics also found that teaching phonics led to greater improvements in reading among disadvantaged children compared with students taught using other systems.


Related Links:
Financiero online (Spain) - Así impulsará Francia su economía/This will boost France’s economy

CEP Growth

Philippe Aghion webpage


News Posted: 09/09/2017      [Back to the Top]

Social Europe

How Bad Will Brexit Really Be For The UK?

The great majority of the economic forecasts have concluded that Brexit will damage the UK economy. In the case of ‘no deal’ between the UK and the EU, the majority view is that the loss of GDP could be severe. The UK Treasury, the OECD and the London School of Economics’ Centre for Economic Policy (CEP) all agreed, in reports published during the referendum campaign, that with no deal the loss of GDP by 2030 would be in the range of 7-10%. A free-trade agreement (FTA) would be little better.


Related Links:
Social Europe - How Bad Will Brexit Really Be For The UK?

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

CEP Growth CEP Trade

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 08/09/2017      [Back to the Top]

Smart Company.com.au (Australia)

Working from home may have a bad rep, but is this really justified?

As outlined at TED, research conducted by Stanford University economics professor Nicholas Bloom shows companies could not only benefit from a reduction in costs associated with office space, but also see improved productivity from employees who work from home. Bloom notes in his TEDx talk, ‘Go ahead, tell your boss you are working from home’, that while suspicion may reign about what employees get up to while on the clock at home, his research shows the reality is divorced from popular conceptions.


Related Links:
Smart Company.com.au (Australia) - Working from home may have a bad rep, but is this really justified?

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth

Nick Bloom webpage


News Posted: 05/09/2017      [Back to the Top]

The Economist

Blame Congress for high health-care costs

So Zack Cooper of Yale University and three other researchers argue in a paper to be published on September 4th. They studied reforms passed in 2003 that allowed over-65s to obtain prescription drugs through Medicare for the first time—the biggest expansion in the scheme’s history, costing some $400bn over the next decade….


Related Links:
The Economist - Blame Congress for high health-care costs

CEP Growth

Zack Cooper webpage


News Posted: 02/09/2017      [Back to the Top]

Le Figaro

Philippe Aghion: «Réformer l'État est la clé de la réussite du quinquennat» / "Reforming the State is the key to the success of the Five-Year Plan"

Can Emmanuel Macron succeed in "transforming" the country he promised? Philippe Aghion, one of the great names in French economic research, hopes and wants to believe in it.


Related Links:
Le Figaro - Philippe Aghion: «Réformer l'État est la clé de la réussite du quinquennat» / "Reforming the State is the key to the success of the Five-Year Plan"

CEP Growth

Philippe Aghion webpage


News Posted: 01/09/2017      [Back to the Top]

Project Syndicate

The Two Pillars of French Economic Reform

Article by Philippe Aghion and Benedicte Berner

The French government has just announced the guidelines for a new labor code, its first major reform to boost France’s economy, by giving more flexibility to companies to adapt to the marketplace. The second major reform sought by President Emmanuel Macron’s cabinet – an overhaul of the French state – is set to follow.

Also in

MENAFN

Two pillars of French economic reform

http://www.menafn.com/1095808308/Two-pillars-of-French-economic-reform

 

Jornal De Brasil

'Project Syndicate': Os dois pilares da reforma econômica francesa / The two pillars of French economic reform

http://www.jb.com.br/economia/noticias/2017/09/04/project-syndicate-os-dois-pilares-da-reforma-economica-francesa/


Related Links:
Project Syndicate - The Two Pillars of French Economic Reform

CEP Growth

Philippe Aghion webpage


News Posted: 01/09/2017      [Back to the Top]

Canadian Investment Opportunities & News

B.C.'s new business as usual: political and economic uncertainty

Research shows that policy uncertainty can drive down business investment by six to 10.5 per cent. To see how the election created uncertainty in B.C., the Fraser Institute created a proxy measure using newspaper reporting of the word “uncertain” in the province from 2009 to the present. The study was inspired by work on American economic policy uncertainty developed by economists Scott Baker, Nick Bloom and Steven Davis.


Related Links:
Canadian Investment Opportunities & News - B.C.'s new business as usual: political and economic uncertainty

Measuring Economic Policy Uncertainty

CEP Growth

Nick Bloom webpage


News Posted: 31/08/2017      [Back to the Top]

New York Times

European Central Bank Chief Says Monetary Policy Must Stay ‘Very Patient’

Snippet...”Mostly, the economists gathered here expressed hope that people would embrace the broader benefits of trade rather than focusing on the narrow costs.

“All I can hope is that we are having a pause in the progress toward peaceful economic integration,” rather than a permanent decline, said John Van Reenen, an economics professor at M.I.T.

 


Related Links:
New York Times - European Central Bank Chief Says Monetary Policy Must Stay ‘Very Patient’

CEP Growth

John Van reenen webpage


News Posted: 25/08/2017      [Back to the Top]

Economist

Most economists say Brexit will hurt the economy – but one disagrees

Patick Minford thinks that GDP could increase by 6.8%

Mr Minford’s calculations are based on dubious assumptions. He also ignores the “gravity” effect, whereby close neighbours trade more with each other. He reckons any fall in trade with the EU will automatically be made up elsewhere. He attributes all the rise in Britain’s trade with the EU since it joined in 1973 to trade diversion, not trade creation, ignoring evidence to the contrary. And he says all price differences are caused by protection, whereas most reflect differing quality or regulatory standards. Swati Dhingra and her colleagues at the London School of Economics have used their Brexit model to recalculate the gains of unilateral free trade. It reduces the loss from a hard Brexit, but only slightly, from 2.6% of GDP to 2.3%.


Related Links:
Economist - Most economists say Brexit will hurt the economy – but one disagrees

‘ECONOMISTS FOR BREXIT’: A critique

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 24/08/2017      [Back to the Top]

Harvard Business Review

Why do we undervalue competent management?

By Raffaella Sadun, Nicholas Bloom and John Van Reenen

In MBA programs, students are taught that companies can’t expect to compete on the basis of internal managerial competencies because they’re just too easy to copy. Operational effectiveness—doing the same thing as other companies but doing it exceptionally well—is not a path to sustainable advantage in the competitive universe. To stay ahead, the thinking goes, a company must stake out a distinctive strategic position—doing something different than its rivals. This is what the C-suite should focus on, leaving middle and lower-level managers to handle the nuts and bolts of managing the organization and executing plans.

Related publication

Harvard Business Review, September-October 2017 issue

https://hbr.org/archive-toc/BR1705


Related Links:
Harvard Business Review - Why do we undervalue competent management?

CEP Growth

Nick Bloom webpage

Raffaella Sadun webpage

John Van reenen webpage


News Posted: 23/08/2017      [Back to the Top]

Yahoo! Style

Leading economists say £135bn hard Brexit boost claim ‘defies gravity’

A leading quartet of economists have taken issue with a report by pro-Brexit counterparts that paints a rosy picture for Britain should the country leave the EU without any trade deals in place. The four professors at the London School of Economics say the vision outlined by their peers, led by Prof Patrick Minford at Cardiff University, simply does not add up.


Related Links:
Yahoo! Style - Leading economists say £135bn hard Brexit boost claim ‘defies gravity’

‘ECONOMISTS FOR BREXIT’: A critique

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 22/08/2017      [Back to the Top]

CEP on Twitter

Deputy Leader of SNP group in Westminster and SNP Economy spokesman Kirsty Blackman MSP retweeted LSE: RT @KirstySNP:

Here's a piece from LSE debunking Prof Minford's post-Brexit trade theories and a quote from him about industry – see http://blogs.lse.ac.uk/politicsandpolicy/the-britain-alone-scenario-how-economists-for-brexit-defy-the-laws-of-gravity/.


Related Links:
CEP on Twitter - Deputy Leader of SNP group in Westminster and SNP Economy spokesman Kirsty Blackman MSP retweeted LSE: RT @KirstySNP:

‘ECONOMISTS FOR BREXIT’: A critique

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 21/08/2017      [Back to the Top]

Huffington Post

Economist Who Claims £135billion Hard Brexit Boost For UK Guilty Of ‘Violence To Basic Facts Of Economic Life’

The policy, known as ‘Britain Alone’, was savaged by The Centre for Economic Performance at the London School of Economics, which suggested Minford’s work disregarded 40 years of established theory.


Related Links:
Huffington Post - Economist Who Claims £135billion Hard Brexit Boost For UK Guilty Of ‘Violence To Basic Facts Of Economic Life’

‘ECONOMISTS FOR BREXIT’: A critique

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 21/08/2017      [Back to the Top]

In Facts - Stop destructive Brexit

BBC gifts Brexit economists too much credibility

The views of Economists for Brexit / Free Trade have repeatedly been rebuffed elsewhere, for example in a report by a group of economists at the LSE’s Centre for Economic Performance. They predict a 2.3% economic loss from Minford’s policy, rather than the 4% gain he claims. They argue Minford “misunderstands the nature of regulations and product standards”, seeing harmonisation across the EU as a “pernicious plot by vested interests to raise prices” rather than a proven way to increase trade and competition in a modern economy. They also reject Minford’s assumptions that countries will buy only from the lowest-cost supplier and not consider other factors such as geographic proximity, transport costs and quality. The economists conclude that “theories need grounding in facts, not ideology”.


Related Links:
In Facts - Stop destructive Brexit - BBC gifts Brexit economists too much credibility

‘ECONOMISTS FOR BREXIT’: A critique

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 21/08/2017      [Back to the Top]

Yahoo! Finance

Leading economists say £135bn hard Brexit boost claim 'defies gravity'

The LSE quartet – professors Thomas Sampson, Swati Dhingra, Gianmarco Ottaviano and John Van Reenen – do concede that there is, potentially, a very minor boost to going it alone.

Their own models suggest that should the UK leave the bloc and trade under WTO rules, maintaining import tariffs, income per person falls by 2.6%. Under the ‘Britain alone’ scenario of unilateral liberalisation after Brexit, UK real incomes still fall by 2.3%....


Related Links:
Yahoo! Finance - Leading economists say £135bn hard Brexit boost claim 'defies gravity'

BREXIT 2016: Policy Analysis from the Centre for Economic Performance

CEP Growth CEP Trade

Holger Breinlich webpage

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 21/08/2017      [Back to the Top]

FTChinese.com

How do technology companies contribute to alleviating inequality?

More importantly, most of the wealth control of US companies is not one of the few top industries, but a few top companies. 10% of the most profitable US companies are 8 times the average profit of the average company. In the nineties of last century, this value is only three times. Those companies that are financially profitable pay high salaries to their employees, but their competitors are not able to provide the same treatment. In fact, the research results at the Institute of Labor Economics, based in Bonn, show that the pay gap between individual workers has not been due to the company since the 1970s, The pay gap between companies. Another study of the Center for Economic Performance at the London School of Economics and Political Science (LSE) shows that the pay gap between top companies and other companies is the cause of most of the pay inequality in American society.

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:
FTChinese.com - How do technology companies contribute to alleviating inequality?

Fluctuations in Uncertainty

Economic Recovery and Policy Uncertainty

Policy uncertainty: a new indicator

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 21/08/2017      [Back to the Top]

Independent

A View from the Top: Sir Richard Blundell, feted economist and possible future Nobel prize winner

Snippet: ... “John Van Reenen, one of Blundell's former PHD students (and now a distinguished economist in his own right at the Massachusetts Institute of Technology), argues that one of Blundell's major contributions has been to use econometric techniques and micro-economic data to analyse and improve public policy. He singles out the example of Labour's 1999 New Deal for Young People, which Blundell's research showed was having a big positive effect…”


Related Links:
Independent - A View from the Top: Sir Richard Blundell, feted economist and possible future Nobel prize winner

CEP Growth

John Van reenen webpage


News Posted: 17/08/2017      [Back to the Top]

Vox

Missing growth: How imputation and creative destruction affect TFP measurement

Article by Philippe Aghion, Antonin Bergeaud, Timo Boppart, Peter Klenow, Huiyu Li 

Slowing growth of total factor productivity has led some to suggest that the world is running out of ideas for innovation. This column suggests that the way output is measured is vital to assessing this, and quantifies the role of imputation in output measurement bias. By differentiating between truly ‘new’ and incumbent products, it finds missing growth in the US economy. Accounting for this missing growth will allow statistical offices to improve their methodology and more readily recognise the ready availability of new ideas, but also has implications for optimal growth and inflation targeting policies…


Related Links:
Vox - Missing growth: How imputation and creative destruction affect TFP measurement

CEP Growth

Philippe Aghion webpage


News Posted: 16/08/2017      [Back to the Top]

Chicago Booth Review

A global measure of uncertain economic times

Uncertainty about a nation’s economic policies can influence both politics and financial markets, and the effects often spread beyond the country’s borders. Building on his research with Northwestern’s Scott R. Baker and Stanford’s Nick Bloom measuring policy uncertainty in the world’s major economies, Chicago Booth’s Steven J. Davis has constructed an index that combines data from 18 countries to provide a global measurement of uncertainty from 1997 to present.

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:
Chicago Booth Review - A global measure of uncertain economic times

Measuring Economic Policy Uncertainty

CEP Growth

Nick Bloom webpage


News Posted: 14/08/2017      [Back to the Top]

Forsal.Pl (Poland)

What about international trade after brexit? Here are the possibilities and their consequences

The Center for Economic Performance estimated that in the case of such a scenario over the decade, trade would have fallen by 40 percent and average income by 2.6 percent.


Related Links:
Forsal.Pl (Poland) - What about international trade after brexit? Here are the possibilities and their consequences

BREXIT 2016: Policy Analysis from the Centre for Economic Performance

CEP Growth CEP Trade

Holger Breinlich webpage

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 14/08/2017      [Back to the Top]

Bloomberg Politics

Britain’s Not-So-Sweet Options for an EU Trade Deal

What if there is no deal?

A “very, very bad outcome,” in the words of Chancellor of the Exchequer Philip Hammond. The U.K. would regain control of laws, money, immigration and ability to negotiate trade pacts. If pushed it could even slash taxes and regulations to create a Singapore-style economy focused on drawing investment. (Embracing fully free trade could increase the U.K.’s long-term gross domestic product by 4 percent, according to Patrick Minford of Cardiff Business School.) But U.K. exporters would be subject to World Trade Organization duties and multiple non-tariff barriers. A hard border with Ireland would be needed, Britain-based airlines might not be able to land on the continent and the transportation of nuclear material would be impeded. The Center for Economic Performance estimated trade would fall 40 percent over a decade and average income by 2.6 percent in the no-deal scenario.


Related Links:
Bloomberg Politics - Britain’s Not-So-Sweet Options for an EU Trade Deal

The consequences of Brexit for UK trade and living standards

CEP Growth CEP Trade

Swati Dhingra webpage

John Van reenen webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage


News Posted: 10/08/2017      [Back to the Top]

Review of Environmental Economics and Policy

‘The Impacts of Environmental Regulations on Competitiveness’

Antoine Dechezleprêtre and Misato Sato, Review of Environmental Economics and Policy, Volume 11, Issue 2, July 2017


Related Links:
Review of Environmental Economics and Policy - ‘The Impacts of Environmental Regulations on Competitiveness’

CEP Growth

Antoine Dechezleprêtre webpage


News Posted: 08/08/2017      [Back to the Top]

Cambridge Network

Mobile telecoms consolidation means higher prices but greater investment

A new study forthcoming in the journal Economic Policy, based on a trove of data from 33 OECD countries over a 12-year period (2002-2014), finds that prices paid by consumers are higher in more concentrated markets (by an estimated average of 16.3 per cent in a four-to-three operator merger, according to the study’s model), while at the same time investment per operator increases when the number of providers is reduced (by an estimated 19.3 per cent in a four-to-three merger). The effect of such consolidation on total investment by all operators does not appear significant, but those findings are not conclusive. The authors – from Cambridge Judge Business School, Imperial College London, and the University of Leuven in Belgium – argue that regulators have so far focused hard on consumer pricing implications of mobile consolidation, while paying little attention to the impact of mergers on efficiencies and investment.  “The study says that regulators and policymakers should consider investment more seriously, and weigh more fully the trade-off between consumer pricing and operator efficiency and investment in order to reach the best decisions,” says Dr Christos Genakos, University Senior Lecturer in Economics at Cambridge Judge Business School.

 


Related Links:
Cambridge Network - Mobile telecoms consolidation means higher prices but greater investment

Evaluating Market Consolidation in Mobile Communications

CEP Growth

Christos Genakos webpage


News Posted: 08/08/2017      [Back to the Top]

Financial Times

The ‘haves and have-mores’ in digital America

Research from the Bonn-based Institute of Labor Economics shows that the differences in individual workers’ pay since the 1970s is associated with pay differences between — not within — companies. Another piece of research, from the Centre for Economic Performance, shows that this pay differential between top-tier companies and everyone else is responsible for the vast majority of inequality in the US.

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:
Financial Times - The ‘haves and have-mores’ in digital America

Fluctuations in Uncertainty

Economic Recovery and Policy Uncertainty

Policy uncertainty: a new indicator

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 06/08/2017      [Back to the Top]

Mediapart

Marx, Piketty et Aghion sur la productivité, par Michel Husson / Marx, Piketty and Aghion on Productivity, by Michel Husson

A recent critical work on a study by Philippe Aghion [1] suggests a parallel (heroic) with Marx's considerations on innovation. This contribution, after having quickly pointed out the contradictions stated by Thomas Piketty, recalls the way in which Marx posed the question of technological progress.


Related Links:
Mediapart - Marx, Piketty et Aghion sur la productivité, par Michel Husson / Marx, Piketty and Aghion on Productivity, by Michel Husson

CEP Growth

Philippe Aghion webpage


News Posted: 05/08/2017      [Back to the Top]

FXdailyreport

The Past, Present, and Future of Brexit

Snippet: Many journalists have said the floodgates are now open for a lot of other countries to try and exit the EU including a big country like Spain. John Van Reenen of the London School of Economics called Brexit “a drumbeat of anti-foreigner sentiment. The only question is which other countries will now be swept along in this poisonous flood.”


Related Links:
FXdailyreport - The Past, Present, and Future of Brexit

CEP Growth

John Van reenen webpage


News Posted: 02/08/2017      [Back to the Top]

The Economist

America's uncompetitive markets harm its economy

New research suggests that too little competition deters investment

Concentration may also hurt workers. Recent research by David Autor of MIT and four co-authors finds that “superstar” firms pay out less of their profits in wages. As these firms have grown in importance, labour’s overall share of GDP has fallen. Other research suggests that these firms nonetheless pay more, in gross terms, than ordinary firms, so their rise has directly contributed to inequality. This does not chime exactly with what Democrats claimed this week—that America’s firms have too much power over workers—but the end result, greater inequality, is similar.

 


Related Links:
The Economist - America's uncompetitive markets harm its economy

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

John Van reenen webpage


News Posted: 31/07/2017      [Back to the Top]

Economia

How businesses can seek sustainable growth


Related Links:
Economia - How businesses can seek sustainable growth

CEP Growth

Anna Valero webpage


News Posted: 27/07/2017      [Back to the Top]

Worthing Herald

Study reveals Worthing will suffer from Brexit

Worthing is among the top ten towns that will suffer the most by Britain’s exit from Europe, according to a study that overturns assumptions that poorer areas of the UK will suffer the most. For the first time, research by the Centre for Cities think-tank and the Centre for Economic Performance at London School of Economics has analysed the likely impact of both hard and soft Brexit in the decade after any trade deal is done with Europe.

Also in:  Littlehampton Gazette, Study reveals Worthing will suffer from Brexit

Related publications:  ‘The Local Economic Effects of Brexit’, Swati Dhingra, Stephen Machin and Henry Overman, CEP Brexit Analysis Paper No.10, July 2017;

Brexit, Trade and the Economic Impacts on UK Cities’, Naomi Clayton and Henry Overman, Centre for Cities briefing, July 2017


Related Links:
Worthing Herald - Study reveals Worthing will suffer from Brexit

The Local Economic Effects of Brexit

CEP Labour Markets CEP Growth CEP Urban and Spatial Programme

Swati Dhingra webpage

Stephen Machin webpage

Henry Overman webpage


News Posted: 27/07/2017      [Back to the Top]

Yahoo! Finance

The three things businesses need to survive Brexit

While the Prime Minister seems to understand that trade with the European Union is sizeable, she also seems to be under the illusion that Britain can pick and choose during the Brexit negotiations. Let’s keep trade but stop immigration, payments to Brussels, and oversight from the European Court of Justice. This option won’t be available. The reality is that Britain faces a trade-off. More distance from the EU means bigger income loss. The Centre for Economic Performance at the London School of Economics estimates that a hard Brexit, i.e. falling back on World Trade Organization terms, will cut trade by 40% over 10 years. For the average household earning around £23,000, this translates into £600 less per year. The softest version of Brexit, i.e. the Norwegian model, still reduces trade by 20-25%, and household income by £300.

Related publications

‘The Consequences of Brexit for UK Trade and Living Standards’, Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen, CEP Brexit Analysis Paper No.02, March 2016

http://cep.lse.ac.uk/pubs/download/brexit02.pdf

 

 


Related Links:
Yahoo! Finance - The three things businesses need to survive Brexit

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 26/07/2017      [Back to the Top]

Harvard Business Review

Making sense of our very competitive super monopolistic economy

These two narratives needn’t be completely at odds. As I concluded in a piece last year on the debate over too much versus too little competition:

There’s a pessimistic synthesis between the competition and concentration stories. Perhaps the gap between firms starts out as the inevitable result of competition. Firms concentrate on what they’re good at, adopt new technology, and deliver products and services more efficiently. Having reached those heights, they then cement their status through lobbying or M&A. “Once those firms get there, it may be that they can actually draw up the drawbridge,” said [John] Van Reenen [of MIT]. Maybe competition creates corporate inequality. But maybe it’s lack of competition that preserves it.


Related Links:
Harvard Business Review - Making sense of our very competitive super monopolistic economy

CEP Growth

John Van reenen webpage


News Posted: 25/07/2017      [Back to the Top]

atd – Association for Talent Development

Is working from home better than working in the office?

Although workforces are becoming more spread out and technologies such as videoconferencing are making workplaces more fluid, employees who work exclusively from home are still getting a bad rap. Their jobs aren’t viewed as legitimate, and they aren’t as valued as their more traditional counterparts. However, this notion isn’t necessarily based in reality. According to Stanford Graduate School of Business professor Nicholas Bloom, requiring employees to be in the office is an outdated work tradition. Such inflexibility ignores employee desires needlessly and actually hurts employers and their workers. “Working from home is a future-looking technology,” Bloom said during TEDxStanford, which took place in April. “I think it has enormous potential.”

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015

Working or shirking? Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying. Article in CentrePiece Volume 17, Issue 3, Winter 2012

 


Related Links:
atd – Association for Talent Development - Is working from home better than working in the office?

CEP Growth

Nick Bloom webpage


News Posted: 24/07/2017      [Back to the Top]

Europeanceo

We need to tear down the silos and rebuild the digital economy

The digital economy is exacerbating the capital-labour disparity in global markets. A new competition authority with global remit is needed to reset the balance

And, as the economists David Autor, David Dorn, Lawrence Katz, Christina Patterson, and John Van Reenen show, the US industries with the fastest-growing market concentration have also seen the largest drop in labour’s share of income.


Related Links:
Europeanceo - We need to tear down the silos and rebuild the digital economy

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

John Van reenen webpage


News Posted: 20/07/2017      [Back to the Top]

Suratkabar.id

Ternyata Bekerja Dari Rumah Membuat Anda Lebih Bahagia dan Luar Biasa Produktif, Riset Ini Mengungkapkannya/ Apparently Working From Home Makes You Happier and Extraordinarily Productive, This Research Revealed

But it seems that the assumption is just a false assumption-if it can not be wrong. In fact, reported Inc.com report on Tuesday (07/17/2017), Professor Nicholas Bloom as an economist from Stanford recently explained the opposite in the talk show Talk TED. Unexpectedly, the professor explains how working from home is as potentially as powerful and innovative as a "car without a driver". And this is serious.

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015

Working or shirking? Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying. Article in CentrePiece Volume 17, Issue 3, Winter 2012


Related Links:
Suratkabar.id - Ternyata Bekerja Dari Rumah Membuat Anda Lebih Bahagia dan Luar Biasa Produktif, Riset Ini Mengungkapkannya/ Apparently Working From Home Makes You Happier and Extraordinarily Productive, This Research Revealed

CEP Growth

Nick Bloom webpage


News Posted: 18/07/2017      [Back to the Top]

Mundiario

La productividad laboral mejora cuando se trabaja desde casa

But what many ignore or is difficult to accept, is that when working from home, productivity increases. The latest statement is reflected in a study by Nicholas Bloom, a researcher at Stanford University, who was charged with studying a Chinese company and the productivity of employees who worked from home. Bloom's final conclusions show that home-based workers were happier, increasing their productivity, generating more dividends for the company, and earning better wages.

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015

Working or shirking? Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying. Article in CentrePiece Volume 17, Issue 3, Winter 2012


Related Links:
Mundiario - La productividad laboral mejora cuando se trabaja desde casa

CEP Growth

Nick Bloom webpage


News Posted: 18/07/2017      [Back to the Top]

Neue Rheinische Zeitung

Dauer-Strohfeuer

Trump and Brexit are rapidly becoming the main threat to the upturn. Once the downturn begins, all fingers will point to them. But the real causes lie somewhere else: Stanford economist Nicholas Bloom points to a fatal development in the SPIEGEL interview (4/2017): For decades the inequality in the population would grow in the USA and to a certain extent also in countries of Europe. A small group possesses the majority of the wealth. This was a source of uncertainty and would be exploited by populists.

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:
Neue Rheinische Zeitung - Dauer-Strohfeuer

Measuring Economic Policy Uncertainty

CEP Growth

Nick Bloom webpage


News Posted: 18/07/2017      [Back to the Top]

ItalyEurope24

A new course for economic liberalism

A recent study by Erling Bath, Alex Bryson, James Davis, and Richard Freeman showed that the diffusion of individual pay since the 1970s is associated with pay differences between, not within, companies. The Stanford economists Nicholas Bloom and David Price confirmed this finding, and argue that virtually the entire increase in income inequality in the US is rooted in the growing gap in average wages paid by firms.

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

Fluctuations in Uncertainty, Nicholas Bloom, Centre for Economic Performance Occasional Paper No.38, December 2013

Economic Recovery and Policy Uncertainty Scott R. Baker, Nick Bloom, Steven J. Davis and John Van Reenen, CEP US Election Analysis Paper No.2, October 2012

Policy Uncertainty: A New Indicator, Scott. R. Baker, Nicholas Bloom and Steven J. Davis.  Article in CentrePiece Volume 16, Issue 3, Winter 2012


Related Links:
ItalyEurope24 - A new course for economic liberalism

Measuring Economic Policy Uncertainty

Does Uncertainty Reduce Growth? Using Disasters as Natural Experiments

Really Uncertain Business Cycles

CEP Growth

Nick Bloom webpage


News Posted: 17/07/2017      [Back to the Top]

Developpez.com (France)

Employees working from home would be happier and more efficient than those on the premises of the company. What about France?

Nicholas Bloom, a professor at Stanford University, was interested in the phenomenon of working from home, a particular mode of work that allows employees of a company to stay at home rather than going into space Of the employer's usual work. For Professor Nicholas Bloom, the fact that an employer obliges employees to come and work every day is an obsolete process. He believes that this behavior of the company belongs to the traditions set up during the Industrial Revolution and should no longer be topical. Such inflexibility, disregarding the current sophisticated means of communication and the difficulties associated with transport and the distances to be traveled, is harmful both for employees and for businesses.

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015

Working or shirking? Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying. Article in CentrePiece Volume 17, Issue 3, Winter 2012

 


Related Links:
Developpez.com (France) - Employees working from home would be happier and more efficient than those on the premises of the company. What about France?

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth

Nick Bloom webpage


News Posted: 16/07/2017      [Back to the Top]

oikonomia.gr (Greece)

A new road to economic liberalism

A similar trend can be observed at the organizational level. A recent study by Erling Bath, Alex Bryson, James Davis and Richard Freeman has shown that the spread of individual wages since the 1970s is linked to differences in pay between businesses and not within them. Stanford economists Nicholas Bloom and David Price have confirmed this conclusion and argue that virtually the whole increase in income inequality in the US is due to the growing gap in average wages paid by businesses.

Related links

Alex Bryson CEP Alumni webpage:  https://www.niesr.ac.uk/users/bryson


Related Links:
oikonomia.gr (Greece) - A new road to economic liberalism

Firming Up Inequality

It's Where You Work: Increases in Earnings Dispersion across Establishments and Individuals in the US

CEP Growth

Nick Bloom webpage


News Posted: 14/07/2017      [Back to the Top]

VoxDev – Video

The backlash against globalisation


Related Links:
VoxDev – Video - The backlash against globalisation

CEP Growth

John Van reenen webpage


News Posted: 13/07/2017      [Back to the Top]

Bezprawnik.PL (Poland)

Working from home earns more, less often, and are happier than those working in offices

Nicholas Bloom, a professor at the Stanford Graduate School of Business, conducted a study on a large, multi-thousand research group: employees of a Chinese travel company Ctrip. Have not you heard of her? Not surprisingly, neither is it, but it turns out to be a $ 20 billion capitol (2 times as much as our domestic, poisonous Plock Orlen). Employees in the helpline who were randomly assigned to work remotely and in offices were subjected to the study.

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015

Working or shirking? Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying. Article in CentrePiece Volume 17, Issue 3, Winter 2012


Related Links:
Bezprawnik.PL (Poland) - Working from home earns more, less often, and are happier than those working in offices

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth

Nick Bloom webpage


News Posted: 12/07/2017      [Back to the Top]

Project Syndicate

A new course for economic liberalism

Research by Cesar Hidalgo and his colleagues at MIT reveals that, in countries where sectoral concentration has declined in recent decades, such as South Korea, income inequality has fallen. In those where sectoral concentration has intensified, such as Norway, inequality has risen. A similar trend can be seen at the organizational level. A recent study by Erling Bath, Alex Bryson, James Davis, and Richard Freeman showed that the diffusion of individual pay since the 1970s is associated with pay differences between, not within, companies. The Stanford economists Nicholas Bloom and David Price confirmed this finding, and argue that virtually the entire increase in income inequality in the US is rooted in the growing gap in average wages paid by firms.


Related Links:
Project Syndicate - A new course for economic liberalism

Firming Up Inequality

It's Where You Work: Increases in Earnings Dispersion across Establishments and Individuals in the US

CEP Growth CEP Labour Markets

Nick Bloom webpage


News Posted: 12/07/2017      [Back to the Top]

MarketPlace

Now we can measure economic policy uncertainty

In the world of business and economics, there’s a bit of a fixation on uncertainty. To start, there's the VIX, a measure of investor fear, that tracks expected volatility in the markets. But there’s another index out there, one that might be less familiar. It's called the Economic Policy Uncertainty Index, and it provides clues about how politics might be shaping the economy. Scott Baker from the Kellogg School of Management at Northwestern University developed the index along with Nicholas Bloom at Stanford University and Steven Davis at the University of Chicago. At the time they began working on it, in the years after the Great Recession, "there wasn't something that highlighted the role the government played in generating or driving uncertainty," Baker said.

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

Fluctuations in Uncertainty, Nicholas Bloom, Centre for Economic Performance Occasional Paper No.38, December 2013

Economic Recovery and Policy Uncertainty Scott R. Baker, Nick Bloom, Steven J. Davis and John Van Reenen, CEP US Election Analysis Paper No.2, October 2012

Policy Uncertainty: A New Indicator, Scott. R. Baker, Nicholas Bloom and Steven J. Davis.  Article in CentrePiece Volume 16, Issue 3, Winter 2012


Related Links:
MarketPlace - Now we can measure economic policy uncertainty

Measuring Economic Policy Uncertainty

Does Uncertainty Reduce Growth? Using Disasters as Natural Experiments

Really Uncertain Business Cycles

CEP Growth

Nick Bloom webpage


News Posted: 12/07/2017      [Back to the Top]

Quartz

Work from home people earn more, quit less, and are happier than their office-bound counterparts

Working from home gets a bad rap. Google the phrase and examine the results—you’ll see scams or low-level jobs, followed by links calling out “legitimate” virtual jobs. But Stanford Graduate School of Business professor Nicholas Bloom says requiring employees to be in the office is an outdated work tradition, set up during the Industrial Revolution. Such inflexibility ignores today’s sophisticated communications methods and long commutes, and actually hurts firms and employees. “Working from home is a future-looking technology,” Bloom told an audience during TEDxStanford, which took place in April. “I think it has enormous potential.”

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015

Working or shirking? Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying. Article in CentrePiece Volume 17, Issue 3, Winter 2012


Related Links:
Quartz - Work from home people earn more, quit less, and are happier than their office-bound counterparts

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth

Nick Bloom webpage


News Posted: 12/07/2017      [Back to the Top]

Financial Times

The ‘haves and have-mores' in digital America

Research from the Bonn-based Institute of Labor Economics shows that the differences in individual workers’ pay since the 1970s is associated with pay differences between — not within — companies. Another piece of research, from the Centre for Economic Performance, shows that this pay differential between top-tier companies and everyone else is responsible for the vast majority of inequality in the US.

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

Fluctuations in Uncertainty, Nicholas Bloom, Centre for Economic Performance Occasional Paper No.38, December 2013

Economic Recovery and Policy Uncertainty Scott R. Baker, Nick Bloom, Steven J. Davis and John Van Reenen, CEP US Election Analysis Paper No.2, October 2012

Policy Uncertainty: A New Indicator, Scott. R. Baker, Nicholas Bloom and Steven J. Davis.  Article in CentrePiece Volume 16, Issue 3, Winter 2012


Related Links:
Financial Times - The ‘haves and have-mores' in digital America

Fluctuations in Uncertainty

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 06/07/2017      [Back to the Top]

Lasiritide.it

Rettrice Unibas, 'L'Università è un ‘bene comune' della Basilicata'/ President Unibas, 'The university is a ' common good ' of Basilicata'

At the G7delle University, which took place recently in Udine, "I talked about the role of universities – concluded sun-in the development of the economic revival of the internal areas, as demonstrated by a recent study, published in November 2016, by Anna Valero of the London School of Economics, and John Van Reenen of the MIT Economics in Boston, entitled ' How the Universities stimulate economic growth ' : The authors show that the birth of a university is essential for the economic and social progress of a territory, resulting in an increase on the estimated income averaged in 0.4% ".

Related articles

Growth multiplier: how university expansion increases national income, Anna Valero and John Van Reenen, LSE British Politics and Policy blog, March 24, 2016


Related Links:
Lasiritide.it - Rettrice Unibas, 'L'Università è un ‘bene comune' della Basilicata'/ President Unibas, 'The university is a ' common good ' of Basilicata'

How universities boost economic growth

CEP Growth

Anna Valero webpage

John Van reenen webpage


News Posted: 06/07/2017      [Back to the Top]

Lancaster online

Republicans are missing an opportunity on health care

A study by Zack Cooper, Martin Gaynor and John Van Reenen — economists at Yale, Carnegie Mellon University, and the London School of Economics, respectively — concludes that lack of competition and poor transparency in hospital costs are driving up U.S. health care prices.

 


Related Links:
Lancaster online - Republicans are missing an opportunity on health care

The Price Ain't Right? Hospital Prices and Health Spending on the Privately Insured

CEP Growth

Zack Cooper webpage

John Van reenen webpage


News Posted: 02/07/2017      [Back to the Top]

IBS intelligence

Technology downtime is a major problem for the UK's banking sector

The average employee in the finance industry loses more than 20 minutes per day of productive time to faulty IT. This is ironic in a sector which has always been proud of its trail-blazing attitude to be an early-adopter to keep its competitive advantage. However, a critical new report released by Managed 24/7 says the impact of poor IT to the UK’s workforce productivity is considerable. UK economists have long been of the opinion that the country’s workforce is unproductive but few can agree on why.


Related Links:
IBS intelligence - Technology downtime is a major problem for the UK's banking sector

CEP Growth

John Van reenen webpage


News Posted: 30/06/2017      [Back to the Top]

BBC Parliament

Live House of Commons

…but analyses, London School of Economics, growth commission report pointed out the lack of a comprehensive and coherent, long-term industrial strategy from the UK Government had actually contributed to what they quoted as poor productivity performance, harming the nations of the UK. Isn't it time the UK Government and this Chancellor got to work in actually doing something to correct the problems they have caused for the economies of the nations of the UK? I agree with my colleague that it is too little, too late. In the time a British worker makes #1, the German worker makes #1 35 and not enough is being done. I understand the strategy is being consulted on. It has not received that favourable responses compared to previous things that have been done in relation to industrial strategy. I hope to see major changes as it goes forward in order that it is more fit for purpose. The Conservatives in this election failed to bolster their majority and they have had to…

Click to open

Related publications

'UK Growth: A New Chapter', LSE Growth Commission Report, February 2017.

 

Related links

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


Related Links:
BBC Parliament - Live House of Commons

CEP Growth


News Posted: 29/06/2017      [Back to the Top]

ESRC Press

Winner of the 25th Kenneth J. Arrow award

The 25th Arrow Award for the best paper in health economics is awarded to Martin Gaynor, Carol Propper, and [CEP Alumni]  Stephan Seiler for their paper “Free to choose? Reform, choice and consideration sets in the English National Health Service” American Economic Review 106(11): 3521-3557, 2016The Arrow Award Committee is proud to acknowledge the authors of this innovative and policy-relevant paper which uses a reform in the English National Health Service (NHS) to assess how removing constraints on patient choice affects the quality of health care received, as well as patient welfare. HEA’s Kenneth J. Arrow Award was created to recognize excellence in the field of health economics with the Award presented to the author(s) of the paper judged to be the best paper published in health economics in English in the award year.


Related Links:
ESRC Press - Winner of the 25th Kenneth J. Arrow award

Free to choose? The impact of healthcare reform

Free to Choose? Reform and Demand Response in the English National Health Service

CEP Growth


News Posted: 27/06/2017      [Back to the Top]

LaPrensa – Economia

El crecimiento de las empresas superestrellas/the rise of superstar companies In most countries, workers' participation in national income has fallen for about three decades. Why?

Article by John Van Reenen with Christina Patterson

Perhaps the cause is the "robbery-Apocalypse Now," that companies are replacing expensive people with cheaper machines.  We suggest another factor: the rise of superstar companies. Over the last 40 years, more industries have become the "winner takes almost Everything" type. Companies with advantage in costs or quality have always enjoyed higher market shares. But the new giants of our era are left with a much larger fraction of their markets (if not with everything). Think of Amazon.com, Apple and Google, or at Goldman Sachs and Wal-Mart.


Related Links:
LaPrensa – Economia - El crecimiento de las empresas superestrellas/the rise of superstar companies In most countries, workers' participation in national income has fallen for about three decades. Why?

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

John Van reenen webpage


News Posted: 26/06/2017      [Back to the Top]

Regio7

La polititzaci, una tesi incompleta i parcial per explicar la crisi dels bancs/ The politicization, an incomplete and partial thesis to explain the crisis of the banks

A study of professors Luis Garicano and Vicente Cuñat, of the London School of Economics, established in 2009, a relationship between a higher degree of politicization, less experience and a lower academic level of the directors of financial institutions with a higher propensity to incur management errors.


Related Links:
Regio7 - La polititzaci, una tesi incompleta i parcial per explicar la crisi dels bancs/ The politicization, an incomplete and partial thesis to explain the crisis of the banks

CEP Growth


News Posted: 26/06/2017      [Back to the Top]

Financial Times

Overworked staff still love their bosses

Encouraging better work-life balance does not lead to higher productivity, academics at London School of Economics found. Neither does forcing workers into miserable servitude.

Related publications

‘Work Life Balance, Management Practices and Productivity’, Nicholas Bloom, Toby Kretschmer and John Van Reenen, Report from the Anglo-German Foundation, ESRC, Advanced Institute of Management Research and CEP, January 2006

http://cep.lse.ac.uk/management/worklifebalance_research.pdf


Related Links:
Financial Times - Overworked staff still love their bosses

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 26/06/2017      [Back to the Top]

Forbes (Mexico)

La derrota de los pequeños/The defeat of the little ones

In a recent working paper presented by MIT, John Van Reenen and his co-authors document a clear global trend towards the fall in the share of income from Labour in total income.


Related Links:
Forbes (Mexico) - La derrota de los pequeños/The defeat of the little ones

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

John Van reenen webpage


News Posted: 23/06/2017      [Back to the Top]

Stanford Business Insights

Why working from home is a 'future-looking technology'

Nick Bloom – a Stanford GSB expert shows how companies and employees benefit from workplace flexibility.

Related publications

Does working from home work? Evidence from a Chinese experiment, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Quarterly Journal of Economics, 130(1), February 2015

http://bit.ly/2tCwyah


Related Links:
Stanford Business Insights - Why working from home is a 'future-looking technology'

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth

Nick Bloom webpage


News Posted: 22/06/2017      [Back to the Top]

Stanford Business Insights

Why working from home is a 'future-looking technology'

Stanford Graduate School of Business professor Nicholas Bloom says requiring employees to be in the office is an outdated work tradition, set up during the Industrial Revolution. Such inflexibility ignores today’s sophisticated communications methods and long commutes, and actually hurts firms and employees. “Working from home is a future-looking technology,” Bloom told an audience during TEDxStanford, which took place in April. “I think it has enormous potential.” To test his claim, Bloom studied China’s largest travel agency, Ctrip. Headquartered in Shanghai, the company has 20,000 employees and a market capitalization of about $20 billion.


Related Links:
Stanford Business Insights - Why working from home is a 'future-looking technology'

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth

Nick Bloom webpage


News Posted: 22/06/2017      [Back to the Top]

The Herald

Herald View: Holyrood's role means hard Brexit is dead and buried

But the greatest potential trouble is on Brexit, with the constitutional uncertainty growing and economists laying out this week just what a hard or chaotic Brexit could mean for the economy: the pound dropping even further, falling wages and more businesses leaving the UK. And yet the Government still appears to believe that no deal is an option even though the London School of Economics suggests that leaving the EU without one could reduce UK income per capita by up to 10 per cent.

Related publications

‘BREXIT 2016: Policy Analysis from the Centre for Economic Performance’, Holger Breinlich, Swati Dhingra, Saul Estrin, Hanwei Huang, Gianmarco Ottaviano, Thomas Sampson, John Van Reenen and Jonathan Wadsworth, Centre for Economic Performance Brexit Analysis Paper No.8, June 2016

http://cep.lse.ac.uk/pubs/download/brexit08_book.pdf


Related Links:
The Herald - Herald View: Holyrood's role means hard Brexit is dead and buried

CEP Trade CEP Growth

Holger Breinlich webpage

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage

Jonathan Wadsworth webpage


News Posted: 21/06/2017      [Back to the Top]

Eurasia Review

Will Brexit lead to financial big bang for EU-27? - Analysis

Many commentators are throwing out numbers about the negative impact of Brexit on GDP growth and income across Europe. The Center for Economic Performance has concluded that every EU member will lose income after Brexit, but that the loss for the UK will be about twice the loss for the remaining 27 members combined.

Related publications

‘The consequences of Brexit for UK trade and living standards’, Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen, CEP Brexit Analysis Paper No.2, March 2016

http://cep.lse.ac.uk/pubs/download/brexit02.pdf


Related Links:
Eurasia Review - Will Brexit lead to financial big bang for EU-27? - Analysis

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 20/06/2017      [Back to the Top]

Foreign Policy Research Institute

Will Brexit Lead to a Financial Big Bang for the EU-27?

Many commentators are throwing out numbers about the negative impact of Brexit on GDP growth and income across Europe. The Center for Economic Performance has concluded that every EU member will lose income after Brexit, but that the loss for the UK will be about twice the loss for the remaining 27 members combined. However, a lot depends (as ever when economics is involved) on what data you look at, as well as on what deals and Euro-fudge the politicians come up with in the coming months.

Also in

Eurasiareview.com http://www.eurasiareview.com/20062017-will-brexit-lead-to-financial-big-bang-for-eu-27-analysis/

Related publications
'The consequences of Brexit for UK trade and living standards',
Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen. CEP Brexit Analysis No. 2. March 2016.
http://cep.lse.ac.uk/pubs/download/brexit02.pdf

 


Related Links:
Foreign Policy Research Institute - Will Brexit Lead to a Financial Big Bang for the EU-27?

CEP Trade CEP Growth CEP Labour Markets

John Van reenen webpage

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage


News Posted: 19/06/2017      [Back to the Top]

QJE Highly Cited Articles

The Quarterly Journal of Economics received an Impact Factor of 6.662 and a 5-year Impact Factor of 9.681, according to the most recent Journal Citation Reports® (Thomson Reuters).

The Impact Factor is the average number of times articles from the journal published in the past two years have been cited in the JCR year. The Impact Factor is calculated by dividing the number of citations in the JCR year by the total number of articles published in the two previous years. The five-year Impact Factor is calculated in the same way as the standard Impact Factor, except the standard two-year window for inclusion of articles is extended to five years.

OUP has granted free access to five highly cited articles from The Quarterly Journal of Economics for a limited time. These articles are just a sample of the impressive body of research from The Quarterly Journal of Economics that contributes to the Impact Factor.

Highly Cited Articles published in 2016

‘Measuring Economic Policy Uncertainty’, Scott R. Baker, Nicholas Bloom, and Steven J. Davis, The Quarterly Journal of Economics 131 (4): 1593-1636

https://academic.oup.com/qje/article-lookup/doi/10.1093/qje/qjw024

doi: https://doi.org/10.1093/qje/qjw024


Related Links:
QJE Highly Cited Articles - The Quarterly Journal of Economics received an Impact Factor of 6.662 and a 5-year Impact Factor of 9.681, according to the most recent Journal Citation Reports® (Thomson Reuters).

Measuring Economic Policy Uncertainty

CEP Growth

Nick Bloom webpage


News Posted: 16/06/2017      [Back to the Top]

CEP and latest Impact Factors

Economics Impact Factors

The latest Impact Factors have now been released and it has been a great year for Oxford University Press’s economics journals. To celebrate this success we have collated a collection of highly cited articles from a selection of our journals. This collection is freely available to be read online until the 31st December 2017.

The Quarterly Journal of Economics – 6.662

See:

Does Working from Home Work? Evidence from a Chinese Experiment Nicholas Bloom, James Liang, John Roberts, Zhichun Jenny Ying

 

Related publications

‘Does Working from Home Work? Evidence from a Chinese Experiment’, Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Centre for Economic Performance Discussion Paper No.1194, March 2013

http://cep.lse.ac.uk/pubs/download/dp1194.pdf

 

The Review of Economic Studies – 4.030

See:

The Impact of Competition on Management Quality: Evidence from Public Hospitals  Nicholas Bloom, Carol Propper, Stephan Seiler, John Van Reenen

 

Related publications

‘The Impact of Competition on Management Quality: Evidence from Public Hospitals’, Nicholas Bloom, Carol Propper, Stephan Seiler and John Van Reenen, Centre for Economic Performance Discussion Paper No.983, November 2014

http://cep.lse.ac.uk/pubs/download/dp0983.pdf

 

Journal of the European Economic Association – 2.758

See:

Unemployed but Optimistic: Optimal Insurance Design with Biased Beliefs Johannes Spinnewijn

 


Related Links:
CEP and latest Impact Factors - Economics Impact Factors

Does Working from Home Work? Evidence from a Chinese Experiment

CEP Growth CEP Labour Markets

Nick Bloom webpage

John Van reenen webpage

Johannes Spinnewijn webpage


News Posted: 16/06/2017      [Back to the Top]

Korea Herald

How Macron keeps winning

By Philippe Aghion and Benedicte Berner 

Emmanuel Macron’s one-man revolution in French and European politics continued this weekend, as he will soon be able to add a huge parliamentary majority to his cause, if the results from the first round of the French parliamentary election hold. Such an outcome appears to be very likely...


Related Links:
Korea Herald - How Macron keeps winning

CEP Growth

Philippe Aghion webpage


News Posted: 15/06/2017      [Back to the Top]

Financial Times

Brexit exacts a heavy toll on UK business schools

France and Spain sense an opportunity as top professors seek employment outside Britain

Luis Garicano arrived in the UK a decade ago to take up the role of professor of economics and strategy in the department for management at the London School of Economics. Today, he is preparing to return home to Spain, where he will join Madrid’s IE Business School as a member of faculty and to lead its newly created centre for the digital economy. “Spain is open to business and open to foreigners in a way the UK no longer is,” he says. “There is no anti-immigrant party in Spain.” One year after UK voters decided by referendum to leave the EU, business schools find their academics are quitting to work in other European countries.


Related Links:
Financial Times - Brexit exacts a heavy toll on UK business schools

CEP Growth


News Posted: 15/06/2017      [Back to the Top]

Business 2 Community

Why Are Monopolies Bad? An Analysis of 6 Rise-and-Fall Companies

According to Professor Jeremiah Dittmar of the London School of Economics, writing in 2011, European cities which adopted the printing press experienced 60% higher economic growth than those which didn’t buy into the technology from 1450 to 1600. Ironically, in the context of this article, the printing press itself was monopolistic as the knowledge of materials was quasi-proprietary:

Related publications

‘Information Technology and Economic Change: The Impact of The Printing Press’, Jeremiah Dittmar, The Quarterly Journal of Economics (2011) 126 (3): 1133-1172

http://bit.ly/2rv5Ks0

 

Related article

‘Information technology and economic change: the impact of the printing press’, Jeremiah Dittmar, Vox article, 11 February 2011

http://voxeu.org/article/information-technology-and-economic-change-impact-printing-press


Related Links:
Business 2 Community - Why Are Monopolies Bad? An Analysis of 6 Rise-and-Fall Companies

CEP Growth CEP Trade

Jeremiah Dittmar webpage


News Posted: 14/06/2017      [Back to the Top]

Project Syndicate

How Macron keeps winning

Article by Philippe Aghion and Benedicte Berner

Emmanuel Macron’s one-man revolution in French and European politics continued this weekend, as he will soon be able to add a huge parliamentary majority to his cause, if the results from the first round of the French parliamentary election hold. Such an outcome appears to be very likely. Eliminating the old “right-left” divide in French politics by uniting “reformists” of the left, the right, and the center, was the challenge that Macron set for himself when he created his En Marche! movement in April 2016 as part of his bid for the French presidency. The result of the first round of elections to the National Assembly is the clearest indication yet of how successful Macron has been in recasting French politics.


Related Links:
Project Syndicate - How Macron keeps winning

CEP Growth

Philippe Aghion webpage


News Posted: 13/06/2017      [Back to the Top]

La Voz de Cádiz – Economia

El Banco Popular tuvo que pedir el rescate bancario en el año 2012

Interview with Luis Garicano, head of citizen economy

The same day he participates in a conference on the impact of Brexit at the Rafael del Pino Foundation, Luis Garicano (Valladolid, 1967) announces his personal Brexit: The professor at the London School of Economics will change from London to Madrid and join the IE Business School next year. "No one has left the United Kingdom because of Brexit, but it does contribute to this: the environment is less enjoyable for a foreigner," he describes.


Related Links:
La Voz de Cádiz – Economia - El Banco Popular tuvo que pedir el rescate bancario en el año 2012

CEP Growth


News Posted: 11/06/2017      [Back to the Top]

LSE British Politics and Policy blog

Who swung GE2017: young voters turning out, or older voters not?

Article by Thiemo Fetzer

That the Labour party got 40% of the vote – against all odds – is being attributed to a higher turnout among young voters. Thiemo Fetzer‘s analysis finds that older voters did not turn up to vote, relative to younger voters. He also finds that in many places, the older vote was split between the two main parties, possibly due to the controversial social care provisions in the Conservative manifesto.


Related Links:
LSE British Politics and Policy blog - Who swung GE2017: young voters turning out, or older voters not?

CEP Growth


News Posted: 11/06/2017      [Back to the Top]

Geschichte der Gegenwart (Germany)

May will Regierung bilden – Brexit-Verhandlungen ab 19. Juni

In total, the Centre for Economic Performance (CEP) calculates, it would be best for the British economy to remain part of the EU’s common market.

Related publications

‘#GE2017Economists: The Research Evidence on Key Issues for Voters in the 2017 UK General Election’, Stephen Machin and Romesh Vaitilingam (Eds), CEP 2017 General Election Analyses Paper No. EA044, June 2017

http://cep.lse.ac.uk/pubs/download/ea044.pdf

Related links

Trade Programme webpage:  http://cep.lse.ac.uk/_new/research/trade/default.asp

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

 

 


Related Links:
Geschichte der Gegenwart (Germany) - May will Regierung bilden – Brexit-Verhandlungen ab 19. Juni

CEP Education and Skills CEP Growth CEP Labour Markets

Rui Costa webpage

Swati Dhingra webpage

Stephen Machin webpage

Ralf Martin webpage

Sandra Mcnally webpage

Henry Overman webpage

Thomas Sampson webpage

Anna Valero webpage

Jonathan Wadsworth webpage

Gill Wyness webpage


News Posted: 10/06/2017      [Back to the Top]

Express (online)

‘We need your tourists!' Spanish fear bad Brexit deal for UK will damage THEIR future

Luis Garicano, a professor of Economics and Strategy in London, said he feared a lack of British tourists would hugely impact Spain's economy. Speaking at a Brexit conference in Spain, the professor said there was no going back on the UK’s decision to leave the EU and a ‘hard’ Brexit was likely. He added middle classes in Britain had felt “threatened” by globalisation and technology and Brexiteer politicians had taken advantage of their mood.


Related Links:
Express (online) - ‘We need your tourists!' Spanish fear bad Brexit deal for UK will damage THEIR future

CEP Growth


News Posted: 08/06/2017      [Back to the Top]

Frankfurter Rundschau (Germany)

Die schlechteste Variante

A year ago, in June 2016, the British voted on their country's EU membership. Economists and financial markets were in bright turmoil and warned of the consequences of a Brexit. Today, twelve months later, the markets are no longer afraid of the Brexit. They fear for him. Only two years are left to the EU and the United Kingdom to agree on the conditions of the withdrawal. And with each passing day there is a growing likelihood that the horror scenario will occur: there is no agreement, no deal--"for the British economy, this would be the worst of all results," warns the Centre for Economic Performance (CEP).

Related publications

‘#GE2017Economists: The Research Evidence on Key Issues for Voters in the 2017 UK General Election’, Stephen Machin and Romesh Vaitilingam (Eds), CEP 2017 General Election Analyses Paper No. EA044, June 2017

http://cep.lse.ac.uk/pubs/download/ea044.pdf

Related links

Trade Programme webpage:  http://cep.lse.ac.uk/_new/research/trade/default.asp

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

                                         


Related Links:
Frankfurter Rundschau (Germany) - Die schlechteste Variante

CEP Education and Skills CEP Growth CEP Trade

Rui Costa webpage

Swati Dhingra webpage

Stephen Machin webpage

Ralf Martin webpage

Sandra Mcnally webpage

Henry Overman webpage

Thomas Sampson webpage

Anna Valero webpage

Jonathan Wadsworth webpage

Gill Wyness webpage


News Posted: 08/06/2017      [Back to the Top]

Berliner Zeitung (Germany)

Horrorszenario „No Deal': Keine Brexit-Einigung wäre für die britische Wirtschaft fatal/Horror scenario „No Deal' no Brexit agreement would be fatal for the British economy

erall, the Centre for Economic Performance (CEP) calculates, it would be best for the British economy to remain in spite of Brexit part of the EU's common market. This, too, would incur costs, but in the case of a no-deal scenario, these costs would double. The British trade with the EU would break by 40 percent over the next ten years. The overall effect amounted to just under three percent of British per capita income. Every household on the island would cost about 1 900 pounds.

Also in:

Kölner Stadt-Anzeiger

Furcht vor dem Desaster; BREXIT Großbritannien droht eine schwere Rezession, wenn es keine Einigung mit der EU gibt

In total, the Centre for Economic Performance (CEP) calculates, it would be best for the British economy to remain in spite of Brexit part of the EU's common market. This, too, would incur costs, but in the case of a no-deal scenario, these costs would double. The British trade with the EU would break by 40 percent over the next ten years. The overall effect amounted to just under three percent of British per capita income. Every household on the island would cost about 1900 pounds.

http://www.ksta.de/wirtschaft/brexit-furcht-vor-dem-desaster-27764024

 

Related publications

‘#GE2017Economists: The Research Evidence on Key Issues for Voters in the 2017 UK General Election’, Stephen Machin and Romesh Vaitilingam (Eds), CEP 2017 General Election Analyses Paper No. EA044, June 2017

http://cep.lse.ac.uk/pubs/download/ea044.pdf

                                         

Related links

Trade Programme webpage:  http://cep.lse.ac.uk/_new/research/trade/default.asp

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


Related Links:
Berliner Zeitung (Germany) - Horrorszenario „No Deal': Keine Brexit-Einigung wäre für die britische Wirtschaft fatal/Horror scenario „No Deal' no Brexit agreement would be fatal for the British economy

CEP Education and Skills CEP Growth CEP Labour Markets

Rui Costa webpage

Swati Dhingra webpage

Stephen Machin webpage

Ralf Martin webpage

Sandra Mcnally webpage

Henry Overman webpage

Thomas Sampson webpage

Anna Valero webpage

Jonathan Wadsworth webpage

Gill Wyness webpage


News Posted: 08/06/2017      [Back to the Top]

Professional Adviser

The evidence for Brexit and other key election issues - LSE

The London School of Economics (LSE) has published a report assessing all of the party manifestos and how respective policies will affect key voter issues.

Intended to be "objective, brief and non-technical", the report by the LSE's Centre for Economic Performance looks at the evidence on the most-talked-about policies, including education, health, immigration, industrial strategy, living standards, regional policy and Brexit.

Related publications

‘#GE2017Economists: The Research Evidence on Key Issues for Voters in the 2017 UK General Election’, Stephen Machin and Romesh Vaitilingam (Eds), CEP 2017 General Election Analyses Paper No. EA044, June 2017

http://cep.lse.ac.uk/pubs/download/ea044.pdf

 Related links

Trade Programme webpage:  http://cep.lse.ac.uk/_new/research/trade/default.asp

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

                                        


Related Links:
Professional Adviser - The evidence for Brexit and other key election issues - LSE

CEP Education and Skills CEP Growth CEP Labour Markets

Rui Costa webpage

Swati Dhingra webpage

Stephen Machin webpage

Sandra Mcnally webpage

Henry Overman webpage

Thomas Sampson webpage

Anna Valero webpage

Jonathan Wadsworth webpage

Gill Wyness webpage


News Posted: 08/06/2017      [Back to the Top]

Chicago Booth Review

Why top-down companies can underperform their peers

“Just as the US military has become more decentralized, letting soldiers on the ground in Afghanistan and Iraq make more decisions than they would have in Korea or in Vietnam, so are the best firms decentralizing in times of economic conflict,” says Stanford’s Nicholas Bloom, who conducted the research with College of France’s Philippe Aghion, Stanford PhD candidate Brian Lucking, Harvard’s Raffaella Sadun, and MIT’s John Van Reenen.


Related Links:
Chicago Booth Review - Why top-down companies can underperform their peers

Turbulence, Firm Decentralization and Growth in Bad Times

CEP Growth

Philippe Aghion webpage

Raffaella Sadun webpage

Nick Bloom webpage

John Van reenen webpage


News Posted: 07/06/2017      [Back to the Top]

CityWire

Crazy in ETF love? New study imagines bottling star quality

A new paper – by David Dorn of the University of Zurich, Lawrence Katz of Harvard University, and David Autor, Christina Patterson, and John Van Reenen of the Massachusetts Institute of Technology – offers an alternative way to define what they term ‘superstar’ companies. Their research is primarily concerned with labour’s falling share of GDP, which they argue can in part be attributed to these businesses.


Related Links:
CityWire - Crazy in ETF love? New study imagines bottling star quality

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

John Van reenen webpage


News Posted: 06/06/2017      [Back to the Top]

Socialist Worker

Migrant works say – ‘Don't blame us for low pay'

The London School of Economics’ (LSE) Centre for Economic Performance last year found that “the areas of the UK with large increases in EU immigration did not suffer greater falls in the jobs and pay of UK-born workers.”

Related publications

‘Brexit and the Impact of Immigration on the UK’, Swati Dhingra, Gianmarco Ottaviano, John Van Reenen and Jonathan Wadsworth, CEP Brexit Analysis Paper No.5, May 2016

http://cep.lse.ac.uk/pubs/download/brexit05.pdf


Related Links:
Socialist Worker - Migrant works say – ‘Don't blame us for low pay'

CEP Labour Markets CEP Growth CEP Trade

Swati Dhingra webpage

Gianmarco Ottaviano webpage

John Van reenen webpage

Jonathan Wadsworth webpage


News Posted: 06/06/2017      [Back to the Top]

The Advertiser (Adelaide, Australia)

John Newton: Labour set to remain tarnished an divided while newly enthroned May will be mistress of all she surveys

Mrs May still seems to suggest that immigration should be kept under 100,000 a year while being just about the only person in the country who thinks that number should include students. Damage to university numbers is inevitable. Student admission rates are already lower this year. Her incapacity to deliver on such a KPI when Home Secretary adds the accusation of incompetence to that of pigheadedness. And is this a wise policy anyway? Recent research suggests that hitting a target of 100,000 will mean a fiscal deficit 30 per cent higher by 2066. Immigrants are regularly proven to add value and are not the burden on the state that many believe them to be. A recent report from the Centre for Economic Performance correlates the drop in immigrant numbers to falls, not rises, in living standards.

 

Related publications

‘Brexit and the Impact of Immigration on the UK’, Swati Dhingra, Gianmarco Ottaviano, John Van Reenen and Jonathan Wadsworth, CEP Brexit Analysis Paper No.5, May 2016

http://cep.lse.ac.uk/pubs/download/brexit05.pdf


Related Links:
The Advertiser (Adelaide, Australia) - John Newton: Labour set to remain tarnished an divided while newly enthroned May will be mistress of all she surveys

CEP Labour Markets CEP Growth CEP Trade

Swati Dhingra webpage

Gianmarco Ottaviano webpage

John Van reenen webpage

Jonathan Wadsworth webpage


News Posted: 06/06/2017      [Back to the Top]

Economic Policy Digest – June 2017

Education and deprivation explain the Brexit vote better than immigration

Demography and education are a much better explanation of the ‘Leave’ vote in the June 2016 Brexit referendum than the decline in public services or recent immigration. These are the conclusions of Sascha O. Becker, Thiemo Fetzer and Dennis Novy in their paper Who Voted for Brexit? A Comprehensive District-Level Analysis. … It might be assumed that the 48% of people who voted to remain in the EU last June, and many of the 52% who voted to Leave, would prefer a ‘soft Brexit’ instead.  In this case the UK would follow the example of a country like Norway, which is outside the EU but inside the Single Market. If they got their wish, this would halve the fall in income to about 1.3%. But whether Brexit is hard or soft, Britain will be worse off. The authors of the paper – Swati Dhingra, Hanwei Huang, Gianmarco Ottaviano, João Pessoa, Thomas Sampson and John Van Reenen – from the Centre for Economic Performance at the London School of Economics, and MIT, found that for both extreme versions of Brexit, as well as many in between cases that they costed, reductions in budget payment to Brussels will be easily outweighed by the costs of reduced trade with the EU, which accounts for about half of all British trade.


Related Links:
Economic Policy Digest – June 2017 - Education and deprivation explain the Brexit vote better than immigration

Who Voted for Brexit? A Comprehensive District-Level Analysis

The Costs and Benefits of Leaving the EU: Trade Effects

CEP Growth CEP Trade CEP Urban and Spatial Programme

Swati Dhingra webpage

Dennis Novy webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 06/06/2017      [Back to the Top]

Business Insider UK

Sovereign wealth funds are shunning British investments after Brexit

The LSE's Centre for Economic Performance said that returning to World Trade Organization rules would reduce the UK's trade with the EU by 40% over 10 years.

Related publications

CEP Election Analysis: ‘Brexit and the UK Economy’, Swati Dhingra and Thomas Sampson. May 2017 Paper No' CEPEA040: http://cep.lse.ac.uk/pubs/download/ea040.pdf


Related Links:
Business Insider UK - Sovereign wealth funds are shunning British investments after Brexit

Brexit and the UK Economy

CEP Growth CEP Trade

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 05/06/2017      [Back to the Top]

Cinquantamila.it

Londra vota Brexit. Morbida o estrema saremo comunque più poveri

Brexit In fact is a trauma that breaks the vertical chain of production of the value that ties the United Kingdom to the EU, with consequences not apparent immediately. Quantifying these costs is therefore a difficult exercise, but we have tried S. Dhingra, H. Huang, G. Ottaviano, J.P. Pessoa, T. Sampson and J. Van Reenen in the article "the costs and benefits of leaving the EU: trade Effects", forthcoming in the magazine. … The British voters who chose leave, contrary to appearances, seem to know that their problem is not immigration. The analysis of the vote at the last June referendum by S. Becker, T. Fetzer and D. Novy in the article "who voted for Brexit: a comprehensive district-level analysis" (also being published in the economic policy), confirms this conclusion.


Related Links:
Cinquantamila.it - Londra vota Brexit. Morbida o estrema saremo comunque più poveri

Who Voted for Brexit? A Comprehensive District-Level Analysis

The Costs and Benefits of Leaving the EU: Trade Effects

CEP Growth CEP Trade CEP Urban and Spatial Programme

Swati Dhingra webpage

Dennis Novy webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 05/06/2017      [Back to the Top]

The Economist – free exchange blog

Europe inches closer to a plan for fixing its financial flaws

Article by Luis Garicano

DONALD TRUMP and Theresa May may have done more to push Europeans together, and open up an opportunity for reform of its institutions, than any pro-European American president or British prime minister could ever have dreamt. The Commission’s “Reflection paper on the deepening of the Economic and Monetary Union”, issued on May 31st, points the way towards a package deal that could be acceptable to Northern and Southern euro area countries. But some key elements are still missing. Encouragingly, the Commission sets out a tight calendar for completing the banking union, with the creation of a common deposit insurance scheme and a common backstop for the European Resolution fund intended to be in place by 2019.


Related Links:
The Economist – free exchange blog - Europe inches closer to a plan for fixing its financial flaws

CEP Growth


News Posted: 02/06/2017      [Back to the Top]

ccrmagazine.com

Centre for Economic Performance report on the UK's new industrial strategy

All of the UK’s main political parties now highlight the importance of an ‘industrial strategy’ with the aim of improving economic growth and achieving more balance in how its gains are distributed. In addition, and in contrast to the 2015 election, all parties have made a manifesto commitment to raising the intensity of UK research and development. Both the Conservatives and Labour share a desire for more market intervention in some areas: promising energy price caps of some form, tightening up rules on takeovers, and – along with the Liberal Democrats – pushing company boards to consider the interests of workers. But major differences have emerged with respect to business taxes, and the extent of public investment and intervention. The most dramatic differences are that Labour would renationalise large parts of the privatised utilities, and would raise corporate (and other) taxes to fund higher public spending in a number of areas. These are among the conclusions of a new report from the Centre for Economic Performance (CEP) – the third in a series of background briefings on key policy issues in the June 2017 UK general election. ... Anna Valero, author of the report, comments: ‘All parties aspire to raise UK R&D intensity, with the Conservatives’ commitment to increase R&D further as a share of GDP to 2.4% within 10 years and a longer-term aim of 3%; a Labour target of reaching 3% by 2030, and the Liberal Democrats’ long-term aim to double R&D spending. This is a welcome contrast to the 2015 election, when no parties committed to more than a nominal ring-fence of the science budget.’


Related Links:
ccrmagazine.com - Centre for Economic Performance report on the UK's new industrial strategy

The UK's New Industrial Strategy

CEP Growth

Anna Valero webpage


News Posted: 30/05/2017      [Back to the Top]

Jornal de Negócios

A solução escandinava de Macron para a França / Macron's Scandinavian solution for France

Article by Philippe Aghion

What Macron likes about the Scandinavian model is that it combines a high degree of flexibility in the labor market with the encouragement of innovation and with high levels of social protection....


Related Links:
Jornal de Negócios - A solução escandinava de Macron para a França / Macron's Scandinavian solution for France

CEP Growth

Philippe Aghion webpage


News Posted: 28/05/2017      [Back to the Top]

Gulf News Analysis

Superstar multinationals need to be put on a tight leash

As the economists David Autor, David Dorn, Lawrence F. Katz, Christina Patterson, and John Van Reenen show, the US industries with the fastest-growing market concentration have also seen the largest drop in labour’s share of income. This increased market concentration is widening the gap between the firms that own the robots (capital) and the workers whom the robots are replacing (labour).


Related Links:
Gulf News Analysis - Superstar multinationals need to be put on a tight leash

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

John Van reenen webpage


News Posted: 24/05/2017      [Back to the Top]

Investopedia

Trump economic uncertainty worse than 2008 crisis

Increases in policy uncertainty "foreshadow declines in investment, output and employment in the United States," according to the developers of the Economic Policy Uncertainty Index, professors Scott R. Baker of Northwestern University, Nicholas Bloom of Stanford University and Steven J. Davis of the University of Chicago, CNBC reports. As measured by the EPU index, the election of Donald Trump as president so far is the third most uncertainty-inducing event for the U.S. since the beginning of 1985, CNBC reports, sending it to an average value of 254 in November.

Related publications

‘Economic Recovery and Policy Uncertainty’, Scott R. Baker, Nick Bloom, Steven J. Davis and John Van Reenen, CEP US Election Analysis No.2, October 2012

http://cep.lse.ac.uk/pubs/download/cepusa002.pdf


Related Links:
Investopedia - Trump economic uncertainty worse than 2008 crisis

CEP Growth

Nick Bloom webpage


News Posted: 22/05/2017      [Back to the Top]

Jordan Times

Restoring digital economy competition

Today’s superstar companies owe their privileged position to digital technology’s network effects, whereby a product becomes even more desirable as more people use it.

And although software platforms and online services can be costly to launch, expanding them is relatively inexpensive.

Consequently, firms that are already established can keep growing with far fewer workers than they would have needed in the past.

These factors help to explain why the digital economy has given rise to large firms that have a reduced need for labour. And, once these firms are established and dominate their chosen market, the new economy allows them to pursue anti-competitive measures that prevent actual and potential rivals from challenging their position. And, as the economists David Autor, David Dorn, Lawrence F. Katz, Christina Patterson and John Van Reenen show, the US industries with the fastest-growing market concentration have also seen the largest drop in labour’s share of income.

Also in:

Monday 22 May

MENAFN

Jordan – restoring digital economy competition

http://menafn.com/1095505479/Jordan--Restoring-digital-economy-competition


Related Links:
Jordan Times - Restoring digital economy competition

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

John Van reenen webpage


News Posted: 22/05/2017      [Back to the Top]

Business Mirror

The rise of superstar firms

Article by John Van Reenen and Christina Patterson

In most countries, labor’s share of the national income has declined for about three decades. Why? Maybe the cause is “Robocalypse Now”—firms replacing expensive people with cheaper machines. Or maybe Chinese imports have caused employers to outsource employment. However, China itself is experiencing a labor share decline. We suggest another factor: the rise of superstar firms. Over the last 40 years, more industries have become “winner take most”. Firms with a cost or quality advantage have always enjoyed higher market shares. But the new behemoths of our age capture a much larger fraction—if not all—of their markets. Think Amazon.com, Apple and Google, or Goldman Sachs and Wal-Mart. These superstar firms make lots of profit per employee, so as they become a bigger part of the economy, labor’s share of gross domestic product declines.


Related Links:
Business Mirror - The rise of superstar firms

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

John Van reenen webpage


News Posted: 21/05/2017      [Back to the Top]

CNBC online

Trump economic ‘uncertainty' worse than '08 financial crisis levels, index shows

Increases "in policy uncertainty foreshadow declines in investment, output, and employment in the United States," the three professors who created the index wrote in a 2016 paper. The index was created in 2011 by Scott R. Baker of Northwestern University, Nicholas Bloom from Stanford University and Steven J. Davis, of the University of Chicago.

 

Related publications

‘Economic Recovery and Policy Uncertainty’, Scott R. Baker, Nick Bloom, Steven J. Davis and John Van Reenen, CEP US Election Analysis No.2, October 2012

http://cep.lse.ac.uk/pubs/download/cepusa002.pdf


Related Links:
CNBC online - Trump economic ‘uncertainty' worse than '08 financial crisis levels, index shows

CEP Growth

Nick Bloom webpage


News Posted: 18/05/2017      [Back to the Top]

Time

The jobs that weren't saved

Nevertheless, manufacturers see cause for optimism. The U.S. economy has added some 41,000 manufacturing jobs since February, and large firms such as GM and Hyundai have announced new investments in U.S. factories--often with the White House's encouragement. Thanks in part to regulatory changes and proposed tax cuts, the National Association of Manufacturers (NAM) says 93% of member companies it surveyed have a positive outlook on the economy--a 20-year high. "What manufacturers see is an agenda from the federal level that is focused on growth," says Jay Timmons, NAM's president and CEO. Many economists are far more skeptical. They say the nature of manufacturing work has fundamentally changed and they don't believe tax cuts and protectionism can deliver a Rust Belt revival. "Those are not the policy solutions of the future," says John Van Reenen, a professor of applied economics at MIT. Pointing to the U.S. trade wars of the 1930s that worsened the Great Depression, he says, "Those are the policy failures of the past."


Related Links:
Time - The jobs that weren't saved

CEP Growth

John Van reenen webpage


News Posted: 18/05/2017      [Back to the Top]

Arab News

Restoring competition in the digital economy

As the economists David Autor, David Dorn, Lawrence F. Katz, Christina Patterson and John Van Reenen show, the US industries with the fastest-growing market concentration have also seen the largest drop in labor’s share of income.


Related Links:
Arab News - Restoring competition in the digital economy

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

John Van reenen webpage


News Posted: 18/05/2017      [Back to the Top]

Faro de Vigo (Spain)

A degradation gives quality to the public health system Galego

Luis Garicano, professor of the London School of Economics and responsible for economy, industry and knowledge of citizens, Expoñía ("exceptional doctors who say goodbye soon and badly", the Spaniard, 16/4/17) to Súa surprise polo Tratamento vexatorio ao final da sua race of dous Médicos Excepcionais:…


Related Links:
Faro de Vigo (Spain) - A degradation gives quality to the public health system Galego

CEP Growth


News Posted: 18/05/2017      [Back to the Top]

Vox CEPR Policy Portal

Adding a piece to the productivity puzzle: Management practices


Related Links:
Vox CEPR Policy Portal - Adding a piece to the productivity puzzle: Management practices

What Drives Differences in Management?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 17/05/2017      [Back to the Top]

LA Times

Strong economic outlook may help cushion Trump through Washington turmoil

Strong economic outlook may help cushion Trump through Washington turmoil

Economists such as Nicholas Bloom, a Stanford University Professor who’s been tracking the rising degree of uncertainty in recent weeks, were puzzled that the markets were shrugging off the succession of troubling news coming out of Washington.

Related publications

‘Economic Recovery and Policy Uncertainty’, Scott R. Baker, Nick Bloom, Steven J. Davis and John Van Reenen, CEP US Election Analysis No.2, October 2012

http://cep.lse.ac.uk/pubs/download/cepusa002.pdf


Related Links:
LA Times - Strong economic outlook may help cushion Trump through Washington turmoil

CEP Growth

Nick Bloom webpage


News Posted: 17/05/2017      [Back to the Top]

Vox

Adding a piece to the productivity puzzle: Management practices

Article by Nicholas Bloom, Erik Brynfolfsson, Lucia Foster, Ron Jarmin, Megha Patnaik, Itay Saporta Eksten and John Van Reenen

Disentangling the relationship between management practices and productivity has been hampered by the absence of large sample data across plants and firms. This column exploits a new survey covering US manufacturing to show that management practices vary both among and within companies. Furthermore, management practices are just as important for productivity as a number of other factors associated with successful businesses, such as technology adoption.

Related publications

What Drives Differences in Management? Nicholas Bloom, Erik Brynjolfsson, Lucia Foster, Ron Jarmin, Megha Patnaik, Itay Saporta-Eksten and John Van Reenen, Centre for Economic Performance Discussion Paper No.1470, March 2017


Related Links:
Vox - Adding a piece to the productivity puzzle: Management practices

What Drives Differences in Management?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 17/05/2017      [Back to the Top]

MIT Initiative on the Digital Economy

The labor impact of superstar firms

New research shows that the rise of ever-larger firms means that workers are getting a shrinking slice of a slower-growing economic pie.

Increasingly, labor accounts for less and less of GDP in most countries. Not only does this trend undermine decades of traditional economic thinking about the stability of the labor share, it heightens concerns about employment and wages. Where are jobs going and who will be most impacted? Theories abound about the extent of the decline and the causes. Some believe that increased use of IT is a key contributor, while others point to increased trade exposure, especially, from China. John Van Reenen, Professor in the MIT Department of Economics and Sloan School of Management (pictured, below), acknowledges these factors, but doesn’t think they are the primary drivers of the labor gap. He and his co-authors offer another explanation in a new working paper,


Related Links:
MIT Initiative on the Digital Economy - The labor impact of superstar firms

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

John Van reenen webpage


News Posted: 11/05/2017      [Back to the Top]

Harvard Business Review

Research: The rise of superstar firms has been better for investors than for employees

Article by John Van Reenen and Christina Patterson

In America, labor’s share has been on the decline for about three decades, and it has accelerated since the turn of the century. The fall has also occurred in most other countries. In the U.S. the share of income that workers take home each year now hovers around 60%. … In a recent paper, we put forward a different story based on the rise of superstar firms. More and more industries have become “winner take most” over the last 40 years. Firms with a cost or quality advantage have always enjoyed higher market shares. In the “good old days,” more-productive companies would take a bigger slice of the market, but there would be plenty left over for their rivals. By contrast, the new behemoths of our age capture a much larger fraction — if not all — of their market. Think of Google, Apple, and Amazon in the digital sphere, or Walmart and Goldman Sachs in the offline world.


Related Links:
Harvard Business Review - Research: The rise of superstar firms has been better for investors than for employees

The Fall of the Labor Share and the Rise of Superstar Firms

CEP Growth

John Van reenen webpage


News Posted: 11/05/2017      [Back to the Top]

Bloomberg View

Good managers, not machines, drive productivity growth

Article by John Van Reenen. Managers are more frequently the butt of jokes from TV shows like “The Office” to “Horrible Bosses,” than seen as drivers of growth. But maybe things are now changing. A new generation of empirical work has grown in the last decade that has been able to quantify some key components of basic management practices. Stuff like whether firms rigorously keep track of what goes on internally,  how they communicate this to employees and how this tracking is translated (or not) into sensible and stretching targets that can be used for continuous improvement. An important part of this is what human resources professionals focus on: Are these measures of performance linked to incentives over rewards and promotion? We have now run surveys in over 20,000 organizations in 34 countries and with strikingly uniform results: Namely, firms with high management scores perform better.  


Related Links:
Bloomberg View - Good managers, not machines, drive productivity growth

Management as a Technology?

CEP Growth

John Van reenen webpage


News Posted: 09/05/2017      [Back to the Top]

Independent

Only economic study showing benefits of Brexit debunked as 'doubly misleading'

The assumptions of the Economists for Brexit group – now rebranded as Economists for Free Trade - were previously criticised as grossly unrealistic on other grounds, including ignoring the fact that countries tend to do more trade with countries that are geographically closer, by economic modellers from the London School of Economics (LSE).


Related Links:
Independent - Only economic study showing benefits of Brexit debunked as 'doubly misleading'

‘ECONOMISTS FOR BREXIT’: A critique

CEP Growth CEP Trade

Swati Dhingra webpage

John Van reenen webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage


News Posted: 19/04/2017      [Back to the Top]

MIT Sloan Management Review

The importance of structured management practices

Article by Nicholas Bloom, Erik Brynjolfsson, Megha Patnaik, Itay Saporta-Eksten and John Van Reenen

Our analysis of the Census data, conducted with Lucia Foster and Ron Jarmin of the U.S. Census Bureau and published recently, has led us to conclude that a particular set of practices that we call “structured management” is tightly linked to performance and success.


Related Links:
MIT Sloan Management Review - The importance of structured management practices

What Drives Differences in Management?

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 18/04/2017      [Back to the Top]

Guardian

War shaped my childhood – don’t let Brexit risk our peace

Article by Patrick Stewart.  A recent report on the likely impact of Brexit from the London School of Economics has found that all EU countries will lose income after Brexit. The overall GDP fall in the UK is estimated at between £26bn and £55bn, depending on the negotiated settlement. In the most pessimistic scenario, the cost of Brexit could be as high as £6,400 for each household.


Related Links:
Guardian - War shaped my childhood – don’t let Brexit risk our peace

Brexit: the impact on UK trade and living standards

The consequences of Brexit for UK trade and living standards

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 19/03/2017      [Back to the Top]

Allmediascotland.com

Media Release: SCDI Forum – Exporting key to resilient growth during Brexit and second independence referendum

The SCDI Forum – ‘Brave New Worlds? Economic Growth & Wealth Creation’ – will today (Thursday 16 March) consider the challenges and changes facing our economy, with presentations and discussions on the new industrial strategy and inclusive growth, as well as the particularly pressing topic of how we raise our sights to grow the value of our exports.

The agenda for day two of the SCDI Forum 2017 on Friday 17 March includes: …

  • Richard Davies - Chief of staff at the LSE Growth Commission; and former chair of the Council of Economic Advisers at HM Treasury and economics dditor at The Economist will discuss the Commission’s major new report, ‘UK Growth, A New Chapter’, on a post-Brexit strategy for modern labour markets, industrial strategy, ‘openness’ to trade and talent, and business finance and growth.

Related publications

'UK Growth: A New Chapter', LSE Growth Commission Report, February 2017.


Related Links:
Allmediascotland.com - Media Release: SCDI Forum – Exporting key to resilient growth during Brexit and second independence referendum

CEP Growth

Richard Davies webpage


News Posted: 17/03/2017      [Back to the Top]

Business Insider (Italy)

Brexit, l'appello della London School of Economics: 'Immigrati fondamentali per l'economia'/Brexit, the appeal of the London School of Economics: 'Immigrants are fundamental to the economy'

Brexit constringerà the United Kingdom to rethink all its economic policies: from the labour market to industrial policy, from immigration to foreign trade. A commitment is certainly not trivial for the Government by Theresa May that still waits for the green light from Parliament to invoke article 50 of the European treaties setting in motion the process that will lead Britain out of the borders of the European Union within the next two years. "For Britain, it is the hardest undertaking by the defeat of Nazism in World War II" admits election campaign manager Dominic Cummings, in support of Brexit. Of course, the outcome of the referendum has undermined even analysts and researchers engaged in studies in support of government policies. As in the case of the London School of economics that in 2013 has created the first "growth commission" a kind of white paper of the economy: "Brexit", so nobody imagined the result pushed the London School has rilancare a second Board for growth, "says Novella Bottini, a consultant for the London Institute.

Related publications

'UK Growth: A New Chapter', LSE Growth Commission Report, February 2017.


Related Links:
Business Insider (Italy) - Brexit, l'appello della London School of Economics: 'Immigrati fondamentali per l'economia'/Brexit, the appeal of the London School of Economics: 'Immigrants are fundamental to the economy'

CEP Growth CEP Trade

Philippe Aghion webpage

Stephen Machin webpage

Isabelle Roland webpage

Anna Valero webpage


News Posted: 12/03/2017      [Back to the Top]

The New York Times

‘Superstar firms' may have shrunk workers' share of income

From manufacturing to retailing, giant companies have managed to gobble up a larger and larger share of the market. While such concentration has resulted in enormous profits for investors and owners of behemoths like Facebook, Google and Amazon, this type of “winner take most” competition may not be so good for workers as a whole. Over the last 30 years, their share of the total income kitty has been eroding. And the industries where concentration is the greatest is where labor’s share has dropped the most, according to research that analyzed confidential financial data from hundreds of companies. Think about the retail sector, where mom-and-pop stores once crowded the landscape. Now it is dominated by a handful of giants like Walmart, Target and Costco. “They’re very sophisticated and efficient and they don’t use as much labor,” said Mr. Autor, who worked on the research with a team of economists that included David Dorn, Lawrence F. Katz, Christina Patterson and John Van Reenen.

See also

Pagina (Italy)

Chi più innova meno paga/Who pays most

http://www.pagina99.it/2017/03/07/innovazione-stipendi-profitti-imprese-mit-u-s-economic-census/


Related Links:
The New York Times - ‘Superstar firms' may have shrunk workers' share of income

CEP Growth

John Van reenen webpage


News Posted: 08/03/2017      [Back to the Top]

Jakarta Globe

Britain Seeks to Plug Skills Shortages Sapping Productivity

While skills shortages are a crucial element, they are not the only factor behind Britain's weak productivity, said London School of Economics researcher Anna Valero. Low business investment, a lack of focus on exports, limited public spending on infrastructure, and greater difficulty commercializing scientific research than in the United States, have all played a part, she added. Another difference is that Britain's easy-hire, easy-fire jobs market and low labor costs for many roles have made it viable to rely on low-skilled workers – boosting employment levels compared with other countries but discouraging investment in less labor-intensive working methods. This may be starting to change, with Britain's minimum wage now rising more steeply, in addition to new pension charges and the incoming apprenticeship levy for many employers.

 

Related publications

‘UK Growth: A New Chapter’, LSE Growth Commission Report, February 2017

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


Related Links:
Jakarta Globe - Britain Seeks to Plug Skills Shortages Sapping Productivity

CEP Growth

Anna Valero webpage


News Posted: 08/03/2017      [Back to the Top]

Reuters

RPT-Britain seeks to plug skills shortages sapping productivity

While skills shortages are a crucial element, they are not the only factor behind Britain's weak productivity, said London School of Economics researcher Anna Valero. Low business investment, a lack of focus on exports, limited public spending on infrastructure, and greater difficulty commercialising scientific research than in the United States, have all played a part, she added.

 

Related publications

‘UK Growth: A New Chapter’, LSE Growth Commission Report, February 2017

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

 


Related Links:
Reuters - RPT-Britain seeks to plug skills shortages sapping productivity

CEP Growth

Anna Valero webpage


News Posted: 07/03/2017      [Back to the Top]

The Wall Street Journal

Three ways to value gold. Three conclusions

Then three economics and finance professors—Scott Baker of Northwestern University, Nick Bloom of Stanford University and Steven Davis of the University of Chicago—created a series of Economic Policy Uncertainty, or EPU, indexes. And sure enough, according to Prof. Harvey, gold shows a modest historical correlation with the global version of the EPU.

 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

http://bit.ly/2n6M3oa


Related Links:
The Wall Street Journal - Three ways to value gold. Three conclusions

Measuring Economic Policy Uncertainty

CEP Growth

Nick Bloom webpage


News Posted: 05/03/2017      [Back to the Top]

The Telegraph

How a rise in Britons being their own boss risks a borrowing crisis

Getting the balance right

A recent report by the LSE Growth Commission also warned that a world where everyone is their own boss could lead to less training, with consequences for UK living standards. 

"In the longer term, the gig economy may erode employers' incentives to invest in their workers' skills," it said.

"It is unlikely that short-term workers will receive extensive on-the-job training, and thus in the long run this may have an impact on the make-up of the skill set of the UK workforce."

Related publications

'UK Growth: A New Chapter', LSE Growth Commission Report, February 2017.


Related Links:
The Telegraph - How a rise in Britons being their own boss risks a borrowing crisis

CEP Growth CEP Trade

Philippe Aghion webpage

Stephen Machin webpage

Isabelle Roland webpage

Anna Valero webpage


News Posted: 05/03/2017      [Back to the Top]

LSE Business Review

LSE Growth Commission: invest more in people, not only buildings and machines

The LSE Growth Commission sets out a new blueprint for inclusive and sustainable growth that deals with the challenges facing the UK, old and new. Based on the latest research, analysis and evidence from leading practitioners and scholars, the Commission – drawn from leading business, policy-making and academic figures – outlines the top priorities in four key areas: jobs and skills; industrial strategy; openness and finance and growth.

Related publications

'UK Growth: A New Chapter', LSE Growth Commission Report, February 2017.


Related Links:
LSE Business Review - LSE Growth Commission: invest more in people, not only buildings and machines

CEP Growth CEP Trade

Philippe Aghion webpage

Stephen Machin webpage

Isabelle Roland webpage

Anna Valero webpage


News Posted: 03/03/2017      [Back to the Top]

Independent

Hard Brexit will ‘open Pandora's box' for UK businesses says CBI president

Economists from the London School of Economics have estimated that the WTO route would cause an almost 10 per cent hit to UK GDP by 2030.

Also in:

The i Paper

Failure to secure trade deal 'would open Pandora's Box'

(no link available)


Related Links:
Independent - Hard Brexit will ‘open Pandora's box' for UK businesses says CBI president

The consequences of Brexit for UK trade and living standards

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 02/03/2017      [Back to the Top]

LSE Staff News

New report from LSE Growth Commission

Last Friday, the LSE Growth Commission released a new report setting out a blueprint for inclusive and sustainable growth in the UK, which deals with both old and new challenges.

Related publications

'UK Growth: A New Chapter', LSE Growth Commission Report, February 2017.


Related Links:
LSE Staff News - New report from LSE Growth Commission

CEP Growth CEP Trade

Philippe Aghion webpage

Stephen Machin webpage

Isabelle Roland webpage

Anna Valero webpage


News Posted: 02/03/2017      [Back to the Top]

The Daily Telegraph

Britain is damning itself to a low wage, low productivity economy

As the London School of Economics’ “Growth Commission” noted in a recent update on the UK economy, growing self-employment is eroding the incentives for companies to invest in training and skills. I don’t want to demonise the so-called “gig economy”, which for many of those who work in it is a positive and liberating choice. It has also greatly contributed to Britain’s superior employment performance

Related publications

'UK Growth: A New Chapter', LSE Growth Commission Report, February 2017.


Related Links:
The Daily Telegraph - Britain is damning itself to a low wage, low productivity economy

CEP Growth CEP Trade

Philippe Aghion webpage

Stephen Machin webpage

Isabelle Roland webpage

Anna Valero webpage


News Posted: 01/03/2017      [Back to the Top]

Indiana University Bloomington

IU College of Arts and Sciences announces 2017 alumni and faculty honorees

The recipient of this year’s Outstanding Young Alumni Award is Rebecca Homkes (B.A./B.S. ’05) of London. Homkes is a teaching fellow/adjunct professor in the London Business School, the director of the London-based Ashridge Strategic Management Centre, co-founder of Next Wave Innovation, and the founder and director of 21st Century Strategy, a boutique consultancy firm.

Rebecca Homkes is the director of 21st Century Strategy, a boutique consultancy firm, where she works with CEOs and executive teams of top global companies and fast-growing enterprises on developing and executing strategies for growth, especially when facing extreme uncertainty. Homkes is also a teaching fellow at the London Business School’s Department of Strategy and Entrepreneurship.

A fellow at the London School of Economics’ Centre for Economic Performance and a director at the Ashridge Strategic Management Centre, Homkes is also a co-founder of corporate innovation consultancy Next Wave Innovation and a board member and mentor at GrowthX and the Silicon Valley Growth Syndicate. A 2005 graduate of IU, Homkes earned her Bachelor of Arts degree in political science and her Bachelor of Science degree in business administration with majors in finance, accounting and international studies. A Marshall Scholar, Homkes earned her Ph.D. and M.Sc. in international economy from the London School of Economics and was an Indiana University Herman B Wells Scholar in 2005.

Related links

CEP Alumni - Rebecca Homkes : http://cep.lse.ac.uk/_new/staff/alumni.asp

Rebecca Homkes CEP publications webpage:  http://cep.lse.ac.uk/_new/publications/author.asp?author=homkes


Related Links:
Indiana University Bloomington - IU College of Arts and Sciences announces 2017 alumni and faculty honorees

CEP Growth


News Posted: 28/02/2017      [Back to the Top]

The Irish Times

Theresa May's Nasty Party dons UKIP's Brexit clothes at a heavy price

Immigration has now been extensively studied: there is lots of excellent data that reveals robust conclusions over many different pieces of research. According to, for example, the London School of Economics Centre for Economic Performance, EU immigrants are more likely to be in work and less likely to claim benefits than their UK-born counterparts.


Related Links:
The Irish Times - Theresa May's Nasty Party dons UKIP's Brexit clothes at a heavy price

Brexit and the Impact of Immigration on the UK

CEP Trade CEP Labour Markets CEP Growth

Jonathan Wadsworth webpage

Swati Dhingra webpage

Gianmarco Ottaviano webpage

John Van reenen webpage


News Posted: 27/02/2017      [Back to the Top]

The Sunday Times

Our nation of shoppers needs a new growth model

…"more coherent and comprehensive than anything the government has yet come up with" Article on the LSE Growth Commission Report.

Related publications

'UK Growth: A New Chapter', LSE Growth Commission Report, February 2017.


Related Links:
The Sunday Times - Our nation of shoppers needs a new growth model

CEP Growth CEP Trade

Philippe Aghion webpage

Stephen Machin webpage

Isabelle Roland webpage

Anna Valero webpage


News Posted: 26/02/2017      [Back to the Top]

BBC III – video

What would the UK look like without immigrants?

On #OneDayWithoutUs people are encouraged to show how much immigrants contribute to the country.

So how much of a difference do immigrants make to the UK economy?

At1:12 mins CEP (LSE) research flashes up.

Related links

Jonathan Wadsworth webpage:  http://cep.lse.ac.uk/_new/staff/person.asp?id=787

Swati Dhingra webpage:  http://cep.lse.ac.uk/_new/staff/person.asp?id=7558

Gianmarco Ottaviano webpage:  http://cep.lse.ac.uk/_new/staff/person.asp?id=7598

John Van Reenen webpage:  http://cep.lse.ac.uk/_new/staff/person.asp?id=1358

CEP Growth Programme webpage:  http://cep.lse.ac.uk/_new/research/growth/default.asp

CEP Trade Programme webpage:  http://cep.lse.ac.uk/_new/research/trade/default.asp


Related Links:
BBC III – video - What would the UK look like without immigrants?

Brexit and the Impact of Immigration on the UK

CEP Labour Markets CEP Growth CEP Trade

Philippe Aghion webpage

Stephen Machin webpage

Isabelle Roland webpage

Anna Valero webpage


News Posted: 24/02/2017      [Back to the Top]

Bloomberg

Brexit Bulletin: Team May hits back

Brexit is expected to spell the end of passporting, where firms seamlessly service the rest of the single market from their London hubs. That could herald a loss of more than 25 percent of the U.K.’s total financial services trade, a London School of Economics study said on Thursday. 

Related publications

'UK Growth: A New Chapter', LSE Growth Commission Report, February 2017.


Related Links:
Bloomberg - Brexit Bulletin: Team May hits back

CEP Growth CEP Trade

Stephen Machin webpage

Anna Valero webpage

Philippe Aghion webpage

Isabelle Roland webpage


News Posted: 24/02/2017      [Back to the Top]

Bloomberg News

UK banks' loss of EU passport a ‘major threat', LSE study says

The U.K. government must ensure British financial-services companies don’t lose their ease of access to the European Union after Brexit as a “matter of urgency,” according to a report backed by high-profile British economists including former Bank of England Deputy Governor Charlie Bean. The study, compiled by the London School of Economics with input from business leaders, ex-policy makers and academics, says the U.K. needs to retain near-equivalent European Union passporting rights and warned that alternatives are “costly and time-consuming.”  It sets out a list of recommendations for Prime Minister Theresa May’s administration to bolster growth, including prioritizing free-trade deals with the U.S. and EU. It also encourages the government to boost skills, develop an industrial strategy, and increase competition in finance.

https://www.bloomberg.com/news/articles/2017-02-23/u-k-banks-loss-of-eu-passport-a-major-threat-lse-study-says

 

Related publications

'UK Growth: A New Chapter', LSE Growth Commission Report, February 2017.


Related Links:
Bloomberg News - UK banks' loss of EU passport a ‘major threat', LSE study says

CEP Growth CEP Trade

Philippe Aghion webpage

Stephen Machin webpage

Isabelle Roland webpage

Anna Valero webpage


News Posted: 23/02/2017      [Back to the Top]

Channel 4

FactCheckQandA: Why isn't immigration falling more quickly?

Why has net migration continued to rise and successive government’s failed to hit their targets?

According to the Centre for Economic Performance (CEP), the majority of those who come from the EU, do so for work related reasons, whilst the majority of those who come from non-EU countries do so for study-related reasons. Both positively contribute to the UK economy with the CEP suggesting both groups have had no negative effect on jobs or wages. This is one of the main reasons the government has found it difficult to reduce immigration.

Related publications

'UK Growth: A New Chapter', LSE Growth Commission Report, February 2017.

Related Links:

 

Jonathan Wadsworth webpage:  http://cep.lse.ac.uk/_new/staff/person.asp?id=787

Swati Dhingra webpage:  http://cep.lse.ac.uk/_new/staff/person.asp?id=7558

Gianmarco Ottaviano webpage:  http://cep.lse.ac.uk/_new/staff/person.asp?id=7598

John Van Reenen webpage:  http://cep.lse.ac.uk/_new/staff/person.asp?id=1358

 

 


Related Links:
Channel 4 - FactCheckQandA: Why isn't immigration falling more quickly?

Brexit and the Impact of Immigration on the UK

CEP Growth CEP Trade CEP Labour Markets

Philippe Aghion webpage

Stephen Machin webpage

Isabelle Roland webpage

Anna Valero webpage


News Posted: 23/02/2017      [Back to the Top]

Public Finance

LSE growth commission sets out economic reform proposals

Britain’s tax laws are biased in favour of the self-employed and should be reformed to enable greater investment in people instead of buildings and machines, the LSE Growth Commission has said. This was one of the findings of a report released by the commission today on how the UK can achieve inclusive and sustainable growth after Brexit. In the study, authors identify four key priority areas: jobs and skills, industrial strategy, economic openness, and finance and growth. The commission consists of senior figures from business, politics and academia and was formed in 2013 to provide authoritative and evidence-based policy recommendations. UK Growth: A New Chapter was based on the input of senior policymakers, business people and academics, including two former chancellors, George Osborne and Alastair Darling.

Related publications

'UK Growth: A New Chapter', LSE Growth Commission Report, February 2017.


Related Links:
Public Finance - LSE growth commission sets out economic reform proposals

CEP Growth CEP Trade

Philippe Aghion webpage

Stephen Machin webpage

Isabelle Roland webpage

Anna Valero webpage


News Posted: 23/02/2017      [Back to the Top]

Bloomberg News online

Brexit Bulletin: What Can By-Elections Tell Us About Brexit?

Snippet: ... Due today: latest migration figures from the ONS, and a report on the economy from the LSE Growth Commission.


Related Links:
Bloomberg News online - Brexit Bulletin: What Can By-Elections Tell Us About Brexit?

CEP Growth CEP Trade

Anna Valero webpage

Richard Davies webpage

Isabelle Roland webpage

Stephen Machin webpage

Philippe Aghion webpage


News Posted: 23/02/2017      [Back to the Top]

Australian Economic Review

Observations on Uncertainty (pages 79–84)

© The University of Melbourne, Melbourne Institute of Applied Economic and Social Research

Volume 50, Issue 1 Pages 1 - 132, March 2017

Observations on Uncertainty (pages 79–84)

Nicholas Bloom

Version of Record online: 28 FEB 2017 | DOI: 10.1111/1467-8462.12203

Related links

Nick Bloom CEP publications webpage:  http://cep.lse.ac.uk/_new/publications/author.asp?author=bloom


Related Links:
Australian Economic Review - Observations on Uncertainty (pages 79–84)

CEP Growth

Nick Bloom webpage


News Posted: 21/02/2017      [Back to the Top]

House of Lords Hansard – www.parliament.uk

LSE research mentioned in Lords debate on the Article 50 Bill

During Lords debate on the Article 50 Bill, Lord McKenzie of Luton (Lab) mentioned LSE/CEP research:

 

"One of the most profound choices that the Government are seeking to make is to eschew membership of the single market and the customs union. They are prepared to sacrifice these at the altar of reducing immigration, notwithstanding research, most recently from the Centre for Economic Performance at the LSE, again showing the benefits to national income, taxes and the budget ​deficit from immigration, and notwithstanding a report from the think tank Global Future that suggests that the Government’s approach could mean a fall in current net levels of immigration of no more than 15%, and that might be reduced further by the terms of new free trade agreements, which typically come with a demand for liberalisation on free movement."

 

Related publications

'UK Growth: A New Chapter', LSE Growth Commission Report, February 2017.

Related links

Jonathan Wadsworth webpage:  http://cep.lse.ac.uk/_new/staff/person.asp?id=787

Swati Dhingra webpage:  http://cep.lse.ac.uk/_new/staff/person.asp?id=7558

Gianmarco Ottaviano webpage:  http://cep.lse.ac.uk/_new/staff/person.asp?id=7598

John Van Reenen webpage:  http://cep.lse.ac.uk/_new/staff/person.asp?id=1358


Related Links:
Brexit and the Impact of Immigration on the UK

CEP Growth CEP Trade CEP Labour Markets

Philippe Aghion webpage

Stephen Machin webpage

Isabelle Roland webpage

Anna Valero webpage


News Posted: 21/02/2017      [Back to the Top]

Dien dan (Vietnam)

The index of real economic policy of China in record level 672.82 points

Index of uncertainty in the economic policy of China and Hong Kong (China-Hong Kong Economic Policy Uncertainty Index-CHEPUI) are at record levels 672.82 points after soaring up fivefold higher than the average rate in 22 years.  This index tracks the frequency of mention of economic uncertainties related to the policy of South China Morning Post (SCMP), the most prestigious English newspaper of Hong Kong. It is part of the tracking system developed by Scott Baker in Northwestern University, Nick Bloom of Stanford University and Steven Davis from the University of Chicago.

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

http://bit.ly/2m481r4

 


Related Links:
Dien dan (Vietnam) - The index of real economic policy of China in record level 672.82 points

Measuring Economic Policy Uncertainty

CEP Growth

Nick Bloom webpage


News Posted: 20/02/2017      [Back to the Top]

Bloomberg

China economic policy has never been more uncertain. Sort of.

Economic policy is always challenging to decipher in China, where Communist Party leaders steer one of the world's most opaque central banks. Indeed, one measure of uncertainty has never been higher amid complications from Hong Kong's politics to Donald Trump's protectionism. The China-Hong Kong Economic Policy Uncertainty Index stands at a record 672.82 after soaring to more than five times its average in data stretching back 22 years. The gauge tracks mentions of policy-related economic uncertainty in Hong Kong's main English-language newspaper, the South China Morning Post. It's part of a suite of trackers developed by Northwestern University’s Scott Baker, Stanford University’s Nick Bloom and Steven Davis from the University of Chicago.

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 http://bit.ly/2m481r4


Related Links:
Bloomberg - China economic policy has never been more uncertain. Sort of.

Measuring Economic Policy Uncertainty

CEP Growth

Nick Bloom webpage


News Posted: 20/02/2017      [Back to the Top]

Bloomberg

Monopolies are worse than we thought

A recent paper by David Autor, David Dorn, Lawrence Katz, Christina Patterson and John Van Reenen speculates that tech might have enabled the rise of a few “superstar” companies in each industry. The fact that leaders in more concentrated industries also tend to have higher productivity supports this hypothesis. Technology might have simply changed the nature of markets so that the winners take most of the profits.

 


Related Links:
Bloomberg - Monopolies are worse than we thought

CEP Growth

John Van reenen webpage


News Posted: 15/02/2017      [Back to the Top]

Huffington Post Deutschland

US-Top-and#336;konom erwartet unter Trump 'wirtschaftliche Blüte ungekannten Ausmaßes'/US top economist expected to trump 'economic boom of unprecedented proportions

Von anderen Star-Ökonomen waren eher pessimistische Stimmen zur Wirtschaftsentwicklung unter Trump zu hören. So sagt Stanford-Ökonom Nicholas Bloom, ...

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

http://bit.ly/2m481r4


Related Links:
Huffington Post Deutschland - US-Top-and#336;konom erwartet unter Trump 'wirtschaftliche Blüte ungekannten Ausmaßes'/US top economist expected to trump 'economic boom of unprecedented proportions

Measuring Economic Policy Uncertainty

CEP Growth

Nick Bloom webpage


News Posted: 14/02/2017      [Back to the Top]

Blasting News

Brexit could swiftly become a steep exit

The economic cost of Britain's exit from Europe could be quadruple original estimates according to MIT Economist, Professor John Van Reenen.

Given all of the political flailing of arms and rhetorical sniping that has been going on, this has prevented many from seeing the bigger economic picture in terms of Brexit. The anticipated costs of Brexit seem to be increasing as more is known about Britain's plans and intentions on that score - four times the original estimate.

#professor john van Reenen made these assertions from research he had been taking out over the last few years in a separate report.


Related Links:
Blasting News - Brexit could swiftly become a steep exit

BREXIT 2016: Policy Analysis from the Centre for Economic Performance

CEP Growth

John Van reenen webpage


News Posted: 10/02/2017      [Back to the Top]

Independent

Brexit four times worse for UK economy than previously believed, say MIT economists

New research claims leaving the EU will have bigger impact on UK productivity than had been thought

Britain’s departure from the European Union could cause output losses of as much as 9.5 per cent, according to new research. Calculations using models that incorporate productivity measures show a negative impact on gross domestic product per capita of almost four times that of previous estimates, according to John Van Reenen, a professor of applied economics at the MIT Sloan School of Management who supported the campaign for the UK to remain in the EU.


Related Links:
Independent - Brexit four times worse for UK economy than previously believed, say MIT economists

Brexit: the final assessment

CEP Growth

John Van reenen webpage


News Posted: 09/02/2017      [Back to the Top]

CNBC

Brexit will leave Britons more than $4,000 poorer, says MIT professor

Britons' incomes could be slashed by as much as 9.5 percent once the U.K. formally leaves the European Union, a new study released today by MIT economics professor John Van Reenen has claimed.

The report points to a 6.3 to 9.5 percent reduction in GDP per capita with the U.K. outside of the EU's single market on the basis that a one percent decline in trade reduces income per capita by between 0.5 and 0.75 percent.


Related Links:
CNBC - Brexit will leave Britons more than $4,000 poorer, says MIT professor

BREXIT 2016: Policy Analysis from the Centre for Economic Performance

CEP Growth

John Van reenen webpage


News Posted: 08/02/2017      [Back to the Top]

Finansgundem.com (Turkey)

Brexit, national income per capita in the UK to drop

Brexit, national income per capita in the UK to drop

On June 23, a referendum MIT faculty member, Professor John Van Reenen advocated keeping Britain in the EU.


Related Links:
Finansgundem.com (Turkey) - Brexit, national income per capita in the UK to drop

BREXIT 2016: Policy Analysis from the Centre for Economic Performance

CEP Growth

John Van reenen webpage


News Posted: 08/02/2017      [Back to the Top]

Delo (Slovenia)

Trump(izem) - return to the future

Nicholas Bloom (Stanford University) explores the political uncertainty in the world, and from 1900 on, he found out that after his election Trump increased uncertainty by at least twice and is comparable to that during the great economic crisis, the end of the twenties of the last century.


Related Links:
Delo (Slovenia) - Trump(izem) - return to the future

Measuring Economic Policy Uncertainty

Economic Recovery and Policy Uncertainty

The Impact of Uncertainty Shocks: Firm Level Estimation and a 9/11 Simulation

CEP Growth

Nick Bloom webpage


News Posted: 31/01/2017      [Back to the Top]

Cash (Germany)

Verunsicherte medien, zuversichtliche unternehmen – wer behalt recht?

A study of three researchers Scott R. Baker, Nicholas Bloom and Steven j. Davis has revealed that the current economic uncertainty is still higher than during times of 9 / 11 or the Lehman collapse. The experts at Swiss life asset managers analyze the situation.

Have, the Brexit and the US insecure you elections? Then, you're not alone. Researchers Scott R. Baker, Nicholas Bloom and Steven j. Davis attempting to measure the economic insecurity and to depict in an index. It is collected for 12 countries, captured how often words with reference to uncertainty and instability in the media. Currently, index is higher than to times of crisis like 9/11, the Lehman collapse, or Europe's debt crisis the "economic policy uncertainty".


Related Links:
Cash (Germany) - Verunsicherte medien, zuversichtliche unternehmen – wer behalt recht?

Measuring Economic Policy Uncertainty

Economic Recovery and Policy Uncertainty

The Impact of Uncertainty Shocks: Firm Level Estimation and a 9/11 Simulation

CEP Growth

Nick Bloom webpage


News Posted: 31/01/2017      [Back to the Top]

NZZ.at (Germany)

Ignorant and irresponsible

Not surprisingly, when an index for global political uncertainty, compiled records so unsafe level, inter alia by the Stanford economist Nicholas Bloom, on a high, (Stanford). And Austria's foreign trade must prepare for uncertain times (the press).


Related Links:
NZZ.at (Germany) - Ignorant and irresponsible

Measuring Economic Policy Uncertainty

Economic Recovery and Policy Uncertainty

CEP Growth

Nick Bloom webpage


News Posted: 27/01/2017      [Back to the Top]

Bloomberg Quint

Blame monopolies for short-changing U.S. workers

There are several worrying trends in the global economy, such as rising inequality within countries and slowing productivity growth. But perhaps the most troubling of them is the fall in labor’s share of national income. … Two new papers suggest that the rise might be due to an increase in market concentration. If industries are slowly inching toward monopoly, a few superstar companies in each sector could be squeezing profits out of the rest of the economy. The first of these new papers is by a large, star-studded team from the U.S. and Europe -- David Autor, David Dorn, Lawrence Katz, Christina Patterson and John Van Reenen. Titled “Concentrating on the Fall of the Labor Share,” it is short, clear and relies on relatively simple theories and general observations.

 

Related publications

Autor D, Dorn D, Katz LF, Patterson C, Reenen JV. Concentrating on the Fall of the Labor Share. American Economic Review Papers and Proceedings. Forthcoming;107 (5).

 


Related Links:
Bloomberg Quint - Blame monopolies for short-changing U.S. workers

CEP Growth

John Van reenen webpage


News Posted: 27/01/2017      [Back to the Top]

Bloomberg Businessweek

Trump's uncertainty principle

The cloud of uncertainty Trump has kicked up may be a big deal for the economy, or not. … For one thing, uncertainty isn’t necessarily bad. It simply means the distribution of possible outcomes—both upward and downward—has widened. Investors in the stock market seem to be betting on the upside of the distribution, judging from the 6.5 percent rise in the S&P 500 since the election. It’s also possible that what looks like economic uncertainty is really just scary reports in the news media. Stanford economist Nicholas Bloom, an originator of the Economic Policy Uncertainty Index, joked (I think) in an e-mail, “It may simply be the news has no connection to reality—as you know from Trump, you guys are the biggest liars.”


Related Links:
Bloomberg Businessweek - Trump's uncertainty principle

Measuring Economic Policy Uncertainty

Economic Recovery and Policy Uncertainty

CEP Growth

Nick Bloom webpage


News Posted: 26/01/2017      [Back to the Top]

New Statesman

If you want to fix Britain's economy, there's one word you need to remember

And it isn't "infrastructure"

Improving our management skills is part of this. John van Reenen at the London School of Economics has written about how the quality of management in different countries can explain as much as a third of their differences in productivity.


Related Links:
New Statesman - If you want to fix Britain's economy, there's one word you need to remember

CEP Growth

John Van reenen webpage


News Posted: 25/01/2017      [Back to the Top]

Wall Street Journal Americas (Spanish)

Hechos alternativos para Trump y el Mercado de acciones

"It genuinely feels that the political uncertainty is very high," said Nicholas Bloom, Professor of Stanford and co-developer of the index of uncertainty.


Related Links:
Wall Street Journal Americas (Spanish) - Hechos alternativos para Trump y el Mercado de acciones

Measuring Economic Policy Uncertainty

Economic Recovery and Policy Uncertainty

CEP Growth

Nick Bloom webpage


News Posted: 24/01/2017      [Back to the Top]

The Daily Star

Britain 'faces imminent GENERAL ELECTION' after Brexit blocked in bombshell ruling

Speaking to Daily Star Online, John Van Reenen, Professor of Economics at LSE, said Mrs May might be tempted to strengthen her hand in parliament. He said an election could boost her authority in both Houses, giving her a strong mandate to push through a “hard Brexit” agenda. But he added that she may “just stick to the current course” because she is “cautious by nature”.


Related Links:
The Daily Star - Britain 'faces imminent GENERAL ELECTION' after Brexit blocked in bombshell ruling

CEP Growth

John Van reenen webpage


News Posted: 24/01/2017      [Back to the Top]

BBC Radio 4

13:24

Snippet: ...Mention of  LSE research on productivity in UK compared to productivity in France and Germany
... that LSE researchers suggest that by Thursday lunchtime the other countries have produced as much as it takes us to produce by Friday afternoon ...

 

Related article

BBC News - 21 May 2015

Why the productivity gap?

Professor John Van Reenen, head of the Centre for Economic Performance at the LSE, makes the point rather graphically: "By Thursday lunchtime the other countries have produced as much as it takes us to produce by Friday afternoon when we knock off work. "So basically we could take every Friday off if we could be as productive as those other countries and earn the same amount of money."

 

 


Related Links:
BBC Radio 4 - 13:24

CEP Growth

John Van reenen webpage


News Posted: 23/01/2017      [Back to the Top]

El Pais

Opinion: Microempresa y productividad: lecciones francesas

El predominio de las firmas de menos de 10 empeados es in obstaculo para la productividad e internacionalizacion

Article by Luis Garicano, Claire LeLarge and John Van Reenen

The prevalence of firms of less than 10 employees is a barrier to the internationalization.

In contrast to the more advanced economies, almost one in every two Spanish workers is employed in a micro-enterprise of less than ten people. In Germany, for example, this proportion is reduced to one of five workers. There is no doubt that this predominance of microenterprise in Spain is an obstacle to productivity and the internationalization of Spanish companies: invest in international trade or Automation is practically impossible for a firm of such small size.


Related Links:
El Pais - Opinion: Microempresa y productividad: lecciones francesas

CEP Growth

John Van reenen webpage


News Posted: 22/01/2017      [Back to the Top]

Marketplace

5 things you need to know about the World Economic Forum

Next week, government and business leaders from around the world will meet in Davos, Switzerland for the 2018 World Economic Forum to discuss this years's theme: "Creating a Shared Future in a Fractured World." So what exactly goes on at these gatherings? Davos vet and MIT economics professor John Van Reenen spoke with Marketplace Weekend about the five things everyone should know about the World Economic Forum. 1. People are very earnest about the forum. Even though there's an impression of the WEF as an elite meeting of businesspeople and politicians, Van Reenen says that people who attend are very mindful about wanting to genuinely do good and address the economic problems and global issues of the day. Talking economics on a Swiss mountaintop may seem a bit chilly (literally and figuratively), but Van Reenen says he's always struck by everyone's earnestness.


Related Links:
Marketplace - 5 things you need to know about the World Economic Forum

CEP Growth

John Van reenen webpage


News Posted: 19/01/2017      [Back to the Top]

The Canary

At PMQs, the 'Irony Lady' revealed exactly what she's been hiding from the British public

May’s speech suggests the UK is on course to aim for a bilateral agreement. Currently, countries like Switzerland pay around 40% as much as the UK’s contribution for EU membership for access on those terms, according to the Centre for Economic Performance (CEP). And that does not include free trade in services.


Related Links:
The Canary - At PMQs, the 'Irony Lady' revealed exactly what she's been hiding from the British public

BREXIT 2016: Policy Analysis from the Centre for Economic Performance

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

CEP Growth CEP Trade CEP Labour Markets

Holger Breinlich webpage

Swati Dhingra webpage

Saul Estrin webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage

Jonathan Wadsworth webpage


News Posted: 18/01/2017      [Back to the Top]

Investors Chronicle

More profit warnings

Investors should brace themselves for more profit warnings in 2017.

This isn't simply because economic growth will slow this year: economists expect an expansion of only 1.2 per cent this year after 2 per cent growth last. Nor is it just because there's danger of a squeeze upon the profit margins of firms that don't export much. It's also because economic slowdowns affect the distribution of growth rates across companies. As the macroeconomy weakens, corporate growth becomes more negatively skewed, so that a disproportionate number of firms do badly. This was first pointed out by Paul Geroski and Paul Gregg in a study of the 1990-91 recession in the UK. They showed that just 10 per cent of firms accounted for 84 per cent of the drop in profits then. However, a recent paper by Nick Bloom of Stanford University and Fatih Guvenen and Sergio Salgado at the University of Minnesota shows that much the same is true around the world. They studied corporate sales growth in 44 countries between 1986 and 2013 and found that "periods of low economic activity are characterised by an increase in the probability of very large negative shocks at the firm level".


Related Links:
Investors Chronicle - More profit warnings

CEP Growth

Nick Bloom webpage


News Posted: 04/01/2017      [Back to the Top]

Mail Online

Gloomy economists forecast Brexit trouble ahead for the UK…despite getting it wrong last year

Four in ten leading economists are more pessimistic about Britain's future after Brexit, despite the buoyant economy since the vote, according to a new FT poll. While many are looking to 2017 for a spot of better luck than 2016, UK economists are less optimistic about what the coming year will bring, the annual survey found. The Financial Times asked 122 industry experts to give their predictions for the next 12 months, with the vast majority foreseeing the British economy losing steam in the wake of higher inflation and Brexit uncertainty.


Related Links:
Mail Online - Gloomy economists forecast Brexit trouble ahead for the UK…despite getting it wrong last year

CEP Labour Markets CEP Growth

Stephen Machin webpage

John Van reenen webpage


News Posted: 03/01/2017      [Back to the Top]

Financial Times

Brexit: 5 questions for 2017

Further reading

A derided expert speaks John Van Reenen, the outgoing director of the LSE’s Centre for Economic Performance takes no prisoners in a hard-hitting review of Brexit. Among other topics he examines the ‘lump of labour fallacy’ behind immigration concerns, the media’s Euroscepticism and Britain’s politicians, who are surely the “worst in living memory”. (LSE blog).

 

Related article

The aftermath of the Brexit vote – the verdict from a derided expert’, John Van Reenen, LSE British Politics and Policy blog, August 2, 2016

 


Related Links:
Financial Times - Brexit: 5 questions for 2017

CEP Growth

John Van reenen webpage


News Posted: 03/01/2017      [Back to the Top]

The Financial Times

Weaker pound expected to reduce immigration

Slower economic growth also predicted to deter new migrants

Question:  ‘What do you think will happen to immigration?’

Stephen Machin, professor of economics, London School of Economics

It does not seems likely to change much and therefore not much impact to follow. A worry is that high skill immigration is slowed down by current events and attitudes.

 

John Van Reenen, professor of economics, MIT

Since negotiations will be still be going on after Article 50 triggered, there will not be much effect. Levels will probably remain high (net migration above 300k) until we exit in 2018 and more controls are then introduced. More EU immigrants will come in 2017 to avoid the 2018 controls. The reduction in immigration will reduce overall growth significantly and reduce GDP per capita a bit. The loss of deep access to Single Market due to ending free movement will be the main negative effect over long-run. Lower immigration will do nothing to help UK workers — see http://cep.lse.ac.uk/pubs/download/brexit05.pdf

See Also:

Financial Times

  1. Bank of England expected to keep its options open

    ...monetary discipline in the UK too. Stephen Machin, professor of economics, London School of Economics...

    ...that the approach will be very cautious. On the whole upside risk for higher interest rates but slowly. John Van Reenen

  2. Inflation predicted to rise above 2 per cent target in 2017

    ..., falling below it at the start of 2018. Stephen Machin, professor of economics, London School of Economics It seems...

    ...business cycle, wage increases and especially the weak pound are adding to inflationary pressures in 2017. John Van Reenen


Related Links:
The Financial Times - Weaker pound expected to reduce immigration

CEP Growth CEP Labour Markets

Stephen Machin webpage

John Van reenen webpage


News Posted: 02/01/2017      [Back to the Top]

The Financial Times

Chancellor likely to overshoot borrowing forecast, economists say

Contributing factors include weaker tax revenues and pressure to rein in cuts

Question:  ‘Do you think the government will need to borrow more than it has forecast in 2017?’

Stephen Machin, professor of economics, London School of Economics

Government borrowing, if it is for areas that increase long-term growth, is not a bad thing. Indeed, while borrowing to fund infrastructure and innovation may increase the deficit in the short run it will probably decrease debt/GDP in the long run due to the effects on productivity and GDP growth (this is why countries like Italy that have not invested in these areas have low deficits but high debt/GDP). I believe, however, that UK borrowing will increase for the following good and bad reasons: (1) GOOD: because it seems that May’s government wants to bet on an active industrial and innovation policy: this requires an active investment strategy which in the short-run may increase the deficit. (2) BAD because Brexit will continue to be a major drain on the economy, causing government to waste a large amount of resources in managing the process (with evidence that they are already paying KPMG and other consultants exorbitant rates for the ‘outsourced’ part of this management), and also to make up for the lost (eventual) EU investment (Horizon, ERC, EIB etc). And (3) BAD because the fall in corporate income tax will increase the deficit, without having any effect on real investment. It will, I believe, only fuel inequality, which in the long run also raises the deficit, both due to the welfare payments that rise with inequality, and the lower tax receipts.

 

John Van Reenen, professor of economics, MIT

The current plans remain too optimistic. He will correctly use more flexibility to expand investment from current plans. Will not cur current deficit as much as planned.


Related Links:
The Financial Times - Chancellor likely to overshoot borrowing forecast, economists say

CEP Labour Markets CEP Growth

Stephen Machin webpage

John Van reenen webpage


News Posted: 02/01/2017      [Back to the Top]

The Financial Times

Economists gloomy on UK prospects for 2017

Growth will slow, incomes will be squeezed and investment delayed, FT survey finds

Question: ‘How much, if at all, do you expect UK economic growth to slow in 2017?’

Stephen Machin, professor of economics, London School of Economics

It seems likely to that growth will be a fair bit slower than pre-Brexit referendum forecasts, mostly because the prospects of productivity and/or real wage growth do not look very promising.

 

John Van Reenen, professor of economics, MIT

Slow to about 1.4%. Greater policy uncertainty over Trump, Brexit & elections in France and Germany will harm investment and hiring

.


Related Links:
The Financial Times - Economists gloomy on UK prospects for 2017

CEP Growth CEP Labour Markets

Stephen Machin webpage

John Van reenen webpage


News Posted: 02/01/2017      [Back to the Top]

Daily Mirror

New Year's Honours 2017: Full list of great and good awarded for services to Britain

Professor Paul Charles Cheshire. Economist. For services to Economics and Housing. (London)

Professor John Van Reenen. Economist. For services to Economics and Public Policy Making. (Abroad)


Related Links:
Daily Mirror - New Year's Honours 2017: Full list of great and good awarded for services to Britain

CEP Urban and Spatial Programme CEP Growth

Paul Cheshire webpage

John Van reenen webpage


News Posted: 31/12/2016      [Back to the Top]

LSE British Politics and Policy blog

The year in review: Brexit and then some

In our 2015 end-of-year review, John Van Reenen predicted that Britain was heading towards Brexit. The causes of the vote, the failures of the polls, and the “Brexit-Trump syndrome” were the topics of some of our most popular articles of 2016. 

The aftermath of the Brexit vote – the verdict from a derided expert Article by John Van Reenen


Related Links:
LSE British Politics and Policy blog - The year in review: Brexit and then some

CEP Growth

John Van reenen webpage


News Posted: 31/12/2016      [Back to the Top]

LSE News

New Year Honours at LSE

Paul Cheshire, Emeritus Professor of Economic Geography, was awarded a CBE for Services to Economics and Housing.

In 2004 Professor Cheshire won the Royal Economic Society's Prize for the best paper in the Economic Journal and won the European Regional Science Association/European investment Banks prize for lifetime contribution to regional science research in 2009. He is an elected Fellow of the Academy of the Social Sciences and of the Weimer School.

Aside from his academic work he has spent time as an advisor and as a consultant for the European Commission, the World Bank, the OECD, the UN and other international organisations as well as the UK government, including being a member of the Expert Panel for the Barker Review of the Planning system.

Also receiving an honour was long-serving former member of LSE staff, Professor John Van Reenen, awarded an OBE for services to economics and pubic policy making. Until summer 2016 Professor Van Renen was Director of LSE’s Centre for Economic Performance (CEP). He is currently Professor of Applied Economics at MIT and remains an associate at CEP.


Related Links:
LSE News - New Year Honours at LSE

Brexit: the final assessment

Turning houses into gold: the failure of British planning

CEP Urban and Spatial Programme CEP Growth

Paul Cheshire webpage

John Van reenen webpage


News Posted: 31/12/2016      [Back to the Top]

The Daily Telegraph

Former PWC boss knighted in New Year's Honours

Professor John Van Reenen, who predicted ahead of the referendum that Brexit would cost up to £1,700 per household per year, has been given an OBE for services to economics and public policy making. Other academics to receive honours include Professor Paul Cheshire, who has argued that the green belt should be opened up to ease the housing crisis. He will receive a CBE in the honours, which are recognising 1,197 people in total.


Related Links:
The Daily Telegraph - Former PWC boss knighted in New Year's Honours

BREXIT 2016: Policy Analysis from the Centre for Economic Performance

Turning houses into gold: the failure of British planning

CEP Urban and Spatial Programme CEP Growth

Paul Cheshire webpage

John Van reenen webpage


News Posted: 30/12/2016      [Back to the Top]

Bloomberg

Tennis No. 1 Murray, Kinks frontman knighted in UK Honors List

A total of 1,197 people, representing “the very best of our nation,” were granted awards, according to a statement from the Cabinet Office. Just over half are women, 9.3 percent are from ethnic minorities, and 8.5 percent have some form of disability, making the list “the most diverse ever,” it said.

Other notable awards include:

CBE for London School of Economics professor Paul Cheshire.

OBE for and MIT economics professor John Van Reenen


Related Links:
Bloomberg - Tennis No. 1 Murray, Kinks frontman knighted in UK Honors List

CEP Urban and Spatial Programme CEP Growth

Paul Cheshire webpage

John Van reenen webpage


News Posted: 30/12/2016      [Back to the Top]

Harvard Business Review

Why the best hospitals are managed by doctors

A study published in 2011 examined CEOs in the top-100 best hospitals in USNWR in three key medical specialties: cancer, digestive disorders, and cardiovascular care. A simple question was asked: are hospitals ranked more highly when they are led by medically trained doctors or non-MD professional managers?  The analysis showed that hospital quality scores are approximately 25% higher in physician-run hospitals than in manager-run hospitals.  The findings of course do not prove that doctors make better leaders, though the results are surely consistent with that claim.  Other studies also find this correlation. Research by Nick Bloom, Raffaella Sadun, and John Van Reenen revealed how important good management practices are to hospital performance.  But they also found that it is the proportion of managers with a clinical degree that had the largest positive effect; in other words, the separation of clinical and managerial knowledge inside hospitals was associated with worse management.


Related Links:
Harvard Business Review - Why the best hospitals are managed by doctors

In brief: Hospital performance: the impact of good management

CEP Growth

Nick Bloom webpage

Raffaella Sadun webpage

John Van reenen webpage


News Posted: 27/12/2016      [Back to the Top]

Bloomberg view

Little improvements crowd out world-changing innovation

Economists Nicholas Bloom of Stanford and John Van Reenen of the Massachusetts Institute of Technology (along with several co-authors) have been compiling evidence for a while now that companies that follow management best practices outperform their peers. In a similar vein, the University of Chicago’s Luigi Zingales recently offered this explanation for the rise in corporate profits’ share of U.S. gross domestic product:


Related Links:
Bloomberg view - Little improvements crowd out world-changing innovation

CEP Growth

Nick Bloom webpage

John Van reenen webpage


News Posted: 21/12/2016      [Back to the Top]

Sport (English version)

Ciudadanos harsh attack on Messi which forgot about Ronaldo

An economist claimed Messi would be in prison now in the United States

Economist Luis Garicano was recently elected by the Ciudadanos to take over one of the vice presidencies of the Party of the Alliance of Liberals and Democrats for Europe (ALDE) and in an interview with 'El Espanol' he did not hesitate when it came to  shifting the focus on to Leo Messi, despite the fact that the Argentine star has already been convicted of irregularities with the tax authorities. “In the world of football we’ve found there is a huge fraud situation and [in Spain] we no-one ends up in prison,” said Garicano. “In the US, Messi would be in jail right now. In Spain it is practically impossible to end up in jail for a tax offence. In the end, having effective sanctions is very important for ensuring compliance with the law.”


Related Links:
Sport (English version) - Ciudadanos harsh attack on Messi which forgot about Ronaldo

CEP Growth


News Posted: 20/12/2016      [Back to the Top]

How we get to next - blog by Matt Locke

Young inventors need role models, not tax breaks

A conversation with MIT’s John Van Reenen

When we talk about innovators, we normally talk about how someone becomes one—not when. We talk about the success or failure of their experiments, products, and companies, and the gradual accrual of hard-earned experience that led to their breakthrough. We define innovators by the things they make, but rarely talk about the things that made them.  That might be because doing so brings up some uncomfortable truths: In the United States, “If your parents are the top one percent of the income distribution, then you’re 10 times more likely to grow up to be an innovator than if you’re born in the bottom 50 percent. That’s a huge difference,” says John Van Reenen, a professor in MIT Economics & Sloan.  Van Reenen is leading “The Lifecycle of Inventors,” a data-based research project looking at how the early lives of innovators affected their careers. Working with a team from Harvard, Stanford, and the U.S. Treasury, he’s looked at 1.2 million people who applied for or were granted a U.S. Patent between 1994 and 2014, and correlated this data with their education and family financial records.


Related Links:
How we get to next - blog by Matt Locke - Young inventors need role models, not tax breaks

CEP Growth

John Van reenen webpage


News Posted: 16/12/2016      [Back to the Top]

Bloomberg - politics

Rajoy gives up control of Spain market regulator in Brexit push

Prime Minister Mariano Rajoy’s decision to replace a party loyalist with an independent expert at the head of the markets regulator will help Spain lure companies seeking a new base after Britain leaves the European Union, according to Luis Garicano, head of economic policy at the Spanish liberal party, Ciudadanos. The new regulatory chief, Sebastian Albella, will burnish Madrid’s credentials as a stable legal environment, said Garicano, who proposed Albella as a candidate for the post to Economy Minister Luis de Guindos. Albella was appointed by the government last month.


Related Links:
Bloomberg - politics - Rajoy gives up control of Spain market regulator in Brexit push

CEP Growth


News Posted: 16/12/2016      [Back to the Top]

LSE Business Review blog

Autumn Statement does little to dampen fears for the economic health of the UK

Brexit and the uncertainties surrounding it present an unprecedented challenge, writes Anna Valero

In his first Autumn Statement (and last – since he has decided to abolish them in favour of an annual November budget), the Chancellor presented the key forecasts from the Office for Budet Responsibility’s economic and fiscal outlook, the first since the June referendum. While there is still major uncertainty around the likely form of Brexit, the consensus is that it will inflict damage on the economy. The Chancellor highlights the UK’s weak productivity performance and outlines some policies to address it. However, given the scale of the challenge, now heightened by Brexit, the current package of government policies does little to dampen fears for the economic health of the UK.


Related Links:
LSE Business Review blog - Autumn Statement does little to dampen fears for the economic health of the UK

CEP Growth

Anna Valero webpage


News Posted: 24/11/2016      [Back to the Top]

Financial Times

May seeks solution to productivity conundrum

Skills policies would ideally be co-ordinated with the government’s proposed new industrial strategy. “In the long-run, skills are really important for growth,” said Stephen Machin, co-chair of the new LSE growth commission, which is collecting evidence on how economic growth can be enhanced.

... One area where British companies lag behind foreign competitors is the quality of management practices, according to John Van Reenan, a professor at the Massachusetts Institute of Technology. Better managers are better able to adopt new technologies and use existing ones most efficiently.

 


Related Links:
Financial Times - May seeks solution to productivity conundrum

Management Practices Across Firms and Countries

CEP Labour Markets CEP Growth

Stephen Machin webpage

John Van reenen webpage


News Posted: 21/11/2016      [Back to the Top]

Watertown Daily Times

Displaced workers vow to hold Trump to his economic promises

“I’m pretty skeptical Trump’s policies will reverse this process,” said John Van Reenen, a professor of economics at MIT who studies how technology and innovation affect profits and wages at companies. “These are fundamental forces that have more to do with technology than trade.” In particular, he said, across developed economies more national income is going to capital, that is, owners and shareholders, rather than labor. “We’ve seen this in many countries with different political systems,” he said. “It’s a winner-take-all world.”

Also in:  Aftenposten (Norway)

 

 


Related Links:
Watertown Daily Times - Displaced workers vow to hold Trump to his economic promises

CEP Growth

John Van reenen webpage


News Posted: 20/11/2016      [Back to the Top]

SNP Helensburgh

HARD BREXIT: 'the elephant in the room' at autumn statement

HUGE THREAT TO ECONOMY TO OVERSHADOW TORY BUDGET

The Scottish National Party has said that the threat of a hard Brexit will be the ‘elephant in the room’ at the Autumn Statement.

“The Treasury have carried out an assessment and its conclusions make for pretty grim reading.  “Tax receipts down between £38 and £66 billion a year after 15 years and GDP down as much as 9.5% if the UK reverts to WTO rules.  “The impact on productivity is as bad. The LSE (Centre for Economic Performance) suggest reduced trade will reduce productivity amounting to between 6.3% and 9.5% of GDP. That is the equivalent of up to £6,400 per household


Related Links:
SNP Helensburgh - HARD BREXIT: 'the elephant in the room' at autumn statement

BREXIT 2016: Policy Analysis from the Centre for Economic Performance

CEP Growth CEP Trade

Swati Dhingra webpage

Thomas Sampson webpage

Gianmarco Ottaviano webpage

John Van reenen webpage

Holger Breinlich webpage


News Posted: 20/11/2016      [Back to the Top]

Sunday Herald (Scotland)

'Tory austerity crippled the economy, and Brexit is going to ruin it - yet Theresa May still has no plan'

The impact on productivity is as bad. The LSE (Centre for Economic Performance) suggests reduced trade will reduce productivity amounting to between 6.3 per cent and 9.5 per cent of GDP.

This article was published online by the Sunday Herald (Scotland) on November 20, 2016

Link to article here

 


Related Links:
Sunday Herald (Scotland) - 'Tory austerity crippled the economy, and Brexit is going to ruin it - yet Theresa May still has no plan'

Brexit: the impact on UK trade and living standards

BREXIT 2016: Policy Analysis from the Centre for Economic Performance

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

The consequences of Brexit for UK trade and living standards

CEP Growth CEP Trade

Swati Dhingra webpage

Thomas Sampson webpage

Gianmarco Ottaviano webpage

John Van reenen webpage

Holger Breinlich webpage


News Posted: 20/11/2016      [Back to the Top]

Napi.hu (Hungary)

Szeretne 24 százalékos hozamot? - Akkor irány az iskola!/24 percent to yield? – you can head to the school!

Anna Valero, the London School of Economics, and John Van Reenen of MIT assessed exactly how much universities contributed to GDP. A total of 78 countries were examined over six decades, looking at 15 thousand Universities (from 1950 to 2010).


Related Links:
Napi.hu (Hungary) - Szeretne 24 százalékos hozamot? - Akkor irány az iskola!/24 percent to yield? – you can head to the school!

The Economic Impact of Universities: Evidence from Across the Globe

CEP Growth

Anna Valero webpage

John Van reenen webpage


News Posted: 18/11/2016      [Back to the Top]

Daily Journal (Illinois, USA)

Robert Samuelson: Trump's mission impossible?

… "Uncertainty is a real risk," said economist Michael Strain, of the American Enterprise, a right-of-center think tank. "I'd be reluctant to start a business now, and if I had one, I'd be reluctant to increase payroll by 15 percent until I saw how things shake out." There's more to this than an educated hunch. Three academic economists recently created an index of "policy uncertainty" to see whether greater uncertainty harmed economic growth. They found it did. (The index is based on a review of newspaper articles, reports from the Congressional Budget Office and the forecasts of economists.) Greater U.S. uncertainty "foreshadow[s] declines in investment, output and employment," wrote economists Scott R. Baker, of Northwestern University; Nicholas Bloom, of Stanford University; and Steven J. Davis, of the University of Chicago, in The Quarterly Journal of Economics.

Also in:
La Estrella De Panama
La mission imposible de Trump?

This article was published online by the Daily Journal (Illinois, USA) on November 15, 2016
Link to article here


Related Links:
Daily Journal (Illinois, USA) - Robert Samuelson: Trump's mission impossible?

Measuring Economic Policy Uncertainty

CEP Growth

Nick Bloom webpage


News Posted: 15/11/2016      [Back to the Top]

FXStreet

What will Brexit do to Britain's growth rate?

We have gone back to the post-Brexit growth forecasts made earlier this year by six organisations – the NIESR, the Treasury, the OECD, the London School of Economics, the Confederation for British Industry and Open Europe – in the run up to the referendum. Their methodologies and assumptions varied enormously, as did their results.

This article was published online by FXStreet on November 7, 2016.
Link to article here


Related Links:
FXStreet - What will Brexit do to Britain's growth rate?

‘ECONOMISTS FOR BREXIT’: A critique

CEP Trade CEP Growth

Swati Dhingra webpage

Holger Breinlich webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage


News Posted: 07/11/2016      [Back to the Top]

The Herald Scotland

Panic! We're led by a Dad's Army of Brexiter buffoons

It's beginning to dawn on Brexit voters that leaving the EU will be a disaster for working people. Inflation is back as a direct result of the 18 per cent devaluation of the pound since June 23. The forecast for price rises next year is three to four per cent, which doesn't sound like much but most of this is going to be on essentials such as food, clothing, energy and transport, which will disproportionately hit those on already tight family budgets. Meanwhile, the Guardian reported yesterday that the UK Cabinet has been presented with three independent reports (from the Treasury, the National Institute of Economic and Social Research and the London School of Economics) forecasting an average loss of 4.5 per cent of GDP by 2030. That is equivalent to a major economic recession spread over 15 years. We are talking about losing hundreds of billions of pounds in economic output if Britain is forced out of the EU customs union, the destination of half of Britain's exports. We know who will pay the price of the public spending cuts that will ride on the back of this fall in national wealth. Brexit ministers pooh-pooh this as pessimism and negativity from Bremoaners and Eurowhingers. But they've demonstrably failed to come up with any alternative forecasts, or indeed any coherent plan for dealing with the consequences of isolation. Intoxicated by their referendum victory, Brexiters seem to be more interested in fantasising about new Royal Yachts and inspecting the teeth of migrant children.

This article was published online by The Herald Scotland on October 20, 2016
Link to article here

Related publications
June 20, 2016
CEP, NIESR and IFS blog
Leaving the EU would almost certainly damage our economic prospects
Economists for Brexit: A Critique, Thomas Sampson, Swati Dhingra, Gianmarco Ottaviano and John Van Reenen, CEP Brexit Analysis Series, Paper No.6, May 2016
See the complete set of CEP Brexit Analysis research papers here

Related links
Holger Breinlich webpage
Swati Dhingra webpage
Hanwei Huang webpage
Gianmarco Ottaviano webpage
Thomas Sampson webpage
John Van Reenen webpage
Trade Programme webpage
Growth Programme webpage


News Posted: 20/10/2016      [Back to the Top]

International Business Times

Latest twists as the Cabinet clashes over Brexit, Single Markets and customs unions

Prime Minister Theresa May is in Brussels for her first EU summit as UK leader, in the same week as cabinet ministers were presented with a paper warning that Britain pulling out of the EU customs union could lead to a 4.5% fall in GDP by 2030. The paper presented to ministers - a mixture of studies by the Treasury, the think tank NIESR and the Centre for Economic Performance and London School of Economics - also said ports such as Dover and Holyhead, which handle a lot of road freight, could become log-jammed if customs checks on vehicles transporting goods were introduced.

This article was published online by the International Business Times on October 20, 2016
Link to article here

Related publications
June 20, 2016
CEP, NIESR and IFS blog
Leaving the EU would almost certainly damage our economic prospects
Economists for Brexit: A Critique, Thomas Sampson, Swati Dhingra, Gianmarco Ottaviano and John Van Reenen, CEP Brexit Analysis Series, Paper No.6, May 2016
See the complete set of CEP Brexit Analysis research papers here

Related links
Holger Breinlich webpage
Swati Dhingra webpage
Hanwei Huang webpage
Gianmarco Ottaviano webpage
Thomas Sampson webpage
John Van Reenen webpage
Trade Programme webpage
Growth Programme webpage


News Posted: 20/10/2016      [Back to the Top]

City A.M.

Leaked government documents reveal £75bn cost of hard Brexit

The calculations, sent to May's close-knit team of Brexit advisers, which includes Hammond, David Davis, Liam Fox and Boris Johnson, claim the UK economy would be 4.5 percent smaller by 2030 if it leaves the Customs Union as part of any Brexit deal.
... the claims which are arrived at by taking the average assessment obtained from the controversial work undertaken by the Treasury before the vote, along with pre-23 June studies from the NIESR and the London School of Economics, werer dismissed by several experts.

This article was published online by City A.M. on October 19, 2016,br> Link to article here

Related publications
June 20, 2016
CEP, NIESR and IFS blog
Leaving the EU would almost certainly damage our economic prospects
Economists for Brexit: A Critique, Thomas Sampson, Swati Dhingra, Gianmarco Ottaviano and John Van Reenen, CEP Brexit Analysis Series, Paper No.6, May 2016
See the complete set of CEP Brexit Analysis research papers here

Related links
Holger Breinlich webpage
Swati Dhingra webpage
Hanwei Huang webpage
Gianmarco Ottaviano webpage
Thomas Sampson webpage
John Van Reenen webpage
Trade Programme webpage
Growth Programme webpage


News Posted: 19/10/2016      [Back to the Top]

Guardian

Philip Hammond to be pressed on risks of UK leaving EU customs union

Chancellor to appear before Treasury select committee after Whitehall estimates show economy could shrink by 4.5%
Trade flows and foreign investment would also be hit hard by leaving the customs union, according to figures calculated for the Guardian on the same basis as those prepared by civil servants for the government's Brexit committee. The pro-EU thinktank Open Britain used the same studies - by the National Institute for Economic and Social Research, the Treasury and the London School of Economics - to suggest trade could decline by almost 12% and foreign investment by 10%, or more than £4bn, if Britain left the customs union.

This article was published by The Guardian on October 19, 2016
Link to article here

Related publications
June 20, 2016
CEP, NIESR and IFS blog
Leaving the EU would almost certainly damage our economic prospects
Economists for Brexit: A Critique, Thomas Sampson, Swati Dhingra, Gianmarco Ottaviano and John Van Reenen, CEP Brexit Analysis Series, Paper No.6, May 2016
See the complete set of CEP Brexit Analysis research papers here

Related links
Holger Breinlich webpage
Swati Dhingra webpage
Hanwei Huang webpage
Gianmarco Ottaviano webpage
Thomas Sampson webpage
John Van Reenen webpage
Trade Programme webpage
Growth Programme webpage


News Posted: 19/10/2016      [Back to the Top]

The Independent

Brexit: Theresa May warned Britain could lose 4.5% of its GDP if it leaves EU customs union

Cabinet ministers receive stark economic warnings against adopting a 'Norway-style' model
The UK could suffer a fall in GDP of 4.5% by 2030 if it leaves the EU customs union. Cabinet ministers were given stark warnings from multiple sources of the effect of adopting a Norway-style model, in a paper that was circulated at a meeting of Theresa May's Brexit cabinet committee, according to the Guardian. Studies by the Treasury, think tank NIESR and London School of Economics' Centre for Economic Performance, made pre-Brexit predictions of the impact of the UK remaining in the single market but leaving the customs union.

This article was published by The Independent on October 19, 2016
Link to article here

Related publications
June 20, 2016
CEP, NIESR and IFS blog
Leaving the EU would almost certainly damage our economic prospects
Economists for Brexit: A Critique, Thomas Sampson, Swati Dhingra, Gianmarco Ottaviano and John Van Reenen, CEP Brexit Analysis Series, Paper No.6, May 2016
See the complete set of CEP Brexit Analysis research papers here

Related links
Holger Breinlich webpage
Swati Dhingra webpage
Hanwei Huang webpage
Gianmarco Ottaviano webpage
Thomas Sampson webpage
John Van Reenen webpage
Trade Programme webpage
Growth Programme webpage


News Posted: 19/10/2016      [Back to the Top]

The Daily Mail

Ministers do battle over whether Britain should stay in the European customs union amid warnings quitting could mean a 4.5% hit to economy

Ministers are at loggerheads over whether to quit the European customs union amid warnings it could mean a 4.5 per cent hit to GDP.
Papers circulated at a meeting of the Brexit Cabinet committee apparently suggested that leaving could clog up trade through Britain's ports.
The research, by the Treasury, the thinktank NIESR, the Centre for Economic Performance and London School of Economics focus on a Norway-style model where the UK exits the single market but stays inside the customs union.

This article was published by The Daily Mail on October 19, 2016
Link to article here

Related publications
June 20, 2016
CEP, NIESR and IFS blog
Leaving the EU would almost certainly damage our economic prospects
Economists for Brexit: A Critique, Thomas Sampson, Swati Dhingra, Gianmarco Ottaviano and John Van Reenen, CEP Brexit Analysis Series, Paper No.6, May 2016
See the complete set of CEP Brexit Analysis research papers here

Related links
Holger Breinlich webpage
Swati Dhingra webpage
Hanwei Huang webpage
Gianmarco Ottaviano webpage
Thomas Sampson webpage
John Van Reenen webpage
Trade Programme webpage
Growth Programme webpage


News Posted: 19/10/2016      [Back to the Top]

The Independent

Britain, these are the five realistic choices for Brexit - take your pick

The Economists for Brexit group claim Brexit 5 would deliver a UK growth boom by 2020. But economists at the London School of Economics say this is ideologically driven pseudoscience and that unilateral free trade would, in fact, reduce UK GDP by between 6.3 per cent and 9.5 per cent by 2030, equivalent to between £4,200 and £6,300 per household.

This article was published by The Independent on October 19, 2016
Link to article here

Related Publications
Economists for Brexit: A Critique, Thomas Sampson, Swati Dhingra, Gianmarco Ottaviano and John Van Reenen, CEP Brexit Analysis Series, Paper No.6, May 2016

Related links
Swati Dhingra webpage
Gianmarco Ottaviano webpage
Thomas Sampson webpage
John Van Reenen webpage
Trade Programme webpage
Growth Programme webpage


News Posted: 19/10/2016      [Back to the Top]

The Guardian

Theresa May given stark warning about leaving customs union

The studies, by the Treasury, the thinktank NIESR and the Centre for Economic Performance and London School of Economics, predicted the effect on the British economy if the UK was to opt for a Norway-style model. That would involve remaining inside the single market but outside the customs union, within which countries set common external tariffs and so do not require customs checks.

This article was published by the Guardian on October 18, 2016
Link to article here

Related publications
June 20, 2016
CEP, NIESR and IFS blog
Leaving the EU would almost certainly damage our economic prospects
See the complete set of CEP Brexit Analysis research papers here

Related links
Holger Breinlich webpage
Swati Dhingra webpage
Hanwei Huang webpage
Gianmarco Ottaviano webpage
Thomas Sampson webpage
John Van Reenen webpage
Trade Programme webpage
Growth Programme webpage


News Posted: 18/10/2016      [Back to the Top]

LSE Business Review blog

New immigrants don't affect the job prospects of UK-born workers

New arrivals flock to the occupations and industries in which existing immigrants work, argues Barbara Petrongolo.
Most economists would argue that there is not much of a trade-off involved in this choice. The EU is the UK's largest trade partner (accounting for about half of UK trade flows) and losing access to the Single Market would inevitably damage the UK economy. Dhingra et al (2016a) calculate that in an optimistic scenario in which the UK remains a member of the EEA, it would suffer a 1.3% decline in GDP per head, mostly resulting from the impact of non-tariff trade barriers on trade flows.
But in a pessimistic scenario in which the UK leaves the EEA and trade between the UK and the EU is governed by World Trade Organization rules, the higher increase in trade costs would induce a fall in GDP per head of about 2.6%. To be added to this is the resulting fall in foreign direct investment, which is estimated to produce an even stronger decline in UK GDP than the increase in trade costs (Dhingra et al, 2016b).
Is it economically worthwhile to bear these costs in order to retain controls on immigration flows from the EU? EU immigration has represented the bulk of the recent growth in the share of foreign-born population in the UK, especially after the EU enlargement of 2004, and EU nationals have entered - to varying degrees - all sectors of the UK economy.

This article was published by the LSE Business Review blog on October 18, 2016
Link to article here

Related publications
Brexit Beckons: Thinking ahead, VoxEU ebook by leading economists including Barbara Petrongolo. See Chapter 14: 'Brexit and labour markets'
Brexit and the UK Labour Market, Barbara Petrongolo. Article in CentrePiece, Volume 21, Issue 2, Autumn 2016

Related links
Barbara Petrongolo webpage
Labour Markets Programme webpage
Barbara Petrongolo CEP publications webpage


News Posted: 18/10/2016      [Back to the Top]

Yahoo! Canada Finance

Why income inequality among white collar workers is growing

This article was based on the research of Luis Garicano and Thomas N. Hubbard.
Rising income inequality in the U.S. may seem like a 21st-century preoccupation, as workers agitate to ''occupy Wall Street'' from the left and to ''make America great again'' from the right. But the wage gap separating high-income Americans from everyone else has actually been growing since the late 1970s, even as nationwide productivity and overall wages have risen. Traditionally, economic explanations of this trend have fallen into two categories. Some assign responsibility to policies - for example, claiming that changes in tax policy in the 1980s and early 2000s increased earnings inequality. Others assign responsibility to changes in the supply and demand for labor - for example, arguing that the long shift in the U.S. economy from manufacturing to services may have boosted the demand for skilled workers relative to unskilled workers.
Thomas Hubbard, a professor of strategy at the Kellogg School, has a different idea. In two research papers coauthored with Luis Garicano of the London School of Economics, Hubbard makes a case that in addition to tax policy and labor-market shifts, organizational efficiencies have played a role in widening the income gap.

This article was published online by Yahoo! Canada Finance on October 16, 2016
Link to article here

Related links
Luis Garicano webpage
Growth Programme webpage
Luis Garicano CEP publications webpage


News Posted: 16/10/2016      [Back to the Top]

The Independent

Brexit: UK faces £350m-a-week ‘divorce bill' as result of leaving the EU

Economist Thomas Sampson told The Independent: ''It's important to remember that the exit bill would be a one-off payment and in the longer run it is likely to be dwarfed by the broader economic costs resulting from reduced integration with EU markets, particularly if the government pursues a hard Brexit.''

This article was published by The Independent on October 14, 2016
Link to article here

Related publications
Brexit: the impact on UK trade and living standards, Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen. Article in CentrePiece Volume 21, Issue 1, Summer 2016
The Consequences of Brexit for UK Trade and Living Standards, CEP Brexit Analysis No. 2 by Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen, March 2016

Related links
Thomas Sampson webpage
Trade Programme webpage


News Posted: 14/10/2016      [Back to the Top]

The Independent

Brexit: UK faces £350m-a-week ‘divorce bill' as result of leaving the EU

Economist Thomas Sampson told The Independent: ''It's important to remember that the exit bill would be a one-off payment and in the longer run it is likely to be dwarfed by the broader economic costs resulting from reduced integration with EU markets, particularly if the government pursues a hard Brexit.''

This article was published by The Independent on October 14, 2016
Link to article here

Related publications
Brexit: the impact on UK trade and living standards, Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen. Article in CentrePiece Volume 21, Issue 1, Summer 2016
The Consequences of Brexit for UK Trade and Living Standards, CEP Brexit Analysis No. 2 by Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen, March 2016

Related links
Thomas Sampson webpage
Trade Programme webpage


News Posted: 14/10/2016      [Back to the Top]

The Independent

Brexit: UK faces £350m-a-week ‘divorce bill' as result of leaving the EU

Economist Thomas Sampson told The Independent: ''It's important to remember that the exit bill would be a one-off payment and in the longer run it is likely to be dwarfed by the broader economic costs resulting from reduced integration with EU markets, particularly if the government pursues a hard Brexit.''

This article was published by The Independent on October 14, 2016
Link to article here

Related publications
Brexit: the impact on UK trade and living standards, Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen. Article in CentrePiece Volume 21, Issue 1, Summer 2016
The Consequences of Brexit for UK Trade and Living Standards, CEP Brexit Analysis No. 2 by Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen, March 2016

Related links
Thomas Sampson webpage
Trade Programme webpage


News Posted: 14/10/2016      [Back to the Top]

The Independent

Brexit: UK faces £350m-a-week ‘divorce bill' as result of leaving the EU

Economist Thomas Sampson told The Independent: ''It's important to remember that the exit bill would be a one-off payment and in the longer run it is likely to be dwarfed by the broader economic costs resulting from reduced integration with EU markets, particularly if the government pursues a hard Brexit.''

This article was published by The Independent on October 14, 2016
Link to article here

Related publications
Brexit: the impact on UK trade and living standards, Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen. Article in CentrePiece Volume 21, Issue 1, Summer 2016
The Consequences of Brexit for UK Trade and Living Standards, CEP Brexit Analysis No. 2 by Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen, March 2016

Related links
Thomas Sampson webpage
Trade Programme webpage


News Posted: 14/10/2016      [Back to the Top]

The Independent

Brexit: UK faces £350m-a-week ‘divorce bill' as result of leaving the EU

Economist Thomas Sampson told The Independent: ''It's important to remember that the exit bill would be a one-off payment and in the longer run it is likely to be dwarfed by the broader economic costs resulting from reduced integration with EU markets, particularly if the government pursues a hard Brexit.''

This article was published by The Independent on October 14, 2016
Link to article here

Related publications
Brexit: the impact on UK trade and living standards, Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen. Article in CentrePiece Volume 21, Issue 1, Summer 2016
The Consequences of Brexit for UK Trade and Living Standards, CEP Brexit Analysis No. 2 by Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen, March 2016

Related links
Thomas Sampson webpage
Trade Programme webpage


News Posted: 14/10/2016      [Back to the Top]

The Independent

Brexit: UK faces £350m-a-week ‘divorce bill' as result of leaving the EU

Economist Thomas Sampson told The Independent: ''It's important to remember that the exit bill would be a one-off payment and in the longer run it is likely to be dwarfed by the broader economic costs resulting from reduced integration with EU markets, particularly if the government pursues a hard Brexit.''

This article was published by The Independent on October 14, 2016
Link to article here

Related publications
Brexit: the impact on UK trade and living standards, Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen. Article in CentrePiece Volume 21, Issue 1, Summer 2016
The Consequences of Brexit for UK Trade and Living Standards, CEP Brexit Analysis No. 2 by Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen, March 2016

Related links
Thomas Sampson webpage
Trade Programme webpage


News Posted: 14/10/2016      [Back to the Top]

iNews

The politics behind pound sterling's volatile week

The pound has lost nearly 18 per cent of its value against the dollar since Britain voted Brexit, two per cent more than during the 2008 financial crash. On Thursday it reached its lowest point for 168 years. ''Movements in sterling in the past week have made it clear that news which increases the probability of a 'hard Brexit' reduces the value of the pound,'' Dr Thomas Sampson, an economics lecturer at the Centre for Economic Performance at LSE, told i. ''This reflects concerns that a 'hard Brexit' will increase the costs of trading with the EU and reduce the UK's output and living standards.''

This article was published by iNews on October 14, 2016
Link to article here

Related publications
Brexit: the impact on UK trade and living standards, Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen. Article in CentrePiece Volume 21, Issue 1, Summer 2016
The Consequences of Brexit for UK Trade and Living Standards, CEP Brexit Analysis No. 2 by Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen, March 2016

Related links
Thomas Sampson webpage
Trade Programme webpage


News Posted: 14/10/2016      [Back to the Top]

LSE Business Review blog

China's highly successful demand for technology transfer in high-speed trains

The rate of growth in technological innovations in China has increased significantly in the past two decades (see Figure 1). What's more, it is widely believed that the ability to learn from foreign technology and chase the global technological frontier relatively quickly has been a key contributor to China's growth miracle (Van Reenen and Yueh, 2012). The Chinese government has actively pursued what it calls a 'market for technology' policy: demanding that in return for having market access, foreign multinationals should develop technology cooperation with local firms.
Our research explores the extent to which international technology transfer spurs domestic innovation. We focus on the best example of the market for technology policy: the introduction of state-of-the-art technology into China's high-speed railways (HSR) during the massive expansion of its HSR system in recent years.

This article was posted online by the LSE Business Review blog on October 13, 2016
Link to the article here

Related publications
High-speed rail in China, Yatang Lin, Yu Qin and Zhuan Xie. Article in CentrePiece Volume 21, Issue 2, Autumn 2016
International Technology Transfer and Domestic Innovation: Evidence from the High-Speed Rail Sector in China, Yatang Lin, Yu Qin and Zhuan Zie, Centre for Economic Performance Discussion Paper No.1393, December 2015

Related links
Yatang Lin webpage
Trade Programme webpage


News Posted: 13/10/2016      [Back to the Top]

BBC Three Counties Radio

Jasmeen Khan

Caller mentions research by the Centre for Economic Performance at around 01:11:05
Caller: ... not in many cases a cynical attempt on the part of employers to simply cheat workers by paying them the lowest wages that they can. It's a competitive market that they are operating in and unless they are able to manage their costs then they go out of business.
Interviewer: ... language around the EU was people that felt workers from outside the country were taking jobs that they had a right to.
Caller: There is no evidence of that really.
Interviewer: you can't deny the strength of the sentiment
Caller: ... it's a great shame that that was allowed to take root. I can't remember any really effective methods on the part of any politicians, certainly from the mainstream parties, to do that. The only - in the FT this week there was a long article that refuted all these allegations about low wages - about migrant workers driving down wages - the London School of Economics, their Economic Performance Centre [sic] looked at all of this and refuted all of those arguments as well but there was nobody amongst the politicians who took up these arguments and ... [caller lost]

The radio programme was broadcast on BBC Three Counties Radio's Yasmeen Khan talk show on October 9, 2016
Link to the broadcast here

Related publications
Immigration and the UK Labour Market, Jonathan Wadsworth, Centre for Economic Performance 2015 Election Analysis No 19, February 2015
Brexit and the Impact of Immigration on the UK, Swati Dhingra, Gianmarco Ottaviano, John Van Reenen and Jonathan Wadsworth, CEP Brexit Analysis Series Paper No.05, May 2016
Technical Appendix to 'Brexit and the impact of immigration on the UK'
See the whole series of CEP Brexit Analysis papers here

Related links
Jonathan Wadsworth webpage
Swati Dhingra webpage
Gianmarco Ottaviano webpage
John Van Reenen webpage
Labour Markets Programme webpage
Trade Programme webpage
Growth Programme webpage


News Posted: 09/10/2016      [Back to the Top]

The Independent

Jeremy Corbyn's reaction to what Theresa May said about immigration was the last thing Labour needed

[Jeremy] Corbyn too is proposing a solution ''which would reduce numbers'', despite the fact in its 2015 General Election briefing, the Centre for Economic Performance at the London School of Economics observed: ''There is still no evidence of an overall negative impact of immigration on jobs, wages, housing or the crowding out of public services.''

This article was published online by the Independent on October 6, 2016
Link to article here

Related publications
Immigration and the UK Labour Market, Jonathan Wadsworth, Centre for Economic Performance 2015 Election Analysis No 19, February 2015
Brexit and the Impact of Immigration on the UK, Swati Dhingra, Gianmarco Ottaviano, John Van Reenen and Jonathan Wadsworth, CEP Brexit Analysis Series Paper No.05, May 2016
Technical Appendix to 'Brexit and the impact of immigration on the UK'
See the whole series of CEP Brexit Analysis papers here

Related links
Jonathan Wadsworth webpage
Swati Dhingra webpage
Gianmarco Ottaviano webpage
John Van Reenen webpage
Labour Markets Programme webpage
Trade Programme webpage
Growth Programme webpage


News Posted: 06/10/2016      [Back to the Top]

Financial Times

Proposals on lines of foreign workers cause outcry

Academic studies also find little link between migration and unemployment. Economists from the Centre for Economic Performance at the London School of Economics say that when they look at the areas with the largest increases in EU immigration, these have not had the sharpest falls in employment or wages since 2008.

This article was published by the Financial Times on October 5, 2016
Link to article here

Related publications
Immigration and the UK Labour Market, Jonathan Wadsworth, Centre for Economic Performance 2015 Election Analysis No 19, February 2015
Brexit and the Impact of Immigration on the UK, Swati Dhingra, Gianmarco Ottaviano, John Van Reenen and Jonathan Wadsworth, CEP Brexit Analysis Series Paper No.05, May 2016
Technical Appendix to 'Brexit and the impact of immigration on the UK'
See the whole series of CEP Brexit Analysis papers here

Related links
Jonathan Wadsworth webpage
Swati Dhingra webpage
Gianmarco Ottaviano webpage
John Van Reenen webpage
Labour Markets Programme webpage
Trade Programme webpage
Growth Programme webpage


News Posted: 05/10/2016      [Back to the Top]

The Telegraph (online)

On immigration and jobs, Theresa May employs the post-truth politics of Donald Trump

I am one of those people who, as she anticipated, have a bit of a problem with something Mrs May said about immigration:

If you're one of those people who lost their job, who stayed in work but on reduced hours, took a pay cut as household bills rocketed, or - and I know a lot of people don't like to admit this - someone who finds themselves out of work or on lower wages because of low-skilled immigration, life simply doesn't seem fair.

... it may be worth looking at another paper by the the Centre for Economic Performance at the London School of Economics.

It concludes thus:

There is still no evidence of an overall negative impact of immigration on jobs, wages, housing or the crowding out of public services. Any negative impacts on wages of less skilled groups are small. One of the largest impacts of immigration seems to be on public perceptions.

This article was published online by The Telegraph on October 5, 2016
Link to article here

Also in
MSN.com
On immigration and jobs, Theresa May employs the post-truth politics of Donald Trump

Related publications
Brexit and the Impact of Immigration on the UK, Swati Dhingra, Gianmarco Ottaviano, John Van Reenen and Jonathan Wadsworth, CEP Brexit Analysis Series Paper No.05, May 2016
Technical Appendix to 'Brexit and the impact of immigration on the UK'
See the whole series of CEP Brexit Analysis papers here

Related links
Jonathan Wadsworth webpage
Swati Dhingra webpage
Gianmarco Ottaviano webpage
John Van Reenen webpage
Labour Markets Programme webpage
Trade Programme webpage
Growth Programme webpage


News Posted: 05/10/2016      [Back to the Top]

The Financial Times

Proposals on lists of foreign workers cause outcry

Economists see little to link migration and unemployment
There is little evidence that migrants have displaced British workers from jobs. Indeed, the employment rate for UK nationals is now 74.6 per cent, the highest since records began in 1997. Academic studies also find little link between migration and unemployment. Economists from the Centre for Economic Performance at the London School of Economics say that when they look at the areas with the largest increases in EU immigration, these have not had the sharpest falls in employment or wages since 2008.

This article was published by The Financial Times on October 6, 2016
Link to article here

Related publications
Brexit and the Impact of Immigration on the UK, Swati Dhingra, Gianmarco Ottaviano, John Van Reenen and Jonathan Wadsworth, CEP Brexit Analysis Series Paper No.05, May 2016
Technical Appendix to 'Brexit and the impact of immigration on the UK'
See the whole series of CEP Brexit Analysis papers here

Related links
Jonathan Wadsworth webpage
Swati Dhingra webpage
Gianmarco Ottaviano webpage
John Van Reenen webpage
Labour Markets Programme webpage
Trade Programme webpage
Growth Programme webpage


News Posted: 05/10/2016      [Back to the Top]

The Independent

Immigrants who 'consume' Britain's wealth are not welcome, Liam Fox says

A study by the London School of Economics published earlier this year found that EU immigration had no negative impact on British wages, jobs or public services. That research echoed the findings of countless other studies on the issue. The Government has yet to set out any particular vision for what immigration policy might look like after Brexit, though it has said it wants to end the status quo of freedom of movement.

This article was published by The Independent on October 5, 2016
Link to article here

Related publications
Brexit and the Impact of Immigration on the UK, Swati Dhingra, Gianmarco Ottaviano, John Van Reenen and Jonathan Wadsworth, CEP Brexit Analysis Series Paper No.05, May 2016
Technical Appendix to 'Brexit and the impact of immigration on the UK'
See the whole series of CEP Brexit Analysis papers here

Related links
Jonathan Wadsworth webpage
Swati Dhingra webpage
Gianmarco Ottaviano webpage
John Van Reenen webpage
Labour Markets Programme webpage
Trade Programme webpage
Growth Programme webpage


News Posted: 05/10/2016      [Back to the Top]

The Economist

Free exchange: Down to earth

Brexiteers need to respect gravity models of international trade
Furthermore, according to Swati Dhingra of the London School of Economics, gravity models do a good job of predicting actual trading relationships today.

This article was published in The Economist on October 1, 2016
Link to article here

Related links
Swati Dhingra webpage
Trade Programme webpage
Swati Dhingra CEP publications webpage


News Posted: 01/10/2016      [Back to the Top]

The Economist

Free exchange: Down to earth

Brexiteers need to respect gravity models of international trade
Furthermore, according to Swati Dhingra of the London School of Economics, gravity models do a good job of predicting actual trading relationships today.

This article was published in The Economist on October 1, 2016
Link to article here

Related links
Swati Dhingra webpage
Trade Programme webpage
Swati Dhingra CEP publications webpage


News Posted: 01/10/2016      [Back to the Top]

The Economist

Free exchange: Down to earth

Brexiteers need to respect gravity models of international trade
Furthermore, according to Swati Dhingra of the London School of Economics, gravity models do a good job of predicting actual trading relationships today.

This article was published in The Economist on October 1, 2016
Link to article here

Related links
Swati Dhingra webpage
Trade Programme webpage
Swati Dhingra CEP publications webpage


News Posted: 01/10/2016      [Back to the Top]

The Economist

Free Trade: Coming and going

Truth and myth about the effects of openness to trade
In other rich countries, regions or industries with heavy exposure to Chinese imports also suffered material losses in factory jobs. A study of Spain's jobs market by Vicente Donoso, of the Complutense University of Madrid, and others found that provinces with the greatest exposure to Chinese imports saw the largest falls in the share of manufacturing employment between 1999 and 2007, but this was compensated for by an increase in non-factory jobs. Research in Norway, though, found that the main effect was to raise unemployment. Joao Paulo Pessoa of the London School of Economics found that British workers in industries exposed to high levels of import competition from China spent more time out of work than those in other industries. A wide-ranging study of the effect on Germany of more trade with China and eastern Europe in the two decades after 1988 concluded that industries competing with imports suffered job losses, but these were outweighed by job gains in regions focused on export industries. Those gains were due almost entirely to trade with eastern Europe, not China.

This article was published in The Economist on October 1, 2016
Link to article here

Related publications
China shock: the impact on trade and incomes, Joao Paulo Pessoa. Article in CentrePiece Volume 21, Volume 2, Summer 2016
This article summarises International Competition and Labor Market Adjustment, Joao Paulo Pessoa, Centre for Economic Performance Discussion Paper No. 1411, March 2016

Related links
Joao Paulo Pessoa is a research associate in CEP's growth programme
Growth Programme webpage


News Posted: 01/10/2016      [Back to the Top]

Sputnik News

Soft Power: This is how Chinese companies conquer Britain

According to estimates by the London School of Economics, Brexit will result in a 22 percent drop in direct investment into the British economy and a 3.4 percent drop in revenues.

This article was published online by Sputnik News on September 27, 2016
Link to article here

Related publications
See the complete set of CEP Brexit Analysis research papers here

Related links
Swati Dhingra webpage
Hanwei Huang webpage
Gianmarco Ottaviano webpage
Thomas Sampson webpage
John Van Reenen webpage
Trade Programme webpage
Growth Programme webpage


News Posted: 27/09/2016      [Back to the Top]

The East Anglian Times

Will you harm your child's academic progress if you buy them a new iPhone 7?

Last year, a study by the London School of Economics claimed schools where mobile phones were banned saw test scores rise by an average of 6%. Perhaps a study should look at the gains such a move could make when it comes to children's emotional well-being. I can't help thinking it would be worth more than 6%.

This article was published by The East Anglian Times on September 25, 2016
Link to article here

Also in:
Ipswich Star
Will you harm your child's academic progress if you buy them a new iPhone 7?

Related Publications
In brief ... Phone home: should mobiles be banned in schools?, Louis-Philippe Beland and Richard Murphy, CentrePiece Volume 20, Issue 1, Summer 2015"
Ill Communication: Technology, Distraction and Student Performance, Louis-Philippe Beland and Richard Murphy, Centre for Economic Performance Discussion Paper No.1350, May 2015

Related links
Richard Murphy webpage
Education and Skills Programme webpage


News Posted: 25/09/2016      [Back to the Top]

Washington Center for Equitable Growth

Must-Read: Anna Valero and John Van Reenen: The Economic Impact of Universities: Evidence from Across the Globe

Must-Read: Anna Valero and John Van Reenen: 'The Economic Impact of Universities: Evidence from Across the Globe'

This article was published online by the Washington Center for Equitable Growth on September 22, 2016
Link to article here

Related articles
Growth multiplier: how university expansion increases national income, Anna Valero and John Van Reenen, LSE British Politics and Policy blog, March 24, 2016
The Economic Impact of Universities: Evidence from Across the Globe, Anna Valero and John Van Reenen, Centre for Economic Performance Discussion Paper No.1444, August 2016

Related links
Anna Valero webpage
John Van Reenen webpage
Growth Programme webpage


News Posted: 22/09/2016      [Back to the Top]

La Croix.com (France)

Brexit, l'économie britannique fait de la résistance

With a major question mark: foreign groups continue to invest in the country? The Centre for Economic Performance at the London School of Economics estimated that membership of the EU has indeed increased foreign direct investment in the country to 28%.

This article was published online by La Croix.com on September 21, 2016
Link to article here

Related publications
See the complete set of CEP Brexit Analysis research papers here

Related links
Swati Dhingra webpage
Hanwei Huang webpage
Gianmarco Ottaviano webpage
Thomas Sampson webpage
John Van Reenen webpage
Trade Programme webpage
Growth Programme webpage


News Posted: 21/09/2016      [Back to the Top]

The Age (Australia)

For faster growth, companies need better chief executives

A paper by Nicholas Bloom and others, from Stanford University, finds that well-managed firms perform better than their peers and make a greater contribution to a nation's total-factor productivity. ... Bloom and colleagues estimate that, across all countries, 29 per cent of the difference in productivity between the US - which has the highest management effectiveness scores - and other nations can be explained by how well businesses are run.

This article was published online by the Age (Australia) on September 18, 2016
Link to article here

Also in:
Canberra Times
For faster growth, companies need better chief executives
[No link available]

Related publications
Management Practices Across Firms and Countries, Nicholas Bloom, Christos Genakos, Raffaella Sadun and John Van Reenen, Centre for Economic Performance Discussion Paper No.1109, December 2011
Management Practices: the impact on company performance, Nicholas Bloom, Stephen Dorgan, John Dowdy, Tom Rippin and John Van Reenen. Article in CentrePiece Volume 10, Issue 2, Summer 2005

Related links
Nicholas Bloom webpage
Christos Genakos webpage
Raffaella Sadun webpage
John Van Reenen webpage
Growth Programme webpage


News Posted: 18/09/2016      [Back to the Top]

The Sydney Morning Herald

Faster growth demands better chief executives

A paper by Nicholas Bloom and others, from Stanford University, finds that well-managed firms perform better than their peers and make a greater contribution to a nation's total-factor productivity. ... Bloom and colleagues estimate that, across all countries, 29 per cent of the difference in productivity between the US - which has the highest management effectiveness scores - and other nations can be explained by how well businesses are run.

This article was published online by The Sydney Morning Herald (Australia) on September 18, 2016
Link to article here

Related publications
Management Practices Across Firms and Countries, Nicholas Bloom, Christos Genakos, Raffaella Sadun and John Van Reenen, Centre for Economic Performance Discussion Paper No.1109, December 2011
Management Practices: the impact on company performance, Nicholas Bloom, Stephen Dorgan, John Dowdy, Tom Rippin and John Van Reenen. Article in CentrePiece Volume 10, Issue 2, Summer 2005

Related links
Nicholas Bloom webpage
Christos Genakos webpage
Raffaella Sadun webpage
John Van Reenen webpage
Growth Programme webpage


News Posted: 18/09/2016      [Back to the Top]

The Conversation

How universities boost economic growth

Article by Anna Valero
In 1900, just 1% of young people in the world were enrolled at university. Over the course of the next century this exploded to 20%, as recognition of the value of such an education became widespread. And it turns out 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. These were the findings of my recent paper with colleague John Van Reenen, which analysed new data from UNESCO's World Higher Education Database of 15,000 universities across 78 countries. We examined the relationship between new universities and regional growth between 1950 and 2010.

This article was published online by The Conversation on September 15, 2016
Link to article here

Related publications
The Economic Impact of Universities: Evidence from Across the Globe, Anna Valero and John Van Reenen, Centre for Economic Performance Discussion Paper No.1444, August 2016

Related links
Anna Valero webpage
Growth Programme webpage


News Posted: 15/09/2016      [Back to the Top]

Bloomberg Gadfly

So long, pay rise

See this study by Joao Paulo Pessoa and John Van Reenen.

This article was published online by the Bloomberg Gadfly blog on September 2, 2016
Link to article here

Related Publications
Decoupling of Wage Growth and Productivity Growth? Myth and Reality Joao Paulo Pessoa, John Van Reenen, Centre for Economic Performance Discussion Paper No.1246, October 2013
Wage growth and productivity growth: the myth and reality of 'decoupling', Joao Paulo Pessoa and John Van Reenen. Artice in CentrePiece Volume 18, Issue 2, Autumn 2013

Related Links
John Van Reenen webpage
Growth Programme webpage


News Posted: 02/09/2016      [Back to the Top]

Tim Harford - The Undercover Economist blog

Are universities worth it?

A recent research paper by Anna Valero and John Van Reenen of the LSE takes a statistical look at universities around the world, asking whether they seem to boost their regional economies. (Examples of a ''region'' include Quebec, Illinois, Wales, and New Zealand's North Island.)

This blog was published by Tim Harford - Undercover Economist on August 31, 2016
Link to article here

Related articles
Growth multiplier: how university expansion increases national income Anna Valero and John Van Reenen, LSE British Politics and Policy blog, March 24, 2016
The Economic Impact of Universities: Evidence from Across the Globe Anna Valero and John Van Reenen, Centre for Economic Performance Discussion Paper No.1444, August 2016

Related links
Anna Valero webpage
John Van Reenen webpage
Growth Programme webpage

News Posted: 31/08/2016      [Back to the Top]

Cronista.com

La Universidad a veces solo sirve para perder el tiempo

 Una reciente investigacion de Anna Valero y John Van Reenen de la LSE analiza estadisticamente a las casas de altos estudios de todo el mundo

Por lo tanto, el argumento a favor de construir mas universidades debe fundamentarse en aspectos mas prosaicos. Una reciente investigacion de Anna Valero y John Van Reenen de la LSE analiza estadisticamente a las casas de altos estudios de todo el mundo, preguntandoles si ellas creian que impulsaban sus economias regionales. (Ejemplos de una "region" son Quebec, Illinois y Gales)

This article appeared in Cronista.com on 29 August 2016 Link to article

See Also
Wednesday 24 August Insider.gr (Greece) Worth the battle for a place at the University?

Related articles
Growth multiplier: how university expansion increases national income Anna Valero and John Van Reenen, LSE British Politics and Policy blog, March 24, 2016
The Economic Impact of Universities: Evidence from Across the Globe Anna Valero and John Van Reenen, Centre for Economic Performance Discussion Paper No.1444, August 2016

Related links
Anna Valero webpage
John Van Reenen webpage
Growth Programme webpage

News Posted: 29/08/2016      [Back to the Top]

Daily Republic

The age of the never-ending performance review: Justin Fox

There’s also a pretty good chance that these new performance-management practices will have the desired effect, at some companies at least. For the past decade, Stanford economist Nicholas Bloom and a rotating crew of co-authors (most consistently MIT’s John van Reenen) have been documenting that the management best practices developed at high-performing companies and consulting firms and taught at business schools really do make companies more productive and profitable – and that HR practices that effectively identify and reward the most-productive workers are a big part of what separates successful companies from the rest.

This article appeared in the Daily Republic on 28 August 2016 Link to article

Related publications
Management Practices Across Firms and Countries, Nicholas Bloom, Christos Genakos, Raffaella Sadun and John Van Reenen, Centre for Economic Performance Discussion Paper No.1109, December 2011
Management Practices: the impact on company performance, Nicholas Bloom, Stephen Dorgan, John Dowdy, Tom Rippin and John Van Reenen. Article in CentrePiece Volume 10, Issue 2, Summer 2005

Related links
Nicholas Bloom webpage
Christos Genakos webpage
Raffaella Sadun webpage
John Van Reenen webpage
Growth Programme webpage

News Posted: 28/08/2016      [Back to the Top]

Dagsavisen - Nyemeninger (Norway)

Do we need more goals for society than economic growth?

Therefore, among others, economics professor Richard Layard of the London School of Economics urged to measure citizens' quality of life. OECD har i den såkalte «Bedre liv-indeksen» utarbeidet indikatorer på en rekke områder fra sysselsetting og bolig til frivillig aktivitetsliv og miljø, for å forsøke å måle livskvalitet i ulike land. OECD in the so-called "better life index" compiled indicators on a range of areas from employment and housing to volunteer aktivitetsliv and environment, in an attempt to measure quality of life in different countries. KrF fremmet forslag i Stortinget i 2009 om at også Norge burde gjøre dette. KrF proposed in Parliament in 2009 that also Norway should do this. Dette har resultert i en omtale av livskvalitetsindikatorer i Nasjonalbudsjettet. This has resulted in a review of quality of life indicators in the National Budget.

This article appeared on Dagsavisen - Nyemeninger (Norway) on 26 August 2016 Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage
News Posted: 26/08/2016      [Back to the Top]

Dagsavisen - Nyemeninger (Norway)

Do we need more goals for society than economic growth?

Therefore, among others, economics professor Richard Layard of the London School of Economics urged to measure citizens' quality of life. OECD har i den såkalte «Bedre liv-indeksen» utarbeidet indikatorer på en rekke områder fra sysselsetting og bolig til frivillig aktivitetsliv og miljø, for å forsøke å måle livskvalitet i ulike land. OECD in the so-called "better life index" compiled indicators on a range of areas from employment and housing to volunteer aktivitetsliv and environment, in an attempt to measure quality of life in different countries. KrF fremmet forslag i Stortinget i 2009 om at også Norge burde gjøre dette. KrF proposed in Parliament in 2009 that also Norway should do this. Dette har resultert i en omtale av livskvalitetsindikatorer i Nasjonalbudsjettet. This has resulted in a review of quality of life indicators in the National Budget.

This article appeared on Dagsavisen - Nyemeninger (Norway) on 26 August 2016 Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage
News Posted: 26/08/2016      [Back to the Top]

Dagsavisen - Nyemeninger (Norway)

Do we need more goals for society than economic growth?

Therefore, among others, economics professor Richard Layard of the London School of Economics urged to measure citizens' quality of life. OECD har i den såkalte «Bedre liv-indeksen» utarbeidet indikatorer på en rekke områder fra sysselsetting og bolig til frivillig aktivitetsliv og miljø, for å forsøke å måle livskvalitet i ulike land. OECD in the so-called "better life index" compiled indicators on a range of areas from employment and housing to volunteer aktivitetsliv and environment, in an attempt to measure quality of life in different countries. KrF fremmet forslag i Stortinget i 2009 om at også Norge burde gjøre dette. KrF proposed in Parliament in 2009 that also Norway should do this. Dette har resultert i en omtale av livskvalitetsindikatorer i Nasjonalbudsjettet. This has resulted in a review of quality of life indicators in the National Budget.

This article appeared on Dagsavisen - Nyemeninger (Norway) on 26 August 2016 Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage
News Posted: 26/08/2016      [Back to the Top]

Dagsavisen - Nyemeninger (Norway)

Do we need more goals for society than economic growth?

Therefore, among others, economics professor Richard Layard of the London School of Economics urged to measure citizens' quality of life. OECD har i den såkalte «Bedre liv-indeksen» utarbeidet indikatorer på en rekke områder fra sysselsetting og bolig til frivillig aktivitetsliv og miljø, for å forsøke å måle livskvalitet i ulike land. OECD in the so-called "better life index" compiled indicators on a range of areas from employment and housing to volunteer aktivitetsliv and environment, in an attempt to measure quality of life in different countries. KrF fremmet forslag i Stortinget i 2009 om at også Norge burde gjøre dette. KrF proposed in Parliament in 2009 that also Norway should do this. Dette har resultert i en omtale av livskvalitetsindikatorer i Nasjonalbudsjettet. This has resulted in a review of quality of life indicators in the National Budget.

This article appeared on Dagsavisen - Nyemeninger (Norway) on 26 August 2016 Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage
News Posted: 26/08/2016      [Back to the Top]

Dagsavisen - Nyemeninger (Norway)

Do we need more goals for society than economic growth?

Therefore, among others, economics professor Richard Layard of the London School of Economics urged to measure citizens' quality of life. OECD har i den såkalte «Bedre liv-indeksen» utarbeidet indikatorer på en rekke områder fra sysselsetting og bolig til frivillig aktivitetsliv og miljø, for å forsøke å måle livskvalitet i ulike land. OECD in the so-called "better life index" compiled indicators on a range of areas from employment and housing to volunteer aktivitetsliv and environment, in an attempt to measure quality of life in different countries. KrF fremmet forslag i Stortinget i 2009 om at også Norge burde gjøre dette. KrF proposed in Parliament in 2009 that also Norway should do this. Dette har resultert i en omtale av livskvalitetsindikatorer i Nasjonalbudsjettet. This has resulted in a review of quality of life indicators in the National Budget.

This article appeared on Dagsavisen - Nyemeninger (Norway) on 26 August 2016 Link to article

Related links
Richard Layard webpage
Wellbeing Programme webpage
News Posted: 26/08/2016      [Back to the Top]

The Scottish Daily Record

Scottish Government warns on Brexit cost

The Scottish Government estimates the impact of Brexit would be the equivalent of reducing the Scottish Government budget by between six and 13 per cent. The briefing paper figures are drawn from studies previously published by the London School of Economics' Centre for Economic Performance, HM Treasury, the National Institute of Economic and Social Research, PwC and the Organisation for Economic Co-operation and Development.

This article appeared in the Scottish Daily Record on 24 August 2016. Link to article

Related publications
See the complete set of CEP Brexit Analysis research papers here .

Related links
Swati Dhingra webpage
Hanwei Huang webpage
Gianmarco Ottaviano webpage
Thomas Sampson webpage
John Van Reenen webpage
Trade Programme webpage
Growth Programme webpage

News Posted: 24/08/2016      [Back to the Top]

LBC Radio

Nick Ferrari

Dennis Novy was interviewed live on LBC radio with Nick Ferrari on 24 August 2016. The topic was Brexit and whether we should have a second referendum. The background was Owen Smith's announcement of having a second referendum if he were to become prime minister.

This interview was broadcast on LBC Radio on August 24, 2016
[No link available.]

Related links
Dennis Novy webpage
Trade Programme webpage


News Posted: 24/08/2016      [Back to the Top]

The Financial Times.com

Are universities worth it?

So the case for building more universities needs to rest on more prosaic grounds. A recent research paper by Anna Valero and John Van Reenen of the LSE takes a statistical look at universities around the world, asking whether they seem to boost their regional economies.

This article appeared in the Financial Times.com on 24 August 2016. Link to article

Related article
Growth multiplier: how university expansion increases national income, Anna Valero and John Van Reenen, LSE British Politics and Policy blog, March 24, 2016

Related publications
The Economic Impact of Universities: Evidence from Across the Globe, Anna Valero and John Van Reenen, Centre for Economic Performance Discussion Paper No.1444, August 2016

Related links
Anna Valero webpage
John Van Reenen webpage
Growth Programme webpage


News Posted: 24/08/2016      [Back to the Top]

Accuracy in Academia

Do colleges + universities = economic growth?

''We estimate fixed effects models at the sub-national level between 1950 and 2010 and find that increases in the number of universities are positively associated with future growth of GDP per capita (and this relationship is robust to controlling for a host of observables, as well as unobserved regional trends),'' Anna Valero and John Van Reenen, of the London School of Economics, write in a working paper that they published this month at the National Bureau of Economic Research (NBER). NBER is housed at Harvard

This article was published online by Accuracy in Academia on August 23, 2016
Link to article here

Related article
Growth multiplier: ho